Our website is a unique platform where students can share their papers in a matter of giving an example of the work to be done. If you find papers matching your topic, you may use them only as an example of work. This is 100% legal. You may not submit downloaded papers as your own, that is cheating. Also you should remember, that this work was alredy submitted once by a student who originally wrote it.
Quantitative easing and inflation Contents Introduction 3 Policy adopted by the Bank of England to minimise the inflation rate 4 Impact of quantitative easing in inflation 7 Revising quantitative easing 7 Inflation or deflation 8 Effect over the government 10 Conclusion 10 References 12 Introduction Inflation is a situation where the prices of goods and services are rising more than the general level and at the same time people are losing their purchasing power (Hart, 2009, p.15)…
Download full paperFile format: .doc, available for editing
Extract of sample "Quantitative easing and inflation"
Download file to see previous pages
In the year 1694, the bank was established and on 1st March 1946 it became nationalised (Sayers, 1976). It gained its operational significance in the year1997 and from then the bank can independently work on the implementation of monetary policies (Bank of england, 2013). From the year 1993 the bank started to publish its inflation report on a quarterly basis. It contains a detailed economic analysis with the inflation projections for the upcoming months (Tennant, 2009). By depending on this analysis, the monetary policy committee of the bank take several decisions based on the interest rate (Bank of England, 2013). Quantitative Easing is a strategy in monetary policy that has been adopted by several governments and central banks to ease the effect of inflation. It helps to increase the money supply by purchasing securities from government or other securities from the market (Fukasawa, 2000, p.65). As the financial institutions got flooded with capital it helps to increase the money supply which will subsequently promote to increase the lending and liquidity. Quantitative easing is used by the central banks when the interest rates have already been minimized to near 0% levels and unable to produce the desired effect (Kimura & Small, 2004, p.45). In the following research the researcher will try to understand how the “Bank of England” is trying to minimise the inflation rate and if the Quantitative Easing program will cause higher inflation in future or not (Rochon & Rochon, 2012, p.69). Policy adopted by the Bank of England to minimise the inflation rate In the month of March of the year 2013 the inflation rate of United Kingdom has been rated as 2.80. For the purpose of national statistics inflation rate has been reported to the UK office. From the past history it has been found that from the year 1989 until 2013 the average inflation rate of United Kingdom is 2.81%. In the year 1991 it has its highest point at 8.50 and the lowest was in the year 2000 rated 0.50 percentile. In this country the most important categories in the consumer price index are transport and housing, followed by water, electricity, gas and other fuels. The following chart shows the previous inflation rate in a bar chart format- The consumer price index grew by 2.8% in the current year. In spite of the large increase and decreases the CPI remain broadly flat. The central bank of UK introduced a monetary policy balloon which helps to set the interest rate to control the inflation. One needs to keep the balloon flying at a steady height of 200 meters. It is like the same as the bank’s monetary policy committee tries to make the inflation steady at 2%. The main objective of the bank’s monetary policy is to bring stability in the price, lower the inflation rate by supporting the objectives of the government for growth of the economy as well as employment. The targeted inflation rate is 2%. In the budget statement each year the Chancellor of the Exchequer announces the targeted inflation rate. The bank can change the interest rate; however in an extreme condition the government also can ask the central bank to change the inflation rate for a certain period. Depending on the consumer price index the inflation rate
...Download file to see next pagesRead More
(“Quantitative easing and inflation Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Retrieved de https://studentshare.org/macro-microeconomics/1476196-quantitative-easing-and-inflation
(Quantitative Easing and Inflation Essay Example | Topics and Well Written Essays - 2000 Words)
“Quantitative Easing and Inflation Essay Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/macro-microeconomics/1476196-quantitative-easing-and-inflation.
Cited: 0 times
CHECK THESE SAMPLES OF Quantitative easing and inflation
...Qualitative vs. Quantitative Research ID number School or Department Unit Lecturers Due Table of contents
Executive Summary ………………………………………………………………..…. 3
Features of Qualitative & Quantitative Research …………………………..…..…… . 4 Predispositions of Quantitative and Qualitative Modes of Inquiry …………….... .. . 6
Contrasting Positivist and Naturalist Axioms (Beliefs and Assumptions) ……….. 10
Further Distinction between qualitative and quantitative research …………….. .. ... 10
Research is a pursuit of beauty or truth. Qualitative and quantitative approaches are ways of attaining...
...POLITICAL PARTIES I INTRODUCTION Politics have always been considered as an important and integral part of the social life of human beings. This fact is believed and adhered to on the premise that the political arena is the sole venue with which human beings maybe able to develop and attain human excellence (Arendt, 1958). Being such, it is not surprising that people from different epochs and cultures have come up with means and ways with which they can perform and undertake political action in the service of the society. And the contemporary society and human beings are not different from peoples in the past in this term. However, because of current developments in the history of humanity, contemporary engagement in politics may... PARTIES I ...
...Methodological approach Introduction: A research is a continuous human effort to invent or discover something new on any aspect related to the area of study. A research involves application of the knowledge of the researcher on the topic under study. Research may be related to any discipline. The time frame of the research may vary according to the topic, scope and requirement of the research. Research can be basically classified into two namely- qualitative and quantitative. (Tesch). A qualitative research is one in which the researcher analyses the pattern of behavior or other human and behavioral aspects. “Qualitative research allows you to explore perceptions, attitudes and motivations and to understand how they are formed.” (Kivlichan...
The risks may vary in terms of nature or scope according to the situation. So since the risk is so common in project management, a very important aspect of managing a project is analyzing all the possible risks that are associated with that particular project. It makes no sense of going on with a project and not giving a thought to the risks that could affect the success. Once these risks are analyzed, the project manager will have all the possible risks in front of him. He will know the degree of risk and also the benefits that the organization will get if the risk is taken. Therefore only after a risk analysis, the project manager is in a position to conclude whether or not it is worth taking the risk and going on with a certain...
Over the recent past, the effects of money supply, debt and inflation have become contentious issues for debate. Furthermore, frequent cautions concerning the risk of very large budgetary deficits aver that this would send up the upcoming state debt and capital rate as indicated by the rates (interests). As a nation, Saudi Arabia has a bi and enduring budgetary deficit over the past two decades and the government has been forced to go into the market so as to have loan access and to make up for the deficits. Given the impact of this on inflation and other economic variables, it's imperative and of great alarm for strategy architects (strategists) to understand how microeconomics has an effect on money supply, financial plan defici...
...Quantitative Data Collection Methods Quantitative research design involves the use of numerical data to come up with answers to specific questions. In this design technique, descriptive statistics (mean, variance, standard deviation, range, kurtosis and skewness) describe a group of respondents (Wholey, Hatry & Newcomer 2004). To make this a reality, inferential statistics, statistics results based on a sample representing the whole population are used. Depending on the kind of population one is dealing with, a sampling technique is selected based on the traits of the population (simple random sampling if the population is homogenous and stratified sampling if the population is heterogeneous). The results of a certain sample can...
...Question number Difference between quantitative and qualitative analysis In data analysis, there are two most common types of analysis used: quantitative analysis and qualitative analysis. The other analysis is not superior to the other but the combination of both will exactly make a much better analysis.
There are many reasons to use quantitative analysis. The world is composed of numerical data and in order to understand and make use of them, quantitative analysis is a powerful tool that can present and interpret them. In its general and broad definition, quantitative analysis is simply a way of giving measurement to things (Investopedia, par. 3). With this definition, it is implied that in the field of business or financial...
... number: International Financial Management Introduction International financial management is concerned with the international monetary issues like comparison of exchange and inflation rates of two or more different countries. The annual change in percentage of the consumer prices against that of the previous year is inflation whilst exchange rate is the equivalence of the value of one currency with the other. The most significant concept applied here is the purchasing power parity (PPP) between two international economies. This aids in establishing the amount of money required to obtain similar commodities from different countries hence using that to determine foreign exchange rates. Foreign investors rely on foreign and exchange rates...
Relevant information of methods used from the Multifactorial Attitudes Questionnaire, Kruskal- Wallis test to ordinal regression have been elaborated. The results, conclusions, and recommendations are clarified in the research work. Potential benefit is that it makes participants recognize that old need to be given care and inspire attitude change. The harm is that the participants may demand more from their employees relating to the topic. Approval of the Ethics Committee is noted. The findings are categorically explained. The themes include ageism, resources, professional esteem, and working environment. The findings have been explained under each sub-heading. The data have been presented with regard to each question an...
...Finance and Accounting Part It is expected that the economy of the United s shall expand steadily. The recovery of the US economy has continued to accelerate. This is anchored on strong growth in productivity and strained inflation. According to the Economic Report of the President (2015), in the past two years, it has grown at a rate of 2.8% which is 0.7% higher than the first three years of economic recovery. The growth in labor market is a major indicator of economic recovery and growth. The private sector has played a major role in both job growth and increase in economic productivity. Consequently, there has been a rise in domestic consumption which is a major driver of the economy (Economic Report of the President, 2015...
7 Pages(1750 words)Term Paper
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Quantitative easing and inflation"
with a personal 20% discount.