Important !!! Beneficial To Everyone !!! Explain Economic Growth And Inflation.

787 words - 3 pages

For economic growth,in 1990 to 1997, it has a strong economic growth in Asia, but it did not help forecast the crisis from 1997. Due to the financial storm happened in 1997, the GNP growth fell 2.9 percent in 1998.The GNP means the market value of final goods and services newly produced by domestically owned factors of production. Moreover, it is not only the better way to reflect the economic situation of an economy but also is an important source of information for the government and private enterprise to formulate their policies.However, only GNP cannot indicate the living standard of a country. We have to consider the size of its population. A better way is to measure from the per capita GNP of the country.On the other hand, as an example in Brazil, the government tried to slow down inflation by instituted a new currency in 1993 in order to make adjustments and under control the economy. When the Russian financial crisis hit in 1998, Brazil was affected deeply as well because Brazil had instituted the currency tend to devalue its currency. Therefore, it is the crucial factor that the errors of the government's implementation tend to the deflation in the country and it will profoundly influence the economy in the future. That's why Brazil's economy will become worsen again.Besides, the currency in Hong Kong is related to the United States called the link exchange rate system. From September 11, the terrorist attack the World Trade Centre in New York, the stock market had a sudden slash affected from this event. Moreover, it directly impacts the currency between Hong Kong and United States as well as the stock market.Those are following the growth prosperity is higher production cost and decline competitiveness of products. The growth rate of the GNP begins to decline and unemployment rate would rise too. It even affects the aggregate demand. Also owing to excessive production in the economic boom period, investment will slow down. An economic recession faced on Brazil and Hong Kong will set in and worsen to economic depression. Therefore, all those factors also affect the economic growth, especially the influence in GNP growth from one year to the next.And I am now going to show Inflation and show how inflation affects interest rates, exchange rates, cost of living, and confidence (consumer).Inflation means as a...

Find Another Essay On IMPORTANT !!! BENEFICIAL TO EVERYONE !!! Explain Economic Growth and Inflation.

Why investing in health is important for achieving economic growth?

1861 words - 8 pages countries with better conditions of health . Therefore, investment in health is an important strategic action for poverty reduction and a contributor to the general well-being of the population, leading to higher levels of economic growth in the long run. This paper will study the causality from health investment to economic growth. The following sections will provide a review of the literature in this topic, evidence of the causality from health

Liverpool's Slave Trade as a Centre of a Global Commerce and an Important Factor in British Economic Growth

2162 words - 9 pages Liverpool's Slave Trade as a Centre of a Global Commerce and an Important Factor in British Economic Growth This essay will attempt to answer the question by approaching it in three stages. Firstly it will assess the importance of Britain's slave trade in the context of global

Explain the main factors that influence the rate of economic growth

477 words - 2 pages Explain the main factors that influence the rate of economic growth Economic growth will be different in M.E.D.Cs than it will be in L.E.D.Cs. The reason for this is that M.E.D.Cs are already developed and vast improvement may not be possible but in L.E.D.Cs they have a long way to catch up so it is easier for them to expand vastly. Economies like China and India have potential for vast economic growth because of a huge population. If

How did economic, geographic, and social factors encourage the growth of slavery as an important part of the economy of the Southern colonies between 1607-1775?

581 words - 2 pages The growth of slavery became intertwined in the life of the southern colonies in the 17th century and early and mid 18th century. Slavery slowly evolved from numerous factors. Such factors that lead to the mixing of slavery and the southern colonies' life were social classes, geographical location and economic problems. The paramount example is Jamestown, Virginia, the first successful English colony.During the development of Jamestown, there

Inflation and Government Economic Polices

784 words - 3 pages Inflation and Government Economic PoliciesWhat is inflation? Inflation occurs when the prices of goods and services increases overtime. Inflation is not measured by an increase of the cost of just one product or even several products. Inflation is a general overall price increase in the economy.What causes inflation? Two factors cause inflation. Excess aggregate demand or cost-push.1. Demand pull inflation: If the economy is at full employment

Economic Exchange and Economic Growth

1552 words - 7 pages Economic exchange is an important tool to enhance economic growth. However, contrary to the expectation, intensified economic exchange in America, as a result of free trade has negatively impacted on wage rates. Consequently, as free trade extends to non- American economies, converting the whole world to a global village, the impact on wages spreads out to other nation and with the current trend it will soon flatten wages across the globe at a

Economic Growth and Economic Indicators

852 words - 4 pages Economic growth is measured by the change in real GDP. Real GDP is the total value of all of the goods and services produced in a year, adjusted for inflation. GDP, though not the best indicator of the quality of life, nations with a high GDP correlate to nations with a higher quality of life. The changes in real GDP for 2013 general trend of increasing GDP and hence increasing economic growth. The latest estimate for fourth quarter fiscal year

Economic Growth and Development

820 words - 3 pages system. Development is a process of improving the quality of all human lives with three equally important aspects. These are: 1. Raising peoples’ living levels, i.e. incomes and consumption, levels of food, medical services, education through relevant growth processes. 2. Creating conditions conducive to the growth of peoples’ self esteem through the establishment of social, political and economic systems and institutions

FDI and economic growth

3860 words - 15 pages impact on economic growth when countries have larger government final consumption expenditure.3.1 Outline of data and variables to be studiedData are obtained from the World Bank (databank. Worldbank.org). We will use the following variables:i. Explanatory VariablesForeign Direct Investment , net inflows (% of GDP)General government final consumption expenditure (% of GDP)Inflation, GDP deflator (annual %)School enrollment , secondary (% net

Economic Growth and Consumption

1785 words - 7 pages expanding society is not a sustainable one nor is it environmentally friendly and is detrimental to the quality and health of human life. The act of consumption, which is using goods and services and the concept of economic growth, which can be defined by the stable increase in the productive capacity of an economy are not the only economic goals worth striving for in our modern globalized society which is a process of “Internationalisation

Economic Growth and Development

1354 words - 5 pages 1)Distinguish between economic growth and economic development.Economic growth is a measure of a county’s productivity and the total combined income of that country. Economic development is a measure of how developed a country is i.e. people’s standard of living. For economic development to occur, economic growth also is needed but economic development is not needed for economic growth to occur.BasisEconomic DevelomentEconomic

Similar Essays

Effects Of The 2005 Budget On Economic Activity, Price Stability, Economic Growth, Full Employment And Inflation

943 words - 4 pages Federal Treasurer, Peter Costello, brought down his 10th Budget saying it is framed for the future, the future opportunities of young people, the future care of the aged, the future health services that Australians will need and demand, the security of the nation, and the future growth of the Australian economy which is necessary to realize these goals.Peter Costello said the economic management of the Australian Government affects the lives of

Explain How The Neoclassical Growth Model Can Be Extended To Enhance Our Understanding Of Economic Growth

1858 words - 8 pages Explain how the neoclassical growth model can be extended to enhance our understanding of economic growth. INTRODUCTION AIM AND OBJECTIVE The aim of this essay is to clarify how the neoclassical growth model can be used to explain economic growth by taking into account two new inputs: Natural Resources (R) and Land (T) by substantiating it with relevant research. THE NEOCLASSICAL GROWTH MODEL According to the Neoclassical Solow Model

The Relationship Between The Repo Rate, Disposable Income, Inflation And In Turn Economic Growth In South Africa

2169 words - 9 pages Research proposal: the relationship between the repo rate, disposable income, inflation and in turn economic growth in South Africa Background: According to (BusinessDictionary.com, 2014) the repo rate is a rate, otherwise should for Repossession is known to central banks as the discount rate , which a central bank buys back government securities from any commercial bank all relative to the current level of money supply that the central bank

Analysis Of The Likely Impacts Of The 2003 04 Australian Federal Budget On Australia's Economic Growth, Unemployment And Inflation

1240 words - 5 pages aggregate demand to shift again to AD3. This increase in spending due to the multiplier effect will lead to an increase in GDP, which will in turn, increase economic growth.Another important factor in the budget that encourages economic growth is the international tax agreement reform, which by offering tax cuts for businesses with oversees components, the government will be able to stimulate the investment component of the GDP and therefore, stimulate