Essay on "Macroeconomic the Contemporaneous Societies Reveal an Impending"

Essay 4 pages (1122 words) Sources: 1 Style: Harvard

[EXCERPT] . . . .

Macroeconomic

The contemporaneous societies reveal an impending need for comparability and, in terms of economics, one such measure is offered by the inflation rates. This paper is organized onto four sections. The first and last parts introduce, respectively round up, the analysis, whereas the second and third sections deal with the inflation rate and the expansionary gap.

The contemporaneous societies reveal a growing need for uniformity. This necessity is driven by a desire to compare national features across various countries and is supported by the growing forces of globalization. A highly relevant tool used to compare economic features is the inflation rate.

Inflation Rate

In a most simplistic formulation, inflation can be understood as the change in consumer price indexes. Its expression over a specific time period, generally one year, is revealed in the form of the inflation rate. Lawrence H. White (2008) at the Library of Economics and Liberty explains: "Economists use the term "inflation" to denote an ongoing rise in the general level of prices quoted in units of money. The magnitude of inflation -- the inflation rate -- is usually reported as the annualized percentage growth of some broad index of money prices."

The inflation rate is determined within the market and is pegged to a complex system of numerous components, such as consumer demands, currency exchange rate modifications or natural conditions (hazards such as droughts or floods impact the crops and as such the offer for agricultural products). Given this complex system, it then becomes obvious that man can do little to control the inflation rate or determine its desired value. Yet, sustained efforts are being made at national level to better control inflation.

3. Efforts to Reducing the Inflation rate

In Australia, the Reserve Bank of Australia is in charge of setting a targeted inflation rate. This targeted value may often be higher than the actually registered value. If the difference between the targeted and the real value is small, it could mean that it is insignificant and the actual economic impact is limited. In this case scenario, the BRA could place a growing focus on achieving the targeted value. This could be done through a thorough analysis of the elements which prevented the inflation rate from achieving its targeted value and their correction -- meaning the focus on the real improvement of the features which led to a lower value of the inflation rate; this will be achieved within the imposed limitations.

If on the other hand, the real value of the inflation rate is significantly higher than the targeted value, problems arise in that the purchasing power of the consumer is suffering demises. A first measure the RBA could implement is that of comparing the real inflation rate to the targeted inflation rate as well as the past rates. As mentioned in the introductory section, the ability for uniformity and comparability is impending within today's economic systems. Assuming that the needs for comparability are met and that the current inflation rate is above the targeted value, it is necessary for the RBA to look at the past values of the inflation rate. At the end of this endeavor, they will observe whether the inflation rates have followed an ascendant or descendant trend.

If the current inflation is above the targeted value but below the values of the past recent years, revealing as such a… READ MORE

How to Reference "Macroeconomic the Contemporaneous Societies Reveal an Impending" Essay in a Bibliography

Related Essays:

Lu Lemon the Contemporaneous Society Term Paper

Lu Lu Lemon

The contemporaneous society is now faced with tremendous challenges, such as the aging of the population, the decaying state of the natural environment, the economic crisis, the… read more

Term Paper 8 pages (2177 words) Sources: 7 Topic: Business / Corporations / E-commerce

---

Society the Term 'Identity Research Paper

This has boosted my confidence a lot and has motivated me to ignore what others say and do to subjugate me. Thus, such behaviors have carved my worldviews but in… read more

Research Paper 4 pages (1322 words) Sources: 4 Topic: Sociology / Society

---

Society as Insulation Essay

Society as Insulation Chapter Review/Reaction

Society as insulation relative to control theory is the subject of the sixth chapter of the Lilly text that is the current focus of the… read more

Essay 2 pages (702 words) Sources: 2 Topic: Sociology / Society

---

Society How Does Durkheim Term Paper

Society

How does Durkheim Address the Question: "How is Society Possible?"

Emile Durkheim was a nineteenth century French sociologist who believed that the common practices of society were regulated by… read more

Term Paper 4 pages (1679 words) Sources: 8 Topic: Sociology / Society

---

Inflation Hyperinflation the Contemporaneous Society Term Paper

Inflation

Hyperinflation

The contemporaneous society is facing one of the most crucial crises ever -- the internationalized economic crisis. It emerged within the United States real estate sector, to gradually… read more

Term Paper 10 pages (2916 words) Sources: 6 Topic: Economics / Finance / Banking

---

View 100+ more related papers  >>