Sticky inflation is an undesirable economic situation where there is a combination of stubbornly high inflation, (and often stagnant growth). Sticky inflation is often associated with cost-push factors, i.e. factors which cause a rise in the inflation rate but also lead to lower spending and economic growth. Sticky inflation is also sometimes known as Stagflation …
See also: Chinese Economy 2008 For many years the Chinese Yuan was tied to the dollar, however in July 2005 the yuan was finally allowed to break away from the dollar. However, unlike most other currencies, the Chinese government still try to influence the level of the Yuan. They have tried to keep the …
Reader’s Question: What are the importance of economics to a business student? There is a strong overlap between business and economics. A Business student needs to take into account these various aspects of Economics. At various times I have taught Business Studies in addition to Economics. Several topics are the same. These are the key …
Japan is the 4th largest economy in the world. It is a leader in electronic innovation, high-speed trains and robots. Yet, in the past two decades, it has seen an unprecedented decline in real wages. Whilst most economies have been trying to reduce inflation, Japan has been desperately trying to do the opposite – to …
After the invasion of Ukraine in 2022, western countries imposed a series of sanctions on Russia. Some claimed this would cripple Russian economy and led to a deep recession. But, the Russian economy seemed to shrug this off growing at 3.6% in 2023 making it own of the fastest growing economies in the G20. And …
Is American Economy Now Set to Decline?Watch this video on YouTube The US economy has been outperforming the rest of the world. It has left the European economy in the dust. In the 1990s with everyone buying a Sony Walkman, it was Japan which was going to overtake the US, but it never did. The …
Inflation is a situation of rising prices in the economy. A more exact definition of inflation is a sustained increase in the general price level in an economy. Inflation means an increase in the cost of living as the price of goods and services rise. The rate of inflation measures the annual percentage change in …
Since 2000, there was only one major economy which has seen a fall in real GDP per capita – Italy. In this period, Italy has experienced a shocking fall in productivity, rising debt, and prolonged economic turmoil. We are told the Italian economy is riven by cronyism, falling birth rates, and a regional divide. Yet, …