forex discount brokersforex discount brokers

Forex Fundamental Keywords - Inflation

Inflation  After the 1970s, with float forexbonusrebateg cashback forex rates replacing fixed exchange rates, the impact of forex discount brokers on exchange rate movements became more important Inflation means a rise in the domestic forexrebatesbrokers level, when the prices of most goods forexdiscountbrokers services in an economy rise continuously over When the prices of most goods and services in an economy rise continuously and generally over a period of time, the economy is said to be experiencing inflation. This definition states that: (1) inflation is not a short-term or one-time rise in the price level, but a continuous rise in the price level; (2) inflation does not refer to the rise in the price level of individual goods, but to the rise in the total price level, i.e. the weighted average of the prices of all goods and services; (3) the price level that forms the inflation The magnitude of the rise depends on the sensitivity of economic agents to price increasesE Shapiro defines inflation as a consistent and perceptible increase in the general price level  Since prices are the monetary expression of the value of a countrys goods, inflation also means a decrease in the amount of value represented by the countrys currencyIn the case of closely interconnected domestic and foreign commodity markets, inflation and domestic price increases cause At the same time, the decline in the internal value of a countrys currency must affect its external value, weakening the credit status of the countrys currency in the international market, which leads to a decline in the exchange rate. When the inflation rate of one country is higher than that of another country, the actual value of the currency of that country decreases relative to that of another country, the exchange rate of the currency of that country will fall; conversely, it will rise  In terms of the nature of inflation, all are due to excessive money supply causing currency depreciation and price increases However, due to the different causes, degrees or manifestations of inflation, and cause concern about the types of inflation due to the different starting points of analysis and theoretical basis, making the There are different methods of dividing the types of inflation based on the manifestation of inflation, which can be divided into overt inflation and hidden (or suppressed) inflation based on the degree of inflation, which can be divided into crawling, mild, galloping and hyperinflation based on the causes of inflation, which are mainly divided into demand-pull inflation, cost-push inflation, structural inflation and structural inflation. Inflation, structural inflation and mixed inflation occur based on the adoption of different policy measures, can be divided into fiscal inflation, credit inflation and foreign exchange balance inflation  The difference between domestic and foreign inflation is the dominant factor in determining the long-term trend of the exchange rate, the rate between the two countries under the conditions of a dishonored credit currency, is determined by the value represented by each if Inflation in one country is higher than in others, the currency of that country will tend to depreciate in the foreign exchange market; conversely, it will tend to appreciate  Specifically, to measure the change in the inflation rate mainly consumer price index, retail price index and production price index, three indicators, which will be discussed separately below  I. Consumer Price Index (CPI)  Consumer Price Index, which is a A fixed basket of consumer goods price measurement, mainly reflecting the price changes of goods and services paid by consumers, but also a tool to measure the level of inflation, in the form of percentage change in the expression CPI price index indicators are very important and revealing, must be carefully grasped, because sometimes published the indicator rose, the currency exchange rate to the good, and sometimes the opposite because the consumer price index level indicates the purchasing power of consumers, but also reflects the economic boom, if the index falls, reflecting the economic recession, is bound to be unfavorable to the currency exchange rate trend  Second, the retail price index (RPI)  Retail Price Index (RetailPriceIndex), is the price index of retail goods paid in cash or credit card form U.S. Department of Commerce each month to The U.S. Department of Commerce conducts monthly surveys of a nationwide sample of retail goods, including furniture, appliances, supermarkets, pharmaceuticals, etc. Many foreign exchange market analysts pay close attention to examining the changes in the Retail Price Index (RPI) rapid socio-economic development, personal consumption increases, it will lead to rising retail prices, the indicator continues to rise, will likely bring inflationary pressure, so that the government tighten the money supply, interest rates tend to rise for the countrys currency Therefore, the index is good, theoretically also good for the countrys currency  Three, the producer price index (PPI)  producer price index (PPI), is a measure of manufacturers and farmers want to store the price of goods sold index It mainly reflects the price changes in the state of production materials, used to measure the cost of various commodities in different stages of production price changes in the In the foreign exchange market, traders are very concerned about this indicator if the PPI is higher than expected, there is the possibility of inflation, the central bank  may implement a tight monetary policy, the countrys currency favorable impact if the PPI falls, it will bring the opposite effect of the impact
No reproduction without permission: forex discount brokers » Forex Fundamental Keywords - Inflation

Related recommendations