Category: Inflation

Inflation is essentially the rise in general price of goods and services over a period of time in economics. It is more commonly referred to as price inflation in now. It can also be understood as the decline in the real value of money and consumers purchasing power. As inflation starts taking its toll, each…

Table of Contents Introduction Phenomenon of inflation Inflation in China Inflation in India Conclusion References Introduction The tie between economic growth and the role of inflation has been of interest to the economist, especially now in the light of the global financial crunch. The emergence of new and rapidly growing economies has presented economists and…

Table of Contents Introduction Phenomenon of inflation Inflation in China Inflation in India Conclusion References Introduction The tie between economic growth and the role of inflation has been of interest to the economist, especially now in the light of the global financial crunch. The emergence of new and rapidly growing economies has presented economists and…

Table of Contents Introduction Balance of payments Inflation Exchange Rate Conclusion References Introduction Government economic policies have been known in the world over to take shapes depending on the economic situation at the given times. Major drivers of shifts in economic policies include the desire to control high rates of inflation, control levels of exchange…

Table of Contents Introduction Balance of payments Inflation Exchange Rate Conclusion References Introduction Government economic policies have been known in the world over to take shapes depending on the economic situation at the given times. Major drivers of shifts in economic policies include the desire to control high rates of inflation, control levels of exchange…

Expansionist fiscal policy is a series of government measures aimed at increasing aggregate demand. They involve cutting net taxes or increasing government purchases and may reduce the number of unemployed. According to the Keynesian theory, such actions should be taken only to overcome the economic recession and stabilize the countrys economic activities. Some governments may…

Measuring inflation is crucial for a countrys economic management and effective response to market changes. Many tools have been introduced to correctly and effectively measure inflation, yet the Consumer Price Index (CPI) remains the most widely used in many countries, including the USA. By representing changes in prices of all goods and services purchased for…

Expansionist fiscal policy is a series of government measures aimed at increasing aggregate demand. They involve cutting net taxes or increasing government purchases and may reduce the number of unemployed. According to the Keynesian theory, such actions should be taken only to overcome the economic recession and stabilize the countrys economic activities. Some governments may…

Measuring inflation is crucial for a countrys economic management and effective response to market changes. Many tools have been introduced to correctly and effectively measure inflation, yet the Consumer Price Index (CPI) remains the most widely used in many countries, including the USA. By representing changes in prices of all goods and services purchased for…

Table of Contents Problems of Measuring Cost of Living Reasons for the Problem to Exist Solutions Suggested in the Article Reference Problems of Measuring Cost of Living Fluctuating in a seemingly unpredictable way, inflation rates are shaped by a range of factors, one of which is the change in the cost of living. However, measuring…