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Once we have monthly data on a price index we can evaluate the inflation. In most nations, the percentage change in price index during one month is small. Hence it is more common to calculate inflation each month based on a complete year. For instance, on 1 January 2010, inflation is calculated as percentage change in the price index between 1 January 2010 and 1 January 2010. On 1 February 2010, inflation is evaluated as the percentage change in price index between 1 February 2010 and 1 February 2010 and so on. Figure belowillustrates Germany as an instance.
Figure
Inflation in Germany 1992 - 2010. Source: OECD.
Fixed versus floating exchange rates: To begin with, we will briefly review the balance of payments (BOP) table of a nation that you studied in the course on international eco
Rational Expectations School Expectations on the future values of economic variables play an important role in macroeconomic analysis and economic analysis in general. Because
Question 1: What is the equilibrium price and quantity? Question 2: How do you describe the market situation, if the market price is higher than the equilibrium price? Qu
Cornell University conducted a study of wage differentials between men and women reported that one reason that men's wages are higher is that men tend to have more years of work ex
Many economists and market analysts are avid followers of the BALTIC DRY INDEX (BDI) as a forward looking mechanism that may shed a bit of light on the evolution of global economic
Explain, using the best framework you can think of (based on our class discussion), the effect of a large federal deficit on interest rates.
Use the information below to calculate the numbers instead of "?" marks in the Table. Show and explain all your calculations?
Which of the following is considered when calculating a country's balance of payments? Military expenditures state unemployment domestic inflation rates foreign inflation rates.
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SUppose nominal GDP increases from 5.8 trillion to 6 trillion. The GDP deflator rose over that same year by 3.9 percent. By what percent does the real output increase?
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