eco-journal31

eco-journal31 - inflation was attributed partially to...

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Producer Prices Plunge in October By THE ASSOCIATED PRESS Published: November 18, 2008 Duc Hoang – ECON210 Journal date: 11/15 The New York Times states that “Producer prices plunged a record amount in October as  energy prices fell by the largest amount in 22 years.” Energy prices, especially gas, experience  a great decline in this last quarter of the year. However, core inflation, which excludes energy  and food, was not as restrained, rising by a bigger-than-expected 0.4 percent. This rise in core 
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Unformatted text preview: inflation was attributed partially to specific factors and did not alter the view that plunging energy prices and a sharply slowing economy were combining to reduce inflation pressures. When inflation pressures falls, economists expect a respond from the government. Easy money policy is a considerable choice as cutting tax rate is aimed to increase the aggregate demand....
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