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HP TouchSmart 300, Desktop layar sentuh
TouchSmart 300 (hp)
Hewlett-Packard (HP) seakan tak mau kalah dalam merilis produk jagoannya di ranah desktop layar sentuh. DetikINET pun berkesempatan menjajal produk anyar HP yang bernama TouchSmart 300 ini. Bagaimana hasilnya?
Jika dilihat sekilas, TouchSmart 300 memiliki layar yang nampak relatif kecil, dibanding produk desktop layar sentuh sejenis. Padahal lebar layarnya adalah 20 inch. Mungkin penyebabnya adalah bentuknya yang sedikit 'gendut' jadi mencerminkan bodynya yang padat.
Kekaguman detikINET muncul ketika mendengar kualitas audio yang keluar dari speakernya. Wah... mantap! Serasa memiliki Home Theatre berukuran kecil. Walau ukuran speaker dibalik body desktop ini tak menonjol, namun suaranya serasa memenuhi seluruh ruangan.
Dentuman bass serta renyahnya treble, terdefinisi dengan jelas melalui speaker yang terletak di bagian body bawah desktop tersebut. Dari desain yang diusung, produk ini nampak elegan dengan balutan warna hitamnya. Saat dinyalakan, TouchSmart 300 pun siap menyambut pengguna dengan portal layar sentuh bernama HP TouchSmart 3.0.
Berbekal prosesor AMD Athlon II X2 235e dan grafis Nvidia GeForce G210, desktop ini cukup mumpuni untuk menikmati kualitas film full HD. Meski yang sedikit mengganjal itu tadi, layar yang dipilih kurang berasa lebar. Namun tetap saja produk ini cocok untuk diletakan di ruang keluarga.
Dengan spesifikasi tersebut, TouchSmart 300 cukup lancar saat digunakan untuk memainkan game sekelas Left 4 Dead. Selain itu produk ini masih kuat untuk diajak mengolah grafis secara ringan dengan software macam Corel, Adobe Photoshop, bahkan mengerjakan project 3Ds Max (software grafis 3D) kecil-kecilan.
Portal Layar Sentuh Kurang Mulus
Bagian lain yang paling menarik dari desktop ini adalah sensasi layar sentuhnya dalam portal bernama HP TouchSmart 3.0. Portal ini menyediakan banyak ragam aplikasi mulai dari notepad, video, musik, browser, hingga canvas untuk melukis.
Dari sisi tampilan dan desain, portal layar sentuh HP ini, menurut detikINET sedikit lebih baik daripada milik Acer. Jika Acer Touch Portal milik Aspire Z5610 sedikit lebih ribet, maka HP TouchSmart terkesan lebih simpel dan elegan.
Namun saat detikINET mencoba gestur layar sentuh multi-touchnya, entah mengapa pengoperasian tiap-tiap apikasinya terasa kurang responsif. Misalnya saat digunakan untuk menggeser, memutar, atau melakukan zooming pada sebuah aplikasi. Kesannya sedikit patah-patah.
Sebagai informasi tambahan, HP TouchSmart 300 mengsung prosesor AMD Athlon II X2, sementara Aspire Z5610 mengusung Intel Core 2 Quad. Semoga hal ini bukan karena masalah prosesor, saat dipaksa melakukan kinerja multi-tasking.
Bermain-main dengan fitur layar sentuh desktop ini memang mengasyikan, terlebih untuk segala macam fitur hiburan yang ada di dalamnya. Namun jangan coba-coba mengetik menggunakan on-screen keyboard (keyboard virtual layar sentuh) untuk mengetik sebuah dokumen.
Sama seperti Aspire Z5610, bagi yang belum terbiasa pasti akan sangat kesulitan untuk mengetik sebuah artikel dengan virtual keyboard tersebut. Apalagi bagi pengguna yang memiliki jemari relatif besar. Dijamin susah mengetik.
Kesimpulan
Dengan desain serta fitur multimedia yang unggul, HP TouchSmart 300 cukup kompetitif jika disandingkan dengan desktop serupa milik Acer bernama Aspire Z5610, terlebih dengan harga yang sedikit lebih murah.
Desktop ini pun bisa menjadi salah satu sarana hiburan bagi keluarga yang mengasyikan. Letakkan saja di ruang keluarga untuk berbagi hiburan multimedia.
Selain itu, HP pun menambahkan keyboard serta wireless mouse dalam box HP TouchSmart 300. Jadi user memiliki opsi alternatif dalam berinteraksi. Pengguna yang berminat dapat menyiapkan dana sekitar US$ 1.144. Sedikit lebih murah dari Acer Aspire Z5610 yang berharga US$ 1.399.
Spesifikasi Umum:
- CPU: AMD Athlon II X2 235e (2.70 Ghz)
- OS: Windows 7 Home Premium (64-bit)
- GPU: Nvidia GeForce G210 (512MB/64bit)
- Display: 1600x900 pixel
- Memori RAM: 4GB
- I/O: 5 USB, card reader, VGA, 2 jack audio, SPDIF out, LAN
- Storage: 500 GB
- Harga: US$ 1.144
Hasil Benchmark
PC Mark Vantage: 4622
- Memories Suite : 2795
- TV and movies suite: 2864
- Gaming Suite: 3650
- Music Suite: 4882
- Communication Suite: 4506
- Productivity Suite: 4379
- HDD test suite: 3524
3D Mark 06: 3547
- SM2.0 : 1370
- HDR/SM3.0 : 1319
- CPU : 2062
Base Score Windows 7 Performance: 5.0
- Prosesor: 6.2
- RAM: 7.1
- Grafis: 5.0
- Grafis Game: 6.0
- Hard Disk: 7.5
detikinet.com
Western Digital 64GB, 128GB dan 256GB
SiliconEdge Blue adalah salah satu media penyimpanan berbasis SSD besutan Western Digital. Hadir dengan beragam kapasitas yakni, 64GB, 128GB dan 256GB, namun untuk pengujian kali ini detikINET akan mengkaji lebih dalam kemampuan WD SiliconEdge Blue versi 256GB.
Jika dilihat dari ukuran fisik, produk ini tidak berbeda dengan merk lain yang memiliki kapasitas serupa. Yakni memiliki ketebalan 0.4 inchi, lebar 2.75 inchi dan panjang 3.9 inchi.
Performa yang ditawarkannya pun tidak terpaut jauh, hanya saja produk ini memiliki kapasitas yang tergolong besar di kelasnya. Namun perlu diketahui, kunci performa produk SSD terletak pada Controller yang dimilikinya.
Berbeda dengan beberapa produk lain seperti Intel yang menggunakan Controller sendiri, WD malah memutuskan untuk menggunakan chip dari pihak ketiga sebagai 'otak' di balik performa SiliconEdge Blue.
Kecepatan Tinggi Namun Tidak Stabil
Memang tidak dapat disangkal lagi jika media penyimpanan SSD memiliki kecepatan baca/tulis yang lebih baik ketimbang Harddisk Drive (HDD) yang masih menggunakan Platter.
Tidak hanya itu, produk SSD juga mengkonsumsi energi yang lebih rendah serta tahan terhadap guncangan. Jadi, jika ada sebuah laptop yang menggunakan SSD maka dapat dioperasikan lebih baik ketimbang yang menggunakan HDD.
Untuk SiliconEdge Blue 256GB, memang memiliki kecepatan baca/tulis yang tergolong tinggi. Namun sayang, tidak stabil. Dalam artian, terdapat penurunan yang sangat signifikan ketika digunakan untuk mentransfer data dalam jumlah besar.
Hal ini dibuktikan melalui aplikasi HD Tune dimana terdapat penurunan yang sangat signifikan selama pengujian, misalnya untuk kemampuan menulis.
Produk ini mampu menulis hingga 182 MB/detik atau dengan rata-rata 107,9 MB/detik, namun hal tersebut tidak stabil hingga turun pada kecepatan terendah yakni 0.2 MB/detik.
Hal tersebut tentunya tidak akan terasa perbedaannya jika pengguna hanya menggunakan produk ini untuk beragam aplikasi ringan sehari-hari, namun lain halnya jika digunakan untuk mentranfer data besar semisal film dengan resolusi tinggi.
Layakkah Bermigrasi ke Era SSD?
SiliconEdge Blue bisa dibilang adalah debut pertama WD selaku pemain utama di industri media penyimpanan komputer. Kemunculan produk ini pun sekaligus memberikan banyak pilihan kepada para penggunanya. Lantas apakah sudah saatnya bermigrasi ke era media SSD?
Memang tidak dipungkiri jika SSD menawarkan sejumlah kelebihan yang tidak didapat dengan media HDD, namun segala jenis kelebihan tersebut harus ditebus dengan harga yang cukup mahal.
WD SiliconEdge Blue 256GB dibanderol dengan kisaran harga USD 999, harga yang cukup mahal memang tapi apa pantas dijadikan salah satu pilihan pengguna komputer?
Jawabannya adalah tergantung kebutuhan masing-masing individu, jika ingin media penyimpanan berkecepatan tinggi dengan dana tidak terbatas mungkin cocok dengan SSD. Lain halnya bagi pengguna dengan dana terbatas serta yang mementingkan kapasitas besar.
Kelebihan:
+ Kapasitas Besar
+ Kecepatan maksimum tinggi
Kekurangan:
- Harga Mahal
- Kurang stabil
Hasil Benchmark:
HD Tune
Read:
Minimum: 85.6 MB/sec
Maximun: 214 MB/sec
Average: 210.1 MB/sec
Write:
Minimum: 0.2 MB/sec
Maximun: 182.2 MB/sec
Average: 107.9 MB/sec
HD Tach
Quick Bech: 251.4 MB/sec
Long Bech: 254.2 MB/sec
PCMark vantage
HD Test Suite: 24530
Dalam mereview produk ini, detikINET menggunakan sistem berbasis: Prosesor Intel Core i7 965, Intel DX580SO, MSI GTX 275, Corsair HX1000W, Corsair Dominator 6GB kit, ASUS VH226 dan sistem operasi Windows 7
detikinet.com
More Irritating Details About Inflation
The Phillips Curve & Accelerating Inflation
-We know what the Phillips curve is. I'm not explaining it again.
-At Y* and U*, there is no gap inflation
-When the economy is in an inflationary gap, the BoC must validate for wage inflation
-In the 1960s, the level of wage and price adjustment began to rise for any level of output (the whole phillips curve shifted to the right)
-Why? Because the original phillips curve included only gap inflation and ignored expectation inflation (which impacts wage changes, obviously)
-This newly-shifted phillips curve is called the expectations-augmented phillips curve. There is still an inverse relation between the unemployment rate and the rate of changes of nominal wages, but with the effect of expectation inflation built into the model.
-Expectation inflation is graphically represented by the height of the phillips curve above the X axis at U*
Using this new phillips curve, we can see than when there is gap inflation, and when there are expectations adding to inflation, the curve shifts up at Y*: expected inflation increases for all levels of inflation, and thus, inflation can accelerate.
THERE IS NOT A STABLE TRADEOFF BETWEEN INFLATION AND OUTPUT. TO MAINTAIN Y @ LEVELS GREATER THAN Y*, INFLATION MUST ACCELERATE.
------------------------------------
Is inflation a monetary phenomenon? Was Milton Friedman correct when he said "Inflation is everywhere, and always a monetary problem"?
Does inflation have purely monetary consequences? What about its consequences- are they purely monetary?
Well... inflation on its own can be caused by either an increase in AD or a decrease in A. However, unless monetary validation is continuous, inflation will only be temporary. As such inflation is not necessarily caused by monetary issues, but continuous inflation IS.
The consequences of inflation:
1: Short run gap inflation caused by output being higher than Y*
2: Short run supply inflation caused by Y being less than Y*
3: In the long run, output will always eventually return to Y*, so inflation will only cause a change in the price level.
so... SUSTAINED inflation is everywhere, and is always a monetary problem.
---------------------------------------------
REDUCING INFLATION: The process of disinflation
Accelerating Inflation is inflation. There is a positive change in the price level.
Constant Inflation is inflation. There is a positive change in the price level.
Decelerating Inflation is disinflation. There is a positive change in the price level, but at a decreasing rate.
Stopped Inflation is zero inflation. There is no change in the price level.
Reverse Inflation is deflation. There is a negative change in the price level.
How do we reduce constant inflation from occurring at Y*??? by STOPPING EXPECTATIONS
How do we reduce accelerating inflation? By NO LONGER VALIDATING CHANGES IN THE ECONOMY
both of these measures may cause short-term economic pain (recessionary gaps cause unemployment, which is both depressing for individuals, and unproductive for economies in general). However, this will eliminate sustained accelerating inflation.
But is this a good thing?
There is often questions over whether the benefits of reducing inflation outweigh the costs.
How it works:
1: remove monetary validation to eliminate the inflationary gap (which allow the SRAS to return GDP to Y*)
2: stagflation: the SRAS decreases to the point where it actually overshoots Y* due to the intensity of wage momentum. As a result, there will be a period of rising unemployment accompanied by inflation
3: recovery: wage adjustments can bring SRAS back to Y* the slow way, or the BoC can use expansionary monetary policy to bring it there faster (at the cost in inflation)
The cost of disinflation:
-Disinflation is caused by a recessionary gap
-The cost of disinflation is equal to the loss of output caused by the required recessionary gap.
The SACRIFICE RATIO is the cumulative loss of output as a percentage of potential output divided by the percentage reduction in the inflation rate.
------------------------------------
THE COSTS OF INFLATION: Why is this bad, again?
1: Unanticipated Inflation
-Affected the distribution of income (redistributes income from creditors to debtors)
-Wage contracts: redistributes income from employers to employees if inflation is less than expected, and vice versa if inflation is higher than expected
-Pension contracts: redistributes income away from pensioners (although this can be solved by indexing pensions for inflation)
1970s: Trudeau indexed public pensions, and they have remained indexed as thus until..
1980s: Mulroney de-indexed tax brackets
2000: Chretian fully indexed tax brackets
Low versus Moderate Inflation: BC advocates low inflation
-The price signal distortion hypothesis suggests that inflation interferes with the information conveyed by price changes. As a result, market participants can have a difficult time distinguishing absolute prices from relative prices. This extra confusions created by inflation reduces market efficiency
-In PLANNING DISRUPTION, inflation interferes with retirement plans and long term contracts
With moderate inflation...
-The downward nominal wage rigidity hypothesis claims that low levels if inflation reduce economic efficiency, because real wage cuts will require nominal wage cuts, which will be resisted. Basically, if inflation is zero, a 2% cut in real wages required a 2% cut in nominal wages: workers will resist a drop in their nominal wages. However, if inflation were high enough, nominal wages could simply be maintained to the effect of reducing real wages, and this is met with much less resistance. In this way, this theory suggests that high inflation facilitates more efficient economies, because it makes it easier for employers to "trick" their employees into accepting real wage cuts.
The zero bound on nominal interest rates hypothesis claims that the BoC cannot run expansionary money policy.
AS A GENERAL RULE, healthy economies have moderate inflation (this is caused naturally by economic growth and increases in aggregate demand).
High and accelerating inflation leads to prediction problems, and arbitrary redistribution of income. It may also lead to hyperinflation. Politics, however, is usually the entity to blame for these problems.
HYPERINFLATION: This is associated with low economic growth. Why? Because hyperinflation increases transaction costs (ie: menus must be changed constantly, and holding money for transactions is risky, because that money's purchasing power can rapidly decrease)
DISINFLATION: Governments can try to use wage or price controls, but usually this doesn't work.
-Two recessions in Canada have been caused by the government of Canada attempting to slow the rate of disinflation. As such, the costs of disinflation probably outweigh the benefits unless inflation is getting seriously out of control.
DEFLATION: Like disinflation, is not a good idea.
THAT'S ALL
-We know what the Phillips curve is. I'm not explaining it again.
-At Y* and U*, there is no gap inflation
-When the economy is in an inflationary gap, the BoC must validate for wage inflation
-In the 1960s, the level of wage and price adjustment began to rise for any level of output (the whole phillips curve shifted to the right)
-Why? Because the original phillips curve included only gap inflation and ignored expectation inflation (which impacts wage changes, obviously)
-This newly-shifted phillips curve is called the expectations-augmented phillips curve. There is still an inverse relation between the unemployment rate and the rate of changes of nominal wages, but with the effect of expectation inflation built into the model.
-Expectation inflation is graphically represented by the height of the phillips curve above the X axis at U*
Using this new phillips curve, we can see than when there is gap inflation, and when there are expectations adding to inflation, the curve shifts up at Y*: expected inflation increases for all levels of inflation, and thus, inflation can accelerate.
THERE IS NOT A STABLE TRADEOFF BETWEEN INFLATION AND OUTPUT. TO MAINTAIN Y @ LEVELS GREATER THAN Y*, INFLATION MUST ACCELERATE.
------------------------------------
Is inflation a monetary phenomenon? Was Milton Friedman correct when he said "Inflation is everywhere, and always a monetary problem"?
Does inflation have purely monetary consequences? What about its consequences- are they purely monetary?
Well... inflation on its own can be caused by either an increase in AD or a decrease in A. However, unless monetary validation is continuous, inflation will only be temporary. As such inflation is not necessarily caused by monetary issues, but continuous inflation IS.
The consequences of inflation:
1: Short run gap inflation caused by output being higher than Y*
2: Short run supply inflation caused by Y being less than Y*
3: In the long run, output will always eventually return to Y*, so inflation will only cause a change in the price level.
so... SUSTAINED inflation is everywhere, and is always a monetary problem.
---------------------------------------------
REDUCING INFLATION: The process of disinflation
Accelerating Inflation is inflation. There is a positive change in the price level.
Constant Inflation is inflation. There is a positive change in the price level.
Decelerating Inflation is disinflation. There is a positive change in the price level, but at a decreasing rate.
Stopped Inflation is zero inflation. There is no change in the price level.
Reverse Inflation is deflation. There is a negative change in the price level.
How do we reduce constant inflation from occurring at Y*??? by STOPPING EXPECTATIONS
How do we reduce accelerating inflation? By NO LONGER VALIDATING CHANGES IN THE ECONOMY
both of these measures may cause short-term economic pain (recessionary gaps cause unemployment, which is both depressing for individuals, and unproductive for economies in general). However, this will eliminate sustained accelerating inflation.
But is this a good thing?
There is often questions over whether the benefits of reducing inflation outweigh the costs.
How it works:
1: remove monetary validation to eliminate the inflationary gap (which allow the SRAS to return GDP to Y*)
2: stagflation: the SRAS decreases to the point where it actually overshoots Y* due to the intensity of wage momentum. As a result, there will be a period of rising unemployment accompanied by inflation
3: recovery: wage adjustments can bring SRAS back to Y* the slow way, or the BoC can use expansionary monetary policy to bring it there faster (at the cost in inflation)
The cost of disinflation:
-Disinflation is caused by a recessionary gap
-The cost of disinflation is equal to the loss of output caused by the required recessionary gap.
The SACRIFICE RATIO is the cumulative loss of output as a percentage of potential output divided by the percentage reduction in the inflation rate.
------------------------------------
THE COSTS OF INFLATION: Why is this bad, again?
1: Unanticipated Inflation
-Affected the distribution of income (redistributes income from creditors to debtors)
-Wage contracts: redistributes income from employers to employees if inflation is less than expected, and vice versa if inflation is higher than expected
-Pension contracts: redistributes income away from pensioners (although this can be solved by indexing pensions for inflation)
1970s: Trudeau indexed public pensions, and they have remained indexed as thus until..
1980s: Mulroney de-indexed tax brackets
2000: Chretian fully indexed tax brackets
Low versus Moderate Inflation: BC advocates low inflation
-The price signal distortion hypothesis suggests that inflation interferes with the information conveyed by price changes. As a result, market participants can have a difficult time distinguishing absolute prices from relative prices. This extra confusions created by inflation reduces market efficiency
-In PLANNING DISRUPTION, inflation interferes with retirement plans and long term contracts
With moderate inflation...
-The downward nominal wage rigidity hypothesis claims that low levels if inflation reduce economic efficiency, because real wage cuts will require nominal wage cuts, which will be resisted. Basically, if inflation is zero, a 2% cut in real wages required a 2% cut in nominal wages: workers will resist a drop in their nominal wages. However, if inflation were high enough, nominal wages could simply be maintained to the effect of reducing real wages, and this is met with much less resistance. In this way, this theory suggests that high inflation facilitates more efficient economies, because it makes it easier for employers to "trick" their employees into accepting real wage cuts.
The zero bound on nominal interest rates hypothesis claims that the BoC cannot run expansionary money policy.
AS A GENERAL RULE, healthy economies have moderate inflation (this is caused naturally by economic growth and increases in aggregate demand).
High and accelerating inflation leads to prediction problems, and arbitrary redistribution of income. It may also lead to hyperinflation. Politics, however, is usually the entity to blame for these problems.
HYPERINFLATION: This is associated with low economic growth. Why? Because hyperinflation increases transaction costs (ie: menus must be changed constantly, and holding money for transactions is risky, because that money's purchasing power can rapidly decrease)
DISINFLATION: Governments can try to use wage or price controls, but usually this doesn't work.
-Two recessions in Canada have been caused by the government of Canada attempting to slow the rate of disinflation. As such, the costs of disinflation probably outweigh the benefits unless inflation is getting seriously out of control.
DEFLATION: Like disinflation, is not a good idea.
THAT'S ALL
Demand Shocks and Accelerating Inflation
INFLATIONARY DEMAND SHOCKS AND INFLATION
-An increase in consumption, investment, government expenditures, and net exports causes an increase in aggregate expenditure, a rightward shift in aggregate demand, and an increase in the equilibrium price level.
IF THE GOVERNMENT DOES NOT VALIDATE INFLATION CAUSED BY AN ISOLATED DEMAND SHOCK
Aggregate demand will shift to the right as a result of this demand shock. Y is now greater than Y*, and thus we have an inflationary gap. however, wages adjust: excess demand for labour increases wages, which in turn increases firm costs. As a result, short run aggregate supply shifts to the left, and output returns to its original level, but at a higher price level. This is one-shot inflation. The price level is now at a higher equilibrium level, but since the demand shock is isolated, inflation will not be sustained.
IF THE GOVERNMENT DOES VALIDATE INFLATION CAUSED BY ISOLATED DEMAND SHOCKS
Aggregate demand will shift to the right as a result of this supply shock. In response to this, SRAS shifts to the left due to wage adjustment. However, if the government tries to validate this change in supply by increasing the money supply (which lowers interest rates, and ultimately shifts AD to the right), this puts NEW INFLATIONARY PRESSURES on an economy: basically, the natural chain and anchor mechanism is fighting against government policy here, and the result is sustained inflation within an inflationary gap. The SRAS want to return output to Y*, but the government continues to artificially increase AD through monetary policy. As both AD and SRAS continue to shift right and left, respectively, the price level will continuously climb. =(
------------------------------------------------------------------------------
WHAT ABOUT ACCELERATING INFLATION?
-We know that in most cases, demand shocks cause wage adjustment, and that if governments are not crafty, they may follow this up with monetary validation. If we look at this graphically, we can say that the inflation rate (the change in the price level divided by the original price level) could be graphically represented by the vertical distance between the original price point and the new price point.
-When AD and AS both shift up, the inflationary gap will persist.
-Graphically, we know that inflation is accelerating if the arrow between the price points gets longer and longer.
SO... two questions we need to answer are:
1) What creates persistent inflation (what causes inflation to hang around, instead of being a one-off)?
The answer: Validation
and
2) When is the inflation at a constant rate, and when is it at an accelerating rate (what causes inflation to get worse and worse)?
The answer: Expectations
ACCELERATION HYPOTHESIS
-If the economy is running an inflationary gap caused by either increased aggregate demand (for an example, demand resulting from China's increased demand for raw materials) or increased aggregate supply (for an example, increase supply due to lower world prices of raw materials)...
-AND if the central bank wants to maintain the "good time" (aka: it uses monetary policy to validate this inflationary gap, and tries to keep the gap from being closed)...
-THEN, inflation will persist, and be accelerating.
In summary, if the BoC maintains a constant inflationary gap, then the actual inflation rate will persist and accelerate (the economy will continue to inflate at progressively larger rates over time).
WHY?
1) EXPECTATION EFFECTS (remember, actual inflation is a combined result of gap inflation, expectation inflation, and supply shock inflation)
-An increase in aggregate demand causes an inflationary gap, and as we know, this ultimately causes prices to rise due to the wage change mechanism
-As a result, expectations are formed: workers demand that their wages rise at a similar rate over the next year to account for predicted inflation (for an example, let's say that they expect inflation to be 2%, then they will demand a 2% wage increase).
-If the BoC adds inflationary pressures by maintaining the gap, then this will create extra gap inflation of 2%, which stacks on top of the expectation inflation for a combined actual 4% rate of inflation.
-This overall 4% rate of inflation informs new expectations for the next year: workers will demand 4% wage increases, and those new expectation pressures stack onto persistent gap inflation for a total of 6% total inflation over the next year
-This continues on for quite a while, generating an inflationary spiral.
AS LONG AS THE BoC VALIDATES THE GAP, EXPECTATIONS ARE ALWAYS BEING REVISED UPWARDS (worker expect higher and higher inflation, and demand higher and higher wage increases). People come to expect this inflation, and build it into their wage demands.
2) MORE RAPID MONETARY VALIDATION IS REQUIRED
-If the BoC wants to maintain output above Y*, it has to increase the rate of growth in the money supply.
-This is because the inflation rate is accelerating, and therefore, to accommodate for increase transaction demands due to higher prices, the BoC must accelerate the growth of money (basically, it must print a larger and larger quantity of money each year)
-This validation becomes more and more dramatic as time goes on
Let's summarize what we know!
We have an isolated shock ---> There will be no gap in the long run
We have have a repeated AS shock ---> There will be a persistent gap
We have a repeated AD shock ---> There will be a persistent gap
At Y*, persistent inflation will consist of only expectation inflation
With a Gap, there will be accelerating inflation, due to the gap inflation on top of expectation inflation
Cost push inflation from Y* lead to a recessionary gap
Demand pull inflation from Y* leads to an inflationary gap
AGAIN: Is monetary validation a good idea?
Yes, because monetary validation can eliminate recessions more quickly than simply letting "nature take its course"
No, because it causes inflation
Additionally, as we now know, monetary validation can create expected inflation to increase over time, creating a wage-price spiral. Some economists argue that the disadvantages of these increased expectations could be avoided if the BoC never validated gaps in the first place!
-An increase in consumption, investment, government expenditures, and net exports causes an increase in aggregate expenditure, a rightward shift in aggregate demand, and an increase in the equilibrium price level.
IF THE GOVERNMENT DOES NOT VALIDATE INFLATION CAUSED BY AN ISOLATED DEMAND SHOCK
Aggregate demand will shift to the right as a result of this demand shock. Y is now greater than Y*, and thus we have an inflationary gap. however, wages adjust: excess demand for labour increases wages, which in turn increases firm costs. As a result, short run aggregate supply shifts to the left, and output returns to its original level, but at a higher price level. This is one-shot inflation. The price level is now at a higher equilibrium level, but since the demand shock is isolated, inflation will not be sustained.
IF THE GOVERNMENT DOES VALIDATE INFLATION CAUSED BY ISOLATED DEMAND SHOCKS
Aggregate demand will shift to the right as a result of this supply shock. In response to this, SRAS shifts to the left due to wage adjustment. However, if the government tries to validate this change in supply by increasing the money supply (which lowers interest rates, and ultimately shifts AD to the right), this puts NEW INFLATIONARY PRESSURES on an economy: basically, the natural chain and anchor mechanism is fighting against government policy here, and the result is sustained inflation within an inflationary gap. The SRAS want to return output to Y*, but the government continues to artificially increase AD through monetary policy. As both AD and SRAS continue to shift right and left, respectively, the price level will continuously climb. =(
------------------------------------------------------------------------------
WHAT ABOUT ACCELERATING INFLATION?
-We know that in most cases, demand shocks cause wage adjustment, and that if governments are not crafty, they may follow this up with monetary validation. If we look at this graphically, we can say that the inflation rate (the change in the price level divided by the original price level) could be graphically represented by the vertical distance between the original price point and the new price point.
-When AD and AS both shift up, the inflationary gap will persist.
-Graphically, we know that inflation is accelerating if the arrow between the price points gets longer and longer.
SO... two questions we need to answer are:
1) What creates persistent inflation (what causes inflation to hang around, instead of being a one-off)?
The answer: Validation
and
2) When is the inflation at a constant rate, and when is it at an accelerating rate (what causes inflation to get worse and worse)?
The answer: Expectations
ACCELERATION HYPOTHESIS
-If the economy is running an inflationary gap caused by either increased aggregate demand (for an example, demand resulting from China's increased demand for raw materials) or increased aggregate supply (for an example, increase supply due to lower world prices of raw materials)...
-AND if the central bank wants to maintain the "good time" (aka: it uses monetary policy to validate this inflationary gap, and tries to keep the gap from being closed)...
-THEN, inflation will persist, and be accelerating.
In summary, if the BoC maintains a constant inflationary gap, then the actual inflation rate will persist and accelerate (the economy will continue to inflate at progressively larger rates over time).
WHY?
1) EXPECTATION EFFECTS (remember, actual inflation is a combined result of gap inflation, expectation inflation, and supply shock inflation)
-An increase in aggregate demand causes an inflationary gap, and as we know, this ultimately causes prices to rise due to the wage change mechanism
-As a result, expectations are formed: workers demand that their wages rise at a similar rate over the next year to account for predicted inflation (for an example, let's say that they expect inflation to be 2%, then they will demand a 2% wage increase).
-If the BoC adds inflationary pressures by maintaining the gap, then this will create extra gap inflation of 2%, which stacks on top of the expectation inflation for a combined actual 4% rate of inflation.
-This overall 4% rate of inflation informs new expectations for the next year: workers will demand 4% wage increases, and those new expectation pressures stack onto persistent gap inflation for a total of 6% total inflation over the next year
-This continues on for quite a while, generating an inflationary spiral.
AS LONG AS THE BoC VALIDATES THE GAP, EXPECTATIONS ARE ALWAYS BEING REVISED UPWARDS (worker expect higher and higher inflation, and demand higher and higher wage increases). People come to expect this inflation, and build it into their wage demands.
2) MORE RAPID MONETARY VALIDATION IS REQUIRED
-If the BoC wants to maintain output above Y*, it has to increase the rate of growth in the money supply.
-This is because the inflation rate is accelerating, and therefore, to accommodate for increase transaction demands due to higher prices, the BoC must accelerate the growth of money (basically, it must print a larger and larger quantity of money each year)
-This validation becomes more and more dramatic as time goes on
Let's summarize what we know!
We have an isolated shock ---> There will be no gap in the long run
We have have a repeated AS shock ---> There will be a persistent gap
We have a repeated AD shock ---> There will be a persistent gap
At Y*, persistent inflation will consist of only expectation inflation
With a Gap, there will be accelerating inflation, due to the gap inflation on top of expectation inflation
Cost push inflation from Y* lead to a recessionary gap
Demand pull inflation from Y* leads to an inflationary gap
AGAIN: Is monetary validation a good idea?
Yes, because monetary validation can eliminate recessions more quickly than simply letting "nature take its course"
No, because it causes inflation
Additionally, as we now know, monetary validation can create expected inflation to increase over time, creating a wage-price spiral. Some economists argue that the disadvantages of these increased expectations could be avoided if the BoC never validated gaps in the first place!
Inflation and Supply Shocks
FROM WAGE CHANGES TO PRICE CHANGES
-If a change in money wages is positive (wages increase), short run aggregate supply will decrease (it shifts to the left due to increased costs). This causes prices to rise, and the overall effect is inflationary
-If an change in money wages is negative (wages decrease), short run aggregate supply will increase (it shifts to the right due to lowered costs). This causes prices to fall, and the overall effect is deflationary.
Wages up --> Costs up ---> SRAS shifts left --> Equilibrium price level rises
Okay... so so far, we've talked about two causes of inflation: gap effects and worker expectations. There is, however, a third cause of inflationary pressures: AN EXOGENOUS SUPPLY SHOCK (for an example, a change in the price of raw materials, such as oil, can increase the general price level, which is why vegetables can start to cost more when the price of oil goes up).
SOOO
ACTUAL INFLATION IS A COMBINATION OF:
1: GAP INFLATION
2: EXPECTATION INFLATION
3: SUPPLY SHCOK INFLATION (even though that's a bit of an afterthought)
------------------------------------------
Next, we're going to talk about the difference between sustained/constant inflation and accelerating inflation.
CONSTANT/SUSTAINED INFLATION
-Here, we assume that there is no supply shock, and no output gaps
-As such, the ONLY cause for inflation when there is sustained inflation, is expectations
-This kind of inflation occurs when Y is equal to Y*
Let's summarize: constant inflation occurs when...
-There is no gap inflation
-There is no supply shock inflation
-Monetary growth is equal to the rate that wages increase at
-Actual inflation is equal to expected inflation
HOW IT WORKS:
1: Worker expectations trigger constant inflation (expectations cause workers to demand higher wages, which then causes SRAS to shift to the left)
2: The BoC validates the price increase by increase the money supply
SO.... let's say that we start off with expectation inflation at 2%. Workers anticipate future increases of 2% in the price level, so they demand higher wages, which causes SRAS to shift to the left as money wages rise. When the government validates this increase, they increase the money supply, which shifts SRAD to the right. Because of the way that this mechanism works, the price level will rise at the exact same rate as is predicted (because expectations are what catalyze the change). Actual inflation is equal to expected inflation, and output remains at Y*. THIS IS CONTINUOUS INFLATION AT A CONSTANT RATE.
NOTE* This isn't expansionary monetary policy- the BoC is not reducing the overnight target rate here- interest rates aren't affect by this. The BoC is merely accommodating for the growing demand for money by steadily increasing the nominal money supply. As such, the real money supply remains constant (so the ratio of money in the economy and the average price of products remains the same).
INFLATIONARY SUPPLY SHOCKS (negative supply shocks which temporarily inflate prices)
-Remember, in all cases of inflation, the price level rises to a new equilibrium level. In temporary inflationary situations, the price will simply remain at the new level, whereas in cases of persistent inflation, the equilibrium price level will continue to rise.
Inflationary supply shocks are caused by increased cost of productive inputs (for an example, an increase in the price of oil). This, in turn, causes costs to rise, which shifts SRAS to the left, and increases the price level while decreasing output.
BUT... as we know from previous chapters, this change is NOT permanent. Eventually, the higher unemployment which accompanies the supply-shock-recession puts downward pressures on wages, eventually causing them to fall. As a result of these wage-related cost savings to firms, the short run aggregate supply will shift back to its original level: costs will be the same as they once were, even though workers are being paid less. As SRAS shifts to the right, the price level and output level both shift back to what they were originally. SO, WE CAN CONCLUDE THAT INFLATIONARY SUPPLY SHOCKS ONLY CAUSE INFLATION IN THE SHORT RUN, AND THAT THERE IS NO SUSTAINED INFLATION HERE.
OKAY.. BUT WHAT HAPPENS WHEN WE HAVE AN ISOLATED SUPPLY SHOCK WHICH IS MONETARILY VALIDATED BY THE BoC?
Well, we start out at macroeconomic equilibrium, and then we shift SRAS to the left. This increases the price level and decreases the output level. After this, if the government tries to correct this recessionary gap by increasing the money supply (the money supply increases, which lowers interest rates, which increases investment and net exports, which drives aggregate expenditure up and shifts aggregate demand to the right), aggregate demand will shift to the right, which will bring output back to its equilibrium level, but at a higher general price level. As such, there will be more inflation than if the government does not intervene, but prices will still settle at the new equilibrium level, and inflation will not be persistant.
OKAY... BUT WHAT HAPPENS WHEN WE HAVE REPEATED SUPPLY SHOCKS WITHOUT MONETARY VALIDATION?
For an example, lets say we have cost push inflation, which occurs due to repeated increases in firms' costs. What happens then? Well, either the economy will stabilize at a higher price level and a smaller output level, OR persistent unemployment will erode the power of unions, causing monetary wages to fall, and bringing short run aggregate supply back to its original levels.
OKAY... BUT WHAT HAPPENS WHEN WE HAVE REPEATED SUPPLY SHOCKS WHICH ARE VALIDATED BY THE GOVERNMENT?
Well, then economies can enter into an inflationary spiral. For an example, if unions consistently negotiate to increase their monetary wages, and the government consistently validates this decrease in SRAS by printing more money, then an economy will experience consistent inflation (albeit, often the wage increases are very small, so inflation persists at a small but constant level). Basically, monetary validation reinforces price increases and offsets the natural tendency of Ye to return to Y* on its own, hence sustained inflation.
So.... is monetary validation of supply shocks desirable or undesirable? Yes and No!
No, because the BoC should allow for unemployment, which will eventually eliminate the output gap through the natural chain and anchor process.
Yes, because nations can avoid severe (albeit temporary) recessions by using monetary validation (although this comes at the cost of creating higher prices)
So its sort of a dilemma: governments must choose between long stretches of unemployment (no validating) or inflation (validating).
What is STAGFLATION? Stagflation is when supply shocks and monetary validating occur simultaneously, which leads to a NEGATIVE COMBINATION OF INFLATION AND UNEMPLOYMENT
Persistent Recessionary Gaps + Persistent Inflation: Continous SRAS shocks continue to push SRAS to the left, while continuous validation continues to push AD to the right. The overall effect on the output level is neutral, so the original recessionary gap is never closed. At the same time, both supply shocks and monetary validation continuously push up the price level, so the equilibrium price level will continuously rise while the economy remains in a recession. =(
-If a change in money wages is positive (wages increase), short run aggregate supply will decrease (it shifts to the left due to increased costs). This causes prices to rise, and the overall effect is inflationary
-If an change in money wages is negative (wages decrease), short run aggregate supply will increase (it shifts to the right due to lowered costs). This causes prices to fall, and the overall effect is deflationary.
Wages up --> Costs up ---> SRAS shifts left --> Equilibrium price level rises
Okay... so so far, we've talked about two causes of inflation: gap effects and worker expectations. There is, however, a third cause of inflationary pressures: AN EXOGENOUS SUPPLY SHOCK (for an example, a change in the price of raw materials, such as oil, can increase the general price level, which is why vegetables can start to cost more when the price of oil goes up).
SOOO
ACTUAL INFLATION IS A COMBINATION OF:
1: GAP INFLATION
2: EXPECTATION INFLATION
3: SUPPLY SHCOK INFLATION (even though that's a bit of an afterthought)
------------------------------------------
Next, we're going to talk about the difference between sustained/constant inflation and accelerating inflation.
CONSTANT/SUSTAINED INFLATION
-Here, we assume that there is no supply shock, and no output gaps
-As such, the ONLY cause for inflation when there is sustained inflation, is expectations
-This kind of inflation occurs when Y is equal to Y*
Let's summarize: constant inflation occurs when...
-There is no gap inflation
-There is no supply shock inflation
-Monetary growth is equal to the rate that wages increase at
-Actual inflation is equal to expected inflation
HOW IT WORKS:
1: Worker expectations trigger constant inflation (expectations cause workers to demand higher wages, which then causes SRAS to shift to the left)
2: The BoC validates the price increase by increase the money supply
SO.... let's say that we start off with expectation inflation at 2%. Workers anticipate future increases of 2% in the price level, so they demand higher wages, which causes SRAS to shift to the left as money wages rise. When the government validates this increase, they increase the money supply, which shifts SRAD to the right. Because of the way that this mechanism works, the price level will rise at the exact same rate as is predicted (because expectations are what catalyze the change). Actual inflation is equal to expected inflation, and output remains at Y*. THIS IS CONTINUOUS INFLATION AT A CONSTANT RATE.
NOTE* This isn't expansionary monetary policy- the BoC is not reducing the overnight target rate here- interest rates aren't affect by this. The BoC is merely accommodating for the growing demand for money by steadily increasing the nominal money supply. As such, the real money supply remains constant (so the ratio of money in the economy and the average price of products remains the same).
INFLATIONARY SUPPLY SHOCKS (negative supply shocks which temporarily inflate prices)
-Remember, in all cases of inflation, the price level rises to a new equilibrium level. In temporary inflationary situations, the price will simply remain at the new level, whereas in cases of persistent inflation, the equilibrium price level will continue to rise.
Inflationary supply shocks are caused by increased cost of productive inputs (for an example, an increase in the price of oil). This, in turn, causes costs to rise, which shifts SRAS to the left, and increases the price level while decreasing output.
BUT... as we know from previous chapters, this change is NOT permanent. Eventually, the higher unemployment which accompanies the supply-shock-recession puts downward pressures on wages, eventually causing them to fall. As a result of these wage-related cost savings to firms, the short run aggregate supply will shift back to its original level: costs will be the same as they once were, even though workers are being paid less. As SRAS shifts to the right, the price level and output level both shift back to what they were originally. SO, WE CAN CONCLUDE THAT INFLATIONARY SUPPLY SHOCKS ONLY CAUSE INFLATION IN THE SHORT RUN, AND THAT THERE IS NO SUSTAINED INFLATION HERE.
OKAY.. BUT WHAT HAPPENS WHEN WE HAVE AN ISOLATED SUPPLY SHOCK WHICH IS MONETARILY VALIDATED BY THE BoC?
Well, we start out at macroeconomic equilibrium, and then we shift SRAS to the left. This increases the price level and decreases the output level. After this, if the government tries to correct this recessionary gap by increasing the money supply (the money supply increases, which lowers interest rates, which increases investment and net exports, which drives aggregate expenditure up and shifts aggregate demand to the right), aggregate demand will shift to the right, which will bring output back to its equilibrium level, but at a higher general price level. As such, there will be more inflation than if the government does not intervene, but prices will still settle at the new equilibrium level, and inflation will not be persistant.
OKAY... BUT WHAT HAPPENS WHEN WE HAVE REPEATED SUPPLY SHOCKS WITHOUT MONETARY VALIDATION?
For an example, lets say we have cost push inflation, which occurs due to repeated increases in firms' costs. What happens then? Well, either the economy will stabilize at a higher price level and a smaller output level, OR persistent unemployment will erode the power of unions, causing monetary wages to fall, and bringing short run aggregate supply back to its original levels.
OKAY... BUT WHAT HAPPENS WHEN WE HAVE REPEATED SUPPLY SHOCKS WHICH ARE VALIDATED BY THE GOVERNMENT?
Well, then economies can enter into an inflationary spiral. For an example, if unions consistently negotiate to increase their monetary wages, and the government consistently validates this decrease in SRAS by printing more money, then an economy will experience consistent inflation (albeit, often the wage increases are very small, so inflation persists at a small but constant level). Basically, monetary validation reinforces price increases and offsets the natural tendency of Ye to return to Y* on its own, hence sustained inflation.
So.... is monetary validation of supply shocks desirable or undesirable? Yes and No!
No, because the BoC should allow for unemployment, which will eventually eliminate the output gap through the natural chain and anchor process.
Yes, because nations can avoid severe (albeit temporary) recessions by using monetary validation (although this comes at the cost of creating higher prices)
So its sort of a dilemma: governments must choose between long stretches of unemployment (no validating) or inflation (validating).
What is STAGFLATION? Stagflation is when supply shocks and monetary validating occur simultaneously, which leads to a NEGATIVE COMBINATION OF INFLATION AND UNEMPLOYMENT
Persistent Recessionary Gaps + Persistent Inflation: Continous SRAS shocks continue to push SRAS to the left, while continuous validation continues to push AD to the right. The overall effect on the output level is neutral, so the original recessionary gap is never closed. At the same time, both supply shocks and monetary validation continuously push up the price level, so the equilibrium price level will continuously rise while the economy remains in a recession. =(
The Gap Effect, and the Expectation Effect
THE WONDERFUL WORLD OF INFLATION:
People talk about inflation a LOT, so its probably a good idea know what it is. If you've survived macroeconomics without knowing what inflation is up until this point, congratulations, you live a seriously charmed life.
For the rest of us, lets reiterate:
Inflation is any rise in the general price level (P)
Inflation can be temporary/transitory (the price level increases to a new equilibrium price level, where it stays put for a while) or it can be sustained/persistant (the price level rises continuously over time)
In classical economics, aggregate demand shocks and aggregate supply shocks cause TEMPORARY inflation (one-time jumps in the price level) as a side effect of gap inflation. In this chapter, we are more concerned with exploring the causes of sustained inflation (which, as we will learn, is affected by people's expectations). We're also going to look at what causes accelerating inflation.
On a very basic level, prices can rise for two different reasons
1) There is a decrease in supply (this is called cost-push inflation)
2) There is an increase in demand (this is called demand-pull inflation)
HERE IS A LIST OF TERRIBLY IMPORTANT DEFINITIONS WHICH WE SHOULD ALL PROBABLY LEARN IF WE WANT TO DO WELL IN MACROECONOMICS:
Inflation - A rise in the consumer price index
Inflation Rate - The percentage change in the consumer price index
Zero Inflation - A situation where there is no percentage change in the consumer price index
Stable Inflation - A situation where the inflation rate remains relatively constant over time (ie: inflation is 2% for seven years in a row)
Accelerating Inflation - The inflation rate increases over time (ie: inflation is 2% in 1991, 4% in 1992, 8% in 1993, and 13% in 1994)
Disinflation - The inflation rate decrease over time (ie: inflation is 16% in 1991, 9% in 1992, 5% in 1993, and 3% in 1994)
Deflation - A negative rate of inflation: the consumer price index goes down (so goods end up costing less)
Low inflation: 1-3%
Medium inflation: 3-6%
High inflation: Over 6%
Hyperinflation: Over 20%
Why are we concerned with inflation? Because too much inflation inflicts a bunch of costs on society. Here are some of them:
-It decreases the purchasing power of people who are on fixed incomes (both contractually and in terms of pensionary incomes)
-It can arbitrarily redistribute income
-It undermines the efficiency of the price system by distorting relative prices (so its harder for consumers to tell if they are getting a good deal or if they are getting ripped off if the general price level is continuously in flux)
---------------------------------------
One last important concept is NAIRU, which is the non-accelerating inflationary rate of unemployment. Basically, this is the rate of unemployment present in an economy when there are no inflationary or recessionary gaps (when Y is at Y*). This does not mean that there is no unemployment- only that there is no GAP unemployment (there can still be frictional and structural unemployment). NAIRU is also sometimes called "full employment," or U*.
We're going to look at why NAIRU is called NAIRU in this chapter
--------------------------------------------------
INFLATION AND WAGE CHANGES:
Okay... why do people's wages change?
There are two factors which can explain why people's wages change
1) The gap effect
2) The expectation effect
THE GAP EFFECT
-Basically, this is demand-pull inflation caused by excess demand in the labour market.
-In an inflationary gap, we get GAP INFLATION. Y is larger than Y*, U is smaller than U*, and there is an excess demand for labour. As a result, firms are forced to raise wages in order to keep employees. The result of this rise in wages is that average costs rise (which, in turn, causes the short run aggregate supply to shift to the left, correcting the inflationary gap).
-In a recessionary gap, we get GAP DEFLATION. Y is smaller than Y*, U is greater than U*, and there is an excess supply of labour. As a result, firms can safely lower employee wages without the risk of losing employees (its better to have a low-paying job than no job at all). This, in turn, causes average costs to fall, which shifts short run aggregate supply to the right, correcting the inflationary gap.
-When there is no gap, there is NO INFLATION. Y equals Y*, U equal U*, demand and supply of labour are equal, wages remain constant, average costs remain constant, and the short run aggregate supply remains constant (as do prices).
The Phillips Curve shows the inverse relation between the unemployment rate and the rate of changes in nominal wages.
Basically, as unemployment gets higher, wage increases get smaller and smaller, and eventually, turn into wage decreases (salary cuts).
Classical economists ONLY considered the gap effect to be a source of inflation, and believed that gaps would only create a temporary period of inflation. They also believed that if there was no gap, that there would be no increase in wages...
They were entirely correct... there is also...
THE EXPECTATION EFFECT
-Here, expected inflation is taken into account when employees are negotiating wage demands with their employers
-Here, inflation is like a "self fulfilling prophecy". If employees believe that there will be inflation of a certain level over the next year, they will negotiate for higher wages to account for that inflation. This, in turn, increases firms' average costs, which shifts the SRAD curve to the left, effecting CAUSING an increase in prices in-step with what employees predicted. In other words, preemptively adjusting wages for expected inflation can MANUFACTURE real inflation!
Causes of expectation inflation:
-Expectation inflation can be caused by backward-looking, where people assume that past rates in inflation will continue into the future (people believe that history repeats itself)
-At the same time, if an economy has an extremely volatile inflation rate, it may take time for people to develop a psychological trend to respond to inflation- it takes a while to figure out how the pattern works and predict accurately for the future.
-Expectation inflation can also be forward-looking. Workers could look at governments' macroeconomic policies to predict what future changes may be in store (they can prognosticate).
-The main thing to remember is that in economics, we assume that people are RATIONAL BEINGS with their own best interests at heart. People try to use all available information to the best of their ability, and for the most part, they are correct. People can adjust rapidly to changes.
The TOTAL EFFECT: Changes in money wages are a combination of the gap effect and the expectation effect
-In this way, we can decompose an increase in the rate of wage changes into the gap effect (excess demand for labour) and the expectation effect (psychology)
-We can think of the expectation effect as the "cake" and the gap effect as the "icing", which causes increased wages changes on top of expected changes
-The total effect can be either positive or negative.
People talk about inflation a LOT, so its probably a good idea know what it is. If you've survived macroeconomics without knowing what inflation is up until this point, congratulations, you live a seriously charmed life.
For the rest of us, lets reiterate:
Inflation is any rise in the general price level (P)
Inflation can be temporary/transitory (the price level increases to a new equilibrium price level, where it stays put for a while) or it can be sustained/persistant (the price level rises continuously over time)
In classical economics, aggregate demand shocks and aggregate supply shocks cause TEMPORARY inflation (one-time jumps in the price level) as a side effect of gap inflation. In this chapter, we are more concerned with exploring the causes of sustained inflation (which, as we will learn, is affected by people's expectations). We're also going to look at what causes accelerating inflation.
On a very basic level, prices can rise for two different reasons
1) There is a decrease in supply (this is called cost-push inflation)
2) There is an increase in demand (this is called demand-pull inflation)
HERE IS A LIST OF TERRIBLY IMPORTANT DEFINITIONS WHICH WE SHOULD ALL PROBABLY LEARN IF WE WANT TO DO WELL IN MACROECONOMICS:
Inflation - A rise in the consumer price index
Inflation Rate - The percentage change in the consumer price index
Zero Inflation - A situation where there is no percentage change in the consumer price index
Stable Inflation - A situation where the inflation rate remains relatively constant over time (ie: inflation is 2% for seven years in a row)
Accelerating Inflation - The inflation rate increases over time (ie: inflation is 2% in 1991, 4% in 1992, 8% in 1993, and 13% in 1994)
Disinflation - The inflation rate decrease over time (ie: inflation is 16% in 1991, 9% in 1992, 5% in 1993, and 3% in 1994)
Deflation - A negative rate of inflation: the consumer price index goes down (so goods end up costing less)
Low inflation: 1-3%
Medium inflation: 3-6%
High inflation: Over 6%
Hyperinflation: Over 20%
Why are we concerned with inflation? Because too much inflation inflicts a bunch of costs on society. Here are some of them:
-It decreases the purchasing power of people who are on fixed incomes (both contractually and in terms of pensionary incomes)
-It can arbitrarily redistribute income
-It undermines the efficiency of the price system by distorting relative prices (so its harder for consumers to tell if they are getting a good deal or if they are getting ripped off if the general price level is continuously in flux)
---------------------------------------
One last important concept is NAIRU, which is the non-accelerating inflationary rate of unemployment. Basically, this is the rate of unemployment present in an economy when there are no inflationary or recessionary gaps (when Y is at Y*). This does not mean that there is no unemployment- only that there is no GAP unemployment (there can still be frictional and structural unemployment). NAIRU is also sometimes called "full employment," or U*.
We're going to look at why NAIRU is called NAIRU in this chapter
--------------------------------------------------
INFLATION AND WAGE CHANGES:
Okay... why do people's wages change?
There are two factors which can explain why people's wages change
1) The gap effect
2) The expectation effect
THE GAP EFFECT
-Basically, this is demand-pull inflation caused by excess demand in the labour market.
-In an inflationary gap, we get GAP INFLATION. Y is larger than Y*, U is smaller than U*, and there is an excess demand for labour. As a result, firms are forced to raise wages in order to keep employees. The result of this rise in wages is that average costs rise (which, in turn, causes the short run aggregate supply to shift to the left, correcting the inflationary gap).
-In a recessionary gap, we get GAP DEFLATION. Y is smaller than Y*, U is greater than U*, and there is an excess supply of labour. As a result, firms can safely lower employee wages without the risk of losing employees (its better to have a low-paying job than no job at all). This, in turn, causes average costs to fall, which shifts short run aggregate supply to the right, correcting the inflationary gap.
-When there is no gap, there is NO INFLATION. Y equals Y*, U equal U*, demand and supply of labour are equal, wages remain constant, average costs remain constant, and the short run aggregate supply remains constant (as do prices).
The Phillips Curve shows the inverse relation between the unemployment rate and the rate of changes in nominal wages.
Basically, as unemployment gets higher, wage increases get smaller and smaller, and eventually, turn into wage decreases (salary cuts).
Classical economists ONLY considered the gap effect to be a source of inflation, and believed that gaps would only create a temporary period of inflation. They also believed that if there was no gap, that there would be no increase in wages...
They were entirely correct... there is also...
THE EXPECTATION EFFECT
-Here, expected inflation is taken into account when employees are negotiating wage demands with their employers
-Here, inflation is like a "self fulfilling prophecy". If employees believe that there will be inflation of a certain level over the next year, they will negotiate for higher wages to account for that inflation. This, in turn, increases firms' average costs, which shifts the SRAD curve to the left, effecting CAUSING an increase in prices in-step with what employees predicted. In other words, preemptively adjusting wages for expected inflation can MANUFACTURE real inflation!
Causes of expectation inflation:
-Expectation inflation can be caused by backward-looking, where people assume that past rates in inflation will continue into the future (people believe that history repeats itself)
-At the same time, if an economy has an extremely volatile inflation rate, it may take time for people to develop a psychological trend to respond to inflation- it takes a while to figure out how the pattern works and predict accurately for the future.
-Expectation inflation can also be forward-looking. Workers could look at governments' macroeconomic policies to predict what future changes may be in store (they can prognosticate).
-The main thing to remember is that in economics, we assume that people are RATIONAL BEINGS with their own best interests at heart. People try to use all available information to the best of their ability, and for the most part, they are correct. People can adjust rapidly to changes.
The TOTAL EFFECT: Changes in money wages are a combination of the gap effect and the expectation effect
-In this way, we can decompose an increase in the rate of wage changes into the gap effect (excess demand for labour) and the expectation effect (psychology)
-We can think of the expectation effect as the "cake" and the gap effect as the "icing", which causes increased wages changes on top of expected changes
-The total effect can be either positive or negative.
Review K-Touch H899
Tidak kepingin ketinggalan, rupanya K-Touch yg sering muncul di iklan2 tv swasta nasional yg menawarkan produk hape murah tapi fitur berlimpah juga ikut kecimpung di dunia hape QWERTY yg memang lagi hot-hotnya.
K-Touch H899 qwerty adalah salah satunya. K-Touch H899 hadir dgn aplikasi “asli” Shmessenger, BOLT lite & Snaptu. Ponsel K-Touch H899 mempunyai shortcut ke Facebook, Twitter, Friendster, MySpace, Bebo dan Google. Selain itu, hape ini juga dipersenjatai dgn kemampuan Dual GSM On (Single Line), Layar QCIF 2,2 inci TFT 65.000 warna, Kamera VGA, Video, Pemutar Audio dgn Equalizer yg dapat diedit, Radio FM tidak perlu mesti menginsert Earphone/Handsfree, Bluetooth A2DP, Slot MicroSD s/d 16 GB, Java MIDP 2.0, Email, Blacklist untuk Panggilan & SMS.
Seperti telah diungkapkan di atas, handphone K-Touch qwerty ini bangga dengan aplikasi yg berbeda dari hape qwerty lainnya yang mempunyai fitur “impor” seperti eBuddy & Opera Mini, K-Touch H899 bangga tampil dengan spesifikasi software chat Shmessenger dan browser BOLT lite.
Tiphone T30 dan T28
Tiphone Mobile kembali mengguncang pasar ponsel tanah air dengan menggelontorkan dua tipe ponsel qwerty seharga kurang dari Rp500.000, seri T30 dan T28.
"Kami ingin mencoba menggarap komunitas mahasiswa dengan menawarkan ponsel qwerty murah, T28 dengan harga Rp399.000 dan T30 dengan Rp499.000. Itu juga sebabnya kami membuat pameran di Depok, yang memang wilayahnya mahasiswa," ujar Direktur Retail TiPhone Mobile David Tirtawijaya, di mal MargoCity, Depok, Jawa Barat, Sabtu (20/3/2010).
David sendiri yakin, TiPhone mampu menarik para mahasiswa dengan iming-iming harga murah, meski untuk T30 harga yang ditawarkan merupakan harga promo. Harga retail sebenarnya untuk T30 sendiri sekira Rp599.000, sedangkan T28 tetap dengan Rp399.000.
Tidak heran jika kemudian TiPhone berani menggelar pameran di salah satu mall terbesar di Depok ini selama dua hari. Nantinya, menurut David, pameran yang dibarengi dengan penjualan langsung ini akan diteruskan di beberapa kota di Indonesia, khususnya kota-kota besar.
Untuk urusan spesifikasi, aplikasi jejaring sosial macam Facebook dan Twitter telah terintegrasi di dalamnya, termasuk fitur messaging dari Yahoo, eBuddy, juga TiPhone Messenger yang difasilitasi lewat Ring Email. Tidak ketinggalan juga fungsi dual on GSM-GSM yang dibundle dengan jaringan luas berkualitas lewat simPati Max Telkomsel.
Hanya saja, untuk T30 dibenamkan juga fitur video chat yang memungkinkan pengguna melakukan komunikasi tatap muka dengan pengguna TiPhone lainnya. Selain itu, dalam T30 juga telah dilengkapi dengan aplikasi Opera Mini yang bisa digunakan untuk browsing internet. Tidak heran jika TiPhone membandrol T30 lebih mahal ketimbang T28.
"Untuk pameran selama dua hari ini kami sendiri tidak memasang target. Namun sampai hari ini diperkirakan sudah terjual lebih dari 2.000 unit untuk dua tipe tersebut. Dalam dua hari, kemungkinan bisa mencapai lebih dari 4.000 unit," tandas David.
copas okezone.com
Tiphone akan mengeluarkan Ponsel bebasis Android
Meski ponsel dengan platform Blackberry masih mendominasi segmen ponsel cerdas (smartphone), platform lain dengan judul "Android" sudah mulai menggeliat. Beberapa vendor ponsel besar bahkan sudah mengeluarkan produknya yang berbasis "Android".
Tak mau ketinggalan, PT Tiphone Mobile Indonesia melalui produk TiPhone juga membidik pasar Android. "Tren saat ini sedang mengarah pada ponsel berbasis Android, sehingga kami berusaha mengejar tren tersebut," ujar Endy Purwanto, saat konferensi pers peluncuran produk barU TiPhone di Margo City, Depok, Sabtu (20/3/2010).
Pengguna ponsel dengan basis Android, katanya, sudah cukup banyak, sehingga segmen ini sangat potensial. "TiPhone akan meluncurkan produk yang berbasis Android pada bulan April. Paling lambat, satu setengah bulan dari sekarang," ujar Endy yang saat ini menjabat sebagai Vice President PT Tiphone Mobile Indonesia.
Produk baru yang diluncurkan oleh TiPhone di Margo City, Depok, adalah dua ponsel Qwerty yang dibandrol dengan harga di bawah Rp 500 ribu. Namun harga ini hanya promosi yang berlaku hingga pameran TiPhone berakhir besok, Minggu (21/3/2010).
copas kompas.com
Tak mau ketinggalan, PT Tiphone Mobile Indonesia melalui produk TiPhone juga membidik pasar Android. "Tren saat ini sedang mengarah pada ponsel berbasis Android, sehingga kami berusaha mengejar tren tersebut," ujar Endy Purwanto, saat konferensi pers peluncuran produk barU TiPhone di Margo City, Depok, Sabtu (20/3/2010).
Pengguna ponsel dengan basis Android, katanya, sudah cukup banyak, sehingga segmen ini sangat potensial. "TiPhone akan meluncurkan produk yang berbasis Android pada bulan April. Paling lambat, satu setengah bulan dari sekarang," ujar Endy yang saat ini menjabat sebagai Vice President PT Tiphone Mobile Indonesia.
Produk baru yang diluncurkan oleh TiPhone di Margo City, Depok, adalah dua ponsel Qwerty yang dibandrol dengan harga di bawah Rp 500 ribu. Namun harga ini hanya promosi yang berlaku hingga pameran TiPhone berakhir besok, Minggu (21/3/2010).
copas kompas.com
QWERTY dibawah Rp. 500.000,-
Persaingan ketat di antara produk ponsel Qwerty dari berbagai vendor tak menghambat TiPhone untuk meluncurkan dua produk terbarunya. Produk yang dinamakan T30 dan T28 ini dibandrol dengan harga kurang dari Rp 500.000.
"Dua ponsel ini termasuk ponsel Qwerty yang paling murah dibandingkan dengan produk dari vendor lain," jelas Endy Purwanto saat konferensi pers di Margo City Mall, Depok, Sabtu (20/03/2010).
Kedua jenis ponsel ini, katanya, sudah terjual hingga 460 unit, meski peluncuran resmi kepada publik baru akan dilakukan pada pukul 17.00 WIB nanti. "Kami menargetkan penjualan 2.000 unit pada hari pertama, dan juga pada hari kedua. Kami optimis target 4.000 unit akan tercapai hingga pameran besok," ujar Endy yang saat ini menjabat sebagai Vice President PT TiPhone Mobile Indonesia.
Seri T28 dibandrol dengan harga Rp 399.000, sedangkan T30 Rp 499.000. "Tapi harga ini hanya berlaku sebagai harga promosi pada pameran hingga besok di Margo City Mall Depok," tambah Endy.
Dua ponsel baru dari TiPhone ini memiliki fitur yang kurang lebih sama. Keduanya memiliki dual kamera, FM radio, bluetooth, slot micro SD, dan MP3 player. Keduanya juga memiliki fitur dual sim card (GSM/GSM), yang salah satu slotnya sudah di-lock oleh Telkomsel.
Perbedaannya terletak di fitur TiPhone Messenger dan push e-mail yang hanya dimiliki oleh seri T30. TiPhone masih akan menyelenggarakan pameran kedua produk terbarunya di Margo City Depok, hingga Minggu (21/03/2010)
copas kompas.com
Twitter Ulang Tahun Ke-4
Hari ini adalah hari spesial bagi seluruh pengguna Twitter karena merupakan hari ulang tahun jejaring mikroblog Twitter yang ke-4.
Minggu 21 Maret 2006, salah satu pendiri jejaring ini, Jack Dorsey, pertama kali mengirim pesan tweet pertama, untuk kemudian bersama-sama dengan Evan Williams dan Biz Stone mengembangkan Twitter.
Twitter bermula saat Jack mengusulkan sebuah layanan yang juga bisa diakses melalui SMS untuk berkomunikasi dengan kelompok kecil, seperti layanan pesan teks TXTMob. Oleh karenanya, pesan tweet dibatasi hanya 140 karakter.
Mereka menyukai ide bahwa melalui SMS, setiap orang bisa mengupdate status dan menerima pesan status dari teman-teman mereka, di mana mereka berada.
Dorsey dan rekan-rekannya awalnya belum memberikan proyek itu sebuah nama, hanya menamakan pekerjaan itu sebagai 'Status'.
Namun, saat memikirkan sebuah nama, mereka mencoba berbagai nama, hingga sempat ingin menamakannya sebagai 'Twitch' (bergetar).
"Melalui nama itu, kami ingin menggambarkan sensasi fisik, ketika pengguna layanan ini bisa mem-buzz ponsel di saku rekan mereka," ujar Dorsey pada suatu wawancara dengan LA Times.
Namun, karena merasa Twitch tidak bisa menggambarkan arti keseluruhan dari layanan itu, akhirnya mereka kembali mencari kata yang tepat di kamus, dan menemukan kata 'Twitter'.
"Kata ini sangat pas. Definisinya: 'informasi pendek yang serampangan' dan 'kicauan burung' sangat cocok mewakili produk yang kami tawarkan," kata Dorsey.
Hanya empat tahun berselang, kini kata Twitter sudah tertera di kamus Collins English Dictionary sebagai: "sebuah situs web di mana setiap orang bisa memposting pesan pendek tentang aktivitas terbaru mereka".
Selain itu kata 'Twitterati' juga didefinisikan sebagai: para pengguna Twitter, dan kata 'Twitterverse' berarti : website Twitter dan para penggunanya. Twitter pun menjadi salah satu jejaring sosial populer di kalangan pengguna internet di Indonesia, selain Facebook.
Buktinya, hari ini UAN (ujian akhir nasional) menjadi salah satu dari topik-topik terpopuler (trending topics) di Twitter. Setidaknya ada 50 juta tweet yang tercipta di Twitter saban hari, atau setara dengan 600 tweet tiap detik.
Jumlah itu merupakan lonjakan yang sangat tinggi bila dibandingkan tiga tahu terakhir. "Kami mencatat pertumbuhan pesat sebesar 1.400 persen jumlah rata-rata tweet, sepanjang tahun," kata Kevin Weil, Analytics Lead Twitter, di blog resmi Twitter.
copas vivanews.com
Minggu 21 Maret 2006, salah satu pendiri jejaring ini, Jack Dorsey, pertama kali mengirim pesan tweet pertama, untuk kemudian bersama-sama dengan Evan Williams dan Biz Stone mengembangkan Twitter.
Twitter bermula saat Jack mengusulkan sebuah layanan yang juga bisa diakses melalui SMS untuk berkomunikasi dengan kelompok kecil, seperti layanan pesan teks TXTMob. Oleh karenanya, pesan tweet dibatasi hanya 140 karakter.
Mereka menyukai ide bahwa melalui SMS, setiap orang bisa mengupdate status dan menerima pesan status dari teman-teman mereka, di mana mereka berada.
Dorsey dan rekan-rekannya awalnya belum memberikan proyek itu sebuah nama, hanya menamakan pekerjaan itu sebagai 'Status'.
Namun, saat memikirkan sebuah nama, mereka mencoba berbagai nama, hingga sempat ingin menamakannya sebagai 'Twitch' (bergetar).
"Melalui nama itu, kami ingin menggambarkan sensasi fisik, ketika pengguna layanan ini bisa mem-buzz ponsel di saku rekan mereka," ujar Dorsey pada suatu wawancara dengan LA Times.
Namun, karena merasa Twitch tidak bisa menggambarkan arti keseluruhan dari layanan itu, akhirnya mereka kembali mencari kata yang tepat di kamus, dan menemukan kata 'Twitter'.
"Kata ini sangat pas. Definisinya: 'informasi pendek yang serampangan' dan 'kicauan burung' sangat cocok mewakili produk yang kami tawarkan," kata Dorsey.
Hanya empat tahun berselang, kini kata Twitter sudah tertera di kamus Collins English Dictionary sebagai: "sebuah situs web di mana setiap orang bisa memposting pesan pendek tentang aktivitas terbaru mereka".
Selain itu kata 'Twitterati' juga didefinisikan sebagai: para pengguna Twitter, dan kata 'Twitterverse' berarti : website Twitter dan para penggunanya. Twitter pun menjadi salah satu jejaring sosial populer di kalangan pengguna internet di Indonesia, selain Facebook.
Buktinya, hari ini UAN (ujian akhir nasional) menjadi salah satu dari topik-topik terpopuler (trending topics) di Twitter. Setidaknya ada 50 juta tweet yang tercipta di Twitter saban hari, atau setara dengan 600 tweet tiap detik.
Jumlah itu merupakan lonjakan yang sangat tinggi bila dibandingkan tiga tahu terakhir. "Kami mencatat pertumbuhan pesat sebesar 1.400 persen jumlah rata-rata tweet, sepanjang tahun," kata Kevin Weil, Analytics Lead Twitter, di blog resmi Twitter.
copas vivanews.com
SkyBee 83AT dan 80SS
Meski terbilang baru di pasar ponsel merek lokal, namun SkyBee sudah berani berharap ada 600 ribu unit ponsel yang bakal laku mereka jual hingga akhir 2010 nanti.
Optimisme itu berangkat dari animo ratusan pengunjung yang memadati booth ponsel miliknya di EX Plaza, Jumat (19/3/2010). Dalam kesempatan itu, SkyBee meluncurkan dua ponsel terbarunya yang dibundel dengan kartu IM3 milik Indosat.
"Merek kami memang baru muncul awal tahun ini, namun hingga akhir tahun nanti kami menargetkan penjualan 600 ribu unit," kata Chief Marketing Officer PT SkyBee, Jimmy Halim di sela peluncuran itu.
Dua seri ponsel yang baru diluncurkan SkyBee adalah 83AT dan 80SS. Hingga akhir tahun, akan ada delapan seri lagi yang dipersiapkan untuk bersaing di pasar ponsel merek lokal pabrikan China.
"Sekarang kami memang baru meluncurkan dua jenis ponsel, tapi dalam beberapa bulan ke depan kami akan menyiapkan tiga hingga empat model lagi. Hingga akhir tahun mungkin ada sepuluh seri," kata Jimmy.
Mengenai model ponsel yang akan diluncurkan SkyBee, Jimmy mengatakan masih tetap mengandalkan ponsel-ponsel dengan desain Qwerty. "Pasarnya masih luas, dua tiga tahun lagi masih dapat bertahan, untuk Android kami masih melihat-lihat," kata dia.
Ditambahkan Jimmy, setelah di Jakarta SkyBee akan menggelar roadshow untuk memperkenalkan brand ponselnya ke 12 kota di Indonesia, yakni Jawa, Kalimantan, dan Sumatera. Mengenai layanan purna jual, SkyBee mengaku telah mempersiapkannya.
"Kami sangat memperhatikan after sales service, dan saat ini telah tersebar di 23 kota karena kami bekerjasama dengan Astec," kata Jimmy.
Optimisme itu berangkat dari animo ratusan pengunjung yang memadati booth ponsel miliknya di EX Plaza, Jumat (19/3/2010). Dalam kesempatan itu, SkyBee meluncurkan dua ponsel terbarunya yang dibundel dengan kartu IM3 milik Indosat.
"Merek kami memang baru muncul awal tahun ini, namun hingga akhir tahun nanti kami menargetkan penjualan 600 ribu unit," kata Chief Marketing Officer PT SkyBee, Jimmy Halim di sela peluncuran itu.
Dua seri ponsel yang baru diluncurkan SkyBee adalah 83AT dan 80SS. Hingga akhir tahun, akan ada delapan seri lagi yang dipersiapkan untuk bersaing di pasar ponsel merek lokal pabrikan China.
"Sekarang kami memang baru meluncurkan dua jenis ponsel, tapi dalam beberapa bulan ke depan kami akan menyiapkan tiga hingga empat model lagi. Hingga akhir tahun mungkin ada sepuluh seri," kata Jimmy.
Mengenai model ponsel yang akan diluncurkan SkyBee, Jimmy mengatakan masih tetap mengandalkan ponsel-ponsel dengan desain Qwerty. "Pasarnya masih luas, dua tiga tahun lagi masih dapat bertahan, untuk Android kami masih melihat-lihat," kata dia.
Ditambahkan Jimmy, setelah di Jakarta SkyBee akan menggelar roadshow untuk memperkenalkan brand ponselnya ke 12 kota di Indonesia, yakni Jawa, Kalimantan, dan Sumatera. Mengenai layanan purna jual, SkyBee mengaku telah mempersiapkannya.
"Kami sangat memperhatikan after sales service, dan saat ini telah tersebar di 23 kota karena kami bekerjasama dengan Astec," kata Jimmy.
Skybee 83AT
 | Harga cuma Rp 699.000 Rp 499.000* Spesifikasi
|
Skybee 80SS
 | Harga cuma Rp 999.000 Rp 799.000 * Spesifikasi
|
Nonton TV di Google Chrome
Google tak habis-habisnya memberikan layanan pada masyarakat, khusunya para pencinta internet, dengan memberikan fasilitas nonton tv online secara gratis. Bahkan ditafsirkan 2780 chanel siaran TV dari seluruh negara, termasuk 4 stasiun TV Indonesia bisa dinikmati secara gratis, modalnya hanya butuh koneksi internet doang.Langkahnya cukup mudah, hanya perlu browaer Chrome. Kemudian kunjungi situs www.tv-chrome.com.
Kemudian anda dihadapkan layar situs TV Chrome. Klik Saja [Get TV-Chrome]
Muncul layar konfirmasi tentang apakah kamu akan menginstall plug-in tv chrome. Klik [Install] jika iya, tapi kalau kamu mengurungkan niat klik saja [Cancel].
Beres menginstall mucul berupa pesan bahwa kamu sekarang sudah dapat menikmati layanan TV-Chrome.
Direktori yang tersusun pun terlihat rapih dan simpel, kamu gak terlalu bingung harus mencari chanel pilihan dari 2780 stasiun tv. Gambar di atas tampak Indonesia terdapat 4 chanel TV yang kamu bisa nikmati, yakni Bali TV, Metro TV, Tv One, dan TRI TV.
Dari 4 stasiun tv Indonesia tersebut, pada komputer saya dengan kecepatan koneksi internet 384 kbps yang paling nyaman adalah TRI TV, karena jarang nge-lag dibandingkan stasiun TV yang lain. Mungkin pada komputer kalian berbeda. Hal ini memang tergantung kecepatan koneksi internet dan bandwitch server. karzatuk.blogspot.com
Monetary Policy in Canada
This is the last piece of the puzzle! This chapter is all about how the government of Canada uses policy instruments to change the money supply!
The central bank can set the money supply and let the market determine the interest rate
OR
The central bank can set the interest rate and the money supply will adjust to this interest rate
PROBLEMS WITH ADJUSTING THE MONEY SUPPLY DIRECTLY:
-The Bank of Canada (BoC) cannot directly control the money supply through the currency ratio and the reserve ratio (they can't control minds and make banks hold more or less assets and make people hold more or less money)
-Also, it's sometimes confusing as to which definition of the money supply should be used: H? M1? M2? Know know...
SO, the BoC sets the interest rate instead, and then accommodates for fluctuations and changes by using open market operations. (The US directly changes the money supply by printing more or less money, while Canada simply changes the bank rate)
There are 5 Different Policy Instruments The BoC Uses:
1: The Overnight Target Rate (Which is changes by changing the Bank Rate)
2: Buyback Operations (Specials and Reverses)
3: Shifting Government of Canada Accounts
4: Moral Suasion
5: The Announcement Effect
NOTE** It's important to know the difference between operational targets: usually, governments can only target one factor, so they have to choose between targeting
a) The Exchange Rate (from 1962-1970, Canada targeted the exchange rate and tried to keep its external value at 92.5)
b) The Interest Rate/Money Supply (from 1975-1982, the BoC would adjust interest rates to affect the money supply through the liquidity preference system. The problem was that interest rates became extremely volatile, and the government had no way of controlling the price level)
c) The Inflation Rate (the BoC uses interest rates and money supply as a policy instrument to affect the inflation rate, so the operational target is currently PRICES. The BoC tries to keep inflation at about 2%, because a little bit of inflation is healthy
Policy Variables: These are the ultimate targets for policy changes
Y - stable economic growth
U - low unemployment
P - Low Inflation !!! THIS IS THE PRESENT GOAL OF THE BoC
----------------------------------
THE 5 POLICY INSTRUMENTS
1: THE OVERNIGHT RATE
Note* the interest rates on borrowing increase as the term of the loan grows longer (as a compensation for leaving money inaccessible for a longer amount of time)
The Overnight Rate: This is the daily interest rate which chartered banks charge each other for borrowing money (or that investment dealers charge to banks for borrowing money) in cases where they have insufficient funds to clear cheques. These loans have a very short maturity (the term is extremely short) and the interest rates are MARKET DRIVEN
The BoC is the LENDER OF LAST RESORT
The Bank Rate is the rate which the BoC charges to lend to money to chartered banks. This is the upper limit of the overnight rate. Because the bank rate is so high, most chartered banks will not borrow from the bank of Canada unless all other sources refuse to loan them money
The Overnight Rate Operational Band: This is the difference between the highest overnight rate (the bank rate) and the lowest overnight rate (the rate the BoC pays to borrow for depoits)
-It is measured in basis points (each basis point is worth 0.01%, so an operational band of 50 basis points would mean a difference of 0.5% between the highest and lowest overnight rates)
Overnight Rate Target: the midpoint of the operational band for overnight rates, as set by the BoC
-THIS is the policy instrument used by the BoC to affect the interest rate
-There are fixed announcement dates: the BoC announces the overnight rate target 8 times per year
The USA uses a slightly different system...
OKAY: so basically, the bank rate is FIXED by the BoC
-Money's liquidity (the demand for money) is given
-The BoC accommodates the money supply to ensure equilibrium in the money market
-The money supply is thus endogenous, and becomes determined from the interest rates and the demand for money!
1: BoC increases the overnight rate (i goes up)
2: Banks increase their target reserves to buffer against this higher opportunity cost of borrowing from the BoC
3: The money supply decreases (because the reserve ratio is higher)
4: The market interest rate goes up!
This is a long-about way of showing how the market interest rate (which includes the prime rate, the 5-year mortgage rate, and commercial lines of credit) is related to the overnight interest rate!
NOTE* A change in the overnight rate target and other market interest rates usually happens very quickly BUT the demand for loans changes gradually (so the first step of the overall transmission mechanism is much faster than then subsequent steps)
As the demand for money changes, the BoC accommodates by using open market operations!
2: BUYBACK OPERATIONS (INCLUDING OPEN MARKET OPERATIONS)
-The BoC Uses Specials and Reverses to stabilize the overnight rate inside the operational band
-Buyback operations are used to fine-tune the overnight rate target within one basis point of the target
SPECIALS (Specials purchase and resale agreement):
-This is a transaction in which the BoC offers to purchase government of Canada securities from major financial players with an agreement to sell them back at a predetermined price the next business day
-This allows the BoC to put money into the system for one day
-This OFFSETS UPWARD PRESSURES on the overnight rate (by adding a bit to the money supply, the BoC decreases the interest rate a little bit)
-The BoC initiates SPRAs daily if overnight funds are generally trading above the target rate
-Differences between the purchase and the sale price determines the overnight rate
REVERSES (Sale and repurchase agreement)
-This is a transaction in which the BoC offers to SELL government securities to major financial parties with an agreement to buy them back at predetermined prices the next business day (this sale is called a reverse)
-Basically, this let's the BoC take cash out of the system for a day (by coaxing investors to temporarily store wealth in bonds instead of money)
-Reverses are used to offset downward pressures on the overnight rate
-The BoC initiates reverses daily if overnight funds are generally trading below the target rate
OPEN MARKET OPERATIONS (OMO): LONG RUN MONETARY ACCOMMODATION
-An OMO is the purchase/sale of government securities by the BoC in the open market for long run monetary accommodation
-Government securities are long run loans to the government
-Treasury bills are short term loans to the government
-These are auctioned off every Thursday, just like stocks, in a market
The BoC BUYS securities to increase excess reserves and attempt to increase the money supply
The BoC SELLS securities to decrease excess reserves and attempt to decrease the money supply
This analysis assumes that there are no cash drains, and that the reserve ratio remains constant in the long run (neither of which may be true)
3: SHIFTING GOVERNMENT OF CANADA DEPOSITS
Cash Management: The Bank of Canada shifts Government of Canada deposits to and from the Bank of Canada and the chartered banks. This is the major day-to-day instrument which the BoC uses to reinforce overnight rate targets within the operational band
Transferring money to a chartered bank increases their reserves, which allows the chartered bank to safely lend out more money, thus increasing the money supply
Transferring money from a chartered bank back to the BoC decreases chartered banks' reserves, which forces the chartered bank to lend out a smaller proportion of money, thus decreasing the money supply
4: MORAL SUASION
-The BoC enlists the cooperation of commercial banks
-This is possible because there is such a small number of banks in Canada
-Since there are not required reserves in Canada (required reserves are not legislated), this tool is more important
-For an example, the BoC may require an increase in settlement balances held at the BoC
5: THE ANNOUNCEMENT EFFECT
-There are fixed announcement dates where the BoC announces the bank rate (8 times per year)
-Like moral suasion, an increase in the bank rate sends a signal to the economy of the government's intentions, which can affect private investment (due to changed expectations)
CONCLUSION: The BoC fixes the overnight rate target, then uses buyback operations and shifting to reinforce it and open market operation to accommodate the demand for money in the long run
1: Policy instruments: The BoC sets the bank rate
2: The Money Market which defines reserves determines the money supply and the equilibrium interest rate
3: Transmission to real sector through the investment and net export effects
GAPBUSTING GUIDE
TO FIX A RECESSIONARY GAP (CREATE EASY MONEY)
-Decrease the target rate
-Increase the money supply
-Decrease interest rates
-Increase Investment and net exports
-Increase Aggregate Demand
-Y moves to the right, back to Y*
TO FIX AN INFLATIONARY GAP (TIGHTEN MONEY)
-Increase the target rate
-Decrease the money supply
-Increase interest
-Decrease investment and net exports
-Decrease aggregate demand
-Y moves left to Y*
The central bank can set the money supply and let the market determine the interest rate
OR
The central bank can set the interest rate and the money supply will adjust to this interest rate
PROBLEMS WITH ADJUSTING THE MONEY SUPPLY DIRECTLY:
-The Bank of Canada (BoC) cannot directly control the money supply through the currency ratio and the reserve ratio (they can't control minds and make banks hold more or less assets and make people hold more or less money)
-Also, it's sometimes confusing as to which definition of the money supply should be used: H? M1? M2? Know know...
SO, the BoC sets the interest rate instead, and then accommodates for fluctuations and changes by using open market operations. (The US directly changes the money supply by printing more or less money, while Canada simply changes the bank rate)
There are 5 Different Policy Instruments The BoC Uses:
1: The Overnight Target Rate (Which is changes by changing the Bank Rate)
2: Buyback Operations (Specials and Reverses)
3: Shifting Government of Canada Accounts
4: Moral Suasion
5: The Announcement Effect
NOTE** It's important to know the difference between operational targets: usually, governments can only target one factor, so they have to choose between targeting
a) The Exchange Rate (from 1962-1970, Canada targeted the exchange rate and tried to keep its external value at 92.5)
b) The Interest Rate/Money Supply (from 1975-1982, the BoC would adjust interest rates to affect the money supply through the liquidity preference system. The problem was that interest rates became extremely volatile, and the government had no way of controlling the price level)
c) The Inflation Rate (the BoC uses interest rates and money supply as a policy instrument to affect the inflation rate, so the operational target is currently PRICES. The BoC tries to keep inflation at about 2%, because a little bit of inflation is healthy
Policy Variables: These are the ultimate targets for policy changes
Y - stable economic growth
U - low unemployment
P - Low Inflation !!! THIS IS THE PRESENT GOAL OF THE BoC
----------------------------------
THE 5 POLICY INSTRUMENTS
1: THE OVERNIGHT RATE
Note* the interest rates on borrowing increase as the term of the loan grows longer (as a compensation for leaving money inaccessible for a longer amount of time)
The Overnight Rate: This is the daily interest rate which chartered banks charge each other for borrowing money (or that investment dealers charge to banks for borrowing money) in cases where they have insufficient funds to clear cheques. These loans have a very short maturity (the term is extremely short) and the interest rates are MARKET DRIVEN
The BoC is the LENDER OF LAST RESORT
The Bank Rate is the rate which the BoC charges to lend to money to chartered banks. This is the upper limit of the overnight rate. Because the bank rate is so high, most chartered banks will not borrow from the bank of Canada unless all other sources refuse to loan them money
The Overnight Rate Operational Band: This is the difference between the highest overnight rate (the bank rate) and the lowest overnight rate (the rate the BoC pays to borrow for depoits)
-It is measured in basis points (each basis point is worth 0.01%, so an operational band of 50 basis points would mean a difference of 0.5% between the highest and lowest overnight rates)
Overnight Rate Target: the midpoint of the operational band for overnight rates, as set by the BoC
-THIS is the policy instrument used by the BoC to affect the interest rate
-There are fixed announcement dates: the BoC announces the overnight rate target 8 times per year
The USA uses a slightly different system...
OKAY: so basically, the bank rate is FIXED by the BoC
-Money's liquidity (the demand for money) is given
-The BoC accommodates the money supply to ensure equilibrium in the money market
-The money supply is thus endogenous, and becomes determined from the interest rates and the demand for money!
1: BoC increases the overnight rate (i goes up)
2: Banks increase their target reserves to buffer against this higher opportunity cost of borrowing from the BoC
3: The money supply decreases (because the reserve ratio is higher)
4: The market interest rate goes up!
This is a long-about way of showing how the market interest rate (which includes the prime rate, the 5-year mortgage rate, and commercial lines of credit) is related to the overnight interest rate!
NOTE* A change in the overnight rate target and other market interest rates usually happens very quickly BUT the demand for loans changes gradually (so the first step of the overall transmission mechanism is much faster than then subsequent steps)
As the demand for money changes, the BoC accommodates by using open market operations!
2: BUYBACK OPERATIONS (INCLUDING OPEN MARKET OPERATIONS)
-The BoC Uses Specials and Reverses to stabilize the overnight rate inside the operational band
-Buyback operations are used to fine-tune the overnight rate target within one basis point of the target
SPECIALS (Specials purchase and resale agreement):
-This is a transaction in which the BoC offers to purchase government of Canada securities from major financial players with an agreement to sell them back at a predetermined price the next business day
-This allows the BoC to put money into the system for one day
-This OFFSETS UPWARD PRESSURES on the overnight rate (by adding a bit to the money supply, the BoC decreases the interest rate a little bit)
-The BoC initiates SPRAs daily if overnight funds are generally trading above the target rate
-Differences between the purchase and the sale price determines the overnight rate
REVERSES (Sale and repurchase agreement)
-This is a transaction in which the BoC offers to SELL government securities to major financial parties with an agreement to buy them back at predetermined prices the next business day (this sale is called a reverse)
-Basically, this let's the BoC take cash out of the system for a day (by coaxing investors to temporarily store wealth in bonds instead of money)
-Reverses are used to offset downward pressures on the overnight rate
-The BoC initiates reverses daily if overnight funds are generally trading below the target rate
OPEN MARKET OPERATIONS (OMO): LONG RUN MONETARY ACCOMMODATION
-An OMO is the purchase/sale of government securities by the BoC in the open market for long run monetary accommodation
-Government securities are long run loans to the government
-Treasury bills are short term loans to the government
-These are auctioned off every Thursday, just like stocks, in a market
The BoC BUYS securities to increase excess reserves and attempt to increase the money supply
The BoC SELLS securities to decrease excess reserves and attempt to decrease the money supply
This analysis assumes that there are no cash drains, and that the reserve ratio remains constant in the long run (neither of which may be true)
3: SHIFTING GOVERNMENT OF CANADA DEPOSITS
Cash Management: The Bank of Canada shifts Government of Canada deposits to and from the Bank of Canada and the chartered banks. This is the major day-to-day instrument which the BoC uses to reinforce overnight rate targets within the operational band
Transferring money to a chartered bank increases their reserves, which allows the chartered bank to safely lend out more money, thus increasing the money supply
Transferring money from a chartered bank back to the BoC decreases chartered banks' reserves, which forces the chartered bank to lend out a smaller proportion of money, thus decreasing the money supply
4: MORAL SUASION
-The BoC enlists the cooperation of commercial banks
-This is possible because there is such a small number of banks in Canada
-Since there are not required reserves in Canada (required reserves are not legislated), this tool is more important
-For an example, the BoC may require an increase in settlement balances held at the BoC
5: THE ANNOUNCEMENT EFFECT
-There are fixed announcement dates where the BoC announces the bank rate (8 times per year)
-Like moral suasion, an increase in the bank rate sends a signal to the economy of the government's intentions, which can affect private investment (due to changed expectations)
CONCLUSION: The BoC fixes the overnight rate target, then uses buyback operations and shifting to reinforce it and open market operation to accommodate the demand for money in the long run
1: Policy instruments: The BoC sets the bank rate
2: The Money Market which defines reserves determines the money supply and the equilibrium interest rate
3: Transmission to real sector through the investment and net export effects
GAPBUSTING GUIDE
TO FIX A RECESSIONARY GAP (CREATE EASY MONEY)
-Decrease the target rate
-Increase the money supply
-Decrease interest rates
-Increase Investment and net exports
-Increase Aggregate Demand
-Y moves to the right, back to Y*
TO FIX AN INFLATIONARY GAP (TIGHTEN MONEY)
-Increase the target rate
-Decrease the money supply
-Increase interest
-Decrease investment and net exports
-Decrease aggregate demand
-Y moves left to Y*
The Demand & Supply for Money
The Liquidity Preference Function: This shows people's preference to hold money (cash balances) rather than bonds (interest bearing assets)
-People have a choice between holding their wealth in one of two ways: bonds or money
-Money pays no returns, and bonds do pay a return
-The opportunity cost of holding money is the interest rate one earns on a bond
-People only want to hold money when it provides benefits which at least equal the cost of forgoing bond interest
3 REASONS WHY PEOPLE HOLD MONEY
1: TRANSACTION DEMANDS FOR MONEY
-People hold money so that they can make transactions
2: PRECAUTIONARY DEMAND FOR MONEY:
-People hold money in case they experience an emergency where money would is required
-There is uncertainty sometimes about the timing of receipts and payments, so it can be strategic to have a buffer of cash savings to "tide yourself over"
3: SPECULATIVE DEMAND FOR MONEY:
-People hold money because they believe it will be more strategic to buy bonds in the near future than in the immediate present (if the interest rate is really low, for interest, waiting for the interest raise to rise before buying bonds will be more financially strategic)
The transaction and precautionary demands for money account for the distance between the money demand curve and the Y-axis. When the demand for money shifts to the left or right, this is usually due to a change in transaction demands (for an example, if GDP increases or prices increase, consumers will have higher transaction demands)
The speculative demand for money explains why the liquidity preference curve is downward sloping: the opportunity cost of holding money increases as interest rates increase, so the higher the interest rates, the lower the demand for money (this is dependent on nominal interest rates, rather than real interest rates, as this is a PSYCHOLOGICAL, rather than an accounting effect)
Income, Prices, and The Nominal Interest Rate Affect Demand for Money!
The higher income is, the more transactions there are within an economy, so the higher demand for money will be
+ Positive Relation
The higher the nominal interest rate, the lower the demand for money will be, for reasons related to opportunity cost
- Negative Relation
The higher the price level is, the higher demand for money will be (this is called inflationary demand for money), because a greater monetary value of transaction will be required to facilitate the same amount of real spending: households need more money to carry out their transactions.
+ Positive Relation
Note* when interest rates are very very very high, the only demand for money is transaction demands (so this is the space between the liquidity preference function's asymptote and the Y axis)
THE SUPPLY OF MONEY
-The money multiplier is relatively constant
-The currency ration and and reserve ratio only change during times of uncertainty (usually, they both increase when the future is murky)
-The money supply is independent from the interest rate (although it affects the interest rate)
-In our model, we say that the money supply is a constant, and that it is perfectly inelastic: it is represented by a straight line on our graph
-The real money supply is M/P: this describes money's purchasing power in terms of goods and services
PUTTING SUPPLY AND DEMAND TOGETHER: MONETARY EQUILIBRIUM
(This is also called liquidity preference theory of interest, or the portfolio balance theory)
-This is a short run analysis of how interest rates are affected by the money supply- it is very different than the long run analysis we talked about earlier
Okay: So..
-The supply of money is perfectly inelastic (a vertical line)
-The demand for money varies inversely with the interest rate (it is a downward sloping curve)
Equilibrium occurs when demand and supply for money intersect: M = L
Notice that because the demand for money is downward sloping, the money supply affects equilibrium interest rates: a higher money supply renders lower interest rates, while a lower money supply renders higher interest rates
Monetary equilibrium is a stable equilibrium: if there is higher demand for money than money supplied, then a large number of people will begin to sell-off their bonds to generate some extra money. Because of an excess influx of bonds being sold on the market, the price of bonds will fall, while their relative yields will increase. This, in turn, causes the interest rate to rise, and it will rise until the money market is in equilibrium. A similar mechanism returns interest rates to an equilibrium level when there is an excess supply of money.
That's all for now!
-People have a choice between holding their wealth in one of two ways: bonds or money
-Money pays no returns, and bonds do pay a return
-The opportunity cost of holding money is the interest rate one earns on a bond
-People only want to hold money when it provides benefits which at least equal the cost of forgoing bond interest
3 REASONS WHY PEOPLE HOLD MONEY
1: TRANSACTION DEMANDS FOR MONEY
-People hold money so that they can make transactions
2: PRECAUTIONARY DEMAND FOR MONEY:
-People hold money in case they experience an emergency where money would is required
-There is uncertainty sometimes about the timing of receipts and payments, so it can be strategic to have a buffer of cash savings to "tide yourself over"
3: SPECULATIVE DEMAND FOR MONEY:
-People hold money because they believe it will be more strategic to buy bonds in the near future than in the immediate present (if the interest rate is really low, for interest, waiting for the interest raise to rise before buying bonds will be more financially strategic)
The transaction and precautionary demands for money account for the distance between the money demand curve and the Y-axis. When the demand for money shifts to the left or right, this is usually due to a change in transaction demands (for an example, if GDP increases or prices increase, consumers will have higher transaction demands)
The speculative demand for money explains why the liquidity preference curve is downward sloping: the opportunity cost of holding money increases as interest rates increase, so the higher the interest rates, the lower the demand for money (this is dependent on nominal interest rates, rather than real interest rates, as this is a PSYCHOLOGICAL, rather than an accounting effect)
Income, Prices, and The Nominal Interest Rate Affect Demand for Money!
The higher income is, the more transactions there are within an economy, so the higher demand for money will be
+ Positive Relation
The higher the nominal interest rate, the lower the demand for money will be, for reasons related to opportunity cost
- Negative Relation
The higher the price level is, the higher demand for money will be (this is called inflationary demand for money), because a greater monetary value of transaction will be required to facilitate the same amount of real spending: households need more money to carry out their transactions.
+ Positive Relation
Note* when interest rates are very very very high, the only demand for money is transaction demands (so this is the space between the liquidity preference function's asymptote and the Y axis)
THE SUPPLY OF MONEY
-The money multiplier is relatively constant
-The currency ration and and reserve ratio only change during times of uncertainty (usually, they both increase when the future is murky)
-The money supply is independent from the interest rate (although it affects the interest rate)
-In our model, we say that the money supply is a constant, and that it is perfectly inelastic: it is represented by a straight line on our graph
-The real money supply is M/P: this describes money's purchasing power in terms of goods and services
PUTTING SUPPLY AND DEMAND TOGETHER: MONETARY EQUILIBRIUM
(This is also called liquidity preference theory of interest, or the portfolio balance theory)
-This is a short run analysis of how interest rates are affected by the money supply- it is very different than the long run analysis we talked about earlier
Okay: So..
-The supply of money is perfectly inelastic (a vertical line)
-The demand for money varies inversely with the interest rate (it is a downward sloping curve)
Equilibrium occurs when demand and supply for money intersect: M = L
Notice that because the demand for money is downward sloping, the money supply affects equilibrium interest rates: a higher money supply renders lower interest rates, while a lower money supply renders higher interest rates
Monetary equilibrium is a stable equilibrium: if there is higher demand for money than money supplied, then a large number of people will begin to sell-off their bonds to generate some extra money. Because of an excess influx of bonds being sold on the market, the price of bonds will fall, while their relative yields will increase. This, in turn, causes the interest rate to rise, and it will rise until the money market is in equilibrium. A similar mechanism returns interest rates to an equilibrium level when there is an excess supply of money.
That's all for now!
Platform @Anywhere dari Twitter
Twitter terus berkembang. Bahkan, dalam kurun waktu empat tahun, jumlah penggunanya menembus 75 juta di dunia (Januari 2010). Kini, CEO Twitter Evan Williams mengumumkan platform baru bertajuk @Anywhere.
Diperkenalkannya di sela keynote pada Festival South by Southwest di Austin-Texas, layanan baru tersebut menawarkan sejumlah fungsi baru, seperti memungkinkan pengguna untuk login ke akun Twitter melalui website pihak ketiga -mirip dengan Facebook Connect- dan mengikuti Twitter kolumnis siapapun dengan mengkliknya.
Kemudian, seperti VIVAnews kutip dari Telegraph, 17 Maret 2010, website akan menghubungkan pengguna Twitter ke akun Twitter yang mereka inginkan dan tuju, lengkap dengan biografi profil dan timelinenya.
Pada kesempatan itu, Williams memberikan contoh pada akun salah satu band terkenal asal Oklahoma, The Flaming Lips. “Pengguna cukup mengarahkan cursor mouse ke sebuah (hyper)link The Flaming Lips, lalu akan muncul jendela pop-up baru yang menunjukkan akun Twitter band ini dan sejumlah tweet terbarunya,” kata Williams.
Dengan demikian, kata Willams, @Anywehere menawarkan hubungan pada pengguna yang belum pernah Anda punyai sebelumnya.
Diwawancarai seorang ekonom dan penulis Umair Haque, Williams mengatakan bahwa Twitter merupakan suatu jaringan informasi yang membantu orang memahami apa yang sedang terjadi di dunia yang mereka pedulikan ini.
Dia juga mengatakan, bahwa prioritasnya sekarang adalah untuk membantu orang-orang yang tidak akrab dengan Twitter sebelumnya untuk mengerti bahwa banyak informasi berguna yang hilir mudik di dalam situs mikroblognya.
“Banyak pengguna yang tidak ingin berbagi apa yang sedang mereka lakukan, padahal ini adalah tujuan awal Twitter diciptakan. Tetapi, kini tak sedikit yang menjadikan situs mikroblog ini untuk bertukar informasi atau sekadar berita,” terang Williams.
Saat ini, Twitter tengah menjalin kerja sama dengan sejumlah website besar untuk peluncuran layanan @Anywhere, termasuk Amazon, eBay, Digg, Huffington Post, dan New York Times. Dalam blog resminya, dikatakan @Anywhere akan segera diluncurkan, tapi tidak diketahui kapan tepatnya.
• VIVAnews
Fitur geolokasi dari Twitter
Untuk sementara ini, fitur baru yang secara default dimatikan (pengguna harus mengaktifkannya secara manual untuk menggunakannya), baru tersedia untuk pengguna di Amerika Serikat.
Meski demikian, menurut Biz Stone, salah satu pendiri Twitter, fitur ini juga akan hadir bagi pengguna dari kawasan lain di seluruh dunia.
“Baru-baru ini marak muncul aplikasi berbagi lokasi, game dan layanan lain yang menarik pengguna Twitter untuk menyertakan data geografis mereka di tweet-nya,” kata Stone, seperti VIVAnews kutip dari blog-nya, 15 Maret 2010.
Stone menyebutkan, orang yang memilih untuk menambahkan informasi tersebut akan membuat Twitter menjadi lebih kaya akan informasi. “Data lokasi bisa membuat tweet semakin bermanfaat,” ucapnya.
Dengan menyebutkan lokasi Anda, kata Stone, akan lebih mudah bagi pengguna Twitter lainnya untuk menemukan informasi lebih spesifik di kawasan tertentu atau di sekitar tempat mereka berada.
Lokasi pengguna juga akan dihubungkan dengan Google map sehingga follower bisa menggunakannya untuk mengeksplorasi kawasan tersebut lebih lanjut.
Akhir Januari lalu, Twitter meluncurkan fitur Local Trends yang didesain untuk membantu pengguna menemukan tweet yang berhubungan dengan area tertentu. Dengan diluncurkannya fitur baru, pengguna akan bisa mencatat lokasi mereka sendiri dan semakin memudahkan pengguna lain untuk mendapatkan informasi di kawasan yang mereka inginkan.
VIVAnew.com
Update Status Facebook By Email
Setelah lama bermain Facebook dan update status via Twitter, ternyata di Facebook juga ada fasilitas untuk mengupdate status via email, bahkan bisa juga untuk mengupload Foto.
Entah sejak kapan hal ini bisa dilakukan, tetapi setelah saya perhatikan ternyata setiap account facebook akan memiliki account email tersendiri untuk mengupdate dan atau mengupload foto melalui email.
Berikut langkah-langkah untuk mengetahui account email facebook kita :
1. Login ke Facebook anda
2. Lalu masuk ke bagian Account (dibagian kanan atas) pilih Account Setting
3. Masuk ke tab Mobile lalu pilih "Go to Facebook Mobile"
4. Lihat di bagian "More Facebook Mobile Products" disana ada sebuah alamat email, Alamat email itulah yang bisa anda pergunakan untuk update status atau upload foto
5. Untuk mengupdate status silahkan kirim email ke alamat email tadi, tulis status anda di bagian 'Subject' email.
Mudah bukan...?!, sejak sekarang anda bisa mengupdate status Facebook anda tanpa perlu mengunjungi laman Facebook.
Entah sejak kapan hal ini bisa dilakukan, tetapi setelah saya perhatikan ternyata setiap account facebook akan memiliki account email tersendiri untuk mengupdate dan atau mengupload foto melalui email.
Berikut langkah-langkah untuk mengetahui account email facebook kita :
1. Login ke Facebook anda
2. Lalu masuk ke bagian Account (dibagian kanan atas) pilih Account Setting
3. Masuk ke tab Mobile lalu pilih "Go to Facebook Mobile"
4. Lihat di bagian "More Facebook Mobile Products" disana ada sebuah alamat email, Alamat email itulah yang bisa anda pergunakan untuk update status atau upload foto
5. Untuk mengupdate status silahkan kirim email ke alamat email tadi, tulis status anda di bagian 'Subject' email.
Mudah bukan...?!, sejak sekarang anda bisa mengupdate status Facebook anda tanpa perlu mengunjungi laman Facebook.
Bila Facebook di blokir
Anda suka untuk update status di Facebook, disela-sela kesibukan anda, tapi jadi tidak asik khususnya bila laman Facebook di blok, sementara kita ingin mengupdate status Facebook kita.Saya ingin berbagi sedikit tips, agar kita bisa tetap update status Facebook kita walau laman Facebook di blokir, ada beberapa cara, yaitu dengan cara menghubungkan Twitter dengan facebook seperti yang pernah saya bahas sebelumnya, Tentunya anda harus punya account Twitter.
Lalu gimana kalau laman Twitter di blokir juga, kalau ini terjadi kita perlu mengaktifkan nge-Twit via email, caranya :
1. Masuk ke Twitter (bila belum punya silahkan buat)
2. Dari tab baru Masuk ke http://twittercounter.com/, klik "who are you on twitter?"
3. Masukkan Login Twitter anda , atau pilih "Allow' sehingga twitter anda berhubungan dengan twitcounter.
4. Pilih Setting lalu masuk ke Tab Twittermail, disini anda akan mendapat alamat email khusus xxxxxx@twittermail.com
5. Lalu isi 'Cut off phrase' dengan kata kunci sesuai dengan yang anda suka misalnya "Kicau", ini dimaksudkan setiap email yang anda kirim harus mengandung kata tersebut
6. Pilih 'What to tweet' sesuai yang anda mau bila 'Message body' yang anda pilih maka Body email yang akan di twit ke twitter anda. Jangan lupa di bagian subjek isi dengan kata kunci tadi (contoh "Kicau").
7. Mulai sekarang bila anda ingin Update setatus Facebook anda bisa melalui email kirim ke xxxxxx@twittermail.com tadi, Mudah bukan...?!
8. Selamat mencoba
Menghubungkan Twitter ke Facebook
Anda merasa kerepotan untuk memperbaharui status Facebook dan Twitter secara bersamaan. Sekarang Anda dapat membuat link account Twitter dan Facebook bersama-sama sehingga anda tidak perlu merasa repot untuk 'update' status Twitter dan Facebook bersama-sama dan menghemat waktu anda.
Twitter adalah layanan micro-blogging, yang memungkinkan para pengguna untuk mengirim dan membaca pengguna lain 'update' secara real time. Sementara Facebook, yang paling cepat berkembang komunitas jaringan sosial di Internet saat ini, menghubungkan orang dengan teman-teman dan orang lain yang bekerja, belajar dan tinggal di sekitar mereka.
Caranya :
Tambah Aplikasi Twitter di Facebook Aplication
Pilih pengaturan yang dikehendaki dan klik 'Tambah Twitter"
Masukkan Login Twitter anda. Catatan: login info ini 100% aman karena aplikasi ini dibuat secara eksklusif oleh twitter untuk Facebook.
PENTING! Pilihlah "Twitter update status Facebook".
Twitter adalah layanan micro-blogging, yang memungkinkan para pengguna untuk mengirim dan membaca pengguna lain 'update' secara real time. Sementara Facebook, yang paling cepat berkembang komunitas jaringan sosial di Internet saat ini, menghubungkan orang dengan teman-teman dan orang lain yang bekerja, belajar dan tinggal di sekitar mereka.
Caranya :
Langkah 1
Masuk ke Facebook dan cari aplikasi Twitter atau dapat diakses secara langsung di URL berikut: http://www.facebook.com/apps/application.php?id=2231777543Langkah 2
Tambah Aplikasi Twitter di Facebook Aplication
Langkah3
Pilih pengaturan yang dikehendaki dan klik 'Tambah Twitter"
Langkah 4
Masukkan Login Twitter anda. Catatan: login info ini 100% aman karena aplikasi ini dibuat secara eksklusif oleh twitter untuk Facebook.
Langkah 5
PENTING! Pilihlah "Twitter update status Facebook".
Langkah 6
Otorisasi Akses Twitter ke Facebook. Langkah 7
Itu saja! Setiap kali Anda memperbarui Twitter, status Facebook anda mengupdate secara otomatis!
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