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Money has an "internal" and "external" price.
The external price is the nominal, or market, exchange rate.
Further out, inflation should fall back towards the 2% target as external price pressures fade and a revival in productivity growth curbs domestic cost pressures.
Mr. Duisenberg acknowledged the damaging effect of the exchange rate, saying, "the significant and rapid appreciation of the euro over recent months will dampen external price competitiveness".
They anticipate inflation will peak at around 3.2% in 3Q 2013, before falling back to target "as a revival in productivity growth dampens increases in domestic costs and external price pressures fade".
Other countries' resources and external price fluctuations will still be necessary to power automobiles.
Similar(42)
It engages with the question of why some countries are able to sustain growth with increases in productivity, rather than through booming external prices.
Shotput combines these external pricing services with proprietary information, and exposes it to companies via their Warehouse API to provide customers instant pricing information for the complete logistics package.
In addition, it would be useful to look at the option provided by pricing differentiation, since experience has proven that the current external pricing system needs to be modified to meet the needs of European Union member states advancing at different speeds.
Finally, the detailed analysis of the total generation cost of different technologies points out that inclusion of external cost in the price of electricity increases competitiveness of non-fossil generation sources and fossil power plants with emission control.
Alternative strategies to providing this safety net while securing cost-effective energy efficiency include identifying and targeting low-income customers for lower rates and, in the absence of an external carbon price, assigning an internal carbon price to retail sales.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com