What proportion of the growth in GDP is due to inflation and what proportion is due to an increase in actual output? To answer this topic, we must first examine how economists compute Real Gross Domestic Product (RGDP) and how it differs from Nominal GDP (NGDP). The market value of output and, as a result, […]
How To Calculate Nominal GDP From A Table? Read More »
Under President Tayyip Erdogan’s urging, Turkey’s central bank lowered interest rates by 500 basis points last year, causing inflation to skyrocket in the last nine months. It’s projected to grow even more, owing to a spike in gas, oil, and grain prices triggered by the Ukraine conflict. Last year, the easing cycle resulted in a
Why Turkey Inflation Is High? Read More »
Interest rate hikes improve the motivation to save because the reward for saving has increased. As a result, saving in the economy is likely to rise, reducing consumption (assuming that people’s earnings remain constant). Interest rates rise, which raises the cost of borrowing and, as a result, the cost of investment. As a result, businesses
How Does Interest Rates Affect GDP? Read More »
The Phillips curve shows that historically, inflation and unemployment have had an inverse connection. High unemployment is associated with lower inflation or even deflation, whereas low unemployment is associated with lower inflation or even deflation. This relationship makes sense from a logical standpoint. When unemployment is low, more people have extra money to spend on
How To Reduce Inflation And Unemployment At The Same Time? Read More »
The fundamental reason for Ireland’s high GDP growth rates is that, in recent years, a number of large multinational firms have transferred their economic activities, and more especially their underlying intellectual property, to Ireland, largely due to low corporate tax rates. What makes up Ireland’s Gross Domestic Product? Agriculture generated 0.93 percent of Ireland’s GDP
Why Ireland GDP So High? Read More »
Work has gotten worse for many since the outbreak of the epidemic, further aggravating the issue. Due to the high incidence of employees abandoning their jobs, a smaller number of people are shouldering the workload that was formerly carried by a larger number of workers, adding to significant burnout rates. Not to mention the additional
Should Salary Increase With Inflation? Read More »
Stocks, on the other hand, have a negative connection to inflation over shorter time periods and can be particularly damaged by unexpected inflation. When inflation rises abruptly or unexpectedly, it can increase economic uncertainty, resulting in reduced earnings predictions for businesses and lower stock prices. What effect does rising inflation have on stock prices? In
Does Inflation Decrease Stock Prices? Read More »
State and local government debt as a percentage of GDP in the United States, per state, for the fiscal year 2019. Which state’s debt to GDP ratio is the highest? In reality, in FY21, twenty-seven out of thirty-one states and UTs saw their debt ratio rise by 0.5 to 7.2 percentage points year over year,
What Is California’s Debt To GDP Ratio? Read More »
Media outlets are claiming 7% inflation, which is calculated as the overall increase in prices from December 2020 to December 2021, rather than on a fourth quarter to fourth quarter basis. Inflation was 4.7 percent from 2020 and 2021, according to average prices by calendar year. Meanwhile, chained CPI growth in 2021 was 6.6 percent
Will There Be Inflation In 2021? Read More »
The rationale for raising rates is straightforward: higher borrowing costs can reduce inflation by reducing demand. When borrowing becomes more expensive, fewer people can afford homes and cars, and fewer firms can expand or purchase new machinery. Spending is decreasing (a trend we’re currently seeing). Companies require fewer employees when there is less activity. Because
How Does Increasing Interest Rates Help Inflation? Read More »
