Posted on 03 April 2009
Tags: causes of inflation, central bank, cheap chinese goods, China, chinese goods, Currency, demand, Dependence on Foreign Oil, economic growth, economic myths, energy, energy prices, expensive oil, financial markets, food, foreign oil, higher oil prices, imports, India, inflation, inflation myths, international trade, money supply, oil, oil prices, rising oil prices, supply, supply and demand, united states
Minds of most Americans have been corrupted with many economic myths by mainstream economists and so called experts, which are reinforced by the media and often repeated on the streets. These myths are false in most cases, and based on half truths in others. We constantly hear things like: inflation is caused by rising oil prices; consumption is the most important element for economic growth; government expenditures help stimulate the economy; and many others.
In this article, First in a series of two, I will explore some popular myths regarding Inflation and Energy matters. In the second article, I will write for you about common myths about Consumption.
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Posted on 27 March 2009
Tags: Associated Press, breaking news, core index, cpi, deflation, economic news, economists, elctronic items of japan, energy prices, exports of japan, fixed inflation rate, fresh food, high-tech goods, inflation, Japan, japan's economy, japan's sales, news about japan's sharp fall in prices, news about worldwide down turn, oil prices, recession period, retail price fall in japan, retail sales, Reuters, volatile fresh food prices, world's number 2 economy, worldwide downturn
It is shown from Japan consumer price Index that their economy is moving towards deflation the overall sales show that the consumption of different commodities might not be supporting prices. The government has announced to pass a budget for 2009/10 probably on Friday. Government is facing immense pressure to spend more in order to stimulate consumer price index.
The main reason of this deflation is a slide in oil prices as the government makes efforts to pull out the country from deepening recession period.
There has been a larger fall in prices than what was expected in February retail sales that are yet another bad sign for the exports, as they are Japan’s main engine of growth.
Japanese inflation rate remains fixed in February, but economists warned that the country will face the deflation as soon as the global downturn hits demand at home and abroad.
In December the figure of the core Consumer Price Index (CPI) rises 0.2% but become flat in January, in this CPI the volatile fresh food prices were excluded. The CPI remains unchanged from a year earlier although it was expected that there would be a small drop.
Prices slid by 0.1 percent on per year basis in the “core-core” index, which excludes the fresh food and energy prices.
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Posted on 18 December 2008
Tags: Algiers, bank, Barack Obama, central bank, central bank's main interest rate, decreases in the Consumer Price Index, energy prices, Fed Cuts Short-Term Rates, Federal Reserve System, Interest Rates, Japan, lost decade, oil, oil prices, Organization of Petroleum Exporting Countries, policy of easy money, President, The Bank of Japan, two hundred billion dollars, U.S. central bank, united states, United States Federal Reserve, US Fedral Reserve, Washington, Zero Interest Rate, zero rate policy, Zero Short-Term Rates
The United States Federal Reserve says it will use “all available tools” to restart economic growth. The central bank’s main interest rate is now the lowest in its history. This week the Fed cut its target rate of one percent for overnight loans between banks to a target range of zero to one-fourth of one percent. The Fed based its decision on weakening economic conditions.
Federal Reserve in Washington
Americans have decreased their spending every month since July — the longest period in at least sixteen years. Unemployment grew to six and seven-tenths percent in November — the highest in fifteen years.
This week’s cut in the federal funds rate was larger than many economists had expected. The Fed also cut its rate for direct loans to banks. And it began paying interest on balances held in the Federal Reserve System.
In the past, cutting rates has been a powerful tool to lift the economy. But President-elect Barack Obama says it is not enough this time.
BARACK OBAMA: “We’re running out of traditional ammunition that’s used in a recession, which is to lower interest rates. They’re getting to be as low as they can go.”
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