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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
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
government efforts in
cotrolling inflation rate &
lessons for Vietnam
What is inflation rate?
CPI annual inflation – the Government’s target measure – was 3.0 per cent in February,
down from 3.5 per cent in January.
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
(http://en.wikipedia.org
/wiki/Fiscal_policy )
A rise in government expenditure,
Or a fall in the burden of taxation
Transfer payments
• Author: Geoff Riley, Eton College, September
2006
• Author: Geoff Riley, Eton College,
September 2006
• Author: Geoff Riley, Eton College, September 2006
• increase the rate of leakages from
the circular flow
• will reduce demand pull inflation at
the cost of slower growth and
unemployment
☺1. Fiscal policy
☺2. Monetary policy
☺3. Price & incomes policy
☺4. Learn how to live with
inflation
☺2.1. What is monetary policy?
maximizes
production
stabilizes the +
prices employment of the
country
http://en.wikipedia.org/wiki/Monetary_policy
MONETARY
• POLICY
> FISCAL POLICY
2.2. How to use the monetary policy in
controlling inflation rate?
CHANGES
the base
interest rate value of
to control the exchange
growth of rate
demand
http://tutor2u.net/economics/content/topics/infla
tion/controlling_inflation.htm
Reduce the aggregate demand
1 2 3
• In savings account or
in own home
Be careful when invest
• - Control spending
money
+ Shopping
+ Food
+ Production
• Manage wisely the
recurring monthly bills
1. Adjust the economic growth