Notes

TRENDS: increasing and decreasing; peak; fluctuating

plateau

Thesaurus

good / bad; pros and cons; advantages and disadvantages

surplus

bank reserves

balance

gold





I was sick, I doubted from Covid, but, I had a covid test three days before, my test result came negative. So, I have been resting for four days.

high fever and runny nose

I made an appointment with you tomorrow at nine and half past nine pm.

Because of the illness, I read just two pages.

Maybe I can read one more page until tomorrow lesson.

Firstly, I want to describe suppyle and demand, It will be the base for future conversation and I won't forget the describing of those.



If we describe the supply and demand:

Supply is the sale of goods or services in a certain market, at a certain time and at a certain price. The amount of product in the markets refers to the supply.

Demand is the amount of goods and services to be purchased at a given price in a given market and its purchasing power. For a product to be a demand, the requester must have enough money to buy.



There is a cross relationship between demand and supply in a market.

If the supply is high in the market, the demand is low, if the demand is high enough so, supply is not high.

While the price of the product with high demand and low supply will be high, in cases where both are high, there will be flexibility in price due to competition. This is the complication version of describe of inflation.



Inflation is not only an increase in the price of a particular good or service alone, but a continuous increase in the general level of prices.

The trick is that the price of a one good does not increase, but the overall price level.

Rising prices of goods, on the other hand, are seen when the value of the money decreases, if the purchased goods are imported and our own currency decreases in comparison with against the purchased goods currency.



We need to talk about the real trick here.

Money also has a supply and demand because we have to pay in a global currency to pay for the product we are importing.

(By the way, today, majority of countries are using dollar, the small part of countries are using euro, except of that we talked previously lesson, some countries are using traditional money with each other for purchasing.)

At this point, we can say that the real reason for inflation affecting the price of goods is monetary inflation between countries.

If the folks using import goods, purchasing currency will be higher than previous. Because, after a while, the government wont find currency, which is using for purchasing.

On the other hand, when the currency will be higher than traditional money, the goods will be higher than before because of the import.

The folks will buy diffucultly, will use more money. When the money not enough for buying something, they will want to incraise their wages.

If the government raise their wages, this time, there will be much money entering the market. So, because of rising supply, inflation will rise too.

The factors determining the inflation, in short, If we list the reasons, the decrease and increase of the currency between countries;

Investor's trust in the country

Welfare

A strong financing structure

Rule of law

Loyalty to agreements and similar issues.



The article is also written on this subject, about the impact of global factors on inflation in developing and developing countries.



I just read first two pages of article of global factors and trend inflation. I did not have any time for keep going but I am going to read it next days.

I want to talk about first two pages.

The person who wrote the article, declared that the industrialized and devoloped countries are being affected less than devoloping countries from global inflation crisis.

The main topic of fist two pages are about comparing between devoloped countries and devoloping countries for inflation.

Some questions try to find from the writer, are the global factors have monetary policy implications?

The central banks are become a slave for global monetary? or, are they master of domestic monetary?



The writer referred to some arguments to central banks as the central banks typically choose to look through till the end of inflation influents.



If we talk about the arguments, typically central banks can not know the every coming problems, that is why, firstly, they need to see what kind of problem coming, If they move without see the problem, they can choose wrong solution. But, the writer referred (mentioned) the argument as if to them right for mentioned which the sentence is " central banks typically choose to look through till the end of inflation influents".



He interpreted this statement as typical central banking.



If we look from eyes of the central banks, the first based target should be observation. The result of observation, the central banks must try to find how many parameters are containing.

After the finded parameters, they need to should prepare the deliberated framework permanently or one-off.