hey.. need help urgently with a macroeco question... any help will be greatly.. enormously... tremendously .. basically highly appreciated...


1. the banking community tends to favor government policies which limit inflation even if these policies generate higher unemployment( which reduces income and results in lower demand for loans by households and businesses) explain the reasoning underlyning the banking community;s position.
thankx in advance!!

Writing a term paper or just turning in a two page assignment?

that's simple. If inflation is low, consumer saving will increase which will end up in saving accounts in bank making bank more money to invest and make profit. So, banks support govt policies that lowers inflation.

thankx to you two.. harris and u_day
well, i'm looking to turn in just a breif explanation ,.. maybe about a page at the max..nad the deadline is within 2 hours.. :(

yea, you whould be able to do that in 2 hours.

well if you help me out.. i'm sure i will
:)
hint* hint*

Economics is nothing but just assumptions and hypothesis and elaboration of those assumptions.

Just make hypothesis and assume all fancy outcomes. Thats it. It is not technology that you really need experiments in the laboratory.

Example: Two economists were very very hungry and starving to death. They started assuming that they are having a big party with lots of food. Finally they are no more hungry.

This is the real strategy of economist.

another example to help you understand. america wants to keep control over inflation because a lot of foreign investors have money tied up in american assets (treasury bills, stocks, etc.). if inflation is high, then the real rate of return on these investments could be lower than that offered elsewhere. this would lead to fewer foreign investment in america, which itself is bad, because america has a lot of consumer and corporate debt. another reason that this is bad is that it will make the dollar slide (because of decereased demand for the dollar). ciao..

another reason is that you don't want to be carrying a basketful of cash to buy something that costs less than the basket. this happened many years ago in germany, btw. you can include this as a little joke in your 2 pg papre...ciaoooo...

thankx ppl
got onw more question..
from 1973 to 2004 the us all city average consumer index ( 1982-84) rose from 44.4 to 188.9. during that same period the average NOMINAL weekly earnings of production and non-sueprvisory workers in private,non-agricultural industries increased from 152.77 to 528.56

1 calculate the inflation rate ( on a CPI basis) form 1973-2004.

help me!!!! buddha le 0 dincha
:(
only 1.5 hours to go/..
pluz

zalim singh.. help!!

Not sure if this is correct, tara mero guess matrai hai:

Change in CPI = (188.9 - 44.4)/44.4 = 3.25

Change in Nominal Wage = (528.56-152.77)/152.77 = 2.46

Disregarding the change in nominal wages, the inflation would have been 325%. However, factoring the change in wages (3.25/2.46 = 1.32), it should be 132% for the 31 yr period.

Milena bhane gaali nagaru hai.

I did my undergrad in economics long time ago, ahile ta laajai lagyo sabai birseko dekhda :(

and look at this pathetic guy. go to library or learning center freak. are u out of your mind looking for your solution here? zeeees!

shutup notebook
ani chipledhunga one more question

did the real ( inflation adjustted) weekly earnings of production and non -spervisory workers rise or fall during this period
expalin in brief

I thought you had only two hours, extension mageko ho ki kaso :)

For your next question, again maile andhero ma dhunga handai chu hai.

So, in 1973, the CPI was at 44.4, nominal wage was 152.77. Let's say, a certain good cost $44.4 and your income was $152.77. You were able to purchase 152.77/44.4 = 3.44 units of that good.

In 2004, the same good cost $188.9 and your income was $528.56. You were then able to purchase only 528.56/188.9 = 2.8 units of it.

So in 2004, you could buy (3.44 - 2.8)/3.44 = 18.6% less than you could in 1973. In other words, your real income declined by 18.6% over that period.

DISCLAIMER: UTTAR NAMILE MA CHIPLEDHUNGA JAWAFDEHI HUNE CHAINA..lekhnai birseko aghi :)

thankx for taking time out chipledhunga.. you;re soooo soo chweet.... first ko ques chahi submit gare second ko naswer chahi aafaile jpt garera submit garde... ali chilo bhayo answer paauda paudai..
keep it up !!...... we need ppl like you here @ sajha..

dhilo*

Economics... hmm...

The only thing I seem to remember about it is, this one professor thumping his considerable authority on us ignorant with these words, "Economics is a CHAIN. Everything and anything we talk from henceforth is interrelated with one another although we might talk about it independently at times."

Since then, all i can think of is a round circle, sel roti jastai ke whenever someone talks about economics. I swear that "Economics is a CHAIN," phrase got stuck in me.

It'ld be great if you can bring YOUR argument and tread the water here, instead of just balantly asking for an opnion on your assignment. Afno bichar bhana ani see if someone can present something you can either add on, or something, you-know.

Later,
Indisguise:)