For the US and the country you have chosen, gather data on inflation rates for the...

For the US and the country you have chosen, gather data on inflation rates for the most recent three years that are available. Please make sure that you note the specific price index that you are using and provide a description of the characteristics of that index, particularly for the country you have selected. Please make sure that you fully explain the information you are providing. What has happened to prices and how has this affected the broader economy; is inflation in check in your country or is is a problem for the functioning of the economy (consider countries where there have been episodes of hyperinflation). Help us to understand the direction of prices in your country.

Expert Solution

Inflation in the US based on consumer price index is measured by Bureau of Labor Statistics. CPI is average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Indexes are available for major groups of consumer expenditures (food and beverages, housing, apparel, transportation, medical care, recreation, education and communications, and other goods and services), for items within each group, and for special categories, such as services.

Inflation rate in the US in last three years was 2.3% in 2019, 1.9% in 2018, and 2.1% in 2017. The US economy has seen one of the longest expansion, coupled with a benign inflation rate, it has enabled an increase in real GDP per capita and a higher standards of living for average Americans.

Inflation in India based on consumer price index, is measured by Ministry of Statistics and Programme Implementation (MOSPI) and Ministry of Labour and Employment, who are engaged in the measuring different CPIs for different groups or sectors. CPI inflation in India is also called as retail inflation as the prices are quoted from retailers.

Annual inflation rate in 2019 was 7.66%, a 2.8% increase from last year. In 2018 it was 4.86% an increase of 2.37% from previous year, and in 2017 inflation rate was 2.49%. Looking at the inflation rate and the GDP growth, we can say that the inflation rate except for the year 2019 was more or less under control, considering that many nations such as Zimbabwe, Argentina, have seen in the past hyper inflations reaching as high as 2000%.

Rahul Sunny answered 2 years ago

In these posts, you will gather data for the United States and for another country of...

In these posts, you will gather data for the United States and for another country of your choosing. You are free to choose the country, but you are likely to gain greater understanding if you choose a country about which you have relatively little knowledge. You should, however, take care to select a country that will allow you to gather all of the needed information for the full set of assignments. [Here again, there are tradeoffs.] If others have posted...

Below shows the information for exchange rates, interest rates and inflation rates in the US and...

Below shows the information for exchange rates, interest rates and inflation rates in the US and Germany. Answer the following questions Current spot rate: $1.60/€ One-year forward rate: $1.58/€ Interest rate in the US: 2% Interest rate in Germany: 4% Inflation rate in the US: 2% Inflation rate in Germany: 3% (a) If you borrowed $1,000 for 1 year, how much money would you owe at maturity? (b) Find the 1-year forward exchange rate in $ per € that satisfies...

According to the Bank of your country, annual inflation is 3.5% and you have a small...

According to the Bank of your country, annual inflation is 3.5% and you have a small business whose business is services. In 2015 you sold $ 1,525,000. In 2016 you sold $ 1,570,000. Apparently you achieved an increase in your sales. Is this true or false?

What is the ideal rate of inflation to you and why? Does the US government have...

What is the ideal rate of inflation to you and why? Does the US government have an ideal rate? If the inflation rate is too low or high at any given time, what types of realistic (or unrealistic!) policies would you implement to hit your target inflation? Be sure to demonstrate your understanding of causes of inflation in your answer.

4) Given inflation rates of 1% and 3% in Japan and US respectively, what is the...

4) Given inflation rates of 1% and 3% in Japan and US respectively, what is the prediction according to RPPP with regards to the yen /$ exchange rate? 5) The Yen /USD spot exchange rate is 100. The current interest rate is 3% in the U.S. and 1% in Japan. a) Explain the International Fisher Effect (IFE)? b) What will be the exchange value change of the Japan Yen under IFE?

gather data on anything you want. you must have at least 50 samples to draw from....

gather data on anything you want. you must have at least 50 samples to draw from. determine if the data is normally distributed or not and why. you must show your data as well as a paragraph to explain.

why developing countries have high rates of inflation?

6. Inflation, interest rates, and exchange rates Relative inflation rates affect interest rates, exchange rates, the...

6. Inflation, interest rates, and exchange rates Relative inflation rates affect interest rates, exchange rates, the overall economic health of a country, and the operations and profitability of multinational companies. Consider the following statement: Countries with lower inflation rates will have lower interest rates. Based on your understanding of the relationship between relative inflation rates and exchange rates, identify whether the preceding statement is valid or invalid. The statement is valid, because the nominal interest rate is the sum of...

Refer to the Great Recession with data charts. You will choose one country(except the US). You...

Refer to the Great Recession with data charts. You will choose one country(except the US). You should download the data and use between 6 or 8 charts that you build* to argue how the Great Recession affected the country you chose. Include how the crisis started, how it evolved, and how policy-makers responded with fiscal or monetary policies. Remember to establish cause and effect connections between the graphs. * you may also build graphs without downloading data if you use...

Collect data on inflation and unemployment for the UK and the US during the 1970s and...

Collect data on inflation and unemployment for the UK and the US during the 1970s and 1980s using OECD.stat. The 1980s was a period of significant disinflation for the two economies. Use the data gathered* and content of the chapter 4 of the textbook to answer the following questions: a. Was the disinflation costly in terms of unemployment? b. Does the data provide evidence that inflation expectations were being formed rationally during this period? c. How can the concept of...

Question