A Low And Stable Inflation Rate - 880 Words

For several years, the western world or the world’s most developed countries have always perceived Africa as a place of impoverished citizens, who have little to no knowledge of fending for themselves. Thus, the need for aids, food, clothing and the like to be shipped to these areas to help cater for the poor standard of living. In several discussions on how to alleviate poverty, it’s always been a question of empowering the locals to confront their problems, even though the execution has always been left for criticism. However, being able to achieve and sustain a reliable economy that alleviates poverty in these localities should be hinged on the implementation of effective and realistic policies, which mitigates the problem from the grass roots. The maintenance of a low and stable inflation rate, reduction in maternal and child undernutrition, and initiatives to ensure sustainable living standards and health, extensive education and access to obtaining credit among th e people of Ghana and the provision of agricultural inputs to boost their yearly yields are some of the positive outlooks that can help reduce poverty. When it comes to living standards, the government should be in the position of preventing the negative correlation effect of increases in the inflation rate. For example, in the 1970s and 1980’s the Ghanaian economy experienced high inflation rates without a corresponding increase in the nominal wages of able-bodied workers (An Assessment of Poverty ReducingShow MoreRelatedThe Central Bank or The Fed1087 Words   |  5 Pagesoperating in. Monetary Policy has two effects, expansionary policy and restricted policy. Expansionary policy helps lower interest rates and raise inflation in the economy; this policy improves growth for short run for the overall performance of the economy. On the other hand, restricted policy does the exact opposite of expansionary. Restricted reduces growth and inflation in the economy. Another role of the central banks is to manage the payments system by the inter-bank payments. This role of theRead MoreCentral Bank : Monetary Policy1178 Words   |  5 Pagesand exchange rates. Until the 1970s, central banks used a currency peg, which linked the value of the domestic currency to the value of another currency, usually of a low-inflation country. But this approach meant that the country’s monetary policy was tied to the country to which it pegged, restraining the central bank’s ability to adapt their policy to shocks such supply shocks or changes in the real interest rate. Consequently, many central banks began to adopt flexible exchange rates, forcing themRead MoreEvaluate Two Macroeconomic Objectives the Government in Your Home Country Aims to Achieve and How Effective Is the Government in Achieving Them?1286 Words   |  6 PagesUS on the UK economy. Macroeconomics, policies that aim to improve economic growth, maximise national income and raise the standard of living for citizens, have four main methods: full employment, inflation, balance of payments, equilibrium of supply and demand. In this essay I will look at: inflation and taxation . I will describe the policies followed, how they were put into practise and whether they have been effective at stabilising the British economy in this time of significant internationalRead MoreConsumer Price Inflation955 Words   |  4 Pages First, we will examine price inflation under fiat currency and judge whether price inflation is relatively stable under the U.S. dollar. Rolnick and Welser argued that under a fiat currency inflation rates are high. Under their tests, fiat currency had an average inflation rate of 9.17%. Compared to the average rate of inflation of 1.75% for commodity currencies. Thus, they concluded that under fiat currencies rates of inflation were higher and unstable (Rolnick and Welser, 1997). However,Read MoreInflation Targeting Is A Monetary Policy Framework That1639 Words   |  7 PagesInflation targeting is a monetary policy framework that commits the central bank to achieving low and stable inflation. Inflation targeting is a long-run goal for monetary policy. It was implemented due to the poor performance of exchange rate and monetary targeting. The central bank has an explicit numerical target for inflation rate, for the medium term and announces it to public which is around 2% in the UK. Monetary policy supports the long term economy growth by maintaining the price stabilityRead MoreEconomic Conditions in the US1005 Words   |  4 Pagesat a rate of 3% per year, which is moderate growth. This is fuelled in part by low interest rates, which are at 0.42% for short-term paper. This is to spur further growth. The unemployment rate is declining, and is now at 8.2%. The inflation rate, using the basic Consumer Price Index, is 0.3%. Slide 3: Brazil is one of the booming BRIC economies, and is very accessible to US markets. The St. Louis Fed provides us with economic data on select international countries. The GDP growth rate in BrazilRead MoreDeveloping A Countrys Economic Data1489 Words   |  6 Pagescountry’s economy is so dependent on their individual success. The government’s goal is to prioritize economic growth in order to maintain a high standard of living for its citizens. Key Economic Factors Gross domestic product (GDP), unemployment, and inflation make up the most important economic indicators for Canada’s economy. As previously mentioned, these factors and interrelated but will be analyzed individually for a full understanding of their individual impact on the economy. Gross Domestic ProductRead MoreThe Phillips Curve : The Epitome Of Antiquity Essay1384 Words   |  6 PagesThe Epitome of Antiquity Abstract In this paper, we will present a model discussed at length in Todorova (2012) representing the Phillips curve, the textbook macroeconomic relationship posting a negative relationship between unemployment and inflation. Specifically, the model posits that when unemployed workers are scarce, employers must compete with one another for the remaining, qualified workers by bidding wages upward, which translates into higher costs, which combined with stronger consumptionRead More U.K. Economy Essay1546 Words   |  7 PagesU.K. Economy The UK government currently has four main macroeconomic aims that it is pursuing. These aims are those of low unemployment, low inflation, and high and stable economic growth as well as a favourable balance of payments current account position. This essay will concentrate on the government’s success in the first three of its aims listed above and how these macroeconomic aims can or have been achieved using fiscal and monetary policy. Fiscal policy is used to affect aggregateRead MoreMacroeconomic Objectives Of The Malaysian Economy1542 Words   |  7 Pagesmacroeconomic objectives In this section I will be discussing how well does Malaysia manage to achieve the four macroeconomic objectives which are; high and stable economic growth, low unemployment, low inflation and avoidance of large balance of trade deficit. One of the ways that Malaysia’s economy plan to reach the goals of high and stable economic growth is by implementing a fiscal consolidation â€Å"The Malaysian government has embarked on fiscal consolidation† (Ratings and Investment Information