100+ datasets found
  1. f

    Correlation between inflation and policy rates.

    • plos.figshare.com
    xls
    Updated Dec 11, 2023
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    Tanweer Ul Islam; Dajeeha Ahmed (2023). Correlation between inflation and policy rates. [Dataset]. http://doi.org/10.1371/journal.pone.0295453.t003
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    xlsAvailable download formats
    Dataset updated
    Dec 11, 2023
    Dataset provided by
    PLOS ONE
    Authors
    Tanweer Ul Islam; Dajeeha Ahmed
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Description

    The enduring discourse regarding the effectiveness of interest rate policy in mitigating inflation within developing economies is characterized by the interplay of structural and supply-side determinants. Moreover, extant academic literature fails to resolve the direction of causality between inflation and interest rates. Nevertheless, the prevalent adoption of interest rate-based monetary policies in numerous developing economies raises a fundamental inquiry: What motivates central banks in these nations to consistently espouse this strategy? To address this inquiry, our study leverages wavelet transformation to dissect interest rate and inflation data across a spectrum of frequency scales. This innovative methodology paves the way for a meticulous exploration of the intricate causal interplay between these pivotal macroeconomic variables for twenty-two developing economies using monthly data from 1992 to 2022. Traditional literature on causality tends to focus on short- and long-run timescales, yet our study posits that numerous uncharted time and frequency scales exist between these extremes. These intermediate scales may wield substantial influence over the causal relationship and its direction. Our research thus extends the boundaries of existing causality literature and presents fresh insights into the complexities of monetary policy in developing economies. Traditional wisdom suggests that central banks should raise interest rates to combat inflation. However, our study uncovers a contrasting reality in developing economies. It demonstrates a positive causal link between the policy rate and inflation, where an increase in the central bank’s interest rates leads to an upsurge in price levels. Paradoxically, in response to escalating prices, the central bank continues to heighten the policy rate, thereby perpetuating this cyclical pattern. Given this observed positive causal relationship in developing economies, central banks must explore structural and supply-side factors to break this cycle and regain control over inflation.

  2. Reaction of institutional investors to interest rate increases 2016

    • statista.com
    Updated Jan 26, 2016
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    Statista (2016). Reaction of institutional investors to interest rate increases 2016 [Dataset]. https://www.statista.com/statistics/542425/reaction-of-institutional-investors-to-interest-rate-increases/
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    Dataset updated
    Jan 26, 2016
    Dataset authored and provided by
    Statistahttp://statista.com/
    Time period covered
    Oct 2015
    Area covered
    Worldwide
    Description

    This statistic presents the reaction of institutional investors to interest rate increases in 2016. The results of the survey carried out in October 2015 revealed that ** percent of the companies increased the use of alternatives as a result of interest rates increase.

  3. Vietnam Natural Increase Rate: Urban

    • ceicdata.com
    Updated Jun 15, 2018
    + more versions
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    CEICdata.com (2018). Vietnam Natural Increase Rate: Urban [Dataset]. https://www.ceicdata.com/en/vietnam/vital-statistics/natural-increase-rate-urban
    Explore at:
    Dataset updated
    Jun 15, 2018
    Dataset provided by
    CEIC Data
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Time period covered
    Dec 1, 2005 - Dec 1, 2016
    Area covered
    Vietnam
    Description

    Vietnam Natural Increase Rate: Urban data was reported at 8.000 ‰ in 2017. This records a decrease from the previous number of 9.300 ‰ for 2016. Vietnam Natural Increase Rate: Urban data is updated yearly, averaging 10.700 ‰ from Dec 2001 (Median) to 2017, with 17 observations. The data reached an all-time high of 12.400 ‰ in 2002 and a record low of 8.000 ‰ in 2017. Vietnam Natural Increase Rate: Urban data remains active status in CEIC and is reported by General Statistics Office. The data is categorized under Global Database’s Vietnam – Table VN.G058: Vital Statistics.

  4. Average salary increase rates APAC 2011-2019

    • statista.com
    Updated Jul 9, 2025
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    Statista (2025). Average salary increase rates APAC 2011-2019 [Dataset]. https://www.statista.com/statistics/990211/apac-average-salary-increase-rates/
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    Dataset updated
    Jul 9, 2025
    Dataset authored and provided by
    Statistahttp://statista.com/
    Area covered
    Asia–Pacific
    Description

    The statistic shows the average salary increase rate in the Asia Pacific region from 2011 to 2018, with a projected increase for 2019. In 2018, the average salary increase rate was about *** percent, a rise of *** index points compared to 2017. For 2019, the salary increase was projected to amount about *** percent.

  5. F

    Net Percentage of Large Domestic Banks Increasing Spreads of Loan Rates Over...

    • fred.stlouisfed.org
    json
    Updated May 12, 2025
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    (2025). Net Percentage of Large Domestic Banks Increasing Spreads of Loan Rates Over Banks' Cost of Funds to Large and Middle-Market Firms [Dataset]. https://fred.stlouisfed.org/series/SUBLPDCILTSLGNQ
    Explore at:
    jsonAvailable download formats
    Dataset updated
    May 12, 2025
    License

    https://fred.stlouisfed.org/legal/#copyright-public-domainhttps://fred.stlouisfed.org/legal/#copyright-public-domain

    Description

    Graph and download economic data for Net Percentage of Large Domestic Banks Increasing Spreads of Loan Rates Over Banks' Cost of Funds to Large and Middle-Market Firms (SUBLPDCILTSLGNQ) from Q2 1990 to Q2 2025 about funds, cost, large, spread, domestic, Net, percent, loans, banks, depository institutions, rate, and USA.

  6. Interest rate of the central bank South Korea 2012-2025

    • statista.com
    Updated May 13, 2025
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    Statista (2025). Interest rate of the central bank South Korea 2012-2025 [Dataset]. https://www.statista.com/statistics/1235224/south-korea-central-bank-base-rate/
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    Dataset updated
    May 13, 2025
    Dataset authored and provided by
    Statistahttp://statista.com/
    Time period covered
    Jul 2012 - Feb 2025
    Area covered
    South Korea
    Description

    In Februar 2025, South Korea's central bank reduced the base rate to **** percent. Between May 2020 and January 2023, the rate had seen a continuous increase, impacting especially the housing market during this time.

  7. Kuwait Vital Statistics: Natural Increase Rate: Kuwaiti

    • ceicdata.com
    Updated Dec 15, 2024
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    CEICdata.com (2024). Kuwait Vital Statistics: Natural Increase Rate: Kuwaiti [Dataset]. https://www.ceicdata.com/en/kuwait/vital-statistics/vital-statistics-natural-increase-rate-kuwaiti
    Explore at:
    Dataset updated
    Dec 15, 2024
    Dataset provided by
    CEIC Data
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Time period covered
    Dec 1, 2008 - Dec 1, 2017
    Area covered
    Kuwait
    Variables measured
    Vital Statistics
    Description

    Vital Statistics: Natural Increase Rate: Kuwaiti data was reported at 23.460 ‰ in 2017. This records a decrease from the previous number of 24.070 ‰ for 2016. Vital Statistics: Natural Increase Rate: Kuwaiti data is updated yearly, averaging 26.900 ‰ from Dec 2008 (Median) to 2017, with 10 observations. The data reached an all-time high of 29.400 ‰ in 2008 and a record low of 23.460 ‰ in 2017. Vital Statistics: Natural Increase Rate: Kuwaiti data remains active status in CEIC and is reported by Central Statistical Bureau. The data is categorized under Global Database’s Kuwait – Table KW.G004: Vital Statistics.

  8. U.S. plans to make purchases because of expected price increases due to...

    • statista.com
    Updated Apr 7, 2025
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    Statista (2025). U.S. plans to make purchases because of expected price increases due to tariffs 2025 [Dataset]. https://www.statista.com/statistics/1557476/plans-make-purchases-tariff-price-increases-us/
    Explore at:
    Dataset updated
    Apr 7, 2025
    Dataset authored and provided by
    Statistahttp://statista.com/
    Time period covered
    Apr 3, 2025
    Area covered
    United States
    Description

    In early April, claiming to boost the country's domestic economy, President Trump made an executive order to implement new, widespread tariffs. In addition to the 10 percent baseline tariff imposed on all U.S. imports, Trump also announced specific tariffs on a number of important trading partners, such as the European Union, China, and Vietnam, which account for over 40 percent of all U.S. imports. According to a survey taken just after the announcement, roughly 20 percent of surveyed Americans were planning to make purchases because they expected prices to increase as a result of the tariffs.

  9. North Macedonia Banking System: Interest Rates: Local Currency Spreads

    • ceicdata.com
    Updated Jan 15, 2025
    + more versions
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    CEICdata.com (2025). North Macedonia Banking System: Interest Rates: Local Currency Spreads [Dataset]. https://www.ceicdata.com/en/macedonia/bank-lending-rate-spreads/banking-system-interest-rates-local-currency-spreads
    Explore at:
    Dataset updated
    Jan 15, 2025
    Dataset provided by
    CEIC Data
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Time period covered
    Jun 1, 2015 - Mar 1, 2018
    Area covered
    North Macedonia
    Variables measured
    Lending Rate
    Description

    Macedonia Banking System: Interest Rates: Local Currency Spreads data was reported at 4.156 % in Jun 2018. This records an increase from the previous number of 3.798 % for Mar 2018. Macedonia Banking System: Interest Rates: Local Currency Spreads data is updated quarterly, averaging 3.800 % from Dec 2005 (Median) to Jun 2018, with 51 observations. The data reached an all-time high of 6.983 % in Jun 2006 and a record low of 2.300 % in Dec 2010. Macedonia Banking System: Interest Rates: Local Currency Spreads data remains active status in CEIC and is reported by National Bank of the Republic of Macedonia. The data is categorized under Global Database’s Macedonia – Table MK.M003: Bank Lending Rate: Spreads.

  10. r

    Rates on the rise - Chart

    • restofworld.org
    Updated Apr 28, 2023
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    Rest of World (2023). Rates on the rise - Chart [Dataset]. https://restofworld.org/charts/2023/KTgiq-rates-rise
    Explore at:
    Dataset updated
    Apr 28, 2023
    Dataset authored and provided by
    Rest of World
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Description

    Average daily rates for Airbnb and Vrbo listings have risen steadily in some of the top destinations for digital nomads.

  11. D

    Annual Allowable Rent Increase for Units Under Rent Control

    • data.sfgov.org
    • s.cnmilf.com
    • +1more
    application/rdfxml +5
    Updated May 7, 2025
    + more versions
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    (2025). Annual Allowable Rent Increase for Units Under Rent Control [Dataset]. https://data.sfgov.org/Housing-and-Buildings/Annual-Allowable-Rent-Increase-for-Units-Under-Ren/hsxb-ci7b
    Explore at:
    application/rdfxml, xml, tsv, csv, application/rssxml, jsonAvailable download formats
    Dataset updated
    May 7, 2025
    License

    ODC Public Domain Dedication and Licence (PDDL) v1.0http://www.opendatacommons.org/licenses/pddl/1.0/
    License information was derived automatically

    Description

    In accordance with Rules and Regulations Section 1.12 (https://www.sf.gov/reports--rent-board-rules-and-regulations), the Rent Board sets the annual allowable rent increase for rent controlled units. The new rates are effective every year on March 1. The amount is based on 60% of the percentage increase in the Consumer Price Index (CPI) for All Urban Consumers in the San Francisco-Oakland-San Jose region for the 12-month period ending October 31, as posted in November by the Bureau of Labor Statistics.

  12. O

    Oman Vital Statistics: Natural Increase Rate: per 1000 Inhabitans

    • ceicdata.com
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    CEICdata.com, Oman Vital Statistics: Natural Increase Rate: per 1000 Inhabitans [Dataset]. https://www.ceicdata.com/en/oman/vital-statistics/vital-statistics-natural-increase-rate-per-1000-inhabitans
    Explore at:
    Dataset provided by
    CEICdata.com
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Time period covered
    Dec 1, 2010 - Dec 1, 2017
    Area covered
    Oman
    Variables measured
    Vital Statistics
    Description

    Oman Vital Statistics: Natural Increase Rate: per 1000 Inhabitans data was reported at 17.900 Per 1000 Person in 2017. This records a decrease from the previous number of 18.200 Per 1000 Person for 2016. Oman Vital Statistics: Natural Increase Rate: per 1000 Inhabitans data is updated yearly, averaging 18.700 Per 1000 Person from Dec 2010 (Median) to 2017, with 8 observations. The data reached an all-time high of 20.700 Per 1000 Person in 2010 and a record low of 17.900 Per 1000 Person in 2017. Oman Vital Statistics: Natural Increase Rate: per 1000 Inhabitans data remains active status in CEIC and is reported by National Center for Statistics and Information. The data is categorized under Global Database’s Oman – Table OM.G006: Vital Statistics.

  13. N

    Norway Business Survey: Epinion: Interest Rate Expectation: Household: Next...

    • ceicdata.com
    Updated Feb 15, 2025
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    CEICdata.com (2025). Norway Business Survey: Epinion: Interest Rate Expectation: Household: Next 12 Months: Increase [Dataset]. https://www.ceicdata.com/en/norway/business-survey-epinion-interest-rate-and-exchange-rate-expectation/business-survey-epinion-interest-rate-expectation-household-next-12-months-increase
    Explore at:
    Dataset updated
    Feb 15, 2025
    Dataset provided by
    CEICdata.com
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Time period covered
    Sep 1, 2015 - Jun 1, 2018
    Area covered
    Norway
    Variables measured
    Business Confidence Survey
    Description

    Norway Business Survey: Epinion: Interest Rate Expectation: Household: Next 12 Months: Increase data was reported at 62.900 % in Sep 2018. This records an increase from the previous number of 56.600 % for Jun 2018. Norway Business Survey: Epinion: Interest Rate Expectation: Household: Next 12 Months: Increase data is updated quarterly, averaging 48.500 % from Mar 2002 (Median) to Sep 2018, with 67 observations. The data reached an all-time high of 86.900 % in Dec 2006 and a record low of 15.200 % in Mar 2016. Norway Business Survey: Epinion: Interest Rate Expectation: Household: Next 12 Months: Increase data remains active status in CEIC and is reported by Epinion. The data is categorized under Global Database’s Norway – Table NO.S009: Business Survey: Epinion: Interest Rate and Exchange Rate Expectation.

  14. F

    Housing Inventory: Price Increased Count Year-Over-Year in Logan, UT-ID...

    • fred.stlouisfed.org
    json
    Updated Jun 5, 2025
    + more versions
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    (2025). Housing Inventory: Price Increased Count Year-Over-Year in Logan, UT-ID (CBSA) [Dataset]. https://fred.stlouisfed.org/series/PRIINCCOUYY30860
    Explore at:
    jsonAvailable download formats
    Dataset updated
    Jun 5, 2025
    License

    https://fred.stlouisfed.org/legal/#copyright-citation-requiredhttps://fred.stlouisfed.org/legal/#copyright-citation-required

    Area covered
    Utah, Logan
    Description

    Graph and download economic data for Housing Inventory: Price Increased Count Year-Over-Year in Logan, UT-ID (CBSA) (PRIINCCOUYY30860) from Jul 2017 to May 2025 about Logan, ID, UT, price, and USA.

  15. M

    Target Drone Market – Economic Effects of Tariffs

    • scoop.market.us
    Updated Apr 17, 2025
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    Market.us Scoop (2025). Target Drone Market – Economic Effects of Tariffs [Dataset]. https://scoop.market.us/target-drone-market-news/
    Explore at:
    Dataset updated
    Apr 17, 2025
    Dataset authored and provided by
    Market.us Scoop
    License

    https://scoop.market.us/privacy-policyhttps://scoop.market.us/privacy-policy

    Time period covered
    2022 - 2032
    Area covered
    Global
    Description

    US Tariff Impact on Market

    U.S. tariffs on imported target drone components, particularly from China, have increased production costs for drone manufacturers. Key components like sensors, motors, and avionics are sourced from regions affected by tariffs, leading to higher overall prices for U.S. drone manufacturers.

    These increased costs could limit affordability for smaller government contractors and military clients, potentially slowing down adoption rates for advanced target drone systems. To mitigate tariff impacts, many companies are exploring alternative supply chains, increasing domestic production, or developing partnerships with non-tariffed countries.

    Despite these challenges, demand for target drones, particularly in military and government sectors, remains strong. The tariff impact is particularly significant for the aerial target drones and autonomous target drones, with approximately 20-25% of the market affected by increased costs due to tariffs.

    http://scoop.market.us/wp-content/uploads/2025/04/US-Tariff-Impact-Analysis-in-2025-840x473.png" alt="US Tariff Impact Analysis in 2025" class="wp-image-53722">

    Tariff Impact Percentage for Impacted Sector

    The U.S. tariffs have impacted approximately 20-25% of the target drone market, particularly in the aerial target drones and autonomous drone segments, which rely on imported components.

    US Tariff Impact Data

    • U.S. Tariffs on Drone Components: U.S. tariffs increase costs for target drone components.
    • Price Increases Due to Tariffs: Increased production costs for target drones due to tariffs.
    • Supply Chain Adjustments: U.S. companies seek alternative suppliers to avoid tariff-related price hikes.

    ➤➤➤ Get More Detailed Insights about US Tariff Impact @ https://market.us/report/target-drone-market/free-sample/

    Economic Impact

    • U.S. tariffs raise the cost of target drone production, especially for key components.
    • Higher prices may slow down adoption in price-sensitive sectors, especially for small to medium-sized contracts.
    • Despite cost increases, the military and government sector continues to drive strong demand for target drones.

    Geographical Impact

    • North America, particularly the U.S., is experiencing higher prices due to tariffs, which could affect affordability in government contracts.
    • Asia-Pacific regions remain less impacted, with China continuing to supply key components for target drones.
    • Europe faces moderate impacts, with manufacturers in the region less reliant on tariff-affected regions.

    Business Impact

    • U.S. manufacturers face increased...

  16. F

    Housing Inventory: Price Increased Count in Hailey, ID (CBSA)

    • fred.stlouisfed.org
    json
    Updated Jun 5, 2025
    + more versions
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    (2025). Housing Inventory: Price Increased Count in Hailey, ID (CBSA) [Dataset]. https://fred.stlouisfed.org/series/PRIINCCOU25200
    Explore at:
    jsonAvailable download formats
    Dataset updated
    Jun 5, 2025
    License

    https://fred.stlouisfed.org/legal/#copyright-citation-requiredhttps://fred.stlouisfed.org/legal/#copyright-citation-required

    Area covered
    Idaho, Hailey
    Description

    Graph and download economic data for Housing Inventory: Price Increased Count in Hailey, ID (CBSA) (PRIINCCOU25200) from Jul 2016 to May 2025 about Hailey, ID, price, and USA.

  17. CNA13 - Annual Rate of Population Increase by County, CensusYear, Statistic...

    • data.wu.ac.at
    • cloud.csiss.gmu.edu
    json-stat, px
    Updated Mar 5, 2018
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    Central Statistics Office (2018). CNA13 - Annual Rate of Population Increase by County, CensusYear, Statistic and Sex [Dataset]. https://data.wu.ac.at/schema/data_gov_ie/NzM2YzUzOGYtOGQ1Zi00ZjJkLTg1ZjctMmMzNWNlNWIxYmFm
    Explore at:
    px, json-statAvailable download formats
    Dataset updated
    Mar 5, 2018
    Dataset provided by
    Central Statistics Office Irelandhttps://www.cso.ie/en/
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Description

    Annual Rate of Population Increase by County, CensusYear, Statistic and Sex

    View data using web pages

    Download .px file (Software required)

  18. Slovakia Vital Statistics: Crude Rate of Total Increase

    • ceicdata.com
    Updated Feb 15, 2025
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    CEICdata.com (2025). Slovakia Vital Statistics: Crude Rate of Total Increase [Dataset]. https://www.ceicdata.com/en/slovakia/vital-statistics/vital-statistics-crude-rate-of-total-increase
    Explore at:
    Dataset updated
    Feb 15, 2025
    Dataset provided by
    CEIC Data
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Time period covered
    May 1, 2017 - Apr 1, 2018
    Area covered
    Slovakia
    Variables measured
    Vital Statistics
    Description

    Slovakia Vital Statistics: Crude Rate of Total Increase data was reported at 2.706 ‰ in Aug 2018. This records a decrease from the previous number of 2.863 ‰ for Jul 2018. Slovakia Vital Statistics: Crude Rate of Total Increase data is updated monthly, averaging 1.130 ‰ from Jan 2000 (Median) to Aug 2018, with 224 observations. The data reached an all-time high of 4.800 ‰ in Sep 2011 and a record low of -2.930 ‰ in Dec 2013. Slovakia Vital Statistics: Crude Rate of Total Increase data remains active status in CEIC and is reported by Statistical Office of the Slovak Republic. The data is categorized under Global Database’s Slovakia – Table SK.G004: Vital Statistics.

  19. T

    TROS Current Input Prices; Percent Reporting Increases for Texas

    • tradingeconomics.com
    csv, excel, json, xml
    Updated May 28, 2025
    + more versions
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    TRADING ECONOMICS (2025). TROS Current Input Prices; Percent Reporting Increases for Texas [Dataset]. https://tradingeconomics.com/united-states/tros-current-input-prices-percent-reporting-increases-for-texas-fed-data.html
    Explore at:
    excel, xml, json, csvAvailable download formats
    Dataset updated
    May 28, 2025
    Dataset authored and provided by
    TRADING ECONOMICS
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Time period covered
    Jan 1, 1976 - Dec 31, 2025
    Area covered
    Texas
    Description

    TROS Current Input Prices; Percent Reporting Increases for Texas was 42.50% in April of 2025, according to the United States Federal Reserve. Historically, TROS Current Input Prices; Percent Reporting Increases for Texas reached a record high of 66.10 in November of 2021 and a record low of 6.30 in April of 2020. Trading Economics provides the current actual value, an historical data chart and related indicators for TROS Current Input Prices; Percent Reporting Increases for Texas - last updated from the United States Federal Reserve on May of 2025.

  20. f

    Threshold regression test of marketization level.

    • plos.figshare.com
    xls
    Updated May 16, 2024
    + more versions
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    Xueyan Xie; Xiaohui Xu (2024). Threshold regression test of marketization level. [Dataset]. http://doi.org/10.1371/journal.pone.0300660.t016
    Explore at:
    xlsAvailable download formats
    Dataset updated
    May 16, 2024
    Dataset provided by
    PLOS ONE
    Authors
    Xueyan Xie; Xiaohui Xu
    License

    Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
    License information was derived automatically

    Description

    Many societies around the world are rapidly aging and this has implications for social and economic development. We collect data on NEEQ-listed enterprises from 2010 to 2021 in China and empirically test the effect of population aging on the digital transformation of small and medium-sized enterprises (SMEs). The findings show that population aging has a significant positive impact on SME digital transformation, and private enterprises and enterprises in eastern regions of China tend to benefit more than other regions. The mechanism studies find that population aging positively impacts SME digital transformation by increasing labor costs, facilitating human capital accumulation, and raising savings rates. Furthermore, the threshold effect analyses find that the marginal promotion effect of population aging will weaken with greater aging and will strengthen with a higher level of marketization. Finally, we provide policy recommendations for promoting digital transformation in SMEs against the background of population aging.

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Tanweer Ul Islam; Dajeeha Ahmed (2023). Correlation between inflation and policy rates. [Dataset]. http://doi.org/10.1371/journal.pone.0295453.t003

Correlation between inflation and policy rates.

Related Article
Explore at:
xlsAvailable download formats
Dataset updated
Dec 11, 2023
Dataset provided by
PLOS ONE
Authors
Tanweer Ul Islam; Dajeeha Ahmed
License

Attribution 4.0 (CC BY 4.0)https://creativecommons.org/licenses/by/4.0/
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Description

The enduring discourse regarding the effectiveness of interest rate policy in mitigating inflation within developing economies is characterized by the interplay of structural and supply-side determinants. Moreover, extant academic literature fails to resolve the direction of causality between inflation and interest rates. Nevertheless, the prevalent adoption of interest rate-based monetary policies in numerous developing economies raises a fundamental inquiry: What motivates central banks in these nations to consistently espouse this strategy? To address this inquiry, our study leverages wavelet transformation to dissect interest rate and inflation data across a spectrum of frequency scales. This innovative methodology paves the way for a meticulous exploration of the intricate causal interplay between these pivotal macroeconomic variables for twenty-two developing economies using monthly data from 1992 to 2022. Traditional literature on causality tends to focus on short- and long-run timescales, yet our study posits that numerous uncharted time and frequency scales exist between these extremes. These intermediate scales may wield substantial influence over the causal relationship and its direction. Our research thus extends the boundaries of existing causality literature and presents fresh insights into the complexities of monetary policy in developing economies. Traditional wisdom suggests that central banks should raise interest rates to combat inflation. However, our study uncovers a contrasting reality in developing economies. It demonstrates a positive causal link between the policy rate and inflation, where an increase in the central bank’s interest rates leads to an upsurge in price levels. Paradoxically, in response to escalating prices, the central bank continues to heighten the policy rate, thereby perpetuating this cyclical pattern. Given this observed positive causal relationship in developing economies, central banks must explore structural and supply-side factors to break this cycle and regain control over inflation.

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