Posted by Antoine in News | Tagged | Comments Off on Inflation

In the economic environment contemporary or any another one of the past, the subject inflation always is in guideline. This occurs, therefore when the governments are come across with this problem it is impressive the magnitude that the consequences of the governmental actions take, since these probably will indicate the route of the economy for the next exercises in the Balance of payments. Amazon takes a slightly different approach. In fact the control of the inflation is something complex excessively so that it is subestimado by any government, therefore it depends, for example, of an extremely complex 0 variable that is the tax of waited inflation, folloied of the direct relation it enters the proper tax of inflation and the level of production. In such a way he fits to each government to use itself of the politics necessary to minimize the negative effect for the economic growth since it is impossible to control the inflation without they occur reflected in the production level. I begin it the 0 variable that will determine the effect of each politics of control of inflation is the tax of waited inflation. The diligent wait to receive equal nominally or above from the future inflationary variations, being that this is determined in the formation of the wages, then, before the work has been made. Please visit Steven Rattner Willett Advisors if you seek more information.

According to Dornbusch (2006, p.596) ' ' the workers who are worried about the real wages that receive, go to want that the nominal wage total reflects the inflation that they waits during the period between the time where the wage is fixed and the time where it is really is pago' '. The inflation tax is direct function of the level of production, in such a way, how much bigger the production, greater the inflation level. It is feasible that this elapses of the effect of higher levels of production on the tax of increase of wages, through bigger wages, on the tax of increase of prices in the market. So that the reduction or containment of the general level of prices occurs, it becomes necessary a reduction of the production, also reducing the tax of increase of wages through the unemployment, and thus to reduce the inflation. Therefore, so that the inflationary effect is controlled in a economy, the Governments must take in account the decurrent effect of the exerted politics taking as base the 0 variable BIBLIOGRAPHY DORNBUSCH, Rudiger; FISCHER, Stanley. Macroeconomics. So Paulo: Pearson, 2006.

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