The European economy during the time experienced inflation due to the increase in demand for food and the…
During 1973-74, there was steep rise in the oil price mainly because of fall in the oil output from the Arab nations; the price of Saudi Arabian oil went from $2.59 to $11.65 barrel, a hike of almost 350%. This resulted in steep rise in the energy price for the countries like Macropoland - an natural gas and oil importer country. So there was substantial rise in cost of production for the Macropoland economy, which resulted in large fall aggregate supply. It is this fall in aggregate supply that was responsible for large inflation and unemployment rate (a situation called stagflation) during this period. In other words, it was cost pull inflation (driven by high crude oil price) that was responsible for stagflation in Macropoland economy during 1973-1974.…
went up to an extreme amount if money, thus, even more people could not afford…
* Economy-wide price increases caused by ever-increasing amounts of currency chasing a constant supply of goods are rare, as commodity supply for monetary use is limited by the available commodity. High levels of inflation under a commodity back standard are usually seen only when warfare destroys a large part of the economy, reducing the production of goods, or when a major new source of commodity becomes available.…
“The great inflation was blamed on oil prices, currency speculators, greedy businessmen and avaricious union leaders. However, it is clear that monetary policies, which financed huge budget deficits and were supported by political leaders, were the cause.” Except these facts, there was also a reason why high inflation happened, the easy-money policies of the American central bank, which were at first designed to generate full employment, later reversed its policies, raising interest rates to 20 percent, caused interest rates skyrocketing.…
Prices of goods and services – including my favorite goodies – surged. This reminds me of an incident that occurred during this era, emphasizing my personal experience of the stunning price hikes. I once went to a grocery store to purchase an item. But to my utmost surprise, the size of the item was much smaller. The seller had intentionally decreased the size of the item to offset the additional cost incurred from the increment in taxes. Upon seeing the expression of disappointment and disbelief on my face like a map, the seller responded frustratingly, “Kotey, the NDC government has imposed VAT on everything; it is killing us.” I stood there stiff and speechless as a simple question run through my brain, “What is VAT and how does that concern me?” Since that day, I followed the implementation process of most public policies and pro-poor programs, trying to decipher the spinoff effects on citizens – especially in deprived areas –welfare. And I was, still I’m, fascinated of how these economic policies dictate the pace in local, regional and national economic development. Indeed, these practical experiences points to the genesis of my passion to study Economics. A passion born out of curiosity to understand how clearly outlined, well planned and carefully implemented public policies facilitate economic…
In 1979, two factors impacted inflation. The oil shock resulted in prices spiraling out of control. With higher production costs, the companies have to maintain profits margins by increasing prices to consumers (inflation). In addition, the weakness of the US dollar aggravated inflationary pressures as well. The weak dollars results in rising of the price of imports and reducing the price of exports. The overall exports increases since US goods are relatively inexpensive. This in turn raises demand and increases inflation. In order to control inflationary pressures, the Fed put in policies that reduced the money supply.…
Results from second contact training session, patient was able to touch his eyes without closing his eyes. Several attempts with the right eye, Mr. Joseph almost got the contact to stay in the eye. However the contact was half on the eye, the patient blink and Len fell out. Another training session was schedule for…
In order to maintain the level of consumer prices, the president of Venezuela imposed price controls by setting the price ceilings. Government officials claim “companies cause shortages on purpose, holding products off the market to push up prices. This month, the government required price cuts on fruit juice, toothpaste, disposable diapers and more than a dozen other products.” However, bad consequences of the price ceilings set by the government were inevitable in terms of shortages in supply, decreased market size, elimination of allocative efficiency and black markets.…
During the transition towards free market economies countries had to deal with a huge inflation. That happened because prices were no more established by the state. Shops raised them. Also, what made situation worse, government started to print more money to pay people and this caused an inflation. In some countries inflation was 300 – 400%. The result of inflation was that a lot of people plugged into poverty. All their lifetime savings were now useless.…
faced the oil shock, and increase in export prices due to a labor shortage that…
One of the most interesting and devastating phenomena to take place in a country was during the post World War I German Hyperinflation from 1918 – 1923. Germany had lost the war and the Allies were forcing them to make reparations. “The central government in Germany, which did not impose income taxes, financed the war almost completely by issuing debt” (Hetzel, 2). Since Germany refused to impose high taxes on their people, they had to pay for the war and the cost of losing the war by printing money. This resulted in an extreme deficit for Germany since the Allies could collect interest on the German debt.…
country. For example, for the rst week of August 1999, the price of reformulated gasoline in…
In the 70s – oil crisis. War in the middle East between Israel and its neighbours made Arab states impose an oil embargo on Western Europe – stopped exporting oil unless at very high prices. This impacted both Eastern and Western Europe. Consequentially growth levels in Eastern bloc countries fell. Various bottlenecks in the economy became increasing obvious i.e. Consumer goods situation where supply simply couldn’t meet demands of consumers. Especially in…
Mary Louise Pratt wrote A Contact Zone, a short story about how many different cultures interact through Transculturation and contact zones. A contact zone is defined as “is the gap in which transculturation takes place- where two different cultures meet and inform each other, in uneven ways” (mariexotoni). In my owns words, a contact zone can be where two different people from different backgrounds, teachings, and traditions come together and share their experiences. Contact zones can be seen in every social situation, every social gathering, and every major culture event. However, some people will feel like the “other” in these situations. I have felt like the “other” in social situations and in sports. Feeling like the “other” doesn’t sound like a good thing because you learn from others mistakes and make great friends that will always be there. It doesn’t feel good to be the “other” but its easy to learn from others mistakes from watching instead of partaking in the activities.…