Comparison of Basic Economic Indicators of Bric Nations

The inflation rate is constantly changing every day. The entire investment community is always on the look out for what the future inflation rate may be. It has been proven that a healthy economy preforms best when inflation rate is

In the current year, there is uncertainty of the economic performance globally and the condition on housing market continues to vary over the country. Therefore, RBA recently decided to keep the interest rate at 1.5 percent – which is unchanged for several months – to maintain the sustainable growth and achieve the inflation target (RBA, 2017).

The federal reserve has raised interest rates five times in less then twelve months, and the pervious raises are just barely beginning to take effect. The previous raises averaged around a quarter percentage point, and since these raises failed to slow the economy, Greenspan, unable to take anymore chances doubled the previous with a promise of more to come.

The process of integration of economies around the world, known as globalisation, has catalysed the development of Brazil as a powerful emerging economy, through the expansion of trade and investment. Emerging countries are defined as those progressing toward becoming more advanced, through rapid growth and industrialisation. Consequently, Brazil’s rapid economic growth has secured its place in BRICS, an association of five major emerging economies, Brazil, Russia, India, China, and South Africa.

In 1981, the inflation rate was the highest, it was about 12.50%. After that, the inflation rate was decreasing and later on its ups and downs. The inflation rate was the lowest in

The United States inflation rates are a problem, if the government were to control them then the United States would flourish from a “B+” economy to a “A” economy. In the United States (September, 2015) consumer prices went up 1.5%,

The Federal reserve needs to increase interest rates in the next year in order to reduce inflation. With low unemployment, the government is placing strain on the economy by lowering taxes and increasing spending. When the economy reaches its maximum output, prices increase while output remains the same. This could be what is happening now, with economic overheating on the horizon. However, the Federal Reserve could stifle this inflation by hiking interest rates over the next year. This would decrease the money supply and thus reduce inflation to its targeted level. It would also provide some leverage for the Fed to lower rates in the case of a recession.

gas prices rose, unemployment was at nearly 25 percent, and the U.S. Dollar was worth nearly

In the time period shown in the BEA release highlights document (2015, bea.gov), it is clear that real GDP increased 2.0 percent in the third quarter of 2015, according to the third estimate by the BEA. The document also states that the main driver of the increasing GDP is the rise in consumer spending on

Recently, the Federal Reserve Open Market Committee (FOMC) strongly floated the idea of another interest-rate hike, with the last one being a very minor one after seven years of 0% short-term interest rates. (CITE) While the decision to raise rates may be a foregone conclusion, it is important to note the various effects such a hike will have on the economy as a whole. Everything from the housing market to debt markets to emerging markets will be affected. The ripple effect from such a decision could affect the economy for years to come. With all of these factors in mind, I believe that the Federal Reserve should raise interest rates now.

The inflation rate is still below the 2% target for the Reserve. Increasing the rates right now poses a risk since there could be deflation. The Federal Reserve should have waited until they achieved their target before making the changes. Even with low unemployment rates, the labor force participation rate is at its lowest and wage earnings are still below the recommended comfortable rate. Also, instead of increasing the rates, the Federal Reserve should have focused on other economic aspects such as increasing the down payment for purchasing assets. Financial bubbles would have been avoided through this current rate instead of raising the interest

A growth rate of 2% in price is not unreasonable as the price to consumers had grown by 1.7% annually between 2003 and 2007. This growth still provides them with ample profit margins. In addition income is expected to increase by approximately 8%.

Up to 2009 the inflation rate was recorded 16.51%. Wrong use of inflation targeting is the headline failure.

In the BEA release highlights document, you can see an increase if the GDP within the third quarter, which allows corporate profits to pick up. The document states that “increased 3.1 percent in the third quarter of

Looking at the year of 2015, we see that inflation is still under control however the consumer