Essays on Inflation

Abstract

The paper dwells on general equilibrium theory by putting into perspective various critical issues. The origin of the concept of general equilibrium theory is illuminated dating back to neoclassical period. Moreover, various models such as Walras model of pricing and modern equilibrium model is also put into consideration. Finally, the importance and application of general equilibrium has also been discussed at length. General equilibrium theory refers to a concept modeled around theoretical economics. The modern general equilibrium takes into consideration three important interpretations which should be taken into consideration. The idea of general equilibrium theory cannot be complete when Continue reading...

Introduction

Financial markets in the economy have a role of linking the demanders and also the suppliers of funds. They enable firms and individuals to access capital and invest any surpluses. These are the markets that allow the financial sectors of the economy to run smoothly. However, many individuals do not understand these markets despite their crucial role in the economy. They have varied reasons for their failure to comprehend these markets and these reasons limit their understanding of the markets. This serves as the foundation for the thesis of this paper that is – accountants have a role to play Continue reading...

Industry Report: Banking

Introduction
When it comes to an industry, then there are number of things which have been taken into account for the same. The essence of effectiveness and productivity always been associated with an industry and the stance of effectiveness depends upon certain factors. There are number of industries working in the world and all of the industries have their own significance and importance lies in a broad nutshell. There are certain aspects which have to be taken into consideration by an organization or by an industry in order to become competitive and eminent in a certain industry.
Financial Productivity Continue reading...

INTRODUCTION

In this information age, the digital revolution has transformed the industry to an information based economy. Since the late 1970s, the day to day evolution of technology has shaped the modern society by introducing globalized communication. The UK mobile phone network industry is developing day by day by introducing the new-tech systems in the market. O2, Vodafone, EE, T-Mobile, and Orange are the biggest mobile phone network providers in the UK (Rushton, 2012). This report has presented a thorough economic analysis of mobile phone network industry in the UK, considering the biggest network providers in the country.

ANALYSIS OF MOBILE PHONE OPERATORS IN UK

Mobile Phone Continue reading...

In the study of stock market prices, percentage change of interest and, the percentage change of market indices are key determinants in predicting the future performance of the stock market. When buying shares in the stock market, an investor usually compares the current price and, the future expected increase in price, which will result in profits. The future expected profit is usually calculated at the existing interest rates. Any future change in the interest will automatically have an impact on the future expected earnings. For instance, a rise in interest rate may result from inflation. As a result, future Continue reading...

- At the equilibrium quantity how much annual revenue do the producers receive?
20 $ per crate of oranges
- If the government imposes a price floor of $30 per crate how much revenue will producers now receive?
(80 million crates x30 $) = 2,400 $ million
- Discuss whether producers are necessarily better off.
The producers are not better off because when the prices for the oranges is low, many customers demand for them and this would result to extreme losses. On the other hand, when the price for the oranges is high, few customers are capable of buying them although Continue reading...

Integrated Marketing Communication: Easy Jet

Executive Summary
UK airline industry is one of the most advanced in the global market with a number of the globally leading operators. The industry is highly competitive and marked by local and international airlines which accounts for the creation of more than 220,000 jobs. (BATA, 2014) However, the market is subject to several factors including technological advance, economic factors variation, social preferences and lifestyles changes, political factors, environmental regulations as well as legal requirements. Those factors set industry trends and determine the industry dynamics including increasing competition, operation’s efficiency and wider market reach as well as Continue reading...

The Reasons Schools Contract Out their Services to Private Companies

The use of contracting services out to specialized service providers is increasing in school districts nationwide. Two of the most frequent areas where this practice occurs are in the custodial and transportation areas. The primary reason that this subcontracting of services is initialed is to save money. Many districts are struggling financially and service providers tout a huge savings while saving the school district’s administrative and other headaches in the process.
Relieving some of the headaches from administrators might sound well and good, but in truth, however, that in some cases, the subcontracting of services does save school Continue reading...

Russia is vulnerable to disruptive terms of trade because of its dependency on oil. Because of fluctuating oil prices, sluggish domestic demands, weak external environment and high rate of inflation, Russia’s economic growth declined in the year 2012 to 3.4 percent, and it is projected to be constant in 2013. Capital outflows in the Russia are expected to increase while debt ratios are expected to be favorable.
Russia is a large size economy and its Gross Domestic Product (GDP) growth rate is 3.4 percent. The adjusted dollar terms of the GDP, purchasing power and income per capita is $ Continue reading...

The foreign currency is usually held country's central banks and other financial institutions. This currency is used to pay the international debt and trade obligation or to influence the domestic exchange rate. In the international trade of the commodities such as the gold and oil are priced and measured in using the reserved currency. This contributes to the holding of the currency by other countries for the exchange of the products.
The holding of such currency reserves helps in the exchange rates risks reduction. The purchase of the product and good is done in the manner that has standardization Continue reading...

Administrative Expenses:

Administrative expenses accounts for one of the maximum share in total expense of the Airport. By the end of 2013, the actual administrative expenses were $73950. The list of expenses that are part of Administrative Expenses are:
Referring to Phase I, assuming inflation growth of 1.15 per year, the total administrative expense by the end of Phase I were $549658. Similarly, during Phase II and final Phase, the administrative expenses amounted to $610035 and $677044, respectively.
Overall, all the projections were carried out assuming an inflation rate of 1.15%.

Liability Insurance Expenses:

The total liability insurance expense of the company constituted of Continue reading...

It has been 6 years now, when the world’s largest and said to be the strongest financial economy, The United States, went into financial crisis and the tornado reached around the globe. However, with the continuous monetary and fiscal policies by the Federal Reserve, the economy of the nation, although has not fully recovered after the crisis, but is back on stable path. However, still there are mixed views about the current macro-economic situation of USA from different economists.
As per the recent data released by the US agencies, the country is still underperforming and the same is Continue reading...

The United States is facing gradual economic growth with large downside risks. The causes of the economic downturn in the US are attributed to the 2007 financial crisis when the nation experienced a housing bubble burst. Another root of downturn of the economy in the US is the sovereign debt crisis. This is so because the countries such as Greece are asking for assistance to finance their debt, which is affecting the US economy and the world economy. The fear is that this would take the United States economy to a low GDP level. Since the US is the Continue reading...

Executive Summary

Banks such as UK bank get the money that they lend from the deposits. The level of lending is usually dependent on the demand of the funds by the public and on the economic level of the state. When the demand for money is high, UK bank will have to check on the level of money that is circulation before it decides on how much to lend out (Sessa, 2011). It is done to reduce chances of having excess money supply into the economy that may result to the inflation. The bank can use various ways to ensure that Continue reading...

Introduction

Poverty is the deprivation of basic things like money, food or assets that are essential for a normal life. GDP on the other hand is the goods and services produced within the by a country in a year. It is known that with increase in poverty it leads to reduction in output of a country. This is because essential resources that are vital for production are lacking. It also means that human capital is insufficient and consequently the resources needed to stir growth are used to feed and provide for the poor population.
Poverty and unstable GDP are common Continue reading...

Section A: Plan of Investigation

Most of the people in the current generation believe that war and essentially investing in the military is good for the economy. This is quite contrary to public acknowledgement and comprehension of the costs involved in case a war takes place. World War II disrupted a lot of systems the world over; America not being an exemption. This paper seeks to elucidate on the extent of damage the American was subjected to as a result of the war. Focus will be given to the macroeconomic implications of U.S policies as a result of the conflict. To achieve a sound Continue reading...

China is one of the strongest economic powers in the world. Its political leadership focuses on the fundamental alteration of the country’s growth strategies; this occurs through a rebalancing of economic growth sources (Lardy, 2007). Through strategies such as the expansion of domestic consumption, it notes significant economic growth. For instance, the country has managed to sustain its growing population economically. It occurs through rapid job creation, income distribution improvement, lowered rates of income inequality and a reduction of the outsized energy consumption. Aspects of China’s economy that depict its growth and challenges include; national output, employment Continue reading...

- Introduction and thesis for the topic
- The extent of grade inflation, which defines how far grade inflation has been witnessed in the world.
- What or who have been the agents of grade inflation
- Effects or the results of the extremely favorable examination system
Lecturers or professors of previous times cannot clearly tell what has befallen university education. They are in exclusive doubt as we are concerning the extent to which grading have changed in Universities and colleges. To them, it is either the exams have become extremely easy, or the current examiners test the teachers Continue reading...

There have been a lot of crises throughout the history: South Sea Bubble (1720), Cuban missile crisis in 1960s, OPEC oil price shock in 1990s, Asian financial crisis of 1997, Economic crisis in Mexico (1994) and many others.
However, the financial crisis of the 2007-2008 is said to be the worst crisis since the Great Depression of the 1930s. First victims were the countries, which are the biggest financial centers in the world. Later, in a year or half, the rest of the developing countries started to suffer from the financial crisis that became global.
The term of the Continue reading...

INTERNATIONAL EXPANSION OF PRICELINE PHARMACY, AUSTRALIA IN TURKEY: INTERNATIONAL MARKETING REPORT

INTRODUCTION
This is a feasibility study report for Priceline Pharmacy, an Australian pharmaceutical company that seeks to expand into Turkey, within the primary peripheral of Istanbul and Ankara. This research project will involve a critical review of the internal components of Priceline Pharmacy and its female-oriented product portfolio. This will be followed by an analysis of the Australian business environment and markets.

INTERNAL ANALYSIS OF PRICELINE PHARMACY

Priceline Pharmacy opened its first store in Highpoint, Victoria in 1982 and it has grown and expanded into many developed countries over the past 30 years. “Priceline is dedicated to helping women look good, live well and Continue reading...

The transport industry, especially the trucking sector, has experienced and would continue to experience changes given the current economic climate. Economic uncertainty has brought about waves of speculation that have ultimately led to the drastic rise in fuel prices. The trucking industry has felt the direct effects of the ever-changing fuel market much more than any other industry in the United States (EPA, 2014). The rising fuel price has led to key industry players to devise ways of combating the problem. In coming up with ways of cutting the operational costs, the environment should also be put into consideration. Continue reading...

There is a need for any country to have its central Bank. Unlike most countries, which use the central Bank system, the U.S has a federal Banking system which is also known as the fed. The headquarters of the federal Bank is in the capital Washington D.C and also has other twelve district banks in different locations. Federal Reserve Act established the fed in 1913 and was formed to solve problems of money in the country (Gali, 2009). The decisions made by the federal Bank directly affect the safety and soundness of the country’s financial system.
The federal Continue reading...

Abstract

The use and interpretation of economic policies are fundamental to the formulation of strategic plans and courses of action. Economists and policy makers play a vital role in executing this important analytic and interpretive task. Keynesian and monetary schools of thoughts are some of the important alternatives applied in making economic decisions.
Monetarists believe that government involvement in controlling the level of aggregate demand in the economy is counterproductive in the long run. In its stead, they propose that the best way the government can control unemployment and inflation levels is by the use of monetary policies. Monetary policies Continue reading...

Introduction

Starbucks was established in the year 1971. Later, the founders of the company and a marketing manager who happens to own the company currently, decided to list the company in the stocks exchange. Ever since, the company has experienced continuous growth. The coffeehouse company has expanded over the years of its existence (Gia, 2009). The company has expanded both in size from an initial one outlet in Seattle, Washington to twenty thousand three hundred and sixty six outlets in sixty-one countries across the globe. This shows commendable growth in just four decades of operating. Starbucks has not only grown Continue reading...

‘Instructor’s Name’

Presidents Compared: Reagan and Obama
A Chicago tribune article published in the year 2011 states that Obama and Reagan are differently similar. Both these Presidents, though Reagan took office nearly three decades before Obama, have many remarkable similarities. They both came in when the country faced a severe economic crisis, and they both inherited wars- Obama the war on terror; Reagan the cold war & Iranian hostage crisis. They both were expected to do miracles both in the economic and war front, and when they didn’t meet expectations, many political observers were disappointed.
Though both of them were reelected Continue reading...

Answer a)

Market is said to be efficient when the same amount of information is available to all investors at the same amount of time. In other words, an ‘Informational Efficient Market’ is said to be efficient Nobel Laureate, Eugene Fama was the strong proposer that the market is efficient, i.e. , since similar amount of information Is available to all the investors at same amount of time, all the stocks in the market are perfectly priced and no investor can beat the market returns.
However, whether the stock markets are efficient or not, the topic is still in debate despite of Continue reading...

- Introduction
- Define poverty and crime
- Poverty is the state in which an individual or a community lacks the financial resources to provide the minimum living standards
- A crime is any action that is termed as an offense, that the state can prosecute and is punished by the law
- A comprehensive sociological imagination and elaboration of the concept of poverty in the contemporary world
i. The prevalence of poverty in developed world and how great economies have succeeded in handling poverty (Mehlum, Miguel & Torvik, 2006).
ii. Poverty is the chief element sprawling the success of Continue reading...

Statement of the problem

The minimum wage is a controversy subject when it comes in receiving wages, as most workers will come to an agreement that, one can never be paid enough. Nevertheless, employers may cause problems with that declaration, believing that they pay greater than the amount entitled to the employees, hence creating a conflict between minimum wages.Arguments supporting raising the minimum wage In my opinion, I consider that it would be a good impression to increase the minimum wage. The motives behind this is because the cost of living has gone up to the level where individuals are not making adequate Continue reading...

- Worksheet entry figures

Cash flow figures and adjustments:

The price used for sales estimation is the £50/MWh tariff that is guaranteed by the government. On the other hand, the megawatts used for the two projects over the 15years period include 60,000 MWh for the small wind-farm and 120,000 MWh for the large wind-farm project.

Cash flow items from the profit and loss account

Adjusted figures
- Government grant cash-flow is accounted for in year 1 since it is received in the first year although spread over the 15 years for purpose of profit and loss computation. In that respect the grant receipts for the two projects is calculated as (30, Continue reading...

Article Review on Financial Econometrics

Cambridge University
Article Review on Financial Econometrics
For the article review assignment, I have chosen the article ‘Inflation and Real Stock Returns Revisited’ by Shu-Chin Lin, published in the refereed journal Economic Inquiry in 2009. The article addresses the topic of relationship between real stock returns and inflation, aiming to obtain the empirical evidence of the effect of different dimensions of inflation (including anticipated inflation, unexpected inflation, and inflation uncertainty) on the real stock returns.
The motivation for the study arises from the inconsistencies between the generalized Fisher hypothesis and the empirical findings of the previous studies that tried Continue reading...

Since, the portfolio construction is based on Moderately Conservative Risk Tolerance, this is a clear indication that the investor is either retired or is retired and is solely relying on paychecks from the portfolio income. Another extreme case can be that the investor has already faced the negative side of investment and has lost his money in the past and thus, he prefers to be moderately conservative in his investment approach. Thus, being an ethical investment advisor firm, we cannot force the investor to change his investment approach and thus, we shall continue with the portfolio construction as per Continue reading...

Gross Domestic Product:

Gross Domestic Product, usually abbreviated as ‘GDP’ is the total amount of goods and services produced in an economy during a given period of time. GDP is also one of the popular economic data source, used for the purpose of future forecasting of economic trends in a nation. Apart from future forecasting, GDP is also used to compare growth between two or more nations. For Instance, if during 2013, GDP of Canada is 5.6% and of United States is 6%, this indicates that the US economy has higher growth.

Real Gross Domestic Product:

Real GDP is a macro-economic measurement indicator, which accounts for Continue reading...

Ghana and Nigeria are two adjoining African states, which have achieved so much based on economic growth. There are great similarities between the economies of these two countries. This is so because they are the primary producer at about the same stage of development based on per capita income. In both countries, agriculture accounts the greatest percentage in the GDP because they depend significantly on the export of agriculture products. Therefore, external trade plays an equally important part of the economies of the two countries. However, the political stability and proper governance have been the key driver of economic Continue reading...

26the February, 2014

Comparing the determinants of FDI inflows to China and India
‘FDI’ abbreviated for Foreign Direct Investment, has gained significant importance in global commerce and economic growth. The term has brought a much appreciated change in the industrialized world. In simple meaning, FDI can said to be a saver centered in one nation who obtains a possession in another offshore nation with the objective to work on that property. By the end of 2006, the global supply of FDI at the conclusion of 2006 was $10 trillion, which amounts to GDP of five leading markets of the world, USA, Japan, Continue reading...

Economic factor denotes the foundation or basis of a buying decision . In most cases, customers cannot purchase what is beyond their purchasing power regardless their need for the service or good. Nevertheless, affordability is always an issue of perspective, which elucidates why most customers employ “creative” budgeting to acquire commodities they need. Therefore, good economic condition implies the ability of consumers to purchase what they require without constraints of money.
Global economic condition is a factor that affects the business process of Apple Inc since the firm or corporation is internationally recognized . Recession, currency, and inflation are the main Continue reading...

[Your Full Name]

Introduction

The concept of corporate finance lies in time value of money and is often regarded as the foundation of the corporate strategy as well as the financial management. The concept of net present value is applied in a number of financial decisions and the time value of money is dependent on the same principle. Therefore, this paper will be focused on the importance of the time value of money based on the concept of net present value. This concept is clarified by using the example of bond valuation as mentioned in the question. However, this paper Continue reading...

BRAZIL: EMBRACING GLOBALIZATION

INTRODUCTION
It has always been a challenge for the developing countries to find effective and efficient strategy regarding cross-national cooperation, globalization, and economic growth. The developing countries have been struggling to find the appropriate mix between the imports and exports. On one hand, the developing countries are looking for strengthen the local industry by putting up different regulations and tariffs and on the other hand these countries are looking for opportunities to increase the overall exports to other international countries. This requires the formulation of effective and efficient economic and trade strategy. The developing countries are facing the challenge Continue reading...

In economics, inflation can be explained as a persistent increase in the general price level of goods and services over a period of time. Inflation results in a reduction in the purchasing power per unit of money which means money losses it’s real value over period of time. The inflation rate is measured by inflation index . Inflation index shows the change in percents of general price index also called consumer price index over the period of time. (Mankiw, 2002).

There are described three types of inflation:

1. Demand-pull inflation which is caused by increases in aggregate demand due to increased private and government spending;
2. Continue reading...

One of the problems which beset many governments today is corruption. With the era of globalization, countries are finding ways on how to eradicate corruption in order to be globally competitive. Investors will definitely not invest in countries whose governments are known to be corrupt. The question that bugs us now is whether corruption can be eradicated or at least be prevented. This essay hopes to argue that corruption can be prevented and can be removed.
Corruption figures worldwide are horrendous. According to the Tax Justice Network, almost $30 trillion have been embezzled in the last 15 years by Continue reading...

Every nation has independence to choose, which exchange rate system it will follow. The choice for selecting a suitable exchange rate ranges from a flexible exchange rate or fixed exchange rate system. Under floating exchange rate system, the value of the currency is decided by market forces, while, under fixed exchange rate systems, the currency of the country is pegged against some standard of value. The choice of exchange rate is a tough task and depends significantly on the freedom of capital to flow in and out of the country. However, one negative effect of allowing the free capital Continue reading...