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Hangover Inflation
Built-in inflation is a type of inflation that results from past events and persists in the present. Built-in inflation is one of three major determinants of the current inflation rate. In Robert J. Gordon's triangle model of inflation, the current inflation rate equals the sum of demand-pull inflation, cost-push inflation, and built-in inflation. "Demand-pull inflation" refers to the effects of falling unemployment rates (rising real gross domestic product) in the Phillips curve model, while the other two factors lead to ''shifts'' in the Phillips curve. The built-in inflation originates from either persistent demand-pull or large cost-push (supply-shock) inflation in the past. It then becomes a "normal" aspect of the economy, via inflationary expectations and the price/wage spiral. *Inflationary expectations play a role because if workers and employers expect inflation to persist in the future, they will increase their (nominal) wages and prices now. (See real vs. nominal in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index. As prices do not all increase at the same rate, the consumer price index (CPI) is often used for this purpose. The employment cost index is also used for wages in the United States. Most economists agree that high levels of inflation as well as hyperinflation—which have severely disruptive effects on the real economy—are caused by persistent excessive growth in the money supply. Views on low to moderate rates of inflation are more varied. Low or moderate inflation may be attri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Robert J
The name Robert is an ancient Germanic given name, from Proto-Germanic "fame" and "bright" (''Hrōþiberhtaz''). Compare Old Dutch ''Robrecht'' and Old High German ''Hrodebert'' (a compound of '' Hruod'' ( non, Hróðr) "fame, glory, honour, praise, renown" and ''berht'' "bright, light, shining"). It is the second most frequently used given name of ancient Germanic origin. It is also in use as a surname. Another commonly used form of the name is Rupert. After becoming widely used in Continental Europe it entered England in its Old French form ''Robert'', where an Old English cognate form (''Hrēodbēorht'', ''Hrodberht'', ''Hrēodbēorð'', ''Hrœdbœrð'', ''Hrœdberð'', ''Hrōðberχtŕ'') had existed before the Norman Conquest. The feminine version is Roberta. The Italian, Portuguese, and Spanish form is Roberto. Robert is also a common name in many Germanic languages, including English, German, Dutch, Norwegian, Swedish, Scots, Danish, and Icelandic. It can be use ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Triangle Model
A triangle is a polygon with three edges and three vertices. It is one of the basic shapes in geometry. A triangle with vertices ''A'', ''B'', and ''C'' is denoted \triangle ABC. In Euclidean geometry, any three points, when non-collinear, determine a unique triangle and simultaneously, a unique plane (i.e. a two-dimensional Euclidean space). In other words, there is only one plane that contains that triangle, and every triangle is contained in some plane. If the entire geometry is only the Euclidean plane, there is only one plane and all triangles are contained in it; however, in higher-dimensional Euclidean spaces, this is no longer true. This article is about triangles in Euclidean geometry, and in particular, the Euclidean plane, except where otherwise noted. Types of triangle The terminology for categorizing triangles is more than two thousand years old, having been defined on the very first page of Euclid's Elements. The names used for modern classification are eith ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Demand-pull Inflation
Demand-pull inflation is asserted to arise when aggregate demand in an economy is more than aggregate supply. It involves inflation rising as real gross domestic product rises and unemployment falls, as the economy moves along the Phillips curve. This is commonly described as "too much money chasing too few goods". More accurately, it should be described as involving "too much money spent chasing too few goods", since only money that is spent on goods and services can cause inflation. This would not be expected to happen, unless the economy is already at a full employment level. It is the opposite of cost-push inflation. How it happens In Keynesian theory, increased employment results in increased aggregate demand (AD), which leads to further hiring by firms to increase output. Due to capacity constraints, this increase in output will eventually become so small that the price of the good will rise. At first, unemployment will go down, shifting AD1 to AD2, which increases dem ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gross Domestic Product
Gross domestic product (GDP) is a money, monetary Measurement in economics, measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is often revised before being considered a reliable indicator. List of countries by GDP (nominal) per capita, GDP (nominal) per capita does not, however, reflect differences in the cost of living and the inflation, inflation rates of the countries; therefore, using a basis of List of countries by GDP (PPP) per capita, GDP per capita at purchasing power parity (PPP) may be more useful when comparing standard of living, living standards between nations, while nominal GDP is more useful comparing national economies on the international market. Total GDP can also be broken down into the contribution of each industry or sector of the economy. The ratio of GDP to the total population of the region is the GDP per capita, p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Phillips Curve
The Phillips curve is an economic model, named after William Phillips hypothesizing a correlation between reduction in unemployment and increased rates of wage rises within an economy. While Phillips himself did not state a linked relationship between employment and inflation, this was a trivial deduction from his statistical findings. Paul Samuelson and Robert Solow made the connection explicit and subsequently Milton Friedman and Edmund Phelps put the theoretical structure in place. While there is a short run tradeoff between unemployment and inflation, it has not been observed in the long run.Chang, R. (1997"Is Low Unemployment Inflationary?" ''Federal Reserve Bank of Atlanta Economic Review'' 1Q97:4-13 In 1967 and 1968, Friedman and Phelps asserted that the Phillips curve was only applicable in the short-run and that, in the long-run, inflationary policies would not decrease unemployment. Friedman then correctly predicted that in the 1973–75 recession, both inflation an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price/wage Spiral
In macroeconomics, a wage-price spiral (also called a wage/price spiral or price/wage spiral) is a proposed explanation for inflation, in which wage increases cause price increases which in turn cause wage increases, in a positive feedback loop. Greg Mankiw writes, "At some point, this spiral of ever-rising wages and prices will slow... In the long run, the economy returns to he pointwhere the aggregate-demand curve crosses the long-run aggregate-supply curve." History An early use of the concept was in 1868. The term "wage-price spiral" appeared in a 1937 ''New York Times'' article about a steel-workers' strike. In the 1970s, US President Richard Nixon attempted to break what he saw as a "spiral" of prices and costs, by imposing a price freeze, with little effect. Some sources distinguish between wage-price spirals and price-wage spirals. According to Daniel J.B. Mitchell and Christopher L. Erickson, the concept fell out of favor with the decline of unions and collective bargain ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Real Vs
Real may refer to: Currencies * Brazilian real (R$) * Central American Republic real * Mexican real * Portuguese real * Spanish real * Spanish colonial real Music Albums * ''Real'' (L'Arc-en-Ciel album) (2000) * ''Real'' (Bright album) (2010) * ''Real'' (Belinda Carlisle album) (1993) * ''Real'' (Gorgon City EP) (2013) * ''Real'' (IU EP) (2010) * ''Real'' (Ivy Queen album) (2004) * ''Real'' (Mika Nakashima album) (2013) * ''Real'' (Ednita Nazario album) (2007) * ''Real'' (Jodie Resther album), a 2000 album by Jodie Resther * ''Real'' (Michael Sweet album) (1995) * ''Real'' (The Word Alive album) (2014) * ''Real'', a 2002 album by Israel Houghton recording as Israel & New Breed Songs * "Real" (Goo Goo Dolls song) (2008) * "Real" (Gorgon City song) (2013) * "Real" (Plumb song) (2004) * "Real" (Vivid song) (2012) * "Real" (James Wesley song) (2010) * "Real", a song by Kendrick Lamar from ''Good Kid, M.A.A.D City'' * "Real", a song by NF from ''Therapy Session'' * "Re ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Adaptive Expectations
In economics, adaptive expectations is a hypothesized process by which people form their expectations about what will happen in the future based on what has happened in the past. For example, if people want to create an expectation of the inflation rate in the future, they can refer to past inflation rates to infer some consistencies and could derive a more accurate expectation the more years they consider. One simple version of adaptive expectations is stated in the following equation, where p^e is the next year's rate of inflation that is currently expected; p^e_is this year's rate of inflation that was expected last year; and p is this year's actual rate of inflation: :p^e = p^_ + \lambda (p - p^_) where \lambda is between 0 and 1. This says that current expectations of future inflation reflect past expectations and an "error-adjustment" term, in which current expectations are raised (or lowered) according to the gap between actual inflation and previous expectations. The err ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Conflict Theory Of Inflation
Conflict may refer to: Arts, entertainment, and media Films * ''Conflict'' (1921 film), an American silent film directed by Stuart Paton * ''Conflict'' (1936 film), an American boxing film starring John Wayne * ''Conflict'' (1937 film), a Swedish drama film directed by Per-Axel Branner * ''Conflict'' (1938 film), a French drama film directed by Léonide Moguy * ''Conflict'' (1945 film), an American suspense film starring Humphrey Bogart * ''Catholics: A Fable'' (1973 film), or ''The Conflict'', a film starring Martin Sheen * ''Judith'' (1966 film) or ''Conflict'', a film starring Sophia Loren * ''Samar'' (1999 film) or ''Conflict'', a 1999 Indian film by Shyam Benegal Games * ''Conflict'' (series), a 2002–2008 series of war games for the PS2, Xbox, and PC * ''Conflict'' (video game), a 1989 Nintendo Entertainment System war game * '' Conflict: Middle East Political Simulator'', a 1990 strategy computer game Literature and periodicals * ''Conflict'' (novel) ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monetary Policy
Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation's currency. Monetary policy is a modification of the supply of money, i.e. "printing" more money, or decreasing the money supply by changing interest rates or removing excess reserves. This is in contrast to fiscal policy, which relies on taxation, government spending, and government borrowing as methods for a government to manage business cycle phenomena such as recessions. Further purposes of a monetary policy are usually to contribute to the stability of gross domestic product, to achieve and maintain low unemployment, and to maintain predictable exchange rates with other currencies. Monetary ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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