empirical evidence of the relationship between stock prices with each of the macroeconomic variables: exchange rate, inflation rate, money supply variables and so on. The knowledge of the prevailing relationship between stock prices one the one hand, and micro variables like market price/ earnings, growth rate in market capitalization, dividend yield and macro variables, like inflation, industrial production, foreign remittance, GDP and the like on the other hand, is predominantly important in view
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Distribution of U.S. Exports and Imports U.S. Balance of Trade Trend International Trade Issues Events That Increase International Trade Trade Friction Factors Affecting International Trade Flows Impact of Inflation Impact of National Income Impact of Government Policies Impact of Exchange Rates Interaction of Factors Correcting a Balance of Trade Deficit Limitations of a Weak Home Currency Solution International Capital Flows
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expected one period inflation rate. The analysis explores interest rates and inflation and the non-stationary process. The Fisher hypothesis tests the long-term coupon-bearing bonds when presuming nominal interest rates and inflation to be non-stationary stochastic processes. In the article descriptions on the issues of whether interest rates are measuring in pre-tax or after-tax terms. The hypothesis questions the usefulness that interest rates contain regarding future inflation and if it is a concern
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exchange rates in Vietnam from 2008 to 2010 6 II 2. The exchange rates in Vietnam in 2011 8 III. Impacts on exchange rates 10 III 1. Balance of Trade 10 III 2. Balance of Payments 11 III 3. Monetary Policy 12 III 4. Differentials in Inflation 12 III 5. Differentials in Interest Rates 12 III 6. Public Debt 12 III 7. Speculation 13 III 8. Employment Outlook 13 III 9. Political Stability and Economic Performance 13 IV. Adjusted policies of Vietnamese government on exchange
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Unemployment Rate 2. Unemployment Rate and Gross Domestic Product Growth Rate 3. Savings 4. Savings and Gross Domestic Product Growth Rate 5. Inflation Rate 6. Inflation Rate and Gross Domestic Product Growth Rate III. Operational Framework 1. Presentation of Data 2. Description of Variables
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With inflation money becomes less valuable so costs go up. Government benefits from inflation, it's a tax that doesn't need legislation. They can continue to spend without having to pass tax increases and receive an increase in revenue from higher wages . The citizen looses because the money they earned has lost value in purchasing power and they are penalized for saving. Inflation can be very damaging for a number of reasons. First, people may be left worse off if prices rise faster than their
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would have otherwise happened. The GDP growth rate was pegged at 3% in 2013 which was the highest among G7 countries. Also, inflation seemed to drop to a healthy 1.5% and unemployment was at the minimum. However, problems keep arising and there are more uncertainties that loom large. The fact that the productivity if labor has fallen down over the years has been a great cause of concern. The other uncertainty is that to bring the interest rate back to normal which will affect half a million households
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In the Oct. 28-29 FOMC meeting, the committee is expected to make decisions on the continuity of its asset repurchase program and the federal funds rate. Fed Chair Yellen should present the fact that in Q3, the economy has continued to grow at 4% rate. And that unemployment rate has dropped to a low 5.9%. These positive signals indicate a healthy economy moving towards maximum employment and price stability. Chair Yellen should first confirm that the current $5 billion asset repurchase program will
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defined as the rate which is charged or paid for the use of money. In other words, the cost for the use of money is called interest rate. Interest rate can be stated as real or nominal. Real rate of interest excludes inflation but nominal interest rate includes the effect of inflation. Factors influencing interest rate could be discussed differently from various field of study such as finance and accounting. However, this paper seeks to discussed, theoretically, only the major economic factors influencing
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short run. – How costly fluctuations in economic activity can be. – The relationship between output and inflation. – A simple version of the short-run model that will help us understand these patterns. 9.2 The Long Run, the Short Run, and Shocks • The long-run model: – Determines potential output and long-run inflation. • The short-run model: – Determines current output and current inflation. 9.2 The Long Run, the Short Run, and Shocks • Potential output – The amount the economy would
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