3 faces of low inflation: U.S., Japan and the Euro Area - Essay Example

Comments (0) Cite this document
In the past, large economies have experienced inflations, but they have taken different aspects and forms from the ones experienced by the United…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
3 faces of low inflation: U.S., Japan and the Euro Area
Read TextPreview

Extract of sample "3 faces of low inflation: U.S., Japan and the Euro Area"

Three Faces of Inflation: U.S., Japan and the Eurozone I support the arguments raised Contessi and Li over the three faces of inflation in the United States, Japan and the Eurozone. In the past, large economies have experienced inflations, but they have taken different aspects and forms from the ones experienced by the United States, Japan and the Eurozone.The experience examined by Contessi regarding inflation was accurate because they yearly inflation experienced due to personal consumption expenditure lie, for example in the month of April was found to be 1.98 percent in 2012 before dropping in October and rising back in April 2014.
Moreover, for the Eurozone the yearly inflation measured or examined by reputable agencies has been found to record a drop between the period of 2012 and 2014 placing Japan’s inflation risk in 2012 to be negative . However, over the years, inflation has taken a totally different dimension recording a higher rise since the early 90s. According to Contessi and Li, the trends which shape, inflation rates on the positive and negative sides have taken on a different dimension as the trends appears to be quite different and the low inflation rates in the three areas , United States, Japan and the Eurozone both holds different explanation.
A good example is that between the countries, energy and food prices have been behaving differently as some charge extra while some experience reduction of the standard prices. Energy prices in the United States and Japan increased as compared to the Eurozone where a decrease was measured. However, this was not the case of food prices as it was the opposite. Food prices in the United States and Japan decreased while indicating an increase in the Eurozone area. Therefore, the three different directions taken by the three regions only suggest that the changes were caused based on the domestic conditions as compared to outside conditions (Laxton, Igor & Charles 29).
I also believe that the difference in inflation rates between the three countries is as a result of the slow increase in prices, which positively affects purchasing parity of customers and increases the actual costs of repaying debt incurred both publicly and privately. It is also true that there are important lessons to be learned for past occurances or happenings because whenever there is a speculation of price reductions in the markets, the speculations will be difficult to reverse as most individuals trading in the market will feel deceived when prices of commodities are not reduced for them in the market.The relevance for current and future policy imposed on the three faces of low inflation in the United States, Japan and Euro area is that it allow the countries to produce the plausible dynamics and sensible forecasting necessary for driving their countries into inflation challenges or problems again.
Works Cited
Contessi, Silvio, and Li Li - Federal Reserve Bank of St. Louis. "Three Faces of Low Inflation: U.S., Japan and the Euro Area." Three Faces of Low Inflation: U.S., Japan and the Euro Area. Web. 1 Dec. 2014. .
Laxton, Jared, Igor Ermolaev, and Charles Freedman. A Small Quarterly Multi-Country Projection Model. Washington: International Monetary Fund, 2008. Internet resource.
World Economic Outlook, October 2007: Globalization and Inequality. Washington: International Monetary Fund, 2007. Internet resource. Read More
Cite this document
  • APA
  • MLA
(“3 faces of low inflation: U.S., Japan and the Euro Area Essay”, n.d.)
3 faces of low inflation: U.S., Japan and the Euro Area Essay. Retrieved from
(3 Faces of Low Inflation: U.S., Japan and the Euro Area Essay)
3 Faces of Low Inflation: U.S., Japan and the Euro Area Essay.
“3 Faces of Low Inflation: U.S., Japan and the Euro Area Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF 3 faces of low inflation: U.S., Japan and the Euro Area

Low risk 3

...?Emperor Marcus Aurelius expounded an own brand of Stoicism that consisted of the theory of what exists, and theory of knowledge and ethics in relation to how one should live. The views of Marcus Aurelius were quite liberal. The Emperor believed that the majority of the problems a person might have were coming from the individual’s own imagination. Therefore, an external individual or force was not treated responsible for any action of the individual. Marcus Aurelius also believed that any person influencing your life in a negative manner cannot be responsible for those negative things, since only the person’s ignorance and lack of understanding was causing the bad things. The Emperor was quite just in the fact... Marcus Aurelius expounded an ...
1 Pages(250 words)Essay

Japan Buys More of Euro Bailot Bond

...Japan Buys More of Euro Bailout Bond This newspaper article is about Japan’s move to buy bonds from a European bailout fund (Nakamichi , par 1). However, the article stated that Tokyo will reduce by 10 percent its purchase of the new bonds issued by the European Financial Stability Facility (EFSF). These bonds were issued to help avert the European debt crisis. Japan’s purchase of the bonds is motivated by its fear of a possible European crisis which would create a serious global financial crisis. Since Japan’s economy is largely dependent on exports, a worldwide financial crisis will definitely impact negatively Japan’s economy. Unlike...
3 Pages(750 words)Article

Complexities of the U. s financial system

...? Complexities of the U. S financial system Complexities of the U. S financial system The US financial system is extremely complexand is affected by a number of environmental factors, which include the economy and federal regulations. The complexities inherent in the US financial system also impact different aspects of the economy, as well as the existence of businesses and individuals in the country (Pryor, 1996). This paper will examine the complexities of the US financial system, discussing different aspects of the system, for instance, financial markets and the Federal Reserve System. The US financial system consists of the financial markets, which impact individuals,...
3 Pages(750 words)Assignment

Low-risk 3

...Inserts His/her Inserts Inserts Grade Inserts Here (Day, Month, Year) Low Risk 3 Women, before Seneca Falls Declaration were considered to be inferior from men. Only a few white-women were given equal rights as men. Women were victims of oppression and cruelty by men. They were deprived of all the rights that they deserved. They were not given any love care or respect. They were even deprived by the salary that they work earn after a lot of hard work. Men would consider them their property and would ruin their lives. They would mock them and disrespect them, declaring that they were irresponsible citizens. They would treat them as the most down-graded creatures. Their rights were even taken off their own...
1 Pages(250 words)Essay

U. S. Constitution

...US Constitution s right in American political system refers to the political rights reserved for the governments. Even though America asa whole has a federal government, each state in America has separate state governments. US constitution provides some specific rights to the state governments in law making even though all the state governments are operating under the federal government. The rights of the state government are protected by the tenth amendments (Part of bill of rights) in US constitution. According to The Tenth Amendment to the U.S. Constitution; “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States, respectively, or to the...
1 Pages(250 words)Essay

The U>S Legal System

.... The admission of the stocking tops did not deprive the defendant of a fair trial. Therefore, he was not denied the due process of law. What was being done was just gathering evidence, and the authorities had the right to access his house. Task 3: General Admissibility of Relevant Evidence is applicable in this case. It provides that all evidence that is relevant is admissible, although with certain exceptions, and that irrelevant evidence is not admissible. That is why even after finding the stockings in his house, it was not sufficient evidence to incriminate the accused. Works Cited The People, Respondent, vs. Admiral Dewey Adamson, Appellant. No. 4622. Supreme Court of California. January 4, 1946. Print.... Legal Issue and a Strong and...
1 Pages(250 words)Assignment

U. S. Education Today & Tomorrow sharing information from all over the world. High school reforms The high school reforms have become a top agenda on education policy that is commanding attention of the government. This is because of the high rate of school dropouts and low academic achievement of most students. In addition, is the high rate of new jobs that require post-secondary education. These reforms are expected to enable a positive school environment that is civilized and personalized. Moreover, the students are supposed to receive care and a sense of security to enhance a proper learning environment. In addition to that, more personalized learning conditions should be improved by downsizing larger schools to...
3 Pages(750 words)Assignment


...that the laws of UAE do not discriminate on foreigners in terms of employment, and it only wants to ensure that the foreigners employed in the UAE, have skills that is rare in the country. On this basis, emiratisation is aimed at creating competition in terms of human resource skills between citizens of UAE, and foreigners living in the country, or seeking work in the country. In as much as Marzouqi and Zairi (2010) identifies the negative effect of emiratisation, he is in agreement with Dulebohn (2013) that emiratisation has helped the government of UAE to overcome the challenges that come with developing an effective pension system. In as much as emiratisation is a noble process initiated by the government, the policy...
8 Pages(2000 words)Essay

U S History

..."Crisis of Confidence" in the United s The United s was a dominant world power in the 1970’s even though the countries self-perception was mired in doubt and malaise. The stagflation of the country’s economy, the experience and results of the Vietnam war, the lack of confidence of the government by the people as it was no longer perceived as a champion of freedom, the Watergate imbroglio all contributed to the “crises of confidence” in the country. The debt on the dependency of US citizens and the government increased resulting to difficult times. Jimmy Carter came into power at the time after the country’s failure in the Vietnam and Watergate scandals. A leadership crisis emerged that...
2 Pages(500 words)Admission/Application Essay

Inflation returns to Euro zone

...with the yields of the Euro bond. One of the main indicators of the inflation pressure is the producer prices. The reason is that unless these prices are absorbed by retailers using profit margins which then translate to consumer prices. Thus, other the bond buying program that had been introduced by European Central Bank in March, other measures undertaken to boost the economy of Euro zone is cutting down main interest rate and the deposit rate. However, it is still too early to stay in the comfort zone about this issue. It is still early to indicate the trajectory of the future policy since inflation will continue depending on the prices of oil. This is considering...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic 3 faces of low inflation: U.S., Japan and the Euro Area for FREE!

Contact Us