1. The document discusses how price indices like the Consumer Price Index (CPI) and Wholesale Price Index (WPI) are constructed by determining a basket of goods and services and tracking their prices over time.
2. It explains how to calculate a price index and inflation rate by setting a base year price level, determining current prices, and calculating the percentage change.
3. Correcting economic variables for inflation is discussed, including using price indices to convert nominal values to real terms and calculating real interest rates.
There are several types and definitions of inflation discussed in the document:
1. Inflation refers to a general and widespread increase in the price level of goods and services in an economy over time. It can be caused by too much money chasing too few goods.
2. Inflation is classified by its speed - from creeping inflation of around 2% annually to hyperinflation of over 16%.
3. Inflation can also be comprehensive, affecting prices across the board, or sporadic in certain sectors due to production bottlenecks.
4. Measuring inflation involves calculating price indices and inflation rates which track changes in the general price level over time. The GDP deflator also measures
Inflation is defined as the rate of rising prices of goods and services over time. The main causes of inflation include monetary policy, fiscal policy, demand-pull factors which increase prices due to a gap between supply and demand, and cost-push factors which increase prices due to higher production costs. To prevent inflation, the primary strategy is to raise interest rates which decreases demand and lowers inflation. Effects of rising inflation include a fall in purchasing power, potential economic growth if due to rising demand, and increased costs if workers demand higher wages. Inflation rates can be calculated using changes in the consumer price index from one year to the next.
The document discusses several key macroeconomic indicators used to measure and understand a country's economy. It begins by explaining GDP as the total market value of all final goods and services produced within a country in a given period of time. It then discusses how GDP is calculated using the expenditure, income, and value added approaches. The document also covers other indicators like GNP, inflation rates, unemployment rates, and underemployment rates. It explains how to interpret and compare these figures across countries.
This document defines inflation as an increase in the average price level of all products in an economy. It discusses how economists measure inflation using tools like the Consumer Price Index (CPI) and Producer Price Index (PPI). The CPI specifically tracks the prices of goods in a market basket and is used to calculate inflation rates. Causes of inflation include increases in aggregate demand and costs, as well as growth in the money supply. Effects of inflation are a decrease in purchasing power, the value of real wages, and savings.
This document discusses various topics related to inflation including:
1. Definitions of inflation, real vs nominal GDP and interest rates, and different indices used to measure inflation like the GDP deflator, CPI, and PPI.
2. Causes of inflation including demand shocks, supply shocks, and increases in the money supply from a Keynesian and monetarist perspective.
3. Costs of inflation such as its impact on savers, wage-price spirals, arbitrary redistributions of income, and disruption to business planning.
The Consumer Price Index (CPI) measures changes in the cost of a fixed basket of goods and services purchased by typical consumers. Statistics BD identifies a market basket of commonly purchased items and surveys prices to calculate the CPI, which tracks costs over time. The CPI is used to calculate inflation rates by comparing costs in the current period to a base year. While useful, the CPI has limitations as it does not account for substitutions, new products, or quality changes that affect consumers' actual cost of living. Economic data can be adjusted for inflation effects by using price indexes to convert nominal values into real terms.
methods to check inflation [Autosaved].pptxAyushi Thakur
This document discusses inflation and the different indexes used to measure it in India. It explains that there are two main indexes: the Wholesale Price Index (WPI) and the Consumer Price Index (CPI). WPI measures price changes of goods in the wholesale market, tracking 697 items across primary articles, manufactured products, and fuel. CPI measures price changes at the retail level, tracking 448 rural and 462 urban items, and includes both goods and services. While WPI is used by the government and businesses to design policies and contracts, CPI is now primarily used by the RBI to monitor inflation. The key difference is that WPI indicates wholesale inflation while CPI reflects retail inflation faced by consumers.
There are several types and definitions of inflation discussed in the document:
1. Inflation refers to a general and widespread increase in the price level of goods and services in an economy over time. It can be caused by too much money chasing too few goods.
2. Inflation is classified by its speed - from creeping inflation of around 2% annually to hyperinflation of over 16%.
3. Inflation can also be comprehensive, affecting prices across the board, or sporadic in certain sectors due to production bottlenecks.
4. Measuring inflation involves calculating price indices and inflation rates which track changes in the general price level over time. The GDP deflator also measures
Inflation is defined as the rate of rising prices of goods and services over time. The main causes of inflation include monetary policy, fiscal policy, demand-pull factors which increase prices due to a gap between supply and demand, and cost-push factors which increase prices due to higher production costs. To prevent inflation, the primary strategy is to raise interest rates which decreases demand and lowers inflation. Effects of rising inflation include a fall in purchasing power, potential economic growth if due to rising demand, and increased costs if workers demand higher wages. Inflation rates can be calculated using changes in the consumer price index from one year to the next.
The document discusses several key macroeconomic indicators used to measure and understand a country's economy. It begins by explaining GDP as the total market value of all final goods and services produced within a country in a given period of time. It then discusses how GDP is calculated using the expenditure, income, and value added approaches. The document also covers other indicators like GNP, inflation rates, unemployment rates, and underemployment rates. It explains how to interpret and compare these figures across countries.
This document defines inflation as an increase in the average price level of all products in an economy. It discusses how economists measure inflation using tools like the Consumer Price Index (CPI) and Producer Price Index (PPI). The CPI specifically tracks the prices of goods in a market basket and is used to calculate inflation rates. Causes of inflation include increases in aggregate demand and costs, as well as growth in the money supply. Effects of inflation are a decrease in purchasing power, the value of real wages, and savings.
This document discusses various topics related to inflation including:
1. Definitions of inflation, real vs nominal GDP and interest rates, and different indices used to measure inflation like the GDP deflator, CPI, and PPI.
2. Causes of inflation including demand shocks, supply shocks, and increases in the money supply from a Keynesian and monetarist perspective.
3. Costs of inflation such as its impact on savers, wage-price spirals, arbitrary redistributions of income, and disruption to business planning.
The Consumer Price Index (CPI) measures changes in the cost of a fixed basket of goods and services purchased by typical consumers. Statistics BD identifies a market basket of commonly purchased items and surveys prices to calculate the CPI, which tracks costs over time. The CPI is used to calculate inflation rates by comparing costs in the current period to a base year. While useful, the CPI has limitations as it does not account for substitutions, new products, or quality changes that affect consumers' actual cost of living. Economic data can be adjusted for inflation effects by using price indexes to convert nominal values into real terms.
methods to check inflation [Autosaved].pptxAyushi Thakur
This document discusses inflation and the different indexes used to measure it in India. It explains that there are two main indexes: the Wholesale Price Index (WPI) and the Consumer Price Index (CPI). WPI measures price changes of goods in the wholesale market, tracking 697 items across primary articles, manufactured products, and fuel. CPI measures price changes at the retail level, tracking 448 rural and 462 urban items, and includes both goods and services. While WPI is used by the government and businesses to design policies and contracts, CPI is now primarily used by the RBI to monitor inflation. The key difference is that WPI indicates wholesale inflation while CPI reflects retail inflation faced by consumers.
This document discusses inflation and the different indexes used to measure it in India. It explains that there are two main indexes: the Wholesale Price Index (WPI) and the Consumer Price Index (CPI). WPI measures price changes of goods in the wholesale market, tracking 697 items across primary articles, manufactured products, and fuel. CPI measures price changes at the retail level, tracking 448 rural and 462 urban items, and includes both goods and services. While WPI is used by the government and businesses, since 2014 the Reserve Bank of India uses CPI to make monetary policy decisions. The document compares the two indexes and explains their importance.
This document discusses key macroeconomic indicators used to measure and analyze the overall economy. It covers gross domestic product (GDP), which measures total output; the GDP expenditure model; inflation and how it is calculated using price indices; unemployment rates and types; and the business cycle of economic expansions and contractions. Real GDP is used to account for inflation changes over time. The unemployment rate shows what percentage of the civilian labor force is unemployed. Business cycles are measured by changes in real GDP and different economic indicators can predict expansions or contractions in the near future.
Consume Price Index & Inflation Rate in PakistanFaisal Basra
The Presentation is about how Consumer Price Index (CPI) is calculated & formulated in Pakistan. The three formulas being used in Pakistan CPI, SPI & WPI are being used to calculate the Inflation Rate.
The document discusses the Consumer Price Index (CPI), which measures changes over time in the prices of consumer goods and services purchased by households. The CPI is a weighted average of prices for a basket of goods, with weights based on household expenditure surveys. It is calculated monthly by finding the prices of items in the basket and comparing them to prices in a base year. The CPI is used to measure inflation and make inflation adjustments to economic data.
The document discusses health expenditure per capita in Nepal. It states that health expenditure per capita in Nepal was $39.03 in 2013 according to the World Bank. Total health expenditure includes public and private spending on health services as a ratio of total population.
The document discusses the Consumer Price Index (CPI) and how it is used to measure inflation and the cost of living over time. The CPI measures the cost of a basket of goods in the current period relative to the cost of that same basket in a base year. It can be used to calculate inflation rates between years and to adjust economic data and payments to account for the effects of inflation through deflating and indexing.
The document discusses inflation and how it is measured. It defines inflation as a sustained increase in the cost of living leading to a fall in purchasing power. Inflation is mainly measured by changes in the Consumer Price Index (CPI) which tracks the prices of goods in a set basket. The CPI has limitations as it cannot account for new goods, quality changes, or substitution between goods. It may overstate inflation due to these problems.
Macroeconomic that will help you understand more and help the country by understanding the topic well. Other than that, it also emphasizes in the stability of the country's economical state. Food security as well no poverty plays a huge part in the balance of the economic state of the country.
Inflation can occur due to an excess of money supply or demand-pull factors that create a gap between effective demand and available supply. There are different types of inflation such as headline inflation, hyperinflation, stagflation, and suppressed inflation. In India, inflation is primarily measured using the Wholesale Price Index (WPI) and Consumer Price Index (CPI), with the WPI historically undergoing changes to its base year and commodities covered. High inflation impacts consumers by reducing the real value of incomes and impacts producers by increasing costs of production.
This document discusses inflation, including causes, types of measurement, and who wins and loses. It defines inflation as a general increase in price levels and describes several ways to measure inflation, including consumer price index (CPI), wholesale price index, and GDP deflator. CPI specifically tracks price changes in a market basket of consumer goods. The document also classifies inflation into cost-push, demand-pull, and structural types based on underlying causes. Finally, it notes that retirees, credit card holders, and those with fixed incomes tend to lose from inflation, while real estate owners, speculators, and some borrowers can benefit.
Examine the composition of national income (or national output);
Study the concepts of Gross National Product (GNP) and Gross Domestic Product (GDP), and differentiate between the two measures;
Look at the two approaches to measuring GDP and GNP;
Learn the differences between real and nominal output: and
Learn what economists use to determine whether the national economy is growing or not.
Inflation - How it's measured content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics:
Intro to Inflation
Index Figures, Measuring Inflation
The CPI
RPI: An Alternative Measure of Inflation
The document discusses macroeconomic measures like GDP and economic growth. It defines GDP as the total value of goods and services produced within a country in a year. GDP is calculated by adding up consumer spending, investment, government spending, and net exports. Nominal GDP uses current prices, while real GDP adjusts for inflation to show changes in the actual quantity of goods produced. The document also discusses related concepts like GNP, NNP, and the components and calculation of GDP.
The document discusses index numbers, which are used as economic indicators to measure changes in economic activities such as prices, sales, exports, and production over time or between locations. There are two main types of index numbers: fixed base index numbers and chain base index numbers. Fixed base index numbers express current data as a percentage of a fixed base year, while chain base index numbers link indices over successive periods. The document provides an example to illustrate how to calculate a fixed base price index and discusses issues statisticians face when constructing index numbers such as choosing items, base years, and weighting formulas.
The document discusses various measures of inflation and cost of living. The consumer price index (CPI) measures the cost of typical household purchases and is used to track inflation. However, the CPI has limitations and may overstate inflation by about 1% annually due to substitution effects, new products, and unmeasured quality changes. The GDP deflator similarly measures price changes but for all goods and services produced rather than consumed. Price indexes are necessary to correct dollar amounts for inflation when making comparisons over time or calculating real interest rates.
The document discusses various measures of inflation and cost of living. The consumer price index (CPI) measures the cost of typical household purchases and is used to track inflation. However, the CPI has limitations and may overstate inflation by about 1% annually due to substitution effects, new products, and unmeasured quality changes. The GDP deflator similarly measures price changes but for all goods and services produced rather than consumed. Price indexes are necessary to correct dollar amounts for inflation when making comparisons over time or calculating real interest rates.
This document provides an introduction to managerial economics and key macroeconomic concepts. It discusses how economics can be divided into microeconomics and macroeconomics. Microeconomics explains supply and demand in markets while macroeconomics deals with national output, income, spending, employment, inflation, and other aggregate indicators. The document then explains key macroeconomic measures including Gross Domestic Product (GDP), how it is calculated, its components of consumption, investment, government spending, and net exports. It also discusses real GDP, nominal GDP, and the GDP deflator for measuring inflation. Fiscal policy involving taxation and government spending is briefly covered.
The document discusses inflation and how it is measured over time. It provides an example showing how much the price of common items like the New York Times, home prices, and average manufacturing wages have increased from 1970 to 2008. It then explains some of the most commonly used price indexes to measure inflation, such as the Consumer Price Index (CPI) and Wholesale Price Index (WPI). Formulas are provided for calculating the CPI and measuring the inflation rate between two time periods. Pros and cons of inflation are also briefly mentioned but not detailed.
The document discusses the Whole Sale Price Index (WPI) and Consumer Price Index (CPI). The WPI measures price changes in the primary and wholesale markets, while the CPI measures the overall cost of goods and services bought by a typical consumer. The CPI is used to monitor changes in the cost of living over time. It measures price changes of a fixed basket of goods and services of constant quality and quantity to determine inflation rates.
The document defines the Consumer Price Index (CPI) as a measure of the general price level of goods and services in an economy compared to a base year. It measures the average cost of a basket of consumer goods and services in the current year as a percentage of the cost of the same basket in the base year. There are many indexes that measure different sectors, such as housing, imports, stock prices, palm oil, and rubber. The CPI is used to measure inflation, the value of money over time, and economic growth. It is constructed by selecting consumer goods and services, weighting their importance, and choosing a base year or period.
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
This document discusses inflation and the different indexes used to measure it in India. It explains that there are two main indexes: the Wholesale Price Index (WPI) and the Consumer Price Index (CPI). WPI measures price changes of goods in the wholesale market, tracking 697 items across primary articles, manufactured products, and fuel. CPI measures price changes at the retail level, tracking 448 rural and 462 urban items, and includes both goods and services. While WPI is used by the government and businesses, since 2014 the Reserve Bank of India uses CPI to make monetary policy decisions. The document compares the two indexes and explains their importance.
This document discusses key macroeconomic indicators used to measure and analyze the overall economy. It covers gross domestic product (GDP), which measures total output; the GDP expenditure model; inflation and how it is calculated using price indices; unemployment rates and types; and the business cycle of economic expansions and contractions. Real GDP is used to account for inflation changes over time. The unemployment rate shows what percentage of the civilian labor force is unemployed. Business cycles are measured by changes in real GDP and different economic indicators can predict expansions or contractions in the near future.
Consume Price Index & Inflation Rate in PakistanFaisal Basra
The Presentation is about how Consumer Price Index (CPI) is calculated & formulated in Pakistan. The three formulas being used in Pakistan CPI, SPI & WPI are being used to calculate the Inflation Rate.
The document discusses the Consumer Price Index (CPI), which measures changes over time in the prices of consumer goods and services purchased by households. The CPI is a weighted average of prices for a basket of goods, with weights based on household expenditure surveys. It is calculated monthly by finding the prices of items in the basket and comparing them to prices in a base year. The CPI is used to measure inflation and make inflation adjustments to economic data.
The document discusses health expenditure per capita in Nepal. It states that health expenditure per capita in Nepal was $39.03 in 2013 according to the World Bank. Total health expenditure includes public and private spending on health services as a ratio of total population.
The document discusses the Consumer Price Index (CPI) and how it is used to measure inflation and the cost of living over time. The CPI measures the cost of a basket of goods in the current period relative to the cost of that same basket in a base year. It can be used to calculate inflation rates between years and to adjust economic data and payments to account for the effects of inflation through deflating and indexing.
The document discusses inflation and how it is measured. It defines inflation as a sustained increase in the cost of living leading to a fall in purchasing power. Inflation is mainly measured by changes in the Consumer Price Index (CPI) which tracks the prices of goods in a set basket. The CPI has limitations as it cannot account for new goods, quality changes, or substitution between goods. It may overstate inflation due to these problems.
Macroeconomic that will help you understand more and help the country by understanding the topic well. Other than that, it also emphasizes in the stability of the country's economical state. Food security as well no poverty plays a huge part in the balance of the economic state of the country.
Inflation can occur due to an excess of money supply or demand-pull factors that create a gap between effective demand and available supply. There are different types of inflation such as headline inflation, hyperinflation, stagflation, and suppressed inflation. In India, inflation is primarily measured using the Wholesale Price Index (WPI) and Consumer Price Index (CPI), with the WPI historically undergoing changes to its base year and commodities covered. High inflation impacts consumers by reducing the real value of incomes and impacts producers by increasing costs of production.
This document discusses inflation, including causes, types of measurement, and who wins and loses. It defines inflation as a general increase in price levels and describes several ways to measure inflation, including consumer price index (CPI), wholesale price index, and GDP deflator. CPI specifically tracks price changes in a market basket of consumer goods. The document also classifies inflation into cost-push, demand-pull, and structural types based on underlying causes. Finally, it notes that retirees, credit card holders, and those with fixed incomes tend to lose from inflation, while real estate owners, speculators, and some borrowers can benefit.
Examine the composition of national income (or national output);
Study the concepts of Gross National Product (GNP) and Gross Domestic Product (GDP), and differentiate between the two measures;
Look at the two approaches to measuring GDP and GNP;
Learn the differences between real and nominal output: and
Learn what economists use to determine whether the national economy is growing or not.
Inflation - How it's measured content slideshow. Designed for the Economic A level qualification. Can be used in revision and in class.
Subtopics:
Intro to Inflation
Index Figures, Measuring Inflation
The CPI
RPI: An Alternative Measure of Inflation
The document discusses macroeconomic measures like GDP and economic growth. It defines GDP as the total value of goods and services produced within a country in a year. GDP is calculated by adding up consumer spending, investment, government spending, and net exports. Nominal GDP uses current prices, while real GDP adjusts for inflation to show changes in the actual quantity of goods produced. The document also discusses related concepts like GNP, NNP, and the components and calculation of GDP.
The document discusses index numbers, which are used as economic indicators to measure changes in economic activities such as prices, sales, exports, and production over time or between locations. There are two main types of index numbers: fixed base index numbers and chain base index numbers. Fixed base index numbers express current data as a percentage of a fixed base year, while chain base index numbers link indices over successive periods. The document provides an example to illustrate how to calculate a fixed base price index and discusses issues statisticians face when constructing index numbers such as choosing items, base years, and weighting formulas.
The document discusses various measures of inflation and cost of living. The consumer price index (CPI) measures the cost of typical household purchases and is used to track inflation. However, the CPI has limitations and may overstate inflation by about 1% annually due to substitution effects, new products, and unmeasured quality changes. The GDP deflator similarly measures price changes but for all goods and services produced rather than consumed. Price indexes are necessary to correct dollar amounts for inflation when making comparisons over time or calculating real interest rates.
The document discusses various measures of inflation and cost of living. The consumer price index (CPI) measures the cost of typical household purchases and is used to track inflation. However, the CPI has limitations and may overstate inflation by about 1% annually due to substitution effects, new products, and unmeasured quality changes. The GDP deflator similarly measures price changes but for all goods and services produced rather than consumed. Price indexes are necessary to correct dollar amounts for inflation when making comparisons over time or calculating real interest rates.
This document provides an introduction to managerial economics and key macroeconomic concepts. It discusses how economics can be divided into microeconomics and macroeconomics. Microeconomics explains supply and demand in markets while macroeconomics deals with national output, income, spending, employment, inflation, and other aggregate indicators. The document then explains key macroeconomic measures including Gross Domestic Product (GDP), how it is calculated, its components of consumption, investment, government spending, and net exports. It also discusses real GDP, nominal GDP, and the GDP deflator for measuring inflation. Fiscal policy involving taxation and government spending is briefly covered.
The document discusses inflation and how it is measured over time. It provides an example showing how much the price of common items like the New York Times, home prices, and average manufacturing wages have increased from 1970 to 2008. It then explains some of the most commonly used price indexes to measure inflation, such as the Consumer Price Index (CPI) and Wholesale Price Index (WPI). Formulas are provided for calculating the CPI and measuring the inflation rate between two time periods. Pros and cons of inflation are also briefly mentioned but not detailed.
The document discusses the Whole Sale Price Index (WPI) and Consumer Price Index (CPI). The WPI measures price changes in the primary and wholesale markets, while the CPI measures the overall cost of goods and services bought by a typical consumer. The CPI is used to monitor changes in the cost of living over time. It measures price changes of a fixed basket of goods and services of constant quality and quantity to determine inflation rates.
The document defines the Consumer Price Index (CPI) as a measure of the general price level of goods and services in an economy compared to a base year. It measures the average cost of a basket of consumer goods and services in the current year as a percentage of the cost of the same basket in the base year. There are many indexes that measure different sectors, such as housing, imports, stock prices, palm oil, and rubber. The CPI is used to measure inflation, the value of money over time, and economic growth. It is constructed by selecting consumer goods and services, weighting their importance, and choosing a base year or period.
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...Donc Test
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck maria r mitchell.docx
Importance of community participation in development projects.pdf
Measures of Inflation_pgdmib.ppt
1.
2. Overview
1. How the Price Indices (WPI or CPI) are
constructed.
2. Calculating WPI & CPI and the Inflation
Rate.
3. Correcting economic variables for the
effects of inflation.
3. Three Measures Of General
Price Level
Consumer Price Index(CPI) – Based on
the purchases of an Industrial worker/
Agri. Laborer
Wholesale Price Index (WPI)– Based on
Producers prices on a chosen bundle of
commodities
GDP Deflator-Ratio of Nominal GDP and
Real GDP
4. Measuring the Cost of Living
1. To determine the cost of living index,
Ministry of Industry & Ministry of
Labour first identifies a “market
basket” of goods and services the
typical consumer buys.
2. Ministry of Labour surveys consumers
to determine what they buy
(commodity basket) and, annually, the
overall cost of the goods and services
they buy - CPI.
5. Measuring the Cost of Living
1. The Consumer Price Index (CPI) is used to
monitor changes in the cost of living (i.e.
the selected market basket) over time.
When the CPI rises, the typical family has to
spend more rupees to maintain the same
standard of living.
2. The goal of the CPI is to measure changes
in the cost of living. It reports the
movement of prices not in rupee amounts,
but with an index number.
6. What’s in the CPI’s Basket?
Hypothetical Example
Food
18.0%
Household
10.0%
Alcohol
5.0%
Recreation
10.0%
Clothing
7.0%
Health
4.0%
Transportation
18.0%
Shelter
28.0%
7. What is an Index Number?
IrvingFisher(1867-1947)
An indexnumber expresses the value
of some entity (such as price or
quantity)
at a given periodof time in absolute
number formbut related to a base
period set arbitrarilyto 100.
8. Overview
1. how the Consumer Price Index (CPI) is
constructed.
2. Calculating Price Index and the
Inflation Rate.
3. Problems in measuring the cost of
living.
4. Correcting economic variables for the
effects of inflation.
9. Suppose that in 2014 all you bought wascoffee and rice.
Coffee was Rs 10.00 per cup andyou bought 365 cups.
Rice was Rs 30.00 per Kg andyou bought 50 kg.
THE CPI -- A SIMPLE EXAMPLE
10. In this example, we can treat 2014 as the “base period” of
reference year.
The CPI in 2015 would answer the question “How much
would your total spending change (relative to 2014) if you
bought the same quantity of coffee and rice in 2015 as in
2014?
THE CPI -- A SIMPLE EXAMPLE
11. Suppose
- Price of a cup of coffee remains the same in 2015 as in
2014 (Rs 10 per cup), but
Rice rise to Rs 40.00 per Kg.
- What’s the value of the CPI in 2015?
THE CPI -- A SIMPLE EXAMPLE
12. - Total spending in 2014:
- 365 cups of coffee@Rs10 = Rs 3650
- 50 kg of rice @ Rs 30 = Rs 1500
Total Rs 5150
THE CPI -- A SIMPLE EXAMPLE
13. THE CPI -- A SIMPLE EXAMPLE
- Total spending in 2015
(if you buy the same stuff):
- 365 cups of coffee @ Rs10 = Rs 3650
- 50 kgs of rice @Rs 40 = Rs 2000
Total Rs 5650
14. The CPI in 2015 = 5650/5150*100 = 109.7
Suppose the Cost rises to Rs. 6000 in 2016
The CPI in 2016 =6000/5150*100
= 116.5
THE CPI -- A SIMPLE EXAMPLE
15. Calculating the Consumer Price Index and the
Inflation Rate
1. Determine what goods are most important to
the typical consumer: Fix the Basket
2. Find the prices of each of the goods and
services in the basket for each point in time:
Find the Prices
3. Use the data on prices to calculate the cost of
the basket of goods and services at different
times: Compute the Basket’s Cost
4. Designate one year as the Base Year, which
is the benchmark for yearly comparison.
16. Calculating the CPI & the Inflation Rate
5. The final step includes using the CPI to calculatethe InflationRate, which is:
◦ the percentage change in the price index fromthe precedingperiod
6. AnotherExampleforpractice:
◦ Base Yearis 2009
◦ Bundle of goodsin 2009 = Rs1,200
◦ The same bundlein 2010 cost = Rs1,236
◦ CPI = (1,236 ÷ 1,200) X 100= 103
◦ Prices between2009 & 2010increasedby 3%
17. The previous series with base 1981-82 covered a basket of 447 commodities drawn from 3
distinct sub-sectors namely, (i) primary sector which include food articles and raw materials
(mostly agro non-food articles and minerals);
(ii) fuel/ power sector which includes coal, petroleum products and electricity; and
(iii) manufactured sector which includes food products, beverages, tobacco, textiles, wood,
paper, leather, rubber and plastic, chemicals, non-metallic minerals, basic metals, machinery,
transport equipments and other miscellaneous manufactured products.
The series is compiled, constructed and reported on a weekly basis.
Wholesale Price Index
18.
19. Source: Das, P. And George, A.T. (2017), Comparison of Consumer and Wholesale Price Index: An Analysis of
Properties and Sources of Divergence, RBI Working Paper No 5
20.
21. The movements in retail prices are monitoredin respect of 4 different segments of the
population based on theirlocation & consumption behaviour - 4 distinct seriesof Consumer
Price Index Numbers:
(1) Consumer Price Indexfor Industrial Workers, CPI-IW, withbase 1982; (covers260 commodities)
(2) ConsumerPrice Indexfor Urban Non-Manual Employees, CPI-UNME, base 1984-85; (covers
180 cdties)
(3) ConsumerPrice Indexfor Agricultural Labourers, CPI-AL, withbase 1986-87; (covers180
commodities) and
(4) Consumer Price Indexfor Rural Labourers, CPI-RL, withbase 1986-87(covers180
commodities). The CPI-RLwas introducedin November 1995.
Price Index & Inflation
22. Price Index & Inflation
The existing WPIseries with base 1993-94, 1999-2000, 2004-5 has
been reviewedby a Working Group. Each Group has suggesteda
new base year and incorporatedthe impact of structural changes in
the economy and the consequent changes in the relative importance
of the commodities constituting the basket.
23. 100
1
1
x
P
P
P
t
t
t
t
-
=
-
-
p
Inflation: A Formal Definition
This definition represents the statistic that is reportedwhen we
hear stories about the rateof inflation in the press, or on the news.
Thisdefinitionisanexpostmeasureof inflation: It tellsushow priceschangedbetweenyesterdayand
today.
24.
25.
26.
27.
28.
29.
30. Overview
1. How the Consumer Price Index (CPI) is
constructed.
2. Calculating Consumer Price Index and the
Inflation Rate.
3. Correcting economic variables for the
effects of inflation.
31. The Consumer Price Index Vs the GDP Deflator
1. The CPI:
◦ includes only consumption goods
◦ includes the cost of imports
◦ is a fixed bundle of goods (old)
2. The GDP Price Deflator:
◦ includes all final goods and services
◦ excludes imports
◦ Uses more recent bundle of goods
(new)
Y = C + I + G + X - M
32. Overview
1. How the Consumer Price Index (CPI) is
constructed.
2. Calculating Consumer Price Index and the
Inflation Rate.
3. Problems in measuring the cost of living.
4. Correcting economic variables for the
effects of inflation.
33. Correcting Economic Variables for the Effects of Inflation
1. Price indexes are used to correct for the
effects of inflation when comparing rupee
figures from different times.
2. When some rupee amount is
automatically corrected for inflation by
law or contract the amount is said to be
indexed for inflation.
◦ e.g., Central Govt. Wage Contracts, Wages &
salaries of organized industry/service
employees, Railways, NREGS wages etc.
34. Correcting Economic Variables for the Effects of Inflation
To convert (inflate) past wages
and prices into current terms:
Current Year Rupees =
Past Year Nominal Value X [(Price index in
current year) ÷ (Price index in past
year)] = [ (Wt-1) X (Pt) ÷ (Pt-1)
35. Correcting Economic Variables for the Effects of Inflation
To convert (deflate) current wages and
prices into past year terms:
Value in Past Year Rupees =
Current Year Value X [(Price index in past
year) ÷ (Price index in current year)] = [Wt
X Pt-1 ÷ Pt]
36. Real andNominal Interest Rates
Interest represents a payment in the future for a
transfer of money in the past.
1) Nominal interest rate:
The rate that the bank pays in current value.
2) Real interest rate:
The interest rate corrected for inflation
Real interest rate = Nominal – Inflation
37. Real & Nominal Interest Rates
z Example - Assume:
1. You borrow Rs1,000 for one year.
2. Nominal Interest rate was 15%.
3. During the year inflation was 10%.
z The real interest rate is:
15% - 10% = 5%
• Inflation risk makes some lenders
offer adjustable-rate loans
• (e.g. Housing n Car Loans etc.)
42. Inflation
• Disinflation is a reduction in the positive
inflation rate, e.g. Europe, USA in 1980s in
India in the late 1990s,
• Deflation is a sustained decrease in the
price level (a negative inflation rate), e.g.
Japan in 1990s, USA in 1930s
• Hyperinflation is a very high rate of inflation
– Brazil experienced inflation over 1000% during
1970s & 1980s, Germany between WW1 and
WW2, Hungry after WW1 periods.
43. Hyperinflation
• Hyperinflation is a very high rate of inflation
– Case Study:Germany between WW1 and WW2.
– For e.g. Price of newspaper rose from 0.3 marks
in January 1922 to 1 mark in May 1922 to 8
marks in October 1922 to 100 marks in fall of
1923, to 1000 marks in September 1923. Then
in end 1923 prices took off 2000 marks Oct 1 to
20000 marks on Oct 15 to 1 million marks Oct
29 to 15 million on Nov 9 to 70 million on Nov
17.
– In Dec everything suddenly stabilised
44. Hyperinflation
• Hyperinflation
– When inflation per month crosses 30
percent.
– Israel, Hungry, Mexico, Argentina, Brazil,
Chile, Russia, Zimbabwe, Venezuela,
Turkey
– To keep Friends do not lend/borrow in
times of hyperinflation
53. Cost-Push Inflation:
Wage or Profit Push
• A sustained rise in the
price level caused by
reductions in
aggregate supply
• The combination of
inflation and a falling
level of output has
come to be called
“stagflation”
Aggregate Output
AS
AD AS’
54. Anticipated Versus Unanticipated
Inflation
• A major issue is whether
workers can accurately
anticipate changes in the price
level
– Workers seek to anticipate
inflation so that the purchasing
power of wage contracts is
maintained
• The extent to which workers
can anticipate inflation
determines the effects of
inflation on them in the
economy
55. Why is Inflation So Unpopular?
• As an economic problem, inflation is
widespread
• Workers’ wages rarely keep up with
inflation (real wages fall)
• Those on fixed incomes are seriously
affected (pensioners)
• Long-term contracts are difficult to
negotiate (Fixed interest loans etc.)
56. Problem with deflation?
• Real burden of debt
goes up (Debt-
Deflation Spiral)
• Price uncertainty – profits fall
• High real interest rates
57. Inflation & Output Link
4 high inflation – faster increases in prices –
if it leads to higher profits then the
output will rise and subsequently inflation
could fall
Deflation & Growth
4 Negative inflation –> falling prices –
falling profits -> output will fall –
leading to recession
58. How to control Inflation?
Tightening Money Supply
Structural changes by reducing supply
constraints
Tightening Fiscal Deficits