Macroeconomics (inflation) Essay Example | Topics and Well Written Essays - 1500 words

Macroeconomics (inflation) - Essay Example The inference is not necessarily correct: other explanations are equally logical and sufficiently important to be worth serious consideration. Many countries might experience inflation at the same time without international transmission of inflationary forces because they respond in the same way to common causes (Wickens 54). All countries have undergone long-period institutional and structural changes which, although not in themselves inflationary, have made them more vulnerable to inflation. One of these changes is a widespread increase in the resistance to reductions of nominal prices and wages. Another is the growing role of the public sector in most national economies, a development that may increase the vulnerability to inflation in a number of different ways, which are discussed in the appendix to this paper. Another possible cause of a decrease in the dispersion of rates of change in consumer prices and other comprehensive price indexes, such as gross national product deflato rs, is a convergence in the rates of productivity growth of different countries. These comprehensive price indexes tend to diverge from the corresponding national indexes of wholesale prices in degrees related to the growth in a country's productivity. If changes in national wholesale prices continue to be tied together, a convergence of national rates of productivity growth would cause a convergence of changes in their consumer price indexes and GNP deflators (Wickens 51). Gali (2008) underlines that monetary changes may directly release inflationary forces. In the monetary field, the development and expansion of the Eurocurrency market, even if it has not greatly increased the supply of what one chooses to call "money," has increased the supply of liquidity or reduced the demand for it. Similarly, the establishment of special drawing rights has provided a non-national addition to the international reserve assets of the recipient countries without increasing the liabilities of other countries. Other explanations of a decrease in dispersion of inflation rates are also possible. For example, inflation rates may have been generated in many countries at the same time merely because cyclical expansion in a number of important countries coincided to an unusual degree (Gali 77). Although the probability that such similarity of movement in several large countries occurred by sheer coincidence may not be high, it is not so low as to be negligible; such synchron ization has occurred at times in the past when the world economy is widely regarded as having been less integrated than it is now, and it occurred then to a greater extent than in some subsequent periods, as is indicated by the evidence cited in the appendix (Gali 72). As national inflation rates may converge without increased international transmission through market forces, so may such transmission increase without making inflation rates converge. Indeed, an increase in such transmission may even increase the dispersion of some measures of inflation. This may be more than a possibility with regard to dispersion of consumer price in

Respond to questions Assignment Example | Topics and Well Written Essays - 250 words

Respond to questions - Assignment Example Furthermore, social media has become another platform which can be used to influence people against acknowledging thin models being used in fashion shows or adverts. However, being thin should not be deemed as unhealthy. Nevertheless, this campaign should be directed towards those using drugs or skipping meals in order to be thin. Such people should be banned from participating in adverts or fashion shows in the country. Therefore, all people who want to participate in these shows should have a record of their weight reviewed and an approval from a physician. The current challenges that the world is facing such as global warming exist because there has been no strict regulations on the industries. Therefore, leaving the decision on the use of sustainable materials to designers is a major risk to the existence of the future generation. The student has argued logically on the need for the current generation to protect the scarce resources and an already strained environment. The essay is clear with only minor grammatical issues. However, the essay can be used in major arguments that are related to