Agenda

Investors and the country's economic dependence on China in February has become increasingly concerned about the direction our country's economic worries. Monetary policy and the misallocation of resources means that current growth is expected to tighten is not sustainable.

Understanding of economic inflation

Determine the inflation rate is in the general price level continued to rise. This means that, in life and the people need more money to purchase the same goods would be increased costs.

How is a measure of inflation?

In order to measure inflation, government price surveys and investigations to find out, a typical shopping basket.

The first thing to do government, if inflation, a typical basket of goods measured was found. ThisBe able to share the goods, depending on their influence. For example, 12%, the total cost of gasoline account for the basket. Spending on clothing, 7% and 1% of mineral water costs. Which, of course, if gasoline prices rise, it will be even more important is the mineral water.

Every month, the Government will review the prices. The number of price changes will mulitiplied by commodity. These can be in the price index, the example in the UK will be convertedConsumer Price Index CPI is to use.

Problems in measuring inflation,

1. The quality of the product may change. As the price of mobile phones, but this may be due to inflation which can improve the function of the mirror.

2. Some consumers have different effective rates of inflation. Consumers who smoke will be done through raising the price of cigarettes. Old people in the family who live under the cold, more exposed to energy price increases. Young people can benefit fromConsumer prices

Questions / inflation costs - Why inflation is bad?

Prices on the economy created uncertainty. When the inflation rate, and is often unstable and unpredictable. These companies continue to invest because they can not determine their own future and the future costs. The lower cost of capital leading to lower long-term economic growth. High-inflation countries tend to have worse economicIn the medium term.
Inflation growth is not sustainable. If the economy is growing faster than the long-term trend growth rate lead to inflation, with the rise in demand faster than supply. In order to reduce the inflation rate, will increase the interest rate monetary policy, which will reduce inflationary pressure, but at a lower cost of growth. It may even cause long-term long-term decline. Continued low inflation rate will help to avoid big ups and downs in the economy.
Menu cost.This is a change in inventory costs. If prices rise, it needs time to update the price tag. This is less with the modern technology.
Shoes cost. When the inflation rate, people spend more time and effort to find the lowest price
Decline in exports. If a country's inflation rate is higher than its major trading partners, there would not be competitive and for sale, minus export.

More articles on inflation with the help of economics

The contents of the Republican Party. Obama, in his first State of the Union speech, 27 January 2010 No. 1 [14]

The contents of the Republican Party. Obama, in his first State of the Union speech, 27 January 2010 as part of [14] Farsi-speaking translator فارسی princeshadow16april8 2009 Nian 1 27, 2010 چهارشنبه 7 بهمن 1388 meeting Obama legislature repair professionals Xinhua The Associated Press White House issued a press © 2010 The Associated Press, 27 health care in January 2010, 07:33 PM WASHINGTON, onrush - vowed to change his commitment, Obama said his country strongly urges the Democratic and RepublicanOn Wednesday night, State of the Union Government to overcome the "lack of confidence, and come together to address the nation's broken health care system, high deficits and polarized politics. He is No. 1 for his valuable health care reform is the Congress is seriously threatened, is at a distance of legislative demand. "We are facing serious and difficult challenges," Obama said in his State of the Union in advance excerpts released by the White House. "What the American people want to --They deserve - is to overcome the weight of our political apathy, for all of us, Democrats and Republicans work hard through our differences. "Obama talks expected to take off, because he's the president has been stalled for a change - the chaotic health care debate, the crippled economy and errors, narrowly avoiding a disaster caused by the horrors of Christmas - what is the economy, concerns about seizure The reins, particularly in the minds of Americans. would be in his speech, PresidentAbout two-thirds of the time, on the economy, and stressed that his ideas, but mainly some old and new, and reiterated employment growth, moderate recovery of the fiscal deficit and ever-changing way in Washington. The root of the problem is the mood of voters, and now Obama's supporters, but said he how he governs. Advertising, he understood the struggle of Americans pay the bills, and banks to accept rescue and bonuses, Obama urged Congress to pass a second fiscal stimulus program, and provide newFinancial assistance for the middle class. Acknowledges that the Government's disappointment more than his spending habits, he is three years, to freeze some domestic spending (also proposed to increase 6.2 percent, or 400 million U.S. dollars, in the training stage and debt financing to support the work of the popular bill), he announced the establishment of the creation of a bipartisan deficit reduction task force. "Let's try common sense," Obama said in his speech excerpts. "Let's invest in our country in needTheir debt. "Although he is described as an ordinary man and the different types of leaders of the fighter, he urged Congress to require lobbyists to all Members or members of his government contacts, and slow down the decision of the Supreme Court announced last week that the impact of company can have greater support or oppose candidates for flexibility. "I do not think the United States shall be elected by the United States the most powerful interest groups funded, or even worse, foreign companies," he said.Obama speech, a number of new proposals, the White House reveals a lot in advance, was rejected - right or left deliberately - something too few or too modest. And for the Republican governor of Virginia, Bob Michael, showing his party sign of surrender against Obama. In fact, the Republican selection of McDonnell Douglas is to be represented symbolically shows that he and others recently by Republican electoral victory. McDonald expression of anti-bigThe Government saw the victory of their own feelings, and said in his speech after extract, Americans think the good of their health care burden, not only for the "best health care systems in the world turned to the federal government." As the traditional published in a at the end of Obama in the presidential, one of the largest markets after the acquisition of angry Republicans, Massachusetts, to reach the seats in the Senate, so the message National League weekHands pinned down on his leadership. With the turnover of the vast majority of Democrats in the Senate removed through the laws of most countries, but also clouds and Obama on health care agenda for the rest. Senate allies, for example, Wednesday said it hoped Japan levers package includes Obama's proposals, thus entering a new environment, query, and their demolition of the tax relief measures to reduce the right of small businesses and state and local help government. By the President of the AssociationThe former State pessimistic about the prospects for double-digit unemployment rate and the government deficit will hit a record high of 1.4 trillion dollars. It is also a growing concern about the party's presidential decline in the hope that it will conduct mid-term elections this fall.

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In February 2008 met Mirza, Pakistan, a typical family. How many of them did not experience the benefits of economic growth in Pakistan. , Now depends on the forthcoming elections they hope. In a dilapidated house, family life and 12 passed struggle. "Our development is no longer 20 or 30 years, because they only into their own pockets politicians and money," Hart complained. He hoped that the living standard has improved after the elections. But many people suspect that the elections free and fair.According to human rights organizations, institutions, freedom of expression is severely restricted, journalists, arbitrary arrests and distortions registered to vote. "What Musharraf said that the law would be," anticipates纳斯林米尔扎. It was also said that the new leaders to confront the military or extremists.

2005 Economic Update: The total remuneration for specific industries in 2005 budget projections

What are the new 2006 store? Research institutes have predicted, but the oil price instability, may lead to turn a positive prediction.

According to Michael Maciekowich, director of the National Astronomy solution, enterprises need to carefully check the eyes to the 2006 salary budget projections. "While inflation and unemployment remained stable in 2005, this change can be used as we are in 2006, has been strengthened.'s A barrel of oil, and now the priceIn the more than 60 U.S. dollars in price, may end up voting for the unemployed in the country influence. If consumers are spending the cash available outside of the non-durable goods, such as electronic transfer, fuel pump, the company can end the surplus of goods to enable them to reduce production. These events may lead to layoffs and rising unemployment. Rising unemployment, often leading to the weakening of the wage increase, due to labor supply. "

However, economists in the federal statesGovernment is optimistic. Congressional Budget Office (CBO) that the economy is a healthy growth rate. In considering the impact of inflation, according to the Congressional Budget Office, real gross domestic product (GDP), which is a country of all goods and services, the total value of annual production from 3.7% before 2006 which is 2% Point 9 of the pace.

What to say, the latest economic forecast, we expect the conditions in the coming yearCompensation budget plan? The Congressional Budget Office projected at 1.9% (2.4% and in 2005 the consumer price index) and the percentage change in the unemployment rate of 5.2% (no change compared with 2005).

Should be the year 2005-06 WorldatWork Salary Budget Survey, we estimate that in 2006 a slight decrease the use of variable pay programs to be seen. In 2005, the average economic incentives was 12.7%, employees will be exempted. 1 shows that the average household in 2006, forecasting a possible decline in incentive12.2%.

The following table is a summary of this year 2006, the average wage of 12 large enterprise groups in the interim budget level. These amounts are salary adjustments, including the benefits, promotion, market and stock markets. This table information is recently published by Mercer Human Resource Consulting, the U.S. Conference Board and the World Association of remuneration were collected.

Industry

2006 Basic Pay Adjustment

Legal and accounting services

4.0%

Business andInformation Services

3.9%

Computer software services

3.8%

Finance and banking

3.7%

Hospitality

3.7%

Insurance

3.7%

Healthcare

3.6%

Make

3.6%

Retail

3.6%

Transportation

3.6%

Education

3.3%

Property

3.3%

The following is the planned execution of a formal salary range or industry structure adjustment of wage levels of the exemption:

(Source:2005-06 WorldatWork Salary Budget Survey)

Industry

The 2006 budget salary structure adjustment

Transportation

3.6%

Property

3.1%

Hospitality

2.7%

Make

2.7%

Healthcare

2.5%

Retail

2.5%

Finance and banking

2.4%

Insurance

2.4%

Construction

2.3%

Business and Information Services

2.2%

Education

2.2%

Curious, how it compares to the U.S.The rest of the world? The following statistics are from the Chief Resources Ltd. (Shenzhen-Hong Kong Express Rail Link) 2005-06 wage growth forecasts. When you start your own budget adjustments, the introduction of Zimbabwe can only be thankful you do not pay employees!

National

2006 inflation forecast

In 2006, an increasePlan

Australia

2.5%

4.0%

Belgium

1.6%

3.0%

Brazil

7.4%

6.9%

Canada

2.3%

3.0%

China

3.6%

5.1%

Egypt

9.6%

9.8%

Finland

0.5%

2.0%

France

1.8%

3.8%

Greece

2.8%

4.5%

IrishRepublic

2.6%

3.4%

Italy

2.0%

3.8%

Japan

0.1%

2.0%

Mexico

4.4%

6.0%

Nigeria

16.1%

16.2%

Norway

1.2%

3.5%

Puerto Rico

2.7%

4.0%

Russia

8.2%

10.0%

Spain

2.8%

5.1%

Sweden

0.8%

3.0%

United Kingdom

1.8%

3.2%

United States of America

2.6%

4.2%

Zimbabwe

120.0%

120.0%

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