Essays on Inflation Rate

Introduction

Pre-Spanish Era Religious Practices Political Structure Material Culture Spanish Occupation Material Culture

The Culture after the Spanish Conquest

Religious Influence of the Catholic Spanish and the Remaining Ethnic Groups Influences of the Protestant Church Religious Fighting between the Roman Catholic and Protestant Church Current Economic and Cultural Development Cultural Development Introduction Argentina is considered by Calvert, Donghi and Eidt (2016) as the eighth largest country in the world but is considered to be only third within Latin America (Buenos, 2014). The reason for this is that the land area of Argentina with 2.78 million square kilometers is larger than Mexico and the Texas state combined ( ...

Q. 1. A. To calculate nominal, real, and GDP deflator, the following equations were used. Nominal (NGDP = Quantity (year) X Price (year), while real GDP) can be expressed as (RGDP = Nominal / Deflator), and GDP deflator can be expressed as (GDPD = Nominal / Real GDP X 100%). Therefore; (See Table 1.) B. For multiple items, calculating CPI requires a weighed average of the commodity price. In this sense, the prices of listed items were calculated as (Average = Bread price +TV Sets + etc. / 5) for each year. After which, the CPI was calculated using the equation (CPI of Multi ...

The Cost of Education

Introduction The cost of education has spiraled higher in the recent past, and this trend is not surging down anytime soon. However, the impacts of the high cost of education have restricted a majority of academically potential students in the cold as having no chance to compete for some top-rated Colleges and Universities. Notably, the middle-class has been hit so hard by the rising cost of education since they are not capable of funding their children’s education in the prestigious Colleges, and at the same time not so poor to have the necessary merit for the education subsidies. ...

Inflation activity

The good that I chose: Bread, white, pan, per lb. (453.6 gm)

The base year (and month) that I chose: November, 2006

The most current year (and month) with collected data: November, 2016

The price of the good during the most current year and month: $1.362 Calculation of Price Change (NEW - OLD)/OLD x 100: (1.362 – 1.143)/1.143 x 100 = 19.16010499% (Bureau of Labor Statistics, n. d.).

The CPI value of the base year used above: 195.7

The official CPI in the year 2006 for food and beverages with the base period of 1982-84= 100 was in November 2006 at 197.2 and in the November 2016 247.246. The annual average was not used since the data is not ...

(Tutor’s Name) (Assignment)

Introduction US has been the center of the global economy for the past several decades, and hence decisions taken by the U.S government can have significant impact on the rest of the world. In the same manner, the monetary policies formed by the Federal Reserve (FED) – the central bank of the United States –influence the economic policies of other countries worldwide. Therefore, central banks worldwide are closely monitoring the moves of the FED so as to make timely adjustments to their economic and monetary policies. The U.S economy was severely hit by the global financial ...

Japanese Economy in the Recent Years

Introduction During the advent of economic downturns particularly in terms of financial crises or bubbles, the usual resort of the government is to rely primarily on its monetary tools alongside expansionary fiscal policies to stimulate the economy. Monetary policies are tools used to deal with inflation, budget deficits, unemployment, incomes, international economic relationships among others. Monetary policies have profound effects on our jobs, incomes, livelihood, and career choices. One of the considerations and is always on the watch in an economy is the behavior of prices of the goods and services. As the law of demand states that with ...

International Business Division

International Business Division

The population of Germany accounts for 80.6 million, out of which 74% population accounts for the urban population. The ethnic amalgamation is found to be extensive due to the prevalence of German population with the majority of 91.5%, Turkish population with the majority of 2.4%, whereas 6.1% population accounts for the Greek, polish, Italian and Spanish minorities. In accordance with the religious aspects, 34% population accounts for the Protestant, whereas 34% population accounts for the Roman Catholic. Similarly, 3.7% population accounts for the Muslim religion, however, 28.3% population account for the other unaffiliated religions (Statista, 2016b). ...

The first proposals of the European integration have been made at the Paris Conference in 1867. However, the practical realization of the idea of integration was not accomplished: the contradictions between the two countries were so deep that the awareness of the need to cooperate in the union went through two world wars and several local wars. Integration trends in Europe re-emerged immediately after the Second World War, when major European countries have realized that the restoration and development of national economies is the only possible way combining efforts and resources. Plan for the creation of the European Community ...

The knowledge in economics encompasses a wide array of topics that involve different economic activities, such as the ones that influence the government in carrying out regulations on gasoline prices as well as imposing a price floor in relation to the minimum wage. In this discussion, different economic scenarios will be presented along with the possible outcomes of each. In addition to the provided situations about the price ceiling for gasoline and price floor for minimum wages, other economic events will be presented, such as the possible gains and losses of international trade and the possible outcome once the ...

Chapter 1: Introduction 3

Chapter 2: Financial Performance and Position of TESCO 6 Chapter 3 Financial Management Policy 14 Chapter 4 Investment Strategy 18 Chapter 5 Valuation of TESCO 22 Chapter 6 Conclusion 26 Abstract The present report provides critical analysis of financial positioning of Tesco Plc. For this, the financial data has been gathered for past five years as well as its competitors to critically assess financial positioning of Tesco in the retail industry. The reports highlight the recent issues of Bretix which has significantly impacted economic conditions of the United Kingdom leading to declining the consumer confidence because of triggering inflation. ...

Galaxy International operates in a niche market; this is because skiing is only possible in very specific areas, and only a limited number of the population skis regularly anyway. Despite this, the company has performed outstandingly well to be achieving the level of sales with a small staff. This being said, Galaxy International needs to raise capital quickly and in an efficient way to successfully continue expanding to fully capture its full market size. By offering a unique product that is flexible yet tough, Jeremy is likely to continue to increase the volume of his sales and therefore the ...

1 The assessment of financial performance of the division managers in each subsidiary can be obtained by taking a difference between budgeted profits and actual profits in US dollars. It can be understood from the table provided below. The table provided above summarizes the information regarding the actual and budget performance of each subsidiary in 2004 . All amounts are expressed in US dollars that are helpful in comparison among them. It can be seen from Table 1 that the subsidiary of Japan has performed below budgeted profits that in dollars but it might have increased its profits as compared ...

CONCLUSION

5. Conclusion The research was conducted complying with a predefined set of tools, techniques, and methods. It was accomplished without exceeding the limit of time and other resource allocated for this purpose. This chapter sets out to throw light as to what degree the study has succeeded in meeting research objectives and how it can be applied to managerial level. It is followed by detailed identifications of future prospects of research based on the current study. Finally, the researcher draws attention to some of the drawbacks of the research project along with an assessment of their impact on overall ...

ANALYSIS AND FINDINGS

3. Analysis and Findings 3.1. Introduction 3.2. Analytical Tool – Regression Multiple regressions are performed to assess the relationship of single independent variable i.e. crude oil prices (on Brent benchmarking) with all four dependent variables including Indian GDP growth, Indian Balance of Payments, Exchange rate between INR and USD, and the inflation rate in India. 3.3. Measures for Independent Variable – Crude Oil Price Crude oil is the most commonly traded commodity in the international market. Crude oil price stands independent variable in the underlying study, and same is considered for this purpose of analysis. The Periodic time frame for change ...

Relationship between inflation and interest rates

Introduction Predominantly, most economic agents base their decisions on the current and expected changes in the economic conditions. Variations in interest rates have been used as a major variable by most researchers and policy analysts. Additionally, the behavior of interest rates in the economy has been studied since the interest rate is a significant macroeconomic factor to help in the understanding of how it is related to other macroeconomic variables and its impact on the economy. Primarily, interest rates entail the percentage of the loan that lending institutions charge as interest to borrowers, and it is mostly expressed as ...

Introduction

Economic performance is an important aspect that every country needs to consider if it intends to monitor its progress development-wise. Conducting this performance reviews involves reviewing the Gross domestic product values that a country registers every year and formulates a trend upon which certain conclusions can be drawn. The information obtained from this process is very reliable which means that decisions can be made based on this. Therefore, the essence of this paper is to apply various macroeconomic concepts to the economy of Singapore. From the information, it is possible to extract significant information such as unemployment rate in ...

Literature Review

It is found that oil prices have undergone critical decline over past couple of years for several reasons at the bottom of this decline. However, reducing demand triggered by increased production of oil in USA, over production by OPEC, and shift towards renewable sources of energy is considered the most fundamental reason behind current downtrend of oil prices. It conforms to the simple theory of demand and supply according to which demand and price are in positive, while price and supply are in negative relationship with each other (Stafford, 2015; Scott, 2015; Goldenberg, 2016; Arnold, 2008; Hensher, Rose, & Greene, ...

Money and prices in the long run and open economies dictate the financial market. As such, that is why factors such as domestic variables and foreign monetary policies are over-emphasized. Demand for money is thus affected by the domestic variables, which include interest rates, price expectations, and permanent income, among others. As such, this paper explores the financial market to reveal the viable strategies the US can adapt to secure reliable money and prices in an open economy on a long-term basis.

The state of US Financial Market

Over the years, the economy of the US has been in good shape, especially when compared to ...

Introduction

Brazil is one of the fascinating developing economies, which economic and social progress over the period of 2003-2014 lifted over 29 million people from extreme poverty. Based on the World Bank (2015) statistics, the inequality rate in the country fell by 11% with the income level of the poorest 40% of the population rose by as much as 7.1% over the same period. At the same time, global financial crisis and political instability in the country over the past few years have had its negative impact on the economy as a whole, reflecting stagnation in inequality reduction and deterioration ...

Every high-school student has to make a very hard and stressful decision - choose his or her future career. Choosing a career is an important task, as one is to find the best match between the personality, knowledge, skills and interests. Nowadays modern world and society has hundreds professions available and presents a great range of job opportunities: business, service, science, medicine, education, arts and etc. A person may choose a profession he likes, enjoy the studies, by afterwards encounter problems when searching for a job. Because of that every aspect of the challenging decision has to be thought ...

The journey towards the European Union (EU) integration has experienced several turnings. This section of the essay will detail some of the core turning points in the EU integration. Establishment of a Common Agricultural Policy (CAP) was a major turning point in EU integration. The Treaty of Rome defined the specific objectives of the CAP. The CAP was introduced in 1962 (Folmern.p). The establishment of the CAP was enshrined to the state of food shortages after World War II. The aim of the CAP was to build a common European Community market and to cut off tariffs on agricultural ...

Executive Summary

Allstar is one of the most recognized names in the packaged food industry across the globe. Allround is the most successful brand of the Allstar group in the allergy and cold relief market. Allround brand is a consistent brand success in terms of sales and profitability and along these lines, it has become the most crucial component not only for the pharmaceutical division of Allstar but for its entire business. For the reason, cash flow of Allround can facilitate them to take increased opportunities offered by the emerging markets. However, Allround has increasingly become a concern for the pharmaceutical ...

Abstract

The US economy thrives on the proper functioning of the monetary policy of the government of the day. Interest rates, inflation and recession are all related and happen to influence proper functions of the government warranting their clear understanding. As a victim of a recent economic recession, a consideration of the role of interest rates on the overall functioning of the economy becomes particularly important. This paper shall seek to understand the concept of interest rates and how they affect the economy of the United States of America. The paper, in doing this, shall consider the causes of the ...

Report for McDonalds

Italy and Russia

Figure 1: GDP per Capita at Constant Prices Figure 2: GDP Growth (Annual %) Figure 3: Inflation Rate CPI Figure 4: Unemployment Rates Figure 5: Policy Interest Rate (%) Figure 6: Russia Interest Rate (%) Figure 7: Current Account Balance in Italy (% of GDP) Figure 8: Current Account Balance in Russia (% of GDP) Figure 9: Russia Interest Rate

List of Tables

BUSINESS OVERVIEW McDonald’s Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 36,538 outlets. Founded in 1955 by Ray Kroc in Des Plaines, Illinois, 80% of the ...

Bergamo is one of the most historic cities in the Lombard region of Italy. The city has been undercapitalizing on the tourist industry, bringing in marginal revenues in part because of the relative location to Milan, a city larger and better suited to massive scale tourism. In fact, Bergamo is usually avoided by tourists, except for those taking guided tours, mainly because Milan has the main airport in the region and because it is believed that the city has little to offer, which simply is not true. Recently, the joint cooperation of Slovenia and Italy to expand upon the ...

Summary of these key indicators for the U.S. economy One of the key indicators of the US economy is current inflation. As at May 2016, the inflation rate stood at 1.02% (The World Bank, 2016). However, between January and May, the average inflation rate has been 1.01 percent. The second indicator is the unemployment rate recorded at 5.5 percent as at the end of May (The World Bank, 2016). The average for the year thus far has been 4.9 percent. The real GDP growth is also a critical indicator. In the first quarter of the year 2016, which ended ...

Introduction

A discussion among the classical economists and the Keynesian economists continues on the government intervention in the free markets. According to the classical economists, the free market mechanism can develop solutions for the crisis in the market if there is no external influence on the markets. The Keynesian economy merely expresses that the free market economy carries the risk of generating crises and undesired deficit or surplus in the economy when the demand cannot clear the supply (Posner 234-252). The discussion on the government intervention is changing direction each time the world economy suffers from a global crisis becomes ...

Inflation in the United States

Inflation can be defined as that general rate where the pricing levels for both commodities and services rises consequently causing the country’s purchasing power to fall drastically. It is at this point that the duty of central banks comes in as they try limiting the occurrence of inflation for purposes of keeping the economy going smoothly. In fact, this phenomenon can be traced as early as the coming to an end of the Second World War, which essentially marked the commencement of a golden age for the American economy. Basically, the time was marked by a surging productivity, ...

What is a cartel? (5 marks)

The companies in a market might collude to set the prices by making explicit or implicit agreements between them on the market price, sharing the market geographically, or controlling the quantity supplied in the market. The agreement between the companies in a specific market might create an oligopoly behaving like a monopoly. The companies might set the price, and all the agreement partners might obey the agreement. If the companies can create a large market power, they might behave like one monopolist. Cartel is the situation of existence of an explicit or implicit agreement between the companies in a ...

The Federal Reserve has one of the most unique duties in the world. Tasked with keeping both employment high and inflation low, it is the only central banking authority in the world that performs both functions as its mission. Studies performed by A. Phillips describe the inverse relationship between unemployment and the inflation of real wages. The Federal Reserve and Congress enact policies to counteract the inverse nature of unemployment and inflation. The Fed achieves its goals with manipulation of monetary policy, which is the control of the monetary supply, while Congress controls fiscal policy to help achieve similar ...

Chapter 2: Literature Review

Introduction The chapter consists of all the relevant information that can be collected from past studies and are combined to present a clear view. It is the initial for determining the factors that can be used to synthesize the overall study through findings and discussion. The positivist approach is used to collect and summarize the information from the previous studies and determine the model that can be used to conduct a viable study. The positivist approach emphasizes all the relevant information regarding the topic that is to compare Islamic and Traditional banks using data envelopment analysis. The theoretical framework ...

Introduction

Time warner Cable Company is a telecommunication company located at the Time Warner center in the United States in the city of New York. Time Warner company deals with the televisions networks, films and entertainment. It is the third largest telecommunications company in the world. The company was established in the year 1990. It was started by forming a merger between two companies in the United States of America. This companies comprised of Time Inc. and the Warner communications. The company mainly operates in film production and television. The company has a limited publishing operations in the United States ...

Investment Report

Background In this section, a brief overview of my personal experience in this field of investment and the personal risk tolerance that comes up together with the objectives and the goals will be touched a little bit. No one can dispute my experience because I was able to manage a good portfolio successfully in the Saudi market regarding investments in stock and this has empowered me skillfully (Dunning, John H 30). The abilities gained and all the tricks learned shall be applied by me in the successful investment in the stock market field. The major aim of all these ...

Individual Assignment

This paper aims to compare ten countries on the basis of their Gross Domestic Product (GDP) per capita, unemployment rate, annual inflation rate and life-expectancy rates. The ten countries that will be studied are China, France, Japan, Germany, India, New Zealand, Norway, Philippines, Qatar and the United States of America. The 2014 data from The World Bank will were used in the study.

As can be observed from the graph, Qatar has the highest GDP per capita, while India has the lowest GDP per capita. Qatar is the world’s richest country because of its massive natural gas reserves. ...

In this case, we use the monthly returns of the two indexes for the seven-year period between 6th May, 2009 and 5th May, 2016. The monthly return are determined by comparing the current price with the previous month’s price. The monthly returns are then used to determine the average monthly return and the monthly standard deviation.

S&P MID CAP 400 INDEX

Average monthly return = 1.2047% or 0.012047 Monthly standard deviation = 4.4024% or 0.044024 Annual return = (1 + monthly return)12 – 1 = 1.01204712 – 1 = 1.1545 - 1 = 15.45% Annualised standard deviation = Monthly standard deviation × √12 = 0.044024 × √12 = 0.044024 × 3.4641 = 0.1525 = 15.25%

NASDAQ 100 INDEX

Average monthly return = 1.4196% ...

“Governments should paly active roles in managing short run instability caused by

Unemployment and inflation problems” Introduction The reverse of the above statement is true, whereby if governments do not play an active role in fighting inflation and unemployment, the adverse effects associated with these two economic eventualities do sometimes dissipate on their own. Therefore, this paper agrees with the above statement, but will also attempt to show that various economic solutions to the short run instability which is associated with unemployment and inflation can sometimes lead to a worsening of the situation at hand, rather than its subsequent improvements (Quiggin, 2012, pg.13).

Positive Sustainable Economic Growth

According to Mukesh (2015, pg.69), one of the ...

Abstract

The current paper explores the main differences of the Great Recession in 2007-2009 from other economic collapses in the history if the United States. Section I discusses the general features of a recession and describes the main responsibilities of the National Bureau of Economic Research. Section II is devoted to the comparison of the Great Recession with the recession of 1980s. The section is divided into four subsections. Subsection A presents the basic comparison of recessions in the U.S. history and explains the choice of the 1980s period for the further comparison. Subsection B explores differences in unemployment in ...

Interest rates are majorly influenced by inflation rate and monetary policy. Therefore, the two economic factors will be evaluated to project the movement if interest rates. Growth in developed countries is expected remain modest. Therefore, IMF projects that developed economies, including the USA, will apply an accommodative monetary policies to spur economic growth. Businesses will benefit from the expansionary monetary policies through a reduction in the retail interest rate as well as access to a wider pool of loanable funds. The inflation rates in the USA and other developed countries has remained close to zero and negative in some ...

Introduction

The exchange rate has become an integral component of modern economics. Its role stems from its far-reaching effects on the economy of a country, investments, the profitability of firms, and personal finances. Countries have become even more interdependent due to the rapid advancement in communication technologies and the expansion of global trade, which have significantly reduced the geographical distance between both individuals and countries. However, since nations use a broad range of domestic currencies with different values, trading partners must, therefore, rely on currency conversion methods to facilitate global transactions. This paper explores the importance of exchange rate and ...

Goals of a well-functioning economy

A well-functioning economic system should ensure price stability. It should be able to control the rate of inflation such that the interests of both consumers and traders are met. High inflation rates negatively affect the consumer welfare while very low prices are detrimental to businesses. Besides, an economic system should ensure full employment. It must reduce unemployment rates to the levels at which all factors of production are engaged. The economy should also ensure equitable distribution of resources and production. The tax system should fair and equitable. A well-functioning economy should also enhance economic freedom (Colander 17). The economy ...

Introduction

Germany is a leading and developed country of the Europe and has a remarkable influence on the economic structure and policies in the Europe. The country has an area of 357021 square kilometers and a population of 81.4 million people. The economic structure of Germany is social market structure. The country is rich in highly technical and skilled workforce, low levels of corruption and high capital stock. The major reliance is on the exports, and the country is the third largest exporter in the world. The economy of Germany is largest in the Europe, and the makes a fifth ...

Introduction

In 2008, the entire world was rocked by the biggest financial crisis since the Great Depression. The crisis first affected the entire financial system of the United States before then quickly spread globally. The casualties of the crisis included the whole investment banking industry of the US. Other casualties were the US largest insurance company, largest mortgage lender, among other firms in the financial services sector. The US auto industry was severely hit leading to loss of jobs. The US unemployment rate increased by 4.9% points from the third quarter of 2007 to the third quarter of 2009. The ...

(A case for a parent firm in a net oil exporting country with subsidiaries in a net importing country that has free market economy, politically stable, positive currency speculation and possibility of government defaulting on its debt)

Oil Prices and Exchange Rate

Oil price dynamics have a bearing on the ability of multinational to precisely model the future exchange rates. In most instances, in order to manage the foreign exchange rate risk that the firm is exposed in the international business arena, most multinational will hedge against the risks that are associated with exchange rate fluctuations. As a result, these multinationals minimize the possible ...

Assignment 4

1. The Phillips Curve (a) The Output Gap and the Inflation Rate series are shown in figure 1. Using the Excel formula “=correl”, we find the correlation between these two variables to be -0.00206. The correlation coefficient ranges from -1 to 1, the closer the coefficient is to the extremes, the stronger is the linear relationship between the two variables. In this case, the correlation coefficient is close to zero, so there is almost no relationship between Ygap and Pi. Figure 1

The Output Gap and the Inflation Rate series in 1955 – 2015

(b) Figure 2 shows the Output Gap and the change in the Inflation Rate series. Again, using ...

There is no doubt that company success depends on firm-specific factors such as company size, which help distinguish them from competitors. However, their survival hinges on their ability to anticipate and respond to foreseen and unforeseen changes in the larger, external environment. These changes have industry-wide and nation-wide implications that necessitate their consideration by firms. The ties between company performance and macroeconomic conditions rest on which macroeconomic factors strongly correlate to the industry in which it operates (Zeitun, Tian, & Keen, 2007). Macroeconomics, therefore, examines the aggregate economic relationships in an economy (Evans, 2004). The basic concepts of aggregate supply ...

Q1. What were the three signs that the U.S economy continued to improve at the beginning of 2016? Ans: The three signs that showed that U.S economy improved is the consumer spending which grew from 1.8 % to 1.9 % from the previous year. The inflation rate increased by 0.7% from the year 2015 and the GDP growth rate increased from 2 % in the first quarter to third quarter(“U.S. Economy Staring 2016 on Solid Footing”,2016). Q2. How does the current state of the U.S economy compare to macroeconomic conditions in Japan and Europe? Ans: The U.S economy was more ...

Introduction

This report describes the process of international expansion of a business named Al Futtaim. The report refers to the useful considerations for the business to make while expanding its operations globally. These considerations are aimed at the profit maximization of the company through international expansion. The hurdles in the international expansion have also been discussed with possible means of overcoming the problematic areas. The selected geographical region for the expansion of the business is the city of Western Morocco named Casablanca.

Company Background

Al-Futtaim is UAE based company. It is a multi-sector conglomerate. The company was formed in 1930. At the ...

Introduction

According to the International Labor Organization, unemployment is a phenomenon, which happens when the people, who currently don’t have a work are seeking for it (1982). The main indicator of unemployment situation in the country is unemployment rate, which shows the percentage of unemployed people in the total number of labor force (the number of all people of working age). It is calculated by dividing the number of the individuals, who don’t have work at the certain moment of time by all individuals able to work at the same moment of time (The Saylor Foundation). The unemployment ...

The economy is defined as the enormous set of interconnected consumption activities and production that help in identifying how the scarce resources are being allocated, thus, this definition is also known as the economic system. There are various contributing factors that make economy, one of the most important function of every nation. This is a representation of how well a country is when it comes to managing the country’s business as a whole. Economics is divided into two major branches. One is the Macroeconomics and the other is Microeconomics. The first branch refers to the study of a ...

Dear Texas Bob,

The calculations made were based on formulas we deem fit. In obtaining the income, we used the cash flow method, which is simply the difference between the cash that flows in versus the cash that flows out of the business. That method would prove to be more accurate since in the retail food industry, cash is considered king. Likewise, we discounted the values using the present value formula. We deem it important that the time value of money shall be considered to accurately reflect the amounts, not in a nominal sense, but in its real sense. Lastly, we also ...

In order to calculate the real GDP for 2001 we can use the GDP deflator formula, because deflator and nominal GDP for 2001 are given.

GDPreal2001=GDPnominal2001*100GDP deflator2001=10128*100102.4≈9890.6

The real GDP for 2002 can be calculated using GDP growth rate:

GDP growth ratet=GDPt-GDPt-1GDPt-1*100% 1.6%= GDPreal2002-9890.69890.6*100 → GDPreal2002≈10048.8

The formula for calculating the growth rate of GDP used in (a) is applicable here:

GDP growth rate=GDPt-GDPt-1GDPt-1*100% GDPnominal2002 growth= 10469.6-1012810128*100%≈3.4% GDPnominal2004 growth= 11734.3-10971.210971.2*100%≈3.4% GDPreal2001 growth= 9890.6-98179817*100%≈0.7% GDPreal2003 growth= 10320.6-10048.810048.8*100%≈2.7% Nominal GDP for a specific year measures the value of produced goods during that year and in that year’s prices. In contrast, real GDP measures the value of the output using base year prices, which ...

Countries around the world are classified into three broad categories purposely for analytic use. The grouping of these countries is intended to reflect the status of their economic conditions. The countries are grouped as advanced economies, developing economies and least developed according to some criteria. In most cases the countries are grouped basing on their Gross National Income per capita per year. A country is said to be a developing country if her Gross National Income stands at US$ 11900 or less. A developing country is said to be still undergoing industrialization and has low human development index. A ...

Inflation in Saudi Arabia

Inflation in Saudi Arabia

Introduction

The country of Saudi Arabia is counted as one of the world’s strongest economies, ranking 20th after the world’s most powerful nations as per the GDP ranking 2016. As per Saudi Arabia’s GDP, it ranks third in the world after China and India. The country has seen a stark growth in its economy as public debt declined in the past decade and the overall economic growth showed a positive step toward Saudi Arabia establishing itself as a prominent economic strength of the world. However like every other country in the world, Saudi ...

Central Bankers:Jannet Yellen

Early Life and Education Born in 1946 in Brooklyn, New York, Janet Yellen is currently serving as chairman of Federal Reserve and is also the first woman to hold this position. Being a bright and intelligent student right from the school days, she was elected as editor- in-chief of her school newspaper and became valedictorian by the time she graduated from school in 1963. She then went on to study economics at Brown University, where she earned her bachelor degree in Economics in 1967. Thereafter, she enrolled at Yale University for her doctorate in economics, which she completed in ...

Modeling Exchange Rates

Oil price dynamics will have a bearing on the ability of multinational to precisely model the future exchange rates of the foreign exchange in the countries that they operate. In most instances, in order to manage the risk that the firm is exposed in the international business arena, especially on the foreign exchange rate, most multinational will hedge against the risks that are associated with fluctuations in the exchange rate thus minimizing the possible negative effect that a firm may experience (Jain, 2007). Therefore, in order to take a position in hedging facilities such as currency futures, the firm ...

USB should focus on expanding globally and offer retail banking services to clients in Africa. There are many African nations that present USB with a ready market to exploit thus fostering its growth and development. Most of the African nations are developing economically thus allowing the bank to take advantage of the growing market. Besides, most of the nations are politically stable thus encouraging the bank to enjoy the political climate existing in the continent by offering banking services to the nations. Besides, many African nations have also fostered the use of technology in their operations that making them ...

Simulation Game

So far, I had only theoretically read about Federal Reserve altering the monetary policy by changing the interest rates in order to maintain the economic stimulus. However, the simulation game provided hands on experience about the impact of monetary policy on employment and inflation rate. For instance, a reduction in the federal rates infuses momentum in the economy and while the reduction I the interest rates fuels the employment rate, it increases the inflation rate also. Similarly, an increase in the interest rates, results an increase in unemployment while controlling the inflation rate. Therefore, the game is all about ...

Evaluation Methods

The fluctuation in oil places has a direct impact on the economy of oil importing nations given that they highly rely on the imported crude oil to run most of their industries. To be specific, the change in oil prices directly affects the economic environment of India in more than many ways. Timilsina asserts that the techniques for evaluating the macroeconomic environment include examination of current account balance, evaluation of the fiscal deficit and oil subsidy, analysis of the rupee exchange rate and inflation rate analysis (2015).

Variables to be evaluated

India imports an estimate of 80 percent of its energy resources. It ...

Introduction

Pakistan is a developing country and is the 26th largest nation in terms of purchasing power parity. A member of BRICS community, the nation has shown signs of becoming one of the world’s largest economies by 2025. In the past, the country had suffered from the ills of political disputes, energy constraints, poverty, growing population and non-conducive business environment that had halted the growth of the country. However, during the past few years, Pakistan has shown some optimistic signs of economic improvement with consistent growth in GDP and other macro-economic factors. Still, many factors such as social and ...

Risk, Return, and Portfolio Allocation: Why Stocks Are Less Risky Than Bonds in the Long Run

Risk, Return, and Portfolio Allocation: Why Stocks Are Less Risky Than Bonds in the Long Run

Summary of Chapter 2:

In the current article by Siegel J. J, the main idea explained is that the risk associated with the corporate bonds and the stocks is based on the market value in the future. The main focus of the article is on the lower risk levels long term investments in stocks as compared to the investments in the bonds. The techniques used in the article are analyzing the historical data and few statistical formulas such as correlation and the standard deviation. At the same ...