M B A 8620 Lecture Notes - Lecture 4: Quantitative Easing, Demand Curve, Price Ceiling
1 Sep 2016
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The government does this so everyone can afford goods. Relax price ceilings to provide an incentive for producers: the purchasing power due to currency exchange has gone from 200 to 25 from 2010 to. 2015: short term mess and long term self cleared price. Oil price is an arbitrary function of government policy. Russias oil is used for domestic consumption and is right behind saudi. Historical facts: 1973 usa realized how sensitive oil price is to the us, 1970 a price ceiling was created and ended in over demand, during quantitative easing correlates to the drop in price of 2009. Demand curve is a measurement of what actually happened. We dont really care of what the central bank on european is doing that"s more macro but we care about how that things impact out business as managers. Opec creates cartel to raise prices to push up the demand curve restricting output.
