That’s right, even though China has been in the grip of deflation over the past 12 months,Forbescharacterizes their monetary policy as “promiscuous.” If it werePlayboymagazine that might be a compliment, but in context I am pretty sureForbesis saying monetary policy is much too expansionary...
How can consumers benefit from reviewing the CPI (Consumer price index)? Why would a consumer's utility increase when the price falls? Why are stock markets important? Discuss the features of the wholesale price index (WPI). Why this Index is used to measure Inflation?
Why does a strong home currency mitigate the growth of the inflation rate locally? Explain why price controls that hold prices below equilibrium are normally very harmful to consumers. Inflation distorts relative prices. What does this mean, and why does it...
How does high inflation affect the economy? If inflation becomes too high,the economy can suffer; conversely, if inflation is controlled and at reasonable levels, the economy may prosper. With controlled, lower inflation, employment increases. Consumers have more money to buy goods and services, ...
I was puzzled that firms and workers do not reach agreements to cut wages when sales decline and I believed that such arrangements would benefit both sides, since they would reduce costs and layoffs. I thought that perhaps the agreements are too difficult to negotiate, because business and ...
Of course, the benefit from lifting pandemic restrictions is a one-off. There are other longer-term factors supporting the Japan story too. Among these is the return of inflation. After three decades of low inflation, and even deflation, the current return of mild inflation is very welcome in...
"now our company has accumulated more than 1200 patents, for example, like this product in a small product, we already have more than 50 patents. Because this product is launched, we have developed another new customer base, which has brought a very substantial economic benefit for the company...
Deflation also means you can earn a positive rate of return just by stuffing money in your mattress. That creates an incentive for consumers, firms and banks simply to hoard cash rather than invest it productively. Even very sound investments can have a hard time competing for lenders’ dollars...
s right Mr. Scientific Economist, the bloggers with their market signals, or the scientists with their abstract models that were completely unable to predict the current crisis, are unable to explain 16 years of deflation in Japan, but are somehow able to tell us that inflation is the real ...
In contrast,real GDPis adjusted for inflation. This means that it factors out changes in price levels to measure changes in actual output. Policymakers and financial markets focus primarily on real GDP because inflation-fueled gains aren't an economic benefit. To estimate real GDP, the BEA const...