Price Stability
26 views | +0 today
Follow
Your new post is loading...
Your new post is loading...
Scooped by Alisha Israni
Scoop.it!

Shinzo Abe links economic recovery in Japan to improved prospects for global peace and prosperity. - Project Syndicate

Shinzo Abe links economic recovery in Japan to improved prospects for global peace and prosperity. - Project Syndicate | Price Stability | Scoop.it
Japan has pledged that it will never again wage war, and it has never stopped working for a world that is at peace. The country's economic revival, with its promise of increased global and regional prosperity, can help to bring such a world closer.
Alisha Israni's insight:

Japan seems to have recovered from a period of sustained deflation and is making positive economic growth now within its economy. However, to state that wages will rise in spring is purely speculative and is also quite hopeful - the exact opposite could occur instead. Due to prices rising, costs of firms may rise leading to reductions in wages and possibly jobs being lost too (the rate of costs rising and inflation will determine if this actually happens).

more...
No comment yet.
Scooped by Alisha Israni
Scoop.it!

Falling wages: Workers suffer worst drop in wages since records began as inflation outstrips salaries

Falling wages: Workers suffer worst drop in wages since records began as inflation outstrips salaries | Price Stability | Scoop.it
Real pay grew 2.9% in the '70s and '80s, 1.5% in the '90s, 1.2% in the 2000s and by minus 2.2% since the first quarter of 2010, says the Office for National Statistics (Workers suffer worst fall in wages since records began as inflation outstrips ...
Alisha Israni's insight:

Statistics clearly show that real income has fallen. This could lead to a number of problems in our economy, such as slow or stunted economic growth, as aggregate demand does not increase at a rate sufficiently fast enough. Trade unions should be doing more to negotiate high wages for workers, which will benefit our econmy as a result. 

more...
No comment yet.
Scooped by Alisha Israni
Scoop.it!

Deflation in the euro zone: Should we worry about ... - The Economist

We are hosting a round-table discussion of the risk of deflation in the euro zone. Our fourth contributor is Paul De Grauwe, professor in European political economy at the London School of Economics. The other contributions ...
Alisha Israni's insight:

In my opinion, there is great risk that deflation may occur in the euro zone. Due to the original expectation of inflation being at 2%, debt-deflation has occurred - nominal income has only increased by 0.8%, however nominal debt has risen by 2%. A rising proportion of income therefore has to be spent on debt, leaving less for goods and services - aggregate demand will decrease, leading to a dangerous decline in prices. The European Central Bank should implement monetary poicies, such as decreasing interest rates to stimulate spending in the economy. 

more...
No comment yet.
Scooped by Alisha Israni
Scoop.it!

Price stability top priority of Government:Ishaq Dar | Abb Takk News ...

Price stability top priority of Government:Ishaq Dar | Abb Takk News ... | Price Stability | Scoop.it
ISLAMABAD: The Finance Minister Ishaq Dar said on that price stability was the top priority of the Government and it would intervene where necessary step required maintaining stability of prices. He stated this while chairing ...
Alisha Israni's insight:

9.2% inflation is extremely high (verging on hyperinflation) and therefore it is no surprise that it is the government's top priority. One of their new policies mentioned regarding comsumers being able to check and negotiate prices on their mobile enables prices to be driven down, hopefully leading to lower rates of inflation. 

more...
No comment yet.