Most central banks would probably increase the money supply to monetize the price effects of oil supply shortage.
The fundamental point is that, in the presence of inelastic supply curves, demand-side subsidies face a headwind of adverse price effects, while direct public provision gets a tail wind of favorable price effects.
And if it is happening because one third of the species is finally getting rich then the effects of that, while it may indeed raise the oil price, could be greater than the effects of the oil price rise.
Notwithstanding the advent of telecommuting, the effects of price changes in property markets have become increasingly localised.
ECONOMIST: Property markets: High rise, with a hint of vertigo | The
Consumers have seen the effects of price hikes on individual products, and many American companies have indicated higher prices lie ahead.
Mr Salins says the members of the state legislature are well aware of all the basic arguments about the evil effects of price controls on the property market.
Any price increase has devastating effects on the U.S. economy.
The effects of this price war fall disproportionately on American makers, for a couple of reasons.
The oil in the portfolio can also hedge against the other economic effects of oil price shocks.
Negative effects from endogenous price rises are self-limiting: if rising gas prices hurt expectations of economic growth, then lower expected economic growth should cause gas prices to fall.
As an interesting side note, two papers just out on the effects of speculation upon price levels.
But for right now, the psychological and practical effects of the lower price point could make a big difference.
The Fed's preference has been to deal with the after-effects of asset-price bubbles rather than to try to prevent their formation.
Removing the effects of cut-price sales, where data were available, made little difference: sales, it seems, matter much less than in America.
Deflation is not inherently bad, and that it is therefore far from being obvious that a wise monetary policy should seek to prevent it, or dampen its effects, at any price.
It was by advertising for volunteer zombies on social networking site Facebook, borrowing make-up from Hollywood blockbusters and teaching himself how to produce special effects that thrifty director Price was able to make the film for less than the price of a zombie DVD box set.
Consumers are recovering slowly from the recession, as unemployment claims begin to show a reduction in Americans out of work, suggesting that price increases at retailers that feel the effects of higher cotton prices may not be immediately absorbed by shoppers.
Although the head of Economics at the Organisation for Economic Cooperation and Development (OECD), Ignazio Visco, believes that there is room for a cut in rates in the eurozone, the ECB is apparently more worried about the lagging effects of a high oil price and the weakness of the euro which pushed up prices last year.
There is a risk that price rises will peak after the first quarter of next year, if the past effects of higher oil prices start to work their way out of the consumer-price index.
ECONOMIST: But already there are tensions over tighter money
Inflation is likely to rise further to above 5% in the next month or two, in large part as the full effects of already announced increases in the price of domestic energy are felt.
Although many countries' economies are now less susceptible to oil price rises than they were during the oil crisis of the 1970s, there has been growing consumer and political concern about the inflationary effects of oil's continuing high price.
The minister replied that a charge of up to 70p per unit could be imposed, and that the higher the price the greater the effect in combating the ill-effects of alcohol.
Schramm clearly intended to tap on the brakes a little, but just as the positive feedback of investor psychology inflated the stock price on the upside, negative feedback exaggerated the negative effects on the downside.
This concept not only drives up the price of health care coverage, it also produces some perverse effects.
The price will be high, the risks are large and some effects will be the opposite of what was intended.
Pfizer's share price plunged after higher-than-expected mortality and side effects reported during a clinical trial led it to scrap a drug it had been developing since 1992.
So strong are the effects that, even if Microsoft were to double the price of Windows, many years might elapse before its market share fell from today's level of more than 95%.
The side effects of that will be increased cost of an already outrageous price of private insurance because the elderly population is more likely to become ill of course.
FORBES: The Coburn-Lieberman Medicare Proposal - The Good, The Bad And The Ugly
Antitrust regulators worry especially about the effects on competition and innovation when it is a maverick, like the price-cutting TNT, that is being eliminated.
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