Benin-and-japan

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Individual Case study on Descriptive Statistics 1
Table of Contents 1. Overview .................................................................................................................................. 2 2. Data analysis ............................................................................................................................. 3 a. Line chart .............................................................................................................................. 3 b. Measures of central tendency ............................................................................................... 3 c. Measures of variation ........................................................................................................... 4 d. Histograms ............................................................................................................................ 4 e. Box-and-whisker plot ........................................................................................................... 5 3. Conclusion ................................................................................................................................ 6 4. Discussion of conclusion .......................................................................................................... 6 5. Economic and financial factors ................................................................................................ 6 6. Inflation rate of the world ......................................................................................................... 7 References ........................................................................................................................................ 8 2
1. 2. Overview Inflation reflect the change in prices or the rise in price (Berentsen, Menzio & Wright 2011). Inflation rate also implies the decline in purchasing power over time (Berentsen et al. 2011). There are different measures to calculate inflation rate but they must be based on changes in prices of basket of goods (Lavie & Curry 2022). There are both good and bad sides of inflation. While inflation drives the costs of products high and living condition becomes more difficult, this is also a motivation to invest by triggering aggregate demand (Lavie & Curry 2022). Benin is an African country that has strong macroeconomic fundamentals (Lloyds Bank trade 2022). This helps the country to achieve one of the strongest growth rates among developing countries with 3.8% in 2020 despite the impacts of Covid-19 pandemic (Lloyds Bank trade 2022). Although the country controls its inflation rate low over years, the inflation rate of this country fell significantly below -5% (The Global Economy 2022). This could be a sign of a downturn in an economy leading to a recession or depression (Bordo & Redish 2003). Therefore, the poverty rate of the country still remains high at 45.9% and the unemployment rate was estimated at 2.5% (Lloyds Bank trade 2022). Japan is one of the most developed economies in the world. in 2022, despite the high inflation rate in other large economies such as the US or the UK, the inflation rate in Japan still remained low at 2.8% (Kutty 2022). This is because the Bank of Japan has continued pursuing a large-scale monetary easing policy (Kutty 2022). However, as the wage of employees does not change much, citizens in this country still feel the pressure from price rises. Yet, overall, the economy of Japan is still considered to grow stably at about 0.9% in GDP per year (Kutty 2022). Keeping the inflation rate remain low but positive is important for the government to reduce price pressure on its people and businesses. 3
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