PPT-IET 333 Week 5: Inflation rates

Payback periods Jungwoo Sohn jzs177psuedu College of Information Sciences and Technology Penn State University Announcements Midterm exam 1 October 9 th Thursday class time. May 2015. Prospects for inflation. Chart 5.1 . CPI inflation projection based on market interest rate expectations and £375 billion purchased assets. Chart 5.2 . CPI inflation projection in . February . August 2015. Global economic and . financial developments. Chart 1.1 . Long-term interest rates have risen . since late . April. International ten-year government bond . yields. (a). Sources: . Bloomberg . India – A Threat to Growth and Development?. A2 Macro – January 2014. Indian Population. Population still rising but more slowly. Growth and Inflation in India. Inflation in India is among the highest in the Group of 20 leading economies. Steven Barnett. (May 2010). Summary and Outline. Inflation poses a major risk. Too high and rising. Broad-based . Not just meat prices. Also excess demand. Monetary tightening must continue. Control inflation expectations. November 2015. Prospects for inflation. Table 5.A . Conditioning path for Bank Rate implied by forward market interest rates. (a). (. a) The data are fifteen working day averages of one-day forward rates to 28 October 2015 and 29 July 2015 respectively. The curve is based on overnight index swap rates.. www.lancaster.ac.uk/postgrad/murphys4/. s.murphy5@lancaster.ac.uk. NEW office . hours: . 3. :00PM . to . 4:00PM Mondays LUMS . C85. Question . 1. . Loanable funds. Liquidity preference. Why two theories of interest rate determination? . 2-2. Economic Conditions . Change. The Business Cycle. All economies experience good and bad economic periods. This economic shift between good and bad economic conditions is called the . business cycle. Economics. Unemployment. Economist’s definition:. Those of working age, who are without work, but who are available for work at current wage rates.. Two . measures . of unemployment.. Claimant . count. Life-Cycle Cost Analysis: The Basics. LCCA Analysis Period, yrs. Net. Present. Value, $. Initial . Construction Costs. Rehabilitation Activity Costs. Maintenance Activity Costs. Salvage Value. Discount. Scott Sumner, Bentley University and the Mercatus Center. Two types of misdiagnosis. Nature of recession misdiagnosed. Was the “real problem” real or nominal?. Stance of monetary policy was misdiagnosed (with too much focus on interest rates.). Today Im going to talk about interest ratesin a lot of detailso I hope you all got yourselves an extra large Why am I talking about interest rates First as President of the San Francisco Fed its a fav Alexander Klemm. “The views expressed in this presentation are of the authors and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.”. Inflation and Taxation. learn in . this Module:. The economic costs of inflation. How inflation creates winners and losers. Why policy makers try to maintain a stable rate of inflation. The difference between real and nominal values of income, wages, and interest rates. Dr. V. Anantha Nageswaran. Introduction. Costs of extremely high inflation easy to see. If prices rise rapidly enough, money stops being a useful medium of exchange. Costs of low, expected inflation are difficult to see.