"HE CHAIRMAN OF THE COUNCIL OF ECONOM'C ADVISERS WASHINGTON
|
|
- Bridget Marsh
- 5 years ago
- Views:
Transcription
1 "HE CHAIRMAN OF THE COUNCIL OF ECONOM'C ADVISERS WASHINGTON March 14, 1978 MEMORANDUM FOR THE PRESIDENT FROM: Charlie Schultze G *- 0 SUBJECT: Backgrund n Inflatin Develpments f the past 4 r 5 mnths have led t sme wrsening f the utlk fr inflatin in 1978, as I indicated t yu rally abut a week ag. The time is grwing shrt fr actin t imprve the chances that the anti-inflatin prgram annunced in January will shw sme results this year. Yur ecnmic advisers are therefre preparing a list f steps that might be taken. A mem will cme t yu within 'the next several days n the wrsened utlk fr inflatin in 1978 and n ptins t implement the anti-inflatin prgram. This paper is designed t prvide yu with sme brad backgrund n the nature f the current inflatin prblem. What Starts a New Inflatin? The frces that initiate an increase in the rate f inflatin fall int tw brad categries: The classic prblem f inflatin arises frm excess aggregate demand. When unemplyment and unused plant capacity are large, fairly rapid increases in the demand fr gds and services (n the part f cnsumers, businessmen, and gvernments) result mainly in putting idle labr and capital resurces back t wrk. But nce the natin is prducing at its "ptential," further large increases in demand give rise t inflatinary pressures. Labr markets are tight, a n d 'the attempt by business firms t cntinue large-scale hiring leads t accelerated wage increases. Strains n industrial capacity add t csts, which can easily be passed n. Shrtages develp. With the demand fr gds and services utrunning prductive capacity, business firms find they can raise prices t increase their prfit margins, withut fear that cmpetitrs with capacity t spare will undercut them.
2 -2- A variety f supply shcks, such as fd shrtages r an OPEC il price bst, may als increase csts and prices and give rise t an acceleratin f inflatin. The impact f supply shcks n the inflatin rate will be greatest in perids f high emplyment, when it is easier fr business firms t pass n the higher csts and fr labr t raise wages in rder t keep up with the cst-fliving. But supply shcks will tend t push up prices even in perids f substantial ecnmic slack. The recent inflatinary perid has its distant rigins in the inflatinary means used t finance the Vietnam War. Frm 1965 thrugh 1969, the ecnmy was perating cntinuusly with real utput abve the natin's prductive ptential (see Chart 1). Unemplyment during this perid stayed belw 4 percent, and was as lw as 3-1/2 percent in late 1968 and early The result was a classic case f excess demand inflatin. Increases in wage rates and prices bth began t mve up in late 1965 and cntinued t rise ver the next three years (Table 1). By 1969, cnsumer prices were rising at arund 6 percent a year, cmpared with 2 percent in Average wage rates, which were increasing at arund 3-1/2 percent a year in 1965, were rising at a 6-1/2 percent rate by Table 1 Changes in Wage Rates and Prices December t December (Percent) Average Hurly Earnings Cnsumer Prices
3 -3- Chart 1 Actual and Ptential GNP Billins f 1972 Dllars (Rati Scale)
4 -4- Excess demand als was a cntributing factr t a renewed heating up f inflatin in The rate f inflatin had mderated substantially during the latter half f 1971 and 1972, when mandatry price and wage cntrls were in effect. In 1972, hwever, bth mnetary and fiscal plicies were highly expansive, and real utput grew strngly. By 1973, real GNP reached its ptential level (Chart 1) and the unemplyment rate was dwn t arund 4-3/4 percent. As the cntrls n wages and prices were relaxed during the curse f 1973, inflatinary pressures intensified. A larger part f the acceleratin f inflatin, hwever, stemmed frm supply shcks. The special factrs that influenced prices in thse tw years were f unprecedented severity fr a peace time perid. Retail fd prices rse mre than 30 percent in tw years, largely as a cnsequence f pr wrld-wide harvests f majr grain crps. The OPEC il price increase drve up energy prices paid by cnsumers 40 percent in tw years. An ecnmic bm in all industrial cuntries simultaneusly created majr scarcities f critical industrial materials. The fall f almst 15 percent in the value f the dllar in exchange markets frm mid-1971 t mid-1973 n a bilateral trade-weighted basis raised imprt prices substantially. The phasing ut and remval f wage and price cntrls in late 1973 and early 1974 led t an explsin f industrial cmmdity prices at the whlesale level. What Perpetuates Inflatin, Once Started? Remval f the initiating frces f inflatin des nt, ' unfrtunately, mean that inflatin cmes t an end. Once underway, an inflatinary prcess becmes deeply embedded in the structure f wage, cst, and price increases, and develps a mmentum f its wn. Unwinding frm a prlnged inflatin is extremely difficult. i
5 -5- If the rate f wage increases tapered ff quickly as unemplyment rse, and if business firms' pricing plicies reflected the state f prduct markets, inflatin culd be quickly brught under cntrl. A shrt perid f slw grwth, with mderate increases in unemplyment and idle capacity and a weakening f markets fr business sales, wuld rapidly halt inflatin. Unfrtunately, in mdern ecnmies, the behavir f prices, and especially wages, is nt very sensitive t mdest and shrt-lived perids f ecnmic slack. Once an inflatin has been underway fr awhile, wrkers and emplyers behave as if it will cntinue. Wages increase in respnse t past price increases and in the expectatin that future inflatin will make it pssible t pass n the higher wages int higher prices. The pattern is nly mdestly influenced by the existence f high unemplyment and excess capacity. It therefre is very difficult t use the traditinal tls f mnetary and fiscal plicy t bring inflatin t a halt nce it has begun in earnest. Recent experience in tw recessins illustrates the prblem. In 1969, bth mnetary and fiscal plicies mved sharply tward restraint in an effrt t break the back f the excess demand inflatin f The shift in mnetary plicy was particularly harsh. The annual grwth rate f drpped frm 8 percent in the secnd half f 1968 t less than 3 percent in the last half f Interest rates skyrcketed, and surces f husing finance dried up. The result was a recessin that began late in 1969 and cntinued thrughut Unemplyment rse frm 3-1/2 percent t 6 percent. Eliminatin f the excess demand, hwever, had n effect n the rate f inflatin. The rise in the CPI did slw temprarily, due t a decline in mrtgage interest rates, but the underlying frces pushing up csts and prices were nt affected. Wage rates cntinued t rise as fast in 1970 as they had in 1969 (Table 1). The failure f wage and price increases t mderate during 1970 ccasined widespread surprise and cmmentary. The Nixn Administratin, yu may remember, advcat-ed a plicy f gradualism in dealing with inflatin in the expectatin that prices and wages wuld eventually respnd t high unemplyment and excess capacity. In the summer f 1971, this expectatin was abandned, and wage and price cntrls were impsed.
6 - 6 - Experience since 1974 has been similar. During the first half f 1975, the rate f inflatin did mderate substantially frm the hectic pace f the previus tw years. By arund mid-year 1975, price increases were dwn t the 6 t 6-1/2 percent range. The recessin f was much mre severe than the recessin f 1970, and it did have sme tempering influence n wage and price behavir. But the mderatin f inflatin in early 1975 stemmed mainly frm the terminatin f the special factrs pushing up prices and wages in The late 1973 OPEC il price increase had largely wrked its way thrugh the ecnmic system; fd supplies imprved; the wrldwide cmmdity bm ended; and catch-up increases in prices and wages after the remval f cntrls came t an end. Since mid-1975, the ecnmy has been perating with a substantial degree f slack. Excess capacity in manufacturing has been widespread the rate f capacity utilizatin has yet t rise abve 83 percent. And the unemplyment rate has nly recently declined t belw 6-1/2 percent. But, apart frm erratic mvements in fuel and fd prices, the inflatin rate has stubbrnly persisted at a 6 t 6-1 / 2 percent rate. Until very recently, there has been little r n evidence that inflatinary pressures were accelerating, but neither has there been evidence f a slwing f wage and price increases. Since the middle f 1975, ttal cmpensatin (wages plus fringes) per hur wrked in the nnfarm business sectr has been rising at an annual rate f abut 8-1/2 percent (Table 2). The lng-term trend f prductivity gains is nw arund 2 percent. The lng-term trend f unit labr csts since mid-1975 has thus been rising at abut a 6-1/2 percent rate, and this has determined the underlying trend f cnsumer prices. The cntinuatin f inflatin in the range f 6 t 6-1/2 percent since mid-1975, it shuld be nted, is nt due t the size f the Federal deficit. And it is nt due t excessive increases in supplies f mney and credit. Mnetary and fiscal plicies dq have an imprtant bearing n prices, but that effect is indirect that is, they affected prices by changing the balance between aggregate demand and supply. If mnetary and fiscal plicies since 1975 had been less expansive, aggregate demand wuld have
7 -7- Table 2 Csts and Prices Annual Rate f Change (Percent) Cmpensatin per hur private nnfarm sectr Trend f unit labr csts I/ Cnsumer prices, excluding fd -and fuel nd half st half nd half st half nd half Mid-1975 thrugh year-end / Based n 2 percent trend f prductivity. grwn mre slwly. Perhaps sme mdest decline in the inflatin rate wuld have ccurred had unemplyment been kept at a 7 r 7-1/2 percent rate. The principal result, hwever, wuld have been t cnstrain the grwth f utput and emplyment rather than t reduce the rate f inflatin. Inflatin has cntinued at arund a 6 t 6-1/2 percent rate nt because aggregate demand has grwn t rapidly, but because the mmentum f inflatin is s strng. Why is the Mmentum Strng? Many years ag, price and wage increases culd be cunted n t mderate significantly in respnse t slack in labr and prduct markets. That is n lnger the case. Prices and wages are relatively inflexible in a dwnward directin, s that ecnmic slack n lnger leads t a significant mderatin f inflatin. The result is that each new but f inflatin tends t set a higher flr under the average rate f rise in wages and prices. Each new rund f inflatin starts frm a higher base, and the rate f inflatin tends t drift upward ver lng perids f time (Chart 2).
8 I I I I I I 1 I I 1 I L I
9 - 9 - The factrs that lead t dwnward inflexibility f wages and prices are many and varied. Fr example: Price cmpetitin is limited in many sectrs f the ecnmy. Cmpetitin tends t fcus n ther strategies than pricing, such as advertising and variatins in services. Wage rate settlements in heavily uninized industries are ntriusly unrespnsive t changes in the rate f unemplyment. In 1977, fr example, the steel industry was in great difficulty and imprts were grwing rapidly; but the cntract signed with the steel wrkers gave wage and fringe benefit gains averaging abut 9-1 / 2 percent a year fr three years, even thugh prductivity has been rising nly abut 1-1/4 percent per year in the industry. Unin wage cntracts are typically signed fr 3 -year perids and the majrity cntain frmal escalatr clauses. The nging rate f wage change thus depends heavily n prir cnditins in labr markets and n the current rate f inflatin, rather than n the balance between demand and supply fr labr. Mrever, the size f cntracts signed by ne majr unin ften tends t influence cntracts signed by thers. One unin leader can't be seen as "weaker" than anther. Many firms in nnuninized industries pursue lng-range wage plicies designed t maintain a stable labr frce. Hence, they d nt take advantage f a temprary surplus f jb applicants t reduce wage increases significantly. There is sme evidence that the unrespnsiveness f wages and prices t ecnmic slack may have becme wrse during the pstwar perid. Table 3 shws wage and price develpments during pstwar business cycles. Deceleratin f wages and prices particularly f wages has been less and less evident in each succeeding ecnmic cntractin. The table exaggerates the prblem, since there were strng utside frces pushing up prices and wages prir t the recessin and again during the recent recessin.
10 Table 3 Average hurly earnings index, manufacturing!' Cnsumer price index Unemplyment rate, v ^ a ^ v H S salary wrkers in Cycle At cyclical peak 2 quarters after recessin trugh Change At cyclical peak 2 quarters after recessin trugh Change At cyclical peak 2 quarters after recessin trugh Change Percent change frm 4 quarters earlier 4-quarter average / Adjusted fr vertime and interindustry shifts. Surce: Department f Labr, Bureau f Labr Statistics. i M O I
11 -11- But sme reductin in the degree f dwnward flexibility f wages and prices particularly wages evidently has ccurred. The reasns fr this reduced dwnward flexibility f wages and prices are nt clear, but several factrs may be invlved. Frmal escalatr clauses in unin wage cntracts have becme much mre widespread. Expectatins f cntinued inflatin have als becme mre widespread. This may have stiffened the resistance f wrkers t accept smaller wage increases, even during perids f high unemplyment, while weakening the reluctance f business firms t negtiate cntracts that will require price increases. Better prtectin against incme lsses during recessins because f mre liberal unemplyment insurance benefits and ther incme-maintenance prgrams may have blunted the effects f high unemplyment n wage rates. Unemplyed wrkers, with better incme prtectin, are nt s prne t accept wrk paying less than they earned in their last jb. Emplyment in gvernment, nnprfit establishments, and regulated industries (utilities, cmmunicatins, and cmmercial transprtatin) has grwn as a prprtin f ttal emplyment. Wage rate determinatin in thse sectrs is affected relatively little by the verall rate f unemp1 yment. Frm time t time, prpsals have been set frth t deal with the prblem f inflatin by reducing the surces f wage and price inflexibility. Such prpsals typically invlve massive change in the structure f ecnmic institutins breaking up labr unins, repealing the Davis-Bacn Act, ablishing the minimum wage law, breaking up large firms, and s n. Whether such steps wuld actually succeed in reducing wage and price inflexibility is a cntrversial issue. What is nt cntrversial is the fact that radical steps in this directin are far beynd the bundaries f plitical
12 -12- feasibility. Gvernment actins t deal with inflatin must accept the existing degree f wage and price inflexibility as a difficult fact f life. Lng-Range Prspects fr Inflatin Unless we can find ways t unwind frm the 6 t 6-1 / 2 percent inflatin that is the legacy f the past, the utlk fr inflatin ver the lnger run is nt gd. Gvernment actins (payrll taxes, an energy prgram, steps t achieve envirnmental and safety bjectives) are adding t csts, and will cntinue t d s. With a majr effrt we can mderate sme f these effects, but cst-raising actins will undubtedly cntinue. Supply shcks that we cannt nw fresee are much mre likely t increase csts and prices than t reduce them. As we regain high levels f emplyment and prductin, the risks will increase that tightening labr and prduct markets will result in an acceleratin f wage and price increases. In recent years, nnunin wages have grwn substantially less than unin wages; as unemplyment is reduced, sme catch-up can be expected. Hw much rm we have t reduce unemplyment and excess capacity further befre wages and prices begin t respnd t a tightening f markets is particularly difficult t assess. The verall capacity utilizatin rate in manufacturing is still relatively lw abut 83 percent. If ur ecnmic frecast fr 1978 and 1979 is realized, this rate will rise t a range f 87 t 8 8 percent by late Capacity cnstraints are nt likely t becme a serius surce f price pressures during this perid, hwever, in part because f the availability f ample capacity abrad. There will be a lnger-range capacity prblem if business investment des nt rise strngly ver the next few years, but that prblem is likely t be encuntered in 1980 and beynd.
13 -13- A s we mve tward lwer rates f unemplyment, increasing labr market tightness will, at sme pint r ther, lead t an acceleratin in the rate f advance in wages. We cannt be sure at what pint that will happen. A decade ag, wages did nt begin mving up until the unemplyment rate fell t arund 4 percent r s. But changes in the demgraphic characteristics f the labr frce in particular, the increased prprtin f the wrk frce cnsisting f teenagers and ther factrs have raised cnsiderably the rate f unemplyment cnsistent with a stable rate f wage increase. The availability f mre generus unemplyment insurance, and such incme supprts as fd stamps, may have raised the level f unemplyment at which wage increases begin t accelerate. (As explained earlier, wrkers can be mre chsy abut the jbs and wages they will accept.) In 1973, wage rates began t accelerate when the unemplyment rate was arund 5 percent. Extensive studies dne by CEA staff and by academic ecnmists yield a wide range f estimates f what the critical unemplyment rate might be at the present time. It is prbably in the general neighbrhd f 5-1 / 2 percent, but we cannt be sure where the critical pint is. Effective and well-targeted prgrams t reduce structural unemplyment especially amng minrities can reduce the verall unemplyment level at which inflatin begins t accelerate. T the extent that such plicies can direct hiring by business and gvernment tward thse grups wh suffer frm very high unemplyment rates rather than tward grups already in shrt supply upward wage and price pressures wuld be eased. The private emplyment initiative nw being develped is ur attempt t d this. But we cannt be sure hw effective it will be. There is sme evidence tentative and as yet incnclusive that a small acceleratin in wage rates is already underway. A year ag, increases in average hurly earnings (excluding fringes) were running at an annual rate f arund 7 percent. Nw the rate f increase appears t be abut 7-1 / 2 percent. Frthcming Mem Shrtly yu will be receiving a mem frm yur ecnmic advisers which revises the inflatin utlk fr 1978 /
14 suggests sme specific steps that might be taken by the Federal Gvernment, bth t deal directly with the inflatin prblem and t give greater credibility t ur vluntary prgram fr decelerating inflatin in the private sectr.
Economics Chapter 12: ECONOMIC CHANGES AND CYCLES
Ecnmics Chapter 12: ECONOMIC CHANGES AND CYCLES SECTION 1 Inflatin and Deflatin What Is Inflatin? Inflatin is an in the level, r the average level f prices. Hw D We Measure Inflatin? If the price level
More informationNominal GDP Value of gross domestic product in a particular year measured in that year's prices - unadjusted GDP (nominal)
WEEK 5 Grss dmestic prduct Single number which culd summaries the utput f the ecnmy Ttal mney value f all final gds and services prduced within a natin's brder during a given perid f time (usually 3 mnths
More informationEconomic Activity Chapter 2
Ecnmic Activity Chapter 2 Sectin 2.1 Measuring Ecnmic Activity Ecnmic Grwth: steady increase f gds and services Grss Dmestic Prduct (GDP): Ttal value f all final gds and services prduced in the cuntry
More informationLecture # Cost-Benefit Analysis
Lecture # 23 -- Cst-Benefit Analysis I. Intrductin t Cst-Benefit Analysis (CBA) Public fficials ften use cst-benefit analysis t decide whether a prject is wrthwhile. Cst-benefit analysis can be used t
More informationLecture # 22 Cost-Benefit Analysis
Lecture # 22 Cst-Benefit Analysis I. Intrductin t Cst-Benefit Analysis (CBA) Public fficials ften use cst-benefit analysis t decide whether a prject is wrthwhile. Cst-benefit analysis can be used t guide
More informationLecture # 5 Applications of Supply and Demand
Lecture # 5 Applicatins f Supply and Demand I. Price Cntrls We began class discussing cases where the gvernment sets a price ceiling a maximum price fr a gd. An example is rent cntrl The figure belw shws
More informationExtract from Economic and Structural Report
Extract frm Ecnmic and Structural Reprt Swedbank s analysis f the internatinal and Swedish ecnmies 14 August 2008 A stressed glbal ecnmy is slwing Swedish grwth Due t the prtracted financial crisis, high
More informationEconomics - Chapter 9 Labor, Employment and Wages
Sectin 1: What Determines Wages? Ecnmics - Chapter 9 Labr, Emplyment and Wages Supply and Demand in the Labr Market Supply and demand can be used t analyze hw we determine the f a resurce (factr f prductin),
More informationUnderstanding Keynesian Economics: Selected Key Points of Ch. 9
Page1 Understanding Keynesian Ecnmics: Selected Key Pints f Ch. 9 NOTE: In this lecture nte I have clarified the parts f Ch. 9, that I felt, are nt explained very clearly. This DOES NOT mean that the remaining
More informationTHE WHITE HOUSE Office of the Press Secretary
THE WHITE HOUSE Office f the Press Secretary FOR IMMEDIATE RELEASE March 16, 2009 President Obama and Secretary Geithner Annunce Plans t Unlck Credit fr Small Businesses Emphasizes Recvery Effrts Already
More informationEdexcel Economics (A) A-level Theme 2: The UK Economy - Performance and Policies 2.4 National Income
Edexcel Ecnmics (A) A-level Theme 2: The UK Ecnmy - Perfrmance and Plicies 2.4 Natinal Incme Summary Ntes 2.4.1 Natinal incme The circular flw f incme Firms and husehlds interact and exchange resurces
More informationInvestor Profile Questionnaire
Investr Prfile Questinnaire Investment Objectives 1. An investment bjective can vary, frm a cnservative strategy in which the fcus is n capital preservatin t an aggressive grwth strategy in which the fcus
More informationContracted Out: Findings from a National Voter Survey
Cntracted Out: Findings frm a Natinal Vter Survey Survey amng vters cnducted nline frm August 17 t 23, 2016 Cnducted n Behalf f: Natinal Emplyment Law Prject By Hart Research Assciates Octber 19, 2016
More informationEdexcel (B) Economics A-level
Edexcel (B) Ecnmics A-level Theme 3: The Glbal Ecnmy 3.1 Glbalisatin 3.1.4 Trade plicy and trade negtiatins Ntes Prtectinism: Prtectinism is the act f guarding a cuntry s industries frm freign cmpetitin,
More informationEdexcel Economics (A) A-level Theme 2: The UK Economy - Performance and Policies 2.6 Macroeconomic Objectives and Policies
Edexcel Ecnmics (A) A-level Theme 2: The UK Ecnmy - Perfrmance and Plicies 2.6 Macrecnmic Objectives and Plicies Summary Ntes 2.6.1 Pssible macrecnmic bjectives The gvernment has fur main macrecnmic bjectives.
More informationLecture # Applications of Utility Maximization/Production
Lecture # 11 -- Applicatins f Utility Maximizatin/Prductin I. Examples: Incme and Substitutin Effects As an example f substitutin and incme effects, we lked at research n child labr and rice farms in Vietnam,
More informationEC161 - Group Assignment with Individual Components
2011 2012 EC161 - Grup Assignment with Individual Cmpnents Egan, Jasn (11817875) Questin B Firini, Mayra Maia (11841746) Questin C Tzilalis, Antnis (11822308) Questin A Business Management with Finance
More informationLECTURE NOTES. Chapter 2: Measurement of Macroeconomic Variables. 1. The National Income Accounts
LECTURE NOTES Chapter 2: Measurement f Macrecnmic Variables 1. The Natinal Incme Accunts Natinal accunts: (1) prductin side and (2) incme side Incme side measures the prceeds f the prductin side. Prductin
More informationBUSINESS FIRMS Why Do Business Firms Exist?
BUSINESS FIRMS Why D Business Firms Exist? Ecnmics Chapter 7: Business Operatins A business firm is an rganizatin that uses resurces t prduce gds and services that are sld t cnsumers, ther firms, r the
More informationChapter 42: Aggregate supply (2.2)
Chapter 42: Aggregate supply (2.2) Key cncepts Aggregate supply (AS) and utput The upward slping AS curve shrt run aggregate supply () Shifts in The meaning f aggregate supply Describe the term aggregate
More informationInflation: March 2014
April 15, 2014 Ecnmics Reversing its dwnward trend, the annual rate f inflatin as measured by the Whlesale Price Index (WPI) rse t 5.7% fr the mnth f March 2014. This figure is significantly higher than
More informationAn Analysis of the Business Roundtable s Survey on Over-the-Counter Derivatives
An Analysis f the Business Rundtable s Survey n Over-the-Cunter Derivatives Prepared Fr: Business Rundtable Prepared Fr: Keybridge Research April 14, 2010 K E Y B R I D G E R E S E A R C H LLC 3050 K S
More informationSummary of Outstanding Issues Related to Collective Bargaining Between the Government of the Northwest Territories and Union of Northern Workers
Summary f Outstanding Issues Related t Cllective Bargaining Between the Gvernment f the Nrthwest Territries and Unin f Nrthern Wrkers The GNWT is cmmitted t reaching a cllective agreement that meets the
More informationOBSERVATION. TD Economics THE PRODIGAL SURPLUS IS RETURNED SOME HIGHLIGHTS FROM THE NOVEMBER 2014 FEDERAL FISCAL UPDATE
OBSERVATION TD Ecnmics THE PRODIGAL SURPLUS IS RETURNED SOME HIGHLIGHTS FROM THE NOVEMBER 2014 FEDERAL FISCAL UPDATE Highlights With an electin year lming, the release f the federal fiscal update has prvided
More informationInvestor s Guide to Exchange Traded Funds.
Investr s Guide t Exchange Traded Funds. Investment Strategies Risk Management 1.877.622.5552 www.firsttrust.ca ETFs Exchange-Traded Funds (ETFs) prvide an efficient and simple way t invest in wrldwide
More informationLesson Unit content* Activities Links to other units Resource checklist
Unit 2: Finance fr Business Scheme f wrk Guided learning hurs (GLH): 30 Number f lessns: 15! Duratin f lessns: 2 hurs Lessn Unit cntent* Activities Links t ther units Resurce checklist Learning aim A:
More informationTHE COMMUNITY NEEDS ASSESSMENT REQUIREMENT FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
THE COMMUNITY NEEDS ASSESSMENT REQUIREMENT FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM (Extracted, with permissin, frm The Cmmunity Needs Assessment Prcess, Mntana Department f Cmmerce, July
More informationRolling out Universal Credit
This statement is nt fr publicatin r bradcast befre 00:01 n FRIDAY 15 June 2018 HC 1123 2017-19 Reprts by the Cmptrller and Auditr General Rlling ut Universal Credit Universal Credit has taken significantly
More informationSuriname today and its small and medium enterprises. February 2013
Suriname tday and its small and medium enterprises February 2013 Grwth and inflatin Slid grwth despite glbal financial turmil and limited glbal demand. Grwth supprted by buyant mining sectr. Inflatin pressures
More informationWhat Does Specialty Own Occupation Really Mean?
What Des Specialty Own Occupatin Really Mean? Plicy definitins are cnfusing, nt nly t dentists but als t many f the insurance prfessinals wh sell them. Belw we will try t prvide an understandable explanatin
More informationSuperannuation contributions tax ruling Tax deductibility of superannuation contributions
July 2011 Technical Bulletin Superannuatin cntributins tax ruling Tax deductibility f superannuatin cntributins Wh is impacted? As a result f tax ruling 2010/1 yur clients can n lnger claim a tax deductin
More information2. Expenditure Method GDP=Expenditure Y=C+I+G+NX
Lecture 1: Measuring Macrecnmic Perfrmance Evaluating Macrecnmic Perfrmance 1. Rising Living Standards: Tendency fr the level f utput (quantity and quality f gds and services) t increase ver time. a. Output
More informationThe Euro. Slides are largely based on Baldwin-Wyplosz s ones (textbook) European Economic Integration. European Economic Integration
Class verview 1. Maastricht 2. ECB 3. Instruments 4. First years The Eur Slides are largely based n Baldwin-Wyplsz s nes (textbk) The Maastricht Treaty Mnetary unin is the utcme f a deal between Germany
More informationPLANNING FOR QUALITY CARE AND INDEPENDENCE. Why you need to plan for long-term care assistance, and what funding options are available.
PLANNING FOR QUALITY CARE AND INDEPENDENCE Why yu need t plan fr lng-term care assistance, and what funding ptins are available. PLANNING FOR QUALITY CARE AND INDEPENDENCE THE VALUE OF PLANNING AHEAD
More informationLecture # Cost-Benefit Analysis
Lecture # 24 -- Cst-Benefit Analysis I. Steps t Cst-Benefit Analysis (cntinued) 4. Discunting The csts and benefits will ccur at different times. T cmpare them fairly, it is imprtant t discunt csts and
More informationLecture # 6 -- Elasticity/Taxes
Lecture # 6 -- Elasticity/Taxes I. Elasticity Elasticity tells us the percentage change that will ccur in ne variable due t a ne percent change in anther variable. It is a unit-free measure f cmparisn.
More informationHRA s and HSA s GALLAGHER BENEFIT SERVICES, INC. ARTHUR J. GALLAGHER & CO. AJG.COM G-FORMS\GBS Forms\Template - Word - 1 margins.
HRA s and HSA s 1. HRA/HSA What Are They? 2. Can I have ther cverage and still cntribute? 3. Can I cntribute t my FSA if s, full r limited? 4. Can I have bth an HRA and an 5. Can I have bth an HSA and
More informationOregon State Lottery WRITTEN TESTIMONY. Date: March 25, 2013
Oregn State Lttery WRITTEN TESTIMONY Date: March 25, 2013 T: Frm: Re: The Hnrable Carlyn Tmei, Chair The Hnrable David Gmberg, Vice Chair The Hnrable Andy Olsn, Vice Chair Huse Cmmittee n Human Services
More informationRESEARCH FACT SHEET Tax Cuts and Jobs Act
RESEARCH FACT SHEET 2017 Tax Cuts and Jbs Act Abstract This analysis cntains statistical and research infrmatin prepared by the Research and Ecnmic Department at the CALIFORNIA ASSOCIATION OF REALTORS
More informationSocial Security Administration
Scial Security Administratin 1329 S. Divisin St. Traverse City MI 49684 September 25, 2018 Clumns & Features Mnthly Infrmatin Package Octber 2018 WORKERS' COMPENSATION AND CERTAIN DISABILITY PAYMENTS MAY
More informationComplaint Outdoor & Sports Company Ltd. Vietnam
Cmplaint Outdr & Sprts Cmpany Ltd. Vietnam Status: Clsed FWF is respnsible fr setting up a cmplaints prcedure in prductin cuntries where FWF is active. The cmplaints prcedure allws third parties t make
More informationOFFICE OF THE PRESIDENT HUMAN RESOURCES POLICY MANUAL SECTION 11 JULY 28, 2006 REDUCTION IN FORCE GUIDELINES
Purpse A reductin in frce is an actin t reduce the number f emplyees in a wrk unit r university-wide. A reductin in frce may becme necessary due t reduced funding, rerganizatin, change in wrklad, r ablishment
More informationChurch Crookham Parish Council Treasury and Investment Policy
Church Crkham Parish Cuncil Treasury and Investment Plicy 1. Plicy Backgrund 1.1 Church Crkham Parish Cuncil s Treasury and Investment plicy and its assciated strategy are cnducted in accrdance with: i)
More informationWhat Weight Watchers needs from the company: We need a Contact at your company to serve as a liaison with Weight Watchers. o
Thank yu fr yur interest in Weight Watchers and ur At Wrk Prgram! Weight Watchers is pleased t bring this cnvenient n-site meeting pprtunity t yur cmpany. The At Wrk Prgram is the same prgram that is delivered
More informationAcademic and Administrative and Other Related Staff Annual Review
Academic and Administrative and Other Related Staff Annual Review Intrductin Heads f Cllege/Budget Centre (r nminated representative) have the pprtunity t cnsider and t make the fllwing recmmendatins fr
More informationLECTURE NOTES. Chapter 6: The Keynesian System (II): Money, Interest, and Income. 1. Money in the Keynesian System
LECTURE NOTES Chapter 6: The Keynesian System (II): Mney, Interest, and Incme 1. Mney in the Keynesian System Interest rates and aggregate demand AD cmpnents affected Investment Durable gds Gvernment spending
More informationClient Advisory. Pension Changes Proposed: Federal Funding and Investment Rules. Proposed Funding Rules. Summary
Client Advisry Pensin Changes Prpsed: Federal Funding and Investment Rules May 7, 2010 Summary On May 3, 2010, the Federal Minister f Finance (Finance) released Regulatins Amending Certain Regulatins Made
More informationAP US Government - Chapter 18
AP US Gv Chapter 18 AP US Gvernment - Chapter 18 Types f Plicy Dmestic Plicy A plicy that invlves chice-taking regarding issues and activity within a natin s brders Scial plicy, envirnmental plicy, healthcare,
More informationHousehold Debt as % Disposable Income Excluding Mortgages Canada 113% 42% British Columbia (highest)
The Ecnmy RRSP Editin February 2003 The Canadian ecnmy cntinued its strng perfrmance in 2002: preliminary numbers shw a 3.4% year-n-year increase in GDP, the best amng the G-7 cuntries. Emplyment grwth
More informationIn Force Fixed Annuity Block Reinsurance
In Frce Fixed Annuity Blck Reinsurance A Strategy t Imprve Return n Capital Many insurers are experiencing lw r negative returns n in-frce fixed annuity blcks f business. In mst cases this is driven by
More informationForth Quarter Results 2016 February 24, 2017
Frth Quarter Results 2016 February 24, 2017 4Q16 Results February 24, 2017 Fd segment revenue reaches R$45 billin in 2016, up 11.7%, accelerating t 12.5% in 4Q16 4Q16: Net sales: R$11.7 billin EBITDA (1)
More informationAn Analysis of the Coalition for Derivatives End- Users Survey on Over-the-Counter Derivatives
An Analysis f the Calitin fr Derivatives End- Users Survey n Over-the-Cunter Derivatives Prepared Fr: Calitin fr Derivatives End-Users Prepared By: Keybridge Research February 11, 2011 K E Y B R I D G
More informationCONNECTICUT CARPENTERS HEALTH FUND COBRA CONTINUATION COVERAGE ELECTION NOTICE
CONNECTICUT CARPENTERS HEALTH FUND COBRA CONTINUATION COVERAGE ELECTION NOTICE DATE Dear : This ntice cntains imprtant infrmatin abut yur right t cntinue yur health care cverage in the Cnnecticut Carpenters
More informationInterim Economic Assessment
Interim Ecnmic Assessment September Mderate glbal grwth is set t cntinue, but weak demand in the eur area remains a cncern The glbal ecnmy is cntinuing t expand at a mderate and uneven pace. The tepid
More informationTOPIC 12: PART 1 WAYS OF GATHERING AUDIT EVIDENCE
TOPIC 12: PART 1 WAYS OF GATHERING AUDIT EVIDENCE ISA 500 is the relevant auditing standard fr audit evidence. 7 basic ways fr the auditr t gather audit evidence thrughut the audit prcess: 1. Observatin
More informationFlexible Working Policy
Our HR Plicies Flexible Wrking Plicy Aim f the plicy The Kelda Grup is cmmitted t prmting flexibility in the wrkplace and believes that this flexibility can increase mtivatin, prmte wrk-life balance, wellbeing
More informationNinth UNCTAD Debt Management Conference
Ninth UNCTAD Debt Management Cnference Geneva, 11-13 Nvember 2013 The Debt Sustainability: After HIPC Initiative and the Glbal Crisis by Mr. Ellias Ngalande Executive Directr Macrecnmic and Financial Management
More informationEOFY tax strategies for small businesses
As we apprach the end f the financial year (EOFY), there are a number f smart strategies yu culd cnsider t help yu streamline yur finances and legitimately save n yur tax bill. Insurance premiums Sme insurance
More informationIt is a pleasure for me to present business views on such an essential issue.
SPEAKING NOTES 6 th Nvember 2013 6 TH NOVEMBER 2013 9H30 JUSTUS LIPSIUS BUILDING INTERVENTION BY MARKUS J. BEYRER, DIRECTOR GENERAL OF BUSINESSEUROPE Intrductry remarks: the imprtance f CSR fr grwth It
More informationMajor economic developments and outlooks
1 Majr ecnmic develpments and utlks 1) Thailand s ecnmic grwth was firmer than expected, mainly frm strength in dmestic demand especially private investment ) Exprts shw signs f bttming ut and are pised
More informationSummary Prospectus July 31, 2018
AlphaMark Actively Managed Small Cap ETF TRADING SYMBOL: SMCP LISTED ON NASDAQ Summary Prspectus July 31, 2018 www.alphamarkadvisrs.cm Befre yu invest, yu may want t review the AlphaMark Actively Managed
More informationADM 3318 International Business December 12, Possible Final Exam Questions and Answers
Questin #1: What are the drivers f glbalizatin? Glbalizatin: The shift tward a mre integrated and interdependent wrld ecnmy. Drivers f Glbalizatin: - Declining Trade and Investment Barriers: Many barriers
More informationStartup for Fund Accounting
Startup fr Fund Accunting Setup........2 Preferences...2 Accunting Funds...2 Chart f Accunts....3 Accunts Payable...5 Credit Card Payable...5 Accunts Receivable...5 Beginning Balances...6 *** Since tax
More informationVolume III Number 18 May 23, Japanese Monetary Policy. by Allan H. Meitzer
The Fxhall Review Lawrence Kudlw & Assciates, Inc. 600 New Hampshire Avenue, N.W. The Watergate, Suite 715 Washingtn, D.C. 20037 (202) 944-2160 imi A subsidiary f Rdman & Renahaw Capital Grut), Inc. 120
More informationNo Signals of Removing "Patient" Key takeaways from the January 28th FOMC meeting minutes 1 :
Surprisingly Dvish Minutes The January 28 th FOMC meeting minutes revealed a decisively mre Dvish sunding FOMC than many market participants had expected. Giving n signal the Cmmittee is ready t back away
More informationClient Advisory. New Rules for Ontario Pension Plan Asset Transfers Take Effect on January 1, Background
Client Advisry New Rules fr Ontari Pensin Plan Asset Transfers Take Effect n January 1, 2014 December 18, 2013 Summary Spnsrs f Ontari registered pensin plans will sn be able t take advantage f lnganticipated
More informationAn Educational Guide for Individuals. Radius Choice SM. MassMutual s Premier Individual Disability Income Insurance Protection. Insurance Strategies
An Educatinal Guide fr Individuals Radius Chice SM MassMutual s Premier Individual Disability Incme Insurance Prtectin Insurance Strategies HELP MAKE YOUR FINANCIAL FUTURE MORE SECURE Radius Chice is disability
More informationDetailed Summary of Project Justification Criteria Changes in the Final New Starts / Small Starts Rule
Detailed Summary f Prject Justificatin Criteria Changes in the Final Starts / Small Starts Rule On December 27, 2012, the Federal Transit Administratin published a final rule and prpsed plicy guidance
More informationMIFID Policy Client classification
MIFID Plicy Client classificatin Page 1 f 8 Cntents 1. Intrductin... 3 2. Purpse... 3 3. Client Classificatin... 5 a) Eligible cunterparties... 5 b) Prfessinal clients... 6 c) Retail clients... 8 d) Classificatin
More informationChapter 5: Measuring a Nation s Income
Chapter 5: Measuring a Natin s Incme Grss Dmestic Prduct GDP Is the market value f all final gds and services prduced It is strictly a measure f PRODUCTION (And incme earned) within a cuntry In a given
More informationLECTURE NOTES. Chapter 14: Exchange Rates and International Monetary System. 1. The U.S. Balance of Payments Accounts
LECTURE NOTES Chapter 14: Exchange Rates and Internatinal Mnetary System 1. The U.S. Balance f Payments Accunts Balance f payment accunts: recrds ecnmic transactins between the U.S. and freign residents
More informationA Civil Society Agenda for the OECD
A Civil Sciety Agenda fr the OECD Fr the CFA-DAC and Glbal Frum n Develpment meetings, January 2010 A Civil Sciety Agenda fr the OECD Page 2 Backgrund In 2010, the wrld s gvernments will review prgress
More informationLMA GUIDANCE: GDPR CORE USES INFORMATION NOTICE
LMA GUIDANCE: GDPR CORE USES INFORMATION NOTICE FEBRUARY 2018 NOTE: This guidance and the Lndn Market Cre Uses Infrmatin Ntice will be updated when the UK Data Prtectin Bill is enacted the Bill currently
More information3. What do you need to do to take holiday or carry forward holiday prevented by sickness absence? 6. Appendix 1 Annual Leave Entitlement 7
Hliday Plicy 1 Cntents HOLIDAY POLICY 1. What des this plicy cver? 3 2. When des this plicy apply? 3 2.1 What annual hliday are yu entitled t? 3 2.2 Hw is annual leave apprved? 3 2.3 What Public Hlidays
More informationLecture # 9 -- Consumer Behavior: Maximizing Utility
Lecture # 9 -- Cnsumer Behavir: Maximizing Utility I. Marginal Rate f Substitutin Marginal Rate f Substitutin (MRS) is the rate at which a persn will give up gd y in rder t get mre f gd x and still have
More informationBest Execution & Client Order Execution Policy. October P age 1 6. BE31/10/17 v1
Best Executin & Client Order Executin Plicy Octber 2017 BE31/10/17 v1 P age 1 6 Cntents 1. Backgrund... 3 2. Order placement... 3 3. Order executin factrs... 3 4. Order executin plicy... 3 5. Order executin
More informationSmall Business Employees Significantly Trail Their Large Company Counterparts in Retirement Savings and Preparedness
Transamerica Retirement Services 1150 Suth Olive Street Ls Angeles, CA 90015-2211 Cntacts: Michael Altfest/Vivian Dan Edelman (415) 222-9944 michael.altfest@edelman.cm vivian.dan@edelman.cm Small Business
More informationHOC Works Program Requirements
HOC Wrks Prgram Requirements Last Revisin: March 2018 INTRODUCTION The Husing Opprtunities Cmmissin f Mntgmery Cunty (HOC) established the HOC Wrks prgram in 2015 in rder t guarantee that HOC emplyment
More informationKCA Deutag Alpha Limited ( KCA Deutag or the Group ) Results for the three months ended 30 September 2015
Fr immediate release [19] Nvember 2015 KCA Deutag Alpha Limited ( KCA Deutag r the Grup ) Results fr the three mnths ended 30 September 2015 KCA Deutag, ne f the wrld s leading drilling and engineering
More informationThe Ultimate AP Macroeconomics Mid-Term Review Kit
Name: Date: Perid: The Ultimate AP Macrecnmics Mid-Term Review Kit Structure & Infrmatin: - 50 multiple chice questins cvering all the units we ve studied this year. - 3 FRQ questins yu will be given 10
More informationABLE Accounts: 10 Things You Should Know
ABLE Natinal Resurce Center 1667 K Street, NW Suite 640 Washingtn, DC 200006 (202) 296-2040 inf@ablenrc.rg ABLE Accunts: 10 Things Yu Shuld Knw 1. What is an ABLE accunt? ABLE Accunts, which are tax-advantaged
More informationINEQUALITIES, AGEING SOCIETIES AND SECULAR STAGNATION: AN OECD VIEW
Secular Stagnatin in Eurpe and Japan Bruegel-Kbe University 5 Octber 2015 INEQUALITIES, AGEING SOCIETIES AND SECULAR STAGNATION: AN OECD VIEW Paul Swaim Senir Ecnmist Directrate fr Emplyment, Labur and
More informationEconomics 11. Caltech Spring Problem Set 4
Ecnmics 11 Caltech Spring 2010 Prblem Set 4 Hmewrk Plicy: Study Yu can study the hmewrk n yur wn r with a grup f fellw students. Yu shuld feel free t cnsult ntes, text bks and s frth. The quiz will be
More informationPROTECT MGMT MRC Redundancy Compensation Proposal V0.6 July 2011
PROTECT MGMT MRC Redundancy Cmpensatin Prpsal V0.6 July 2011 Issued: July 2011 Page 1 f 10 1. Backgrund / Current Psitin The purpse f this dcument is t summarise the utcme f the negtiatins undertaken as
More informationH Results Presentation 9 May 2018
H1 2018 Results Presentatin 9 May 2018 Disclaimer This dcument has been prepared by Cmpañía de Distribución Integral Lgista Hldings, S. A. ( Lgista Hldings r the Cmpany ) fr infrmatin purpses, and des
More informationLeaving the European Union: The impact on occupational pension schemes
Leaving the Eurpean Unin: The impact n ccupatinal pensin schemes Friday 24 June 2016 The UK has vted in favur f leaving the Eurpean Unin. Fr cmpanies and trustees wh run ccupatinal pensin schemes, this
More informationFinancial Wellness Curriculum
Financial Wellness Curriculum The Financial Wellness Curriculum prvides students with infrmatin and financial tips fr reducing persnal debt and develping smart mney management skills. The gal is t help
More informationFSB Press Release 20 August 2015
Retirement funds must take all reasnable steps t trace and pay millins f their members and beneficiaries wh remain untraced, the Deputy Registrar f Pensin Funds, Rsemary Hunter said n Wednesday. Addressing
More informationKnow Before You Vote: Proposal 1 Yes For Safe and Effective Roads
Knw Befre Yu Vte: Prpsal 1 Yes Fr Safe and Effective Rads Abut Prpsal 1 Over the past five years, Michigan has undergne a remarkable reinventin. The state has added hundreds f thusands f new, private-sectr
More informationRE: SUBMISSION TO INFRASTRUCTURE VICTORIA S LAYING THE FOUNDATIONS PAPER
16 March 2016 Michel Massn Chief Executive Infrastructure Victria Level 34, 121 Exhibitin Street Melburne, VIC 3000 Dear Mr Massn, RE: SUBMISSION TO INFRASTRUCTURE VICTORIA S LAYING THE FOUNDATIONS PAPER
More informationBUSS1040: ECONOMICS FOR BUSINESS DECISION MAKING
BUSS1040: ECONOMICS FOR BUSINESS DECISION MAKING BUSS1040 ECONOMICS FOR BUSINESS DECISION MAKING WEEK 1: KEY CONCEPTS AND COMPARATIVE ADVANTAGE CHAPTER 1: KEY ECONOMIC CONCEPTS Ecnmics is cncerned with
More informationUnited Bank for Africa Plc Unaudited Results for the First Quarter Ended March 31, 2018
United Bank fr Africa Plc Unaudited Results fr the First Quarter Ended March 31, 2018 Africa's Glbal Bank UBA STARTS STRONG, GROWING FIRST QUARTER EARNINGS BY 18% This Earnings Press Release shuld be read
More informationTo all Members of the Medical Insurance Plan for Retirees:
The Wrld Bank Grup Human Resurces, MSN G2-202 (202) 473-2222 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washingtn, D.C. 20433 (202) 522-7026 fax INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A.
More informationRamsey Million Partnership
Ramsey Millin Partnership General Pints GUIDANCE FOR APPLICATIONS FOR FUNDING GENERAL GRANTS POT 2019 (i) Opening Statement Yur grant applicatin must meet the criteria as established by the Big Lcal and
More informationHow to Count Employees Determining Group Size Under the Medicare Secondary Payer Regulations
Hw t Cunt Emplyees Determining Grup Size Under the Medicare Secndary Payer Regulatins 1. Wh is an Emplyee? An emplyee is an individual wh wrks fr an emplyer r an individual wh, althugh nt actually wrking
More informationRISK MANAGEMENT AND BUSINESS CONTINUANCE A FAIS Standard. An AC Guidance Note. July 2010
RISK MANAGEMENT AND BUSINESS CONTINUANCE A FAIS Standard An AC Guidance Nte July 2010 Risk Management and Business Cntinuance - A FAIS standard The General Cde f cnduct deals in a number f ways with the
More informationOur path to long term value
Over the past three years, we have transfrmed Eni int a leaner and mre resilient cmpany. We have built a high margin prtfli cnsisting f a large number f mature prjects, which will secure ur prductin grwth
More informationDisciplinary Policy. WHO is this policy for?
Disciplinary Plicy WHO is this plicy fr? Channel 4 emplyees wh ve passed their prbatinary perid Channel 4 managers This plicy des nt frm part f any emplyee s cntract f emplyment and we may amend it at
More informationCanadian Embassy and Canada Spain Chamber of Commerce Encounter. Economic Agreement between the EU and Canada
Canadian Embassy and Canada Spain Chamber f Cmmerce Encunter INTRODUCTION Ecnmic Agreement between the EU and Canada 11 March 2009 I shuld like t thank the Chamber f Cmmerce and the Embassy fr the invitatin
More informationChapter 67: Floating exchange rates (3.2)
Chapter 67: Flating exchange rates (3.2) Key cncepts Definitin f exchange rates Flating exchange rate regime Appreciatin and depreciatin Supply and demand Determinants f a flating exchange rate Trade flws
More information