...University of Dhaka A Report on “Inflation: Perspective Bangladesh” Date of Submission: May 26, 2011 A Report on “Inflation: Perspective Bangladesh” Course no. & name: F-203-Macroeconomics Submitted to: Mohammad Salahuddin Chowdhury Lecturer Department of Finance University of Dhaka Submitted by: Group: Morning Stars Sec-B BBA 16th batch Dept. of Finance University of Dhaka Date of Submission: May 26, 2011 Group members are Name | Roll | K. M. Najmus Sakib | 16-020 | Mobasheera Tasnim | 16-052 | Md. Kamrul Islam | 16-090 | Rajib Kumar Deb | 16-106 | Shaykha Sultana | 16-160 | Md. Shamsul Alam | 16-172 | Letter of Transmittal May 26, 2011 Mohammad Salahuddin Chowdhury Lecturer Department of Finance University of Dhaka Subject: Submission of a report on “Inflation: Perspective Bangladesh” Dear Sir, We are presenting a report on “Inflation: Perspective Bangladesh”. In this report we have included various methodologies to explain the current scenario of inflation in Bangladesh. In making the study, we had to take help from the various sources of internet, different institutes and class lectures of our course teacher. We are grateful to them for extending generous help. We acknowledge the contribution of our course teacher heartily. We have tried to use our academic knowledge in real life. We are pleased to be granted this vital opportunity and grateful for your versatile assistance. We hope that our work...
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...highlight a variety of current macroeconomic indicators by specifically defining the objectives of the Federal Open Markets Committee and stating the economic projections for 2015 in hopes of painting a clear picture of the current financial state of the U.S economy. With growth reported in GDP and incomes this past year, there is still concern surrounding overall consumer opinions on the state of our nation’s economy. The results of the Michigan surveys index of consumer sentiment as included as well within the Monetary Policy (2014). This demonstrates the country continues to feel the economy is strengthening as well, as their overall confidence of their own financial situations. However, we are still well below average on the index report which also is reported without much change in the last year. Although we have improved our outlook since the recession that occurred in 2008, we remain guarded and safe in our observations. With slowly increasing consumer sentiment, housing starts continue to increase slowly along with our post housing bubble recession recovery (Monetary Policy, 2014). Single family and multifamily starts show a very slow trending increase but at a .6 high index for 2014, we continue to be well below the 1.8 index of 2005-2006, which was prior to the recession. Tighter mortgage loan requirements and significant constraints still on new housing supply is more than likely the reason to account for these results. The positive side of this is reflected...
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...Summarization of the article The article I would like to discuss about is “The dollars and sense of inflation” for the Straits Times newspaper written by economics correspondent Aaron Low. In the article, the author discusses about the inflation report in Singapore which came with two indicators. The first was a breakdown of how inflation had affected the various income groups. According to the Department of Statistics (DOS), the top 20 percent of income earners face with a 5.7 per cent inflation rate due to the rising costs of private transport and property rental while the bottom 20 per cent saw prices rise by only 4.7 per cent. Another new indicator by DOS excluded the costs of housing rents. DOS reasoned that since 87.2 per cent of Singaporeans own their own housing, the new indicator was complied “as an additional indicator to track households’ actual expenditures. In this indicator, the inflation rate for the lowest 20 per cent was just 2.2 per cent less than half the rate that the top 20 per cent experienced. The writer mentioned that inflation is just half of the equation calculating the impact of rising prices on the welfare of people and how fast incomes have raised equally matters. The writer argues that the lower income groups may have been hit with lower inflation but their incomes also rise by less than what the top percent enjoys. The writer mentioned that another reason not to worry too much about a rise in the consumer price index is that a large part of...
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...ECONOMY FIRST CUT - INFLATION August 2011 Inflation Unlikely to Subside Soon Overview: Inflation continues to be the single most important macroeconomic risk and challenge for the Indian economy. It has remained above the 9 per cent mark for eight consecutive months. Headline inflation stood at 9.2 per cent in July 2011 compared to 9.4 per cent a month earlier. Inflationary pressure is unlikely to subside over the next few months due to the second round effect of fuel prices increase and the hike in minimum support prices (MSP) of agricultural commodities. Accordingly, we have upped our annual average inflation forecast for FY12 by 50 bps and expect it remain in the range of 8.0 to 8.5 per cent. Inflationary pressure which had emerged initially due supply- side constraint in agricultural commodities has spilled over to manufacturing items and become broad based, indicating demand- side pressure as well. Inflation has now remained in high single or double digit for nearly 20 months. RBI has raised the key policy rate by a cumulative 325 basis points since March 2010 to tame inflation but with little effect. There is, however, a silver lining now as the commodity especially crude prices in the global market are showing signs of moderation due to the weakening of growth outlook in USA and EU area. Moderation in crude prices will hold the key with respect to inflation going forward, as fuel inflation has remained in double-digits since February 2010. Though total food (manufacturing...
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...people consume more than their income. And poor people are getting poorer day by day. Government has taken some short-term policies but those are not paying off. In this report we try to understand that why price hike in Bangladesh, what is the reason behind it an, what consequent are arises among Bangladesh people for these unsustainable price hike in consumption goods and what are the initiative measures government can take to at least make the price level sustainable. What is Inflation? Inflation is the rise in general level of prices of goods and services. It can be said in other ways that inflation is the decrease in value of money. It means that • Each dollar can purchase fewer amounts of goods and service then previous. • It reduces the purchasing power of the currency. Inflation does not mean that all prices are increasing, even during period of rapid inflation; some prices may be relatively constant while others are falling. The troublesome aspect of inflation is that prices rise unevenly, some raises sharply, some slowly and some don’t rise at all. The main measure of inflation is the consumer price index. Classification of Inflation [theoretical view]: Economists distinguish between two types of inflation, those are described below; Demand–Pull Inflation: Demand - pull inflation is occurred when the demand for goods and services exceeds the actual production capacity of the economy. It happens for mainly; • Availability of the money...
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...PRICE INFLATION IN BANGLADESH PRICE INFLATION IN BANGLADESH Course : Economics Prepared for: Dr. Samir Kumar Sheel Assistant Professor Department of Marketing, FACULTY OF BUSINESS STUDIES Prepared by: A.T.M. Golam Kibria Khan EMBA, 19TH BATCH, ROLL: 41119055 Department of Marketing FACULTY OF BUSINESS STUDIES UNIVERSITY OF DHAKA DATE OF SUBMISSION : August 02, 2011 Letter of Transmittal August 02, 2011 Assistant Professor, Dr. Samir Kumar Sheel Course Teacher: Economics Department of Marketing Faculty of Business Studies University of Dhaka Dear Sir, With great pleasure we are submitting our Term Paper on “Price Inflation in Bangladesh”. We have found this report as of informative, beneficial as well as insightful. We have tried our level best to prepare an effective & creditable report. The report contains detail description upon Inflation and the Price inflation in Bangladesh. Here we have gathered information through different sources. I honestly hope that this analytical assessment will identify the causes and impacts of price inflation of Bangladesh. Therefore we hope you will find this report worth all the effort we have put in it. Sincerely Yours, A.T.M. Golam Kibria Khan Executive Summary The current wave of inflation has been eroding purchasing power of the low and middle income people in Bangladesh, as they need to pay much higher bills for food grain and other commodities. The Exchequer of Bangladesh, which absorbs the petroleum price hike...
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...Telephone Company and Groupon The distinctions between Groupon and Indiana Telephone Company (ITC) annual reports are: • The annual report cover letters are different. Groupon Inc.’s cover letter is more detailed and provides more information about the company. • ITC’s annual report does not have a table of contents. • The amount of information in the annual reports differ substantially. ITC’s annual report consists of 22 pages while Groupon’s annual report contains 118 pages. • The ITC’s annual report begins with information listing their board of directors, officers and operating officials, while Groupon’s management information is at the end of the report. Groupon’s report discloses information regarding executive compensation and ITC does not disclose information regarding executive compensation anywhere in its report. Groupon also lists the officers’ names and ages under the employees section and gives a brief description of each of them. • Groupon has a forward-looking statement forewarning users that its financial statements contain information with risk of uncertainty. • ITC does not explain what its business is about, strategy, distribution, marketing, partners, operations, and competition. • Groupon discloses a variety of risk factors and ITC only discloses one major risk, which is monetary inflation. • ITC concentrates heavily in monetary inflation and governmental issues. • ITC’s letter to shareholders gives a short description of important facts such...
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...presentation before the Council of Ministers on 12 November 2007. In the first part of his presentation, Governor Yılmaz pointed out the prerequisites to achieve sustainable growth rate and single-digit nominal interest rates. The Governor gave information about inflation developments, interest rate and the exchange rate policies of the CBT, growth, employment and balance of payments developments in the second part of his presentation. The Governor stated that sustainable growth might only be achieved via establishing macroeconomic stability, continuing structural reforms and enforcing the principles of good governance. 1981 - 1989 1990 - 2001 2002 - 2006 Average Inflation 43.4 % 74.0 % 15.9 % Average Growth 4.8 % 3.0 % 7.5 % The Governor, underlining the necessity of price stability and sustainable public finance for Source : TURKSTAT, CBT macroeconomic stability, pointed out that it is not possible to achieve sustainable and high growth rates without price stability. Reminding that the Turkish economy had experienced boom-bust growth cycles during the high inflationary period, Governor Yılmaz stressed that the annual average growth rate boosted to 7.5% since 2002, the year which inflation rate has started to decline. Governor...
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...private sector-led economic growth. Bangladesh achieved good economic progress during the 1990s by adopting a series of structural and economic reform measures. The stabilization program reduced inflation as well as fiscal and current accounts deficit and established a healthy foreign exchange reserve position. Economic performance improved with gross domestic product (GDP) growth averaging 5 percent in the 1990s compared with 4 percent in the preceding decade. The acceleration in economic growth was accompanied by decreased incidence of poverty and a distinct improvement of some key social indicators. Rapid growth in food grain production has been a remarkable feature of the country’s economic performance in recent years. In FY2000, Bangladesh reached self-sufficiency in food grain production. A combination of factors accounts for the robust growth of the agriculture sector, and in particular of food grains. According to a World Bank estimate, Bangladesh has the 36th largest economy in the world in terms of GNP based on the purchasing power parity method of valuation, and the 55th largest in terms of nominal GNP in U.S. Dollars. This report analyses the trends in the major macro-economic indicators of Bangladesh, taking into account economic growth and standard of living, inflation, unemployment, balance of payment, Government Fiscal and Monetary policy and various aspects of the economy of...
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...Monetary Policy Report to the Congress Presented on July, 21 2011 Southwest Technical College The purpose of this paper is to examine the current state of the economy including GDP, inflation, unemployment. I will also discuss the last time the FED increase and decrease the federal funds interest rate and discount rate. I will also discuss how the consequences interest rates affects inflation and unemployment. I will also talk about how the implications to reduce unemployment at the risk of increasing inflation affect which segment of society’s work force. Then I will also discuss the implications to reduce inflation at the expense of increasing unemployment. Finally, I will forecast if the FOMC will increase, decrease or leave the federal funds and discounts alone. The FOMC has many difficult decisions to make because fiscal policy is such an important aspect of our economy, a thorough understanding of these policies is one of the best ways to gauge the possibilities for the economic future of our nation. The current state of the economy in the United States is overall doing better while local economies vary. The GDP increased at an annual rate of 0.4 percent in the fourth quarter of 2012. Military spending has been cutback, which contributed .1%, while business and consumer spending increased the GDP by a .4%. Inflation has improved since 2011 when the inflation percentage was at 3%.Inflation has stayed steady with 1.5% currently in 2013 and 1.7% in...
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...Canadian mining- Impact of cost inflation and volatility and the road ahead Introduction With a 9.8% share of Canada’s GDP, the mining sector is critical to the future of the Canadian economy (Deloitte Report). Unfortunately, rising cost inflation, unprecedented volatility in commodity and energy prices and a strong Canadian dollar have negatively impacted the performance of this sector over the last year. This report seeks to uncover the drivers behind cost inflation and evaluate the hedging strategies utilized by Canadian companies to mitigate volatility through a case study of Barrick Gold. We will also examine the impact of tightening margins on the capital expenditure decisions of this company. Part 1: Cost Inflation Cost inflation in the mining industry has been driven by increases in both Operational expenses and Capital expenditures. Operational expenses have been driven by three factors 1) Wage Increases 2) Energy Costs and 3) Supply cost increases. Wages in this industry have increased dramatically over the past 10 years and the Canadian mining industry now boasts the highest wages of all industrial sectors in Canada. The average weekly pay for a mining worker in 2011 was $1,436, which surpassed the earnings of workers in forestry, manufacturing, finance and construction by 47%, 46%, 35% and 32% respectively (DELOITTE REPORT) Source: Mining Association of Canada – 2012 Facts & Figures Report http://www.mining.ca/www/media_lib/MAC_Documents/P...
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...understandable to think inflation (price increases within a country – indicating the dollar has weakened in purchasing power for domestic goods purchases) would lead to depreciation – weakening of the dollar against other currencies. The logic of this common misunderstanding is not too complex; if the dollar has weakened for a foreign import, say a $20,000 car, why shouldn’t we expect the foreign company to charge more dollars for the same good, thus indicating depreciation has occurred for the American currency? The reality is quite different and in many ways the opposite of this simplified story. Let’s say both the imported and domestic cars start at $20,000. Then there is inflation in the U.S. and the price of domestic cars, once US automakers include inflation, increases to $23,000. The imported car is still $20,000. This tends to cause U.S. buyers to switch to the 20,000 dollar import over the 23,000 equivalent domestic car, increasing the foreign firms’ market share in the U.S. It can be worth it for the foreign central bank to buy foreign reserves to maintain this favorable exchange rate. Citing research by economists Richard Clarita of Columbia University and Daniel Waldman of Barclays Capital, Nobel Laureate (Nobel Prize Winner in Economics) and international finance expert Princeton’s Paul Krugman reports that the Clarida-Waldman study confirms that inflation leads to appreciation, and the effect is stronger for core inflation (excluding food and energy)...
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...Introduction: In this report the Economies of Poland and Brazil will be compared. The topics that will be covered are the following, Balance of Payments, Unemployment, Inflation and GDP. The research for this report has helped understand more about the economies of this world. Inflation Inflation is defined as the rate of the general level of prices for goods and services are rising, and, subsequently, purchasing power is falling (Investopedia, 2011). Comparing the two countries we were quite surprised about the outcome. Brazil: Between 1980 and 2010 the average inflation rate in Brazil was 445.98% (Trading Economics, 2011). This is an extremely high average inflation rate which displays a rather weak economy. The reason for this is the extremely high inflation rates between 1989 and 1994. Below is a table displaying the inflations rates of Brazil from January 2008 to the current date. As you can see there it is clearly shown when the economic crisis affected Brazil. The inflation rate in 2008 was 6.4% (Trading Economics, 2011). The high inflation rate was of course very convenient for government since; the Mint printed money around the clock, at a very low cost to the Treasury (v-brazil, 2011). In 2009, the inflation yet again decreased to a less severe level. The economy was slowly but surely recovering from the major economic crisis that hit the world in 2008. The government accomplished this through the increase of interest rates, which prohibits...
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...The aim of this report is to empirically analyze the relationship between interest rate, inflation, loan disbursed to textile sector, energy crises and yarn prices with textile sector growth in Pakistan during 2001 to 2011.Dependent variable is Textile sector growth Independent variables are Interest rate,, Inflation, Energy crisis, Price of cotton yarn and Loan disburses to textile sector. The aim of this report is to empirically analyze the relationship between interest rate, inflation, loan disbursed to textile sector, energy crises and yarn prices with textile sector growth in Pakistan during 2001 to 2011.Dependent variable is Textile sector growth Independent variables are Interest rate,, Inflation, Energy crisis, Price of cotton yarn and Loan disburses to textile sector. “Impact of Energy Crisis, Interest Rates and Inflation on Textile Sector of Pakistan” Term Report, Fall 2015 “Impact of Energy Crisis, Interest Rates and Inflation on Textile Sector of Pakistan” Term Report, Fall 2015 Submitted by: Zehra Hasan Zaidi, Sana Shamim,Hamza Nadeem, Abeer Salman Submitted by: Zehra Hasan Zaidi, Sana Shamim,Hamza Nadeem, Abeer Salman LETTER OF TRANSMITTAL 1st December 2015 The Course lecturer Analysis of Pakistani Industries Institute of Business Management Korangi Creek, Karachi. Dear Madam, SUBJECT: TERM REPORT We feel immense pleasure in presenting to your good self, the term report as part of our course requirement. We found this report to be truly challenging...
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...Introduction The principal goal of this assignment is to understand the impact that the use of different set of generally accepted accounting principles (GAAP) in the Analysis of an international company’s financial statements. In this assignment we need to understand and analyze the impact of the Company FEMSA Annual Report with the two variables using on this report; Mexican pesos and U.S. Dollars. FEMSA, the largest beverage company in Latin America, started operations in 1890. FEMSA work thru three important roots: Coca-Cola FEMSA, FEMSA Cerveza (Heiniken Mexico) and FEMSA Comercio. (See Figure 1.1.) Figure 1.1 Participation of the operations of FEMSA Coca-Cola FEMSA represents the largest and most important bottler in Latino America and the second largest in the world, which represents the 16% of the volume around the world, this number represents the biggest bottler around the world in terms of volume (See Figure 1.2.) Figure 1.2 Principals Bottlers in the world for Coca-Cola Company The company has presence in Latin America, including Mexico, Brazil, Argentina, Colombia, and Venezuela to make and examples. FEMSA has had fusion with other important companies, the last 2010 FEMSA Cerveza make a fusion with Heineken, this Holland is one of the biggest beer company in the world, this fusion represents the rise of volume and presence in countries where FEMSA was not. Figure 1.3 Presence of FEMSA in Latin America FEMSA Comercio has had an important...
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