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Economics Assignment: Money Supply & Inflation

   

Added on  2020-06-04

17 Pages3747 Words169 Views
Inter Assignment

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1Evaluating the link between money supply and inflation in various countries over the periodof three years..........................................................................................................................1QUESTION 2...................................................................................................................................7Analysing the Leveraged Buyout of UK National Grid Gas division in Q4 2016 as per theviews of FPC's........................................................................................................................7CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................12

ILLUSTRATION INDEXIllustration 1: Change in the inflation..............................................................................................2Illustration 2: Money supply Australia............................................................................................3Illustration 3: Changes in inflation rate of Argentina......................................................................4Illustration 4: Money Supply changes in Argentina........................................................................5Illustration 5: Inflation rates in South Africa...................................................................................6Illustration 6: Illustration 6: Money Supply in South Africa...........................................................6Illustration 7: Sales by segmentation and the records......................................................................8Illustration 8: National Grid market data delayed............................................................................9

INTRODUCTIONInflation and the money supply is the main factors and economic terms which areanalysed, controlled and executed by policies of country. The main role is played by themonetary policies and the economic policies of a nation. In the present report, there has beendiscussion over the inflations and money supply system in several nations such as South Africa,Argentina and Australia. The report will help in analysing the policies made by economists inthese countries as to overcome with such operational obstacles in the recent three years. Further,the report will be helpful in terms of analysing the UK's financial stability and the challenges tobe obtained by them in terms of Leveraged buyout for UK National Gas Divisions.QUESTION 1Evaluating the link between money supply and inflation in various countries over the period ofthree years.Money supply:This is the economic factor which depended over entire stock market in a country. Itmakes the proper analysis over the liquid instruments which are circulating In the nationseconomy. It includes the assets, cash, coins and the balances in the banks saving accounts forcorporates of individuals (Razin, 2017). Therefore, it will be beneficial in terms of short terminvestments.Australia:The monetary and financial services like exchange rates, interest rates etc. are to bemanaged and executed by Reserve Bank. The polices are set by the bank to make the stability inthe economy of country as well as facilitate the loans in the money market (Xu, 2017). Over thepast decades, there has been huge impacts of the financial crisis in the market such as incrementin the prices of commodities and services, fluctuating exchange rates as well as inappropriateinterest rates over the loans and grants. There are the main objectives of the Reserve Bank as tobring stability in the currency value as well as presenting the full employment. They aim atfacilitating the economic prosperity and welfare to the citizens in country. Therefore, theframework of the monetary policy is to administrate or control the inflation which is thecentrepiece of the policies (Hung & Thompson, 2016). Thus, the motive is to acquire 2-3% ofinflation rates, on average and over time. Therefore, the rate of inflation is approximately low1

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