Inflation, a monetary phenomenon where the general prices of goods and services increase along with the decline in the purchasing value of money (Burdekin & Weidenmier, 2001). Over the past decades, the issue of inflation has existed in most of the countries and it has always been the major concern of the global society. In fact, economists viewed inflation as a double-sided issue as the impact resulted from inflation can be either positive nor negative. Since inflation eventually brings different
it is important to present what other economists have said to confirm the accuracy of this study. The economic literature consists of multiple studies that represent the relation between nonperforming loans and economic growth, interest rate and inflation rate. One of the authors who studied the relationship of NPL macroeconomic factors is (al, 2002) studied the delicacy of the banking system in Argentina through the years 1993-1996; He concluded that NPLs are affected by both bank specific factors
Basically, inflation is a sustained increase in the general level of prices for goods and services or an increase in the money supply. It cannot be measured by an increase in the cost of one product or service, or even several products or services. However, it is measured through increase annual percentage. Generally, when inflation rises, the price of goods will decrease. Also, as inflation rises, the value of a dollar does not stay constant. The value of a dollar is observed in terms of purchasing
The macroeconomic environment of a firm as suggested by Oxelheim, L. and C. Wihlborg., (1987) is constituted by a set of four relative prices; the inflation rates, interest rates, exchange rates and political risk premiums (the premium charged by the company for the rules about the uncertainty of the market game). In any developing economy, it is important to consider these particular macroeconomic variables and how their behavior over time affects the company’s health and ultimately its survival
INFLATION (1) Inflation is the rate at which the general level of prices for goods and services rises over a period of time. (2) Inflation can be divided into two categories: (a) demand-pull inflation and (b) cost-push inflation. a) In demand-pull inflation price increase results from an excess of demand over supply for the economy as a whole. It occurs when critical factors of production are being fully utilized but supply cannot expand further to meet new levels of demand. b) Cost-push inflation
3.1.1: Negative Reviews Previous studies have shown that the influence of negative eWOM is quite different for Positive eWOM. Not only does it affect purchase intentions but it also impacts negatively on consumer trust [Chatterjee (2001)]. [Ba and Pavlou(2002)] illustrate that negative onlinereviews have much more impact that Posetive reviews, when a customer form his level of trust based on another’s customers’ experience. Not only do negative reviews reduce the number of customers but it also
(2012) explained that inflation is a rise in the general level of prices. Based from the Investopedia, inflation is the rate at which general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Inflation is a rise in consumer prices, increasing the cost of living. Some inflation is caused because a country has printed too much money or experienced tremendous financial disaster, causing its currency to plummet. Other sources of inflation can be higher input
relationship that exists between inflation and the real and nominal interest rates. Mankiw’s Macroeconomics (2012) stated that “According to the Fisher equation, a 1 percent increase in the rate of inflation causes a 1 percent increase in the nominal interest rate. The one-for-one relation between the inflation rate and the nominal interest rate is called the Fisher Effect”. The Fisher Effect can be written as the following equations:
minimum wage increases prices are going to increase to counter the increase in money individuals are making. A negative effect on society is with prices rising, the prices are going to grow at a much faster rate than minimum wage increasing causing a cycle of imbalance between prices and income. Also, Wihbey discusses how "Critics argue the real effects of increasing minimum wage is negative, causing issues for both businesses and the working poor" (Wihbey 1). What many economists do is see how will
policy which implies public announcement of official numerical inflation targets, as well as responsibility and dedication of Central Bank in reaching that target. Inflation targeting is initially adopted by New Zealand in 1989., and after that a lot of central banks from developed and emerging countries started accepting it as their main, and in some cases, only goal. This decision was based on benefits of price stability. Inflation was observed as a monetary phenomenon and as such it can only be