Vous êtes sur la page 1sur 48

BRITISH ECONOMY

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?

• 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 = ((P0 – P-1)/ P-1) x 100%

• P0: 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
Annual inflation rates - 12 month percentage change

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

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 
Government
General government spending
final consumption 

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?

☺2.2. How to use the monetary policy


in controlling inflation rate?

☺2.3. What is the results of using it?


the regulation adopted
by the central bank

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

Discouraging Increasing reduce the


borrowing by growth of
the rate of
households +
saving broad
companies
money.
☺1. Fiscal policy
☺2. Monetary policy
☺3. Price & incomes policy
☺4. Learn how to live with inflation
2.Keep
1.Reduce price
prices stably

4. Shorten distance 3.Keep incomes


The rich & stably
The poor For people
strategies
4.1Be wise when holding cash

• In savings account or
in own home
Be careful when invest

• - Invest in “ stuff” rather


than money
• Invest for long-term
capital gains

• - Invest in things that


serve people for a long
time.
• - Consider buying bond
Live economically

• - Control spending
money
+ Shopping
+ Food
+ Production
• Manage wisely the
recurring monthly bills
1. Adjust the economic growth

-- Reduce growth; maintain reasonable growth rate.


+ Control investment activities in economic sectors.
+ Adjust the plan of investment projects, the less urgent
projects can move down to next years to reduce the growth
of the economy.
-- Check progress. of projects and the investment schemes.
+ complete the projects and works, especially the key
works.
• - Step up producing goods, increase productivity..
• + Pay attention to consumer goods.
• + Restrict the import of consumer goods to boost
domestic consumption.
• - Check the big capitalized business.
• Restrict the changing of business from commodity
production to services, especially in currency
trading.
2. Reduce the cost in producing.
-- Firms themselves need to
examine the inputs in accordance
with good quality and cheap price,
especially imported materials.

-- Apply the high technology;


improve management organization
in order to increase labor
productivity.
3. Make dynamic and effective policies of
monetary and finance
a. Rapidly reduce the cash in
circulation.
b. Government should start selling
public bonds for people and take the
cash back
c. Manage the expenditure budget closely.
THANK YOU FOR YOUR
ATTENTION !!!
Understanding questions
1. Inflation rate is a general rise in prices measured
against a standard level of purchasing power

2. The growth of UK’s economy really rehabilitates as


expected after inflation

3. Supplying of labour becomes reducing is one of the


reason that cause inflation rate.

4. The GDP refers to the rise in price which the


consumer has to pay

5. Monetery policy is a process to control inflation rate

Vous aimerez peut-être aussi