МІНІСТЕРСТВО ОСВІТИ
Державна освітня установа
Вищої професійної освіти
Російський державний гуманітарний УНІВЕРСИТЕТ
ІНСТИТУТ ЕКОНОМІКИ, УПРАВЛІННЯ ТА ПРАВА
ФАКУЛЬТЕТ МЕНЕДЖМЕНТ ОРГАНІЗАЦІЇ
"DEFLATION"
Реферат
по предмету: АНГЛІЙСЬКА МОВА
1-го курсу заочної форми навчання
Тула, 2010
Content
1. Introduction
2. Causes and corresponding types of deflation
2.1 Money supply side deflation
2.2 Credit deflation
2.3 Scarcity of official money
3. Effects of deflation
3. Effects of deflation
4. Alternative causes and effects
4.1 The Austrian school of economics
4.2 Keynesian economics
5. Historical examples
5.1 In Ireland
5.2 In Japan
4.3 In the United States
6. Conclusion
7. References
1. Introduction
Deflation is a persistent fall in some generally followed aggregate indicator of price movements, such as the consumer price index or the GDP deflator. Generally, a one-time fall in the price level does not constitute a deflation. Instead, one has to see continuously falling prices for well over a year before concluding that the economy suffers from deflation. How long the fall has to continue before the public and policy makers conclude that the phenomenon is reflected in expectations of future price developments is open to question. For example, in Japan, which has the distinction of experiencing the longest post World War II period of deflation, it took several years for deflationary expectations to emerge.
In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the annual inflation rate falls below 0% - a negative inflation rate [1]. This should not be confused with disinflation, a slow-down in the inflation rate. Inflation reduces the real value of money over time; conversely, deflation increases the real value of money - The currency of a national or regional economy. This allows one to buy more goods with the same amount of money over time.
Most observers tend to focus on changes in consumer or producer prices since, as far as monetary policy is concerned, central banks are responsible for ensuring some form of price stability, usually defined as inflation rates of +3% or less in much of the industrial world. However, sustained decreases in asset prices, such as for stock market shares or housing, can also pose serious economic problems since, other things equal, such outcomes imply lower wealth and, in turn, reduced consumption spending. While the connection between goods price and asset price inflation or deflation remains a contentious on...
