Explain the Federal Reserve’s current view about inflation Near-term inflation expectations as studied from the University of Michigan Surveys of Consumers in October continued to be well below the elevated levels seen in the spring, and now the expectations longer term inflation within the survey remained stable. Overall Inflation was expected to remain at certain levels consistent with or below rate as predicted earlier by the committee’s dual mandate. Below are the latest projections of the Federal Reserve Governors and reserve Bank presidents from the November 2011 meeting: |Table 1. Economic projections of Federal Reserve Governors and Reserve Bank presidents, January 2009 | |Percent
So let us understand what GNP is in order to compare these two entities. What is GNP? GNP refers to the total output of a country and the output of assets owned by domestic residents in foreign countries and is defined as the total market value of goods and services produced in a place over a given period of time, plus the income earned by that nation's citizens. GDP vs. GNP GNP is different when compared to GDP because GNP measures the output produced by a country's companies whether the company is physically located in the specific country or not. By contrast, GDP measures all output produced within a country whether or not the companies are foreign or locally owned.
Dixita Patel Chapter 6 homework Managerial Finance July 31, 2012 Critical Thinking 6.6. Coupon rate: how does bond issuer decide on the appropriate coupon rate to set on its bonds? Explain the difference between the coupon rate and the required return on a bond price? Coupon rate is the annual coupon divided by the face value of a bond. In this case Bond Issuers look at outstanding bonds of comparable maturity and risk.
It achieves this through a process known as the transmission mechanism, which occurs in a number of distinct stages: - Purchasing and sale of government bonds in the STMM to influence the cash rate - Changes in the cash rate influence other interest rates, particularly short term securities, such as bank bills. In this way, changes in monetary policy are usually translated into the rates that banks charge for lending. - These lending rates then influence the decisions of businesses and household to borrow and spend, as seen in Figure 1, providing a key channel for transmitting monetary policy to the real economy. 3. Explain the possible impacts of loose monetary policy on the value of the exchange rate and on economic growth in Australia The effect of an expansionary monetary policy is to lower the exchange rate, weaken the financial
The Influence of Alan Greenspan on the Economy Scott Miller English Composition 1 October 18, 2008 Outline: The influences of Alan Greenspan on the Economy -About the Federal Reserve 1. Year Alan Greenspan appointed. 2. Duties of the Federal Reserve -Alan Greenspan as Federal Reserve Chairman (1987) 1.Stock Market crash -Savings and Loan Crisis (1988-1982) 1. Bank Failures 2.
PPG anticipated its full-year share repurchases to be at the high end of what they had originally projected. They also reported earnings per share from continuing operations to be $1.52, which included previously announced charges from restricting and nonrecurring costs. (About PPG, 2013) The health of the economy is critical for the company because its products are not primary products; so during a recession, people will choose to purchase items of more importance than maintenance products. This explains the big decline in revenues for 2012; this equates to a 14% drop compared to the previous year. Also, it can be seen the earnings per share were down by 12% and the return on average capital was down by 10%.
So we can interpret that in the year 2013, the risk of the firm is getting lower as the ratio goes down. As the definition says that higher the ratio, greater the ability of the firm to pay its bills. This tells that Coca-Cola is not really improving their liquidity and efficiency, because their current ratio dropped from the previous year. As of September 29, 2013, and September 30, 2012, the Company had a weighted average interest rate of 6.1%, 5.9% and 6.1%, respectively, for its outstanding debt and capital lease obligations. The Company’s overall weighted average interest rate on its debt and capital lease obligations was 5.8% for YTD 2013 compared to 6.1% for YTD 2012.
Money is not just a piece of paper like fabric, it does also have a monetary value. This value has been determined by the volume and consistence of trade between countries of different currencies. By definition, as stated by the Merrimu
Paul Geary 10109099 Project A: Okun’s Law United States 4th March 2011 Above we see the Business Cycle for the United States displaying both the Unemployment rates and the Real Growth GDP in percentage change over the last 30 years. There are clear indicators that the US economy has had clear stages of economic over-cooling and over-heating during the last 30 years. Between 1981-1985 the US economy expanded greatly except for a 4% drop in 1983. This rapid expansion was clearly unsustainable, as we see with the gradual contraction in the size of the economy from 1986 to1992 where GDP was barely 1% and unemployment reached 7%. We see this again from 2004 all the way to 2010 with unemployment increasing to 10%.
The monetary policy is defined as “the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves).” The fiscal policy is “ the use of government spending and taxation to influence the economy. When the government decides on the goods and services it purchases, the transfer payments it distributes, or the taxes it collects, it is engaging in fiscal policy.” The world downturn is defined as “an extended period of international economic downturn. Generally, the International Monetary Fund (IMF) considers a global recession as a period where gross domestic product (GDP) growth is at 3% or less. In addition to that, the IMF looks at declines in real per-capita world GDP along with several global macroeconomic factors before confirming a global recession.