This report discussed the path of inflation in the united States of America. The first path of the report discussed the path of inflation. After that, the growth of the economy and the output gap of the USA are discussed in this report. Then, an Evaluation of unemployment in the USA is described in this research. There are different types of graphs and tables present in this report.
1.0 Introduction
This report discussed the path of inflation in the United States of America. This report defines inflation and describes how inflation can be controlled. This report described different types of inflation data for different years in the United States of America. This report discussed the historical inflation rates of the United States of America.
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2.0 The Path of Inflation
In this graph, average consumer price inflation in the United States is discussed (Lapavitsas, and Mendieta-Muñoz, 2018). In this graph, different types of inflation rates for different years are described.
3.0 Growth of economy and output gap
In this graph, the United state’s annual change in GDP and the five-years moving average of GDP are described here (Rondina, 2018). In this graph change in GDP rate over different years is explained. And also five years of GDP rate in the USA are explained.
4.0 Unemployment evolution
In this graph, the United States unemployment rates are discussed. In this graph, different changes in the unemployment rate over different years are described.
5.0 inflation explanation
Inflation is a quantitative measure of rates at which the goods and services rates increased for some time in a specific country. So, Inflation is a term of economy. This means an environment of rising goods and services raises in a specific economy. These goods and services are used in daily life. When the prices of the products and services increase in the country the power of the customer decreases in the same way (Nyoni, T., 2019). Like the goods and prices which consumers nowadays have double prices compared to 20 years ago? When the prices of the products and services increase the customer power decreases. By this, Inflation can affect the economy of the United States of America.
Some factors have driven the inflation path: Inflation of demand and pull, Inflation of Cost-push, Supply-side inflation, Hyperinflation, and Public spending. In the USA countries, rapid wage increases are the causes of inflation. The rise in the price of oil in 2008 is an example of cost-push inflation. The increased price of energy causes the transporting cost and production cost of goods to increase (Lucey, et al, 2017). these factors change the inflation in the country united state of America. This causes product prices in the united States of America to get high.
6.0 Conclusion
It is concluded that this report discussed the path of inflation in the United States of America. Inflation is a term of economy. This means an environment of rising goods and services raises in a specific economy. This report described different types of inflation data for different years in the United States of America.
Inflation will end in 2020 in the USA. The inflation ended because of the pandemic. Because of the pandemic, some prices of products in the USA which were depressed will start to reassert. The USA needs to focus on some methods for controlling Inflation. These are monetary policies, money supply controls, supply-side policies, and wage controls.
Reference list
- Nyoni, T., 2019. Understanding inflation dynamics in the United States of America (USA): A univariate approach.
- Rondina, F., 2018. Estimating unobservable inflation expectations in the New Keynesian Phillips Curve. Econometrics, 6(1), p.6.
- Lapavitsas, C. and Mendieta-Muñoz, I., 2018. Financialization at a watershed in the USA. Competition & Change, 22(5), pp.488-508.
- Lucey, B.M., Sharma, S.S. and Vigne, S.A., 2017. Gold and inflation (s)–A time-varying relationship. Economic Modelling, 67, pp.88-101.
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