Placing in the most generic term, inflation within an economy diminishes the value of money as a result of which the common people find it difficult to survive. Inflation and growth are such two terms of the economy that are comprehensively incompatible and can never be anticipated to meet (Economy Watch, 2011). The present research paper has been designed to critically evaluate the impact of inflation upon the Asian economies. The reason for selecting the Asian economies for study is the excessively elevating rate of inflation as compared to the rest of the world during the past a few years. The following demonstration of the inflation rate has led to the undertaking of present research. The rates of inflation depicted in the figure are those of the recent period. Source: (Trading Economics, 2011). The figure is a clear representation of the rate of inflation in various countries of the world inclusive of the western countries, European countries, Australia and the major Asian countries in terms of economic growth and also population. It is evident from the figure that rate of inflation in India and China is the highest in the entire world in recent times. This is the basis of the present research that will be concerned with finding the causes of inflation along with its effects and most importantly finding an effective way of managing inflation. 2.0 Causes of Inflation in Asian Economies According to a special report from the Asian Development Bank (2008a), during the period from the year 2007 to 2008, both structural as well as cyclical factors have contributed towards the escalating prices of food products in Asia. Before that period, major cereal stocks in the global market were reducing radically. The harsh rate of failing stock was a clear indication that the world economy had been becoming incapable of meeting up the rate of consumption (ESCAP, 2011). As a result of this, the ratio of stock-to-use had been falling massively, before it reached one of its lowest rates during the same period of 2007-2008 as shown in the figure below: Source: (Asian Development Bank, 2011). The percentage figures in the above figure had been shown with respect to three important cereals: corn, wheat and rice. Various structural factors that have been influencing the increasing rate of food prices during the period 2007-2008 are observed to be continuing their impacts upon the present episode of ever increasing food prices within the Asian economies. The factors relevant on the demand-side of the economies are inclusive of huge rate of growth in population figures, sturdy rate of growth in people’s income within the emerging economies and varying diet habits of the people from staple items of food towards meat and several other processed foods. Increased consumption of processed food items requires huge amount of feedstock and raw materials. The factors in the supply side that contributes towards increased rate of inflation are the enhanced utilisation of food grains, primarily rapeseed oil and corns for the purpose of producing biofuel; alteration of the agricultural lands in order to be utilised for business purposes; enhanced shortage of resources for irrigation; lower production of crops; increasing costs of raw materials; and
Impact of Inflation on Asian Economies Table of Contents 1.0 Introduction 3 2.0 Causes of Inflation in Asian Economies 5 3.0 Effects of Asian Inflation on its Economic Growth 8 4.0 Effectiveness of Inflation Management in Asian Economies 9 5.0 Conclusion 11 6.0 References 13 1.0 Introduction The rate of inflation in the Asian economies had been soaring during the recent past obsessed by rising prices of oil and food…
The capacity of the World Trade Organisation to contribute to the success of the global companies is also attributed to the efforts of the former to promote push trade liberalization. In this sense, there are truly a number of opportunities that are now given to both producers and consumers.
In 2008 the world faced a financial meltdown. Globally the world faced major financial crisis and recession. The economic recession was a result of the US mortgage crisis. The subprime crisis of US caused ripple effect across the globe as a result most of the countries felt a financial crunch.
Summary 3.1 Conclusion 3.2 Recommendation Bibliography APPENDICES Appendix A Appendix B Appendix C Appendix D Relationships among Economic Growth, Inflation, and Stock Market Returns: An Empirical Analysis of the United Kingdom 1. Introduction Research of global stock exchanges has revealed relationships between the movement of stock market rates of return over time and economic variables.
sign and Implementation of Inquiry 3.4 Limitations and Selection of Variables Related to QE 3.5 Sources of Bias 3.6 Quantitative Tools Chapter 4 - Findings 4.1 Critical Conditions That Brought About QE 4.2 Did Asset Prices Actually Increase ? 4.3 How QE Affected Assets In Terms of Gilts in the Financial Market 4.4 Did Money Supply Increase ?
The loans are being given to customers and businesses- who have both excellent credit report and have lots of assets for the collateral. So during credit crunch the bank is giving loans to the people who basically doesn’t need loan. Credit crunch is also being termed as the cyclical decline in credit demand and it is often suggested that the cycling swing is reinforced by the structural changes in the demand for the credit but fundamentally credit crunch is related to supply of credit, as opposed to the demand for it.
The report also shows whether the impacts have been positive or negative and what changes have the euro brought to the economic environment of the member countries of Eurozone. Finally after the analysis of the literature from economists and analysts, the conclusions regarding the impact of euro would be derived.
The real estate crisis that started in the US turned in a global economic recession around all corners of the globe leading to a plunge towards global financial meltdown. The strong and emerging economies of the world were in turmoil of liquidity crisis. There were some economies which were, however, resilient to the shock of the global economic crisis.
Countries around the globe recognise the significance and necessity of being integrated in the global market for economic, social, and political development of particular countries. The participation in the global market of countries is made possible by the reality of globalisation.
To my friends and colleagues who has been continuously giving me encouragement and words of wisdom. Abstract Research Problem: The impact of increased investment on renewable energy resources on world market prices of oil and the economic growth of OECD remain unclear.
Countries around the globe recognize the significance and necessity of being integrated into the global market for economic, social, and political development of particular countries. The participation in the global market of countries is made possible by the reality of globalization. Globalisation pertains to the removal of economic barriers.
45 pages (11250 words)Dissertation
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