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 BRITISH ECONOMY BRITISH ECONOMY 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 United Kingdom’s government efforts in government efforts in cotrolling inflation rate & cotrolling inflation rate & lessons for Vietnam 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 = ((P 0 – P -1 )/ P -1 ) x 100% • P 0 : 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... 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 . government 2.3 Solutions of Vietnam 3. CONCLUSION 4. Q& A BRITISH ECONOMY BRITISH ECONOMY A phenomenon in economy CLASS: 08.1.E13 Group 04: Duong Thi Diu . 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