Subject to this morning’s lesson about why inflation is difficult to forecast. Volatility in UK energy prices may arise due to obvious external or internal shocks along the supply chain. This is a bitter pill for the consumer to swallow due to the low PED value of energy. This adds to the unanticipated increases in inflation and thus the consequences of this ,(a higher opportunity cost for the consumer when deciding about energy use and consumption elsewhere; a shift in of AD and the SRAS). Basically higher rates of inflation and lower economic activity. This makes policy decisions at the best of times hard. However, the article below highlights that there might be an alternative rationale behind these increases and highlights how producers, in an oligopoly market structure, often behave and work against the common good.
With reference to how inflation can be regressive and how this is manifested with lower income groups.
Heating or food.
This video shows quite clearly and simply how massive the gap is between the top earners and the lower income groups in the U.S.A. Quite informative if I say so myself
Do you believe that government has a moral duty to protect society from certain ‘ills’? Is this the one time where censorship is legitimised? Or are you a believer in free speech being a fundamental human right and that censorship only creates dissent?
cyber bullying teen suicide start a riot nanny state lost productivity terrorists freedom of expression is there an alternative? does it work? just say no definitely no
CPI (Consumer Price Index) the most commonly used measure of inflation. Why of all methods is this most popular? An average household… what is that supposed to be? Every country can support numerous cultures of which each can have its own “average”. Why only account for a section of the economy to calculate the inflation for the ENTIRE economy? Shouldn’t we be looking at EVERYTHING to account for EVERYONE?
What are CPI and GDP deflator?
Which one is better?
Excellent interview with RB and his commentary on the dysfunction of society. In his opinion what is the root of the problem? He says there needs to be a revolution but is this worldwide? What are lessons we can learn from Japan and the Scandinavian countries?
Here’s an article discussing Japan’s current trade deficit. It goes into detail on the different goods which greatly affected the Current Account; keep a look out to find why this deficit was caused, as well as how this will affect Japan’s growth in the future.