inflation project

A Web Quest Project in Economics for Fourth Year High School

introduction task process evaluation

INTRODUCTION

As embodied in the consumer price index and in the purchasing power of the peso, price stability both in the short run and in the long run is an elusive dream for economic planners of the country. Sharp and erratic price changes affect all the players in the economy – the consumers thru reduced buying power and the producers thru reduced capital value. This Web Quest is a guided instruction on the factors that influence inflation and the resulting effects of price changes in the economy.

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TASK

You will assume the role position of a Representative of the IMF (International Monetary Fund) which involves multiple roles as a researcher, a statistician, and as a policy maker. You will research on the status of inflation in the Philippines and how it affects the lives of people. Your output is a position paper on inflation and how to soften its impact on the economy.

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PROCESS

• It will all have to start on a basic research about inflation.

• You have to assume one role from the following:– Researcher– Statistician– Policy Maker

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STEP 1: All About Inflation

• As a Researcher, you will have to know the following:– Differentiate inflation from hyperinflation and

deflation– Identify the different methods in measuring

price changes– Define Consumer Price Index (CPI) and how it is

measured– Define Purchasing Power of the Peso(PPP) and

how it is measured

PROCESS

introduction task process evaluation

• The following links to the internet will help you: – http://economics.about.com/cs/studentresources/f/money.

htm– http://en.wikipedia.org/wiki/Philippine_peso_bills#History_

of_Philippine_banknotes– http://en.wikipedia.org/wiki/Bangko_Sentral_ng_Pilipinas– http://www.bsp.gov.ph/about/functions.asp– http://economics.about.com/cs/inflation/a/deflation.htm– http://www.econlib.org/library/Enc/Hyperinflation.html– http://economics.about.com/cs/inflation/a/deflation.htm– http://www.investopedia.com/terms/c/consumerpriceindex

.asp– http://economics.about.com/cs/inflation/a/deflation.htm– http://www.bulatlat.com/news/4-25/4-25-taxes.html

PROCESS

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STEP 2 Inflation in the Philippines

• As a Statistician, you will have to know the following:– What are the products included in the

basket of goods used in computing CPI– Compute for the 2007 CPI– Get the quarterly values of inflation from

1995 to 2007– Try to forecast the end-of-year inflation

for 2007

PROCESS

introduction task process evaluation

• The following links to the internet will help you:– http://encarta.msn.com/encyclopedia_761556418/Money

.html– http://www.pbs.org/newshour/on2/money/design.html– http://www.bankjr.com/pground/moneytech/currency.jsp– http://www.bankjr.com/– http://en.wikipedia.org/wiki/Euro– http://www.census.gov.ph/data/pressrelease/2006/cp061

0tx.html– http://www.census.gov.ph/data/sectordata/2006/cp0610

17r.htm– http://www.census.gov.ph/data/technotes/notecpi_rebas

e.html– http://www.sparknotes.com/economics/macro/measuring

1/section2.rhtml– http://www.csgnetwork.com/cpicalc.html

PROCESS

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STEP 3: The Effects of Inflation in the Philippines • As a Policy Maker, you will have to know the following:

– List and explain the good and bad effects of inflation

– List and explain the effects of price increases in the purchasing behavior of people

PROCESS

introduction task process evaluation

• The following links to the net will help you:– http://www.gold-eagle.com/editorials_05/tacinv070907.ht

ml– http://www.mises.org/resources/7215a07f-1a67-475e-90

af-5789b7c82223– http://news.tradingcharts.com/futures/5/0/97445105.html– http://www.economicswebinstitute.org/glossary/inflat.ht

m#impact

PROCESS

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STEP 4 The Output

• As a Representative of the IMF, you will prepare a report about the inflation in the Philippines. You need to answer the following questions:– How is CPI and Inflation computed in the Philippines– What are the effects of inflation in the lives of Filipinos– What possible policies will soften the impact of inflation

among Filipinos

PROCESS

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• The following links will help you write a report:

– http://www.dbs.com/researchasset/mktalert/2007/asia_money_070605.pdf

– http://www.census.gov.ph/data/technotes/notecpi_rebase.html#COMPUTATION

– http://dirp4.pids.gov.ph/ris/dps/pidsdps9611.pdf

– http://www.bworldonline.com/Research/populareconomics.php?id=0034

– http://www.gov.ph/cat_economy/Official_Core_Inflation.pdf

PROCESS

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EVALUATIONCategory and Score 3 Very Good 2 Average 1 Poor

Knowledge Gained Definitions and ramifications are complete with elaborate applications and examples

Definitions and ramifications are complete

Incomplete definitions and ramifications without applications and examples

Content Accuracy 95% of data presented are accurate and aligned with current standards

75% of data presented are accurate

50% of data presented are accurate

Policies are Feasible Policies are specific, measurable, attainable, realistic

Policies are specific, measurable but not realistic

Policies are out of sync with results of study

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CREDITS

• What is Money?– From Mike Moffatt,

• Your Guide to Economics.– http://economics.about.com/cs/studentresources/f/

money.htm

• Money Tech: Currency Security• Zion's Bank

– http://www.bankjr.com/pground/moneytech/currency.jsp