Roubini Assignment 1

Roubini Assignment 1 - Roubini Assignment 1. Q 2. 1. The...

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Roubini Assignment 1. Q 2. 1. The inflation rate measured as the growth rate in the deflator for GDP (Chain- Weighted GDP Price Index) for 2009 Quarter III and IV – SAAR We believe inflation will most likely remain very low through Q III and Q 4. Continued depressed consumer demand and . We anticipate the GDP Implicit Price Deflator to be 1.9% for the Q III 2009 and IV for Q IV 2009. These rates are based on the assumption that there will not be significantly increased political turmoil in the middle east. In announcing its January 3 rd decision to lower the Fed Funds rate, the FOMC stated, “inflation pressures remain contained”. We agree based on the following evidence. 1. Core consumer price inflation was up 2.6% for the year 2000. While overall CPI inflation was up 3.5%. The competitive business environment will be facing a drop in consumer demand, which should act as a force against higher prices. 2.
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This document was uploaded on 10/27/2009.

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Roubini Assignment 1 - Roubini Assignment 1. Q 2. 1. The...

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