Question on Repo Rates and Effect on Inflation

2) what is repo and reverse repo rate and its effect on inflation The repo rate is the difference between the purchase price and reselling price of a security, expressed as a percentage. If commercial banks are short of money, they enter into an agreement with the Bank of England to sell their Treasury bills …

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Canadian Monetary Policy and Inflation

Readers Question: suppose you are the governor of the bank of Canada .. and that inflation has been high and roughly constant for a number of years. you have two policy choices: you can attempt to eliminate the sustained inflation. Outline the issues involved when making this choice. list and explain the costs of ongoing …

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Unemployment and Inflation in UK 2008

Readers Question: how the unemployment and inflation is related to country’s economy If we take the example of the UK, we can see differing examples of how unemployment and inflation are related to a country’s economy. The key to this question is what causes unemployment and inflation. There are several different factors, but it is …

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Chinese Inflation and how to reduce it

Readers Question: How about the case of cost push inflation like that of China? there’s high inflation and yet the economy is not operating at its full level of employment and due to the fact that its exchange rate is fixed, monetary policies would not be effective but fiscal policies would further increase unemployment. What …

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Sticky Inflation

Sticky inflation is an undesirable economic situation where there is a combination of stubbornly high inflation, (and often stagnant growth).   Sticky inflation is often associated with cost-push factors, i.e. factors which cause a rise in the inflation rate but also lead to lower spending and economic growth. Sticky inflation is also sometimes known as Stagflation …

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What is Britain Good at – Growth areas in the Economy

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Winter in Britain can be pretty bleak and grey; no wonder many want to leave. But British ingenuity has designed this all-year round strawberry growing facility. Artificial light powered by renewable energy and this impressive mechanism ensures the plants get optimal access to light. No more expensive imports, no need for pesticides or even backbreaking …

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How is the Economy Doing in 2025? – Labour’s First Year

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After a bankbench rebellion, the chancellor Rachel Reeves was visibly upset in parliament this week, perhaps she had just been given the latest UK economic forecasts. When the OBR published this forecast for UK debt, one commentator said it was misleading and alarmist, because it assumes policy never changes. But, the evidence from recent years …

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