The costs of inflation

Article Abstract:

Since the 1980s, minimising inflation has become the dominant aim of macroeconomic policy, since both 'anticipated' and 'unanticipated' inflation bring economic costs. The costs of inflation when it is fully anticipated include 'menu' costs, or the resources involved in adjusting prices frequently; and 'shoe-leather' costs, or the costs needed to monitor prices when prices are changing rapidly. The costs of unanticipated inflation are the redistribution of real wealth; the redistribution of real income; balance of payments problems; and interference with market signals.

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The FTSE-100: what does it really tell us?

Article Abstract:

A discussion of the role and construction of index numbers is presented, with particular emphasis on the FTSE-100. A significant change took place in the FTSE-100 in Mar 2000, when nine well-established companies were replaced with nine high-tech firms. This led to the index being dominated by technology stocks.

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Banks, lending and risk

Article Abstract:

Issues are presented concerning the benefits which have been gained by members of the banking industry through mergers in 2000. The advantages relating to risk management and administration costs are discussed.

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