Price Level Of Goods Research Articles

Analisis Inflasi Terhadap Pertumbuhan Ekonomi Di Indonesia

Developing countries tend to experience inflation, countries with inflation rates of less than 3% are still achieving normal standards, while countries with high and unstable inflation experience economic instability. increase in prospects. A general and continuous decline in the price level of goods and services in a country leads to higher levels of poverty and unemployment. This study uses quantitative methods using time series data collected between 2016 and 2020 and statistical calculations using SPSS. The results showed that the inflation rate was 3.532> t table 2.306 and the significance level was 0.039 < . 0.05, which means that inflation affects Indonesia's economic growth / Growth Domestic Product (GDP).

The Impacts of Employment-to-Population, Interest Rate Spread and Inflation on Malaysian Economic Growth: Evidence from 1991 to 2019

The International Monetary Fund (IMF), in its latest Global Financial Stability Report issued in October 2022, foresees that the world economy is going to be in deep recession in 2023. The main issues highlighted in the report that contribute to the global recession are the multi-decades higher-than-anticipated inflation and the hike in the interest rates. The report further highlights that the large-sized firms are facing a declining profitability due to skyrocketing cost and the increasing number of bankruptcy cases among the small and medium-sized firms because of rising borrowing cost. In the wake of this, the firms need to close down the businesses or to scale down by cutting down the number of employees. This, consequently, will affect the employment rate relative to increasing number of world population. Therefore, based on these current issues, we aim to examine the relationship and the impacts of the macroeconomic determinants on the economic growth focusing on Malaysia. Four macroeconomic determinants were selected namely employment-to-total population ratio (EPR), MYR-to-USD exchange rate (EXC), lending-borrowing interest rate spread (IRS) and consumer price index (CPI). Gross domestic product growth rate (GDPGR) was used as a proxy for the economic growth. Annual secondary data from 1991 to 2019 were gathered from the World Bank Open Data and the Department of Statistics Malaysia (DOSM) Official Portal. We based our analyses on the descriptive statistics to look at the mean, maximum-minimum and standard deviation of the data of respective variables, then we use the Pearson’s correlation test to show the negative or positive correlation between the dependent variable (DV) and independent variables (IVs) and finally we employ the multiple regressions test to reveal the significant or insignificant relationships together with the positive or negative impacts of each IV on the DV. The main findings from the correlation test indicate EPR, EXC and IRS have negative correlations, where EXC has moderate correlation whilst the other two have very weak correlations with GDPGR. Meanwhile, CPI shows positive but very weak correlation with GDPGR. Meanwhile, the regressions test reveals EPR and IRS positively influence GDPGR whilst EXC and CPI have negative impacts on the Malaysian economic growth. However, only EXC is found to be significant out of the four determinants. The results imply the higher employment creates larger productivity to the economy and the more stable monetary policy (IRS) the better contribution to economic growth. On contrary, depreciation of MYR against USD and fluctuation in price level of goods and services lead to economic instability. The findings have significant implications for policy makers, businesses and investors in their decision making. For future research, we suggest to test on other economic variables such as industrial production index, foreign direct investment and money supply together with non-economic variables such as human development index, corruption perception index and global peace index of the country. We also suggest future studies to apply other methodologies for robustness. Comparison with other countries will also make the findings more meaningful.

Effects of Venezuelan Migration on Colombian Price Level

This study evaluates the causal impact of the Venezuelan migration on the price level of goods and services in Colombian host cities. The inflow of migrants to a city have a demand shock through an increase in consumption levels, and a supply shock through a decrease in the production costs. I use an Enclave instrumental variable strategy, which exploits the tendency of migrants to settle in places with previous migrant networks. I find that the Venezuelan migration increases averages prices in the non-tradable sector and has no effect on the price of food, tradable goods, transport and energy sectors. I provide evidence that this result may be related to the effect migration has on the price of education and housing. My estimates suggests that a 1 percentage point increase in the migration rate is associated with an 0.913% average increase in the price of the nontradables. This result is consistent with a demand side shock.

International tourism and consumer prices in Pakistan: a wavelet-based analysis

ABSTRACTThis study aims to investigate the relationship between the tourism activities and price level in Pakistan by using monthly data set from 1972 to 2016. In this study, aggregated as well as disaggregated price level have been considered. Co-integration results suggest significant long-run relationship between tourism and all price level of goods and services except fuel and lightning. Results of the wavelet transformation show a strong variation in short-run. The results of the wavelet transformation coherence also show an in-phase as well as out-phase both associations between the prices and tourism receipts in the mid-term and long-term periods.

An Analytical Study of the Effect of Inflation on Stock Market Returns

<span lang="EN-IN">Inflation means a persistent change in the price level of goods and services in an economy. It is generally measured in the consumer price index (CPI) or retail price index (RPI). Inflation reduces the purchasing power of a country's currency, as we need more units of currency over time to buy the same goods and services. The current empirical paper entitled “relationship between inflation and stock market evidence from selected global stock markets” have been undertaken with an intention to investigate the relationship between inflation and stock returns of the chosen economies. In order to realize the stated objectives, the researchers have collected the monthly data 2000 to 2017 for selected indices. In the first phase, log returns were computed and it has been tested for the existence of unit root in the distribution. In the second phase, we ran Pearson correlation coefficient for the collected data to find out the association between the inflation and stock returns. Majority of the chosen indices recorded a negative </span><span lang="EN-IN">coefficient with the dependent variable. </span><span lang="EN-IN">For India, Austria, Belgium, Canada, Chile, China, France, Ireland we found a negative coefficient. However, Brazil </span><span lang="EN-IN">Indonesia, Japanese, Mexico, Spanish and Turkey reported a positive coefficient. </span><span lang="EN-IN">Current study clearly throws light on the effect of inflation on the stock market returns, therefore; it can help the market participants such as traders, fund managers, and investors to make good portfolio decisions based on the information about expected inflation and unexpected inflation. The study confirms that there exists a significant relationship between the stock returns and inflation for Australian, Belgium, Canadian, Chilean, Chinese, French and Irish stock benchmark indices. Firms can take this one has a clue to adjust their reported profits by raising the prices. The policymakers can employ contractionary policy to reduce the supply of money by offering a low interest rate on t bills, increasing the interest rates (bank rate policy) and increasing the cash reserve ratios which in turn reduces the lending capacity of the banks.</span>

Economists Do a Lousy Job Teaching Students about Inflation

Inflation was not always defined as an increase in the price level. It used to be defined as an increase in the money supply. Then, in the discussion of the definition, it was noted that such increases were often accompanied by increases in prices of both assets and goods. The increase in the money supply was the inflation; the rise in the price level was an associated effect of inflation. That definitional focus of inflation on the money supply was abandoned as economists started to develop better measures of the price level. As they explored the problems with measuring the price level, they developed conventions as to what goods would be included in “inflation.” Eventually, inflation became thought of as the change in the price level of produced goods. Economists created formal measures of output (produced goods) and price indices, developing well-specified concepts such as real GDP, GDP Deflator, CPI, core CPI, and CPE, among others. People’s conceptions of inflation followed those formal measures, and earlier monetary definitions of inflation faded. That led to the way most people think of inflation today — as an increase in the price level of goods as measured by a produced goods inflation index. What is left out of these “produced goods price” definitions of inflation is assets. Thus, as inflation has become associated with changes in the price level of produced goods, the price of assets slowly moved out of definition of inflation, and what might be called asset inflation fell from economist’s radar screen. The problem with that definition of inflation as only relating to produced goods is an arbitrary convention — a convention that hides the inescapable definitional ambiguity surrounding inflation. It is that definitional ambiguity that makes it difficult to discuss the recent history of inflation, which has experienced large increases in the money supply, but only small increases in the goods prices. Is this an inflationary period? It would definitely be an inflationary period in the earlier money supply definition of inflation. In that earlier definition, the increases in the money supply would be seen as the likely cause of an asset inflation.

A Study on the Dynamic Relationship between Inflation, Foreign Direct Investment, International Trade and Economic Growth in Malaysia

The main purpose of this study is to study the relationship between economic growth, inflation, international trade and foreign direct investment.Purpose - The main purpose of this study is to study the relationship between economic growth, inflation, international trade and foreign direct investment.Design/Methodology/Approach - There were two (2) test carried out from this paper. The first test is Regression model use for all the variables included in this study. Whereas the second test is Multiple Regression model use only for the variables that is significant.Findings - Empirical result show that inflation have no relationship towards economic growth. An increase in inflation will not be affected with the economic growth due to the rising of general price level of goods. Moreover, Balance of Trade (BOT) have a negative relationship with economic growth while FDI have a positive relationship with economic growth.Research Limitations/Implications - Further research should investigate the impact of other variables that can give impact towards economic growth. Other variables that may also affect the economic growth include demographic, political risk or freedom and technological factors. Size of population may also cause the difference of economic growth level of one country to the other country.Practical Implications - The findings are helpful to financial managers, investors and traders dealing with the Malaysian economy.Originality/Value - The contribution of this paper is to provide evidence on the empirical linkages between economic factors and its effect towards economic growth in Malaysia.

China's price reform

The expansion of the regulatory function of the market mechanism is an important component of China's current economic reform. Prices should be allowed to play their full role for the following purposes: —regulating the supply of, and demand for, goods and services; —promoting market equilibrium; —regulating resource allocation; —promoting technical progress, growth of labour productivity and cost reduction, improving the quality of goods and services; —promoting fair competition among enterprises; —providing accurate information rapidly to both producers and consumers to guide them in making decisions; —promoting the development of international economic relationships. Today China's price system cannot perform these tasks properly: the price system (both the price level of goods and services, and the structure of relative prices) is seriously distorted; moreover, the former highly centralised price management system excluded any role for the market mechanism. In order to allow prices and the market mechanism to play their full part, both the price system and the price management system need to be reformed. These two aspects are analysed in Sections 1 and 2 respectively of this article. Section 3 looks briefly at the question of the relationship between domestic and international prices.