Tài liệu BRITISH ECONOMBRITISH ECONOMY pdf

1. WARM- UP
2. CONTENTS
2.1 Information about inflation
2.2 Efforts of UK government
2.3 Solutions of Vietnam
3. CONCLUSION
4. Q& A
BRITISH ECONOMY
BRITISH ECONOMY

A phenomenon in economy

CLASS: 08.1.E13
Group 04: Duong Thi Diu
Hoang Dieu Linh
Vu T Minh Phuong
Nguyen T Thu Thao
Bui Thi Yen


The increase in price



United Kingdom’s
United Kingdom’s
government efforts in
government efforts in
cotrolling inflation rate &
cotrolling inflation rate &

lessons for Vietnam
lessons for Vietnam

What is inflation rate?
•
It refers to a general rise in prices
measured against a standard level of
purchasing power.
•
It means that the purchasing power of
money is decreased.

How to measure?
•
Inflation is measured by comparing two
sets of goods at two points in time.
•
Inflation rate = ((P
0
– P
-1
)/ P
-1
) x 100%
•
P
0
: The current average price level
•
P

-1
: The prices level a year ago

Sign of inflation
•
Most well known: CPI (consumer price
index)
- It refers to the rise in price, which the
consumer has to pay.
•
The GDP (gross domestic products)
- It measures inflation in the whole of
domestic economy.

The effects in UK
•
The growth of economy doesn’t
rehabilitate as expected
•
The pound is devalued 20%- 30% versus
USD,
1 pound = nearly 1,5 USD.
•
The financial deficit 42% GDP
•
Stuffy air between businessman and
consumer

CPI annual inflation – the Government’s target measure – was 3.0 per cent in February,
down from 3.5 per cent in January.

Annual inflation rates - 12 month percentage change

American Dollars to 1 GBP
( latest_ apr1: 1.52207; lowest_ mar26: 1.48301; highest_
nov18: 1.68151)


4 main economic objectives in any
countries
•
Price stability
•
Full employment
•
Economic growth
•
Low inflation rate

☺1. Fiscal policy
☺2. Monetary policy
☺3. Price & incomes policy
☺4. Learn how to live with
inflation

☺ 1.1 What is fiscal policy?
☺ 1.2. How to use the fiscal policy
in controlling inflation rate?
☺ 1.3. What is the results of using
it?

- Fiscal policy is the
use of government
expenditure and
taxation to manage
the economy
(
/wiki/Fiscal_policy )

A rise in government expenditure,
Or a fall in the burden of taxation
increase aggregate demand
Increase inflation rate


Control of inflation rate
Reduce the level of aggreate demand
1.Higher direct taxes
2.Lower GOVERNMENT SPENDING

General government
expenditure
General government
final consumption
Transfer payments
Government
spending

•
Author: Geoff Riley, Eton College,
September 2006

•
Author: Geoff Riley, Eton College,
September 2006

• Author: Geoff Riley, Eton College,
September 2006