MONGOLIA INFLATION SUMMARY

Introduction

- Goal is to keep Mongolia stable daw. Also, because of their location and climate which is too
cold. I guess this has effects on their GDP ofcourse, and thus their economy as a whole din.
Malamig, walang work, stagnant, or wala masyadong natural resources.
- Because of this they are highly seasonal nga, so nag ffluctuate economy madalas. The
authorizes keep it at bay by making practical (needed, pilit) approach sa mga monetary
policies.
- This study will examine the relationship between the monetary policies (indicators) AND
inflation

Thoughts

- First of all, the grammar.

- I was surprised that natural or geographical location has significant effects on inflation or
monetary policies pala. It never occurred to me kasi I have never really given it a thought
and I somehow live in a neutral country. Where extremes of weathers don’t come about.
And I realized it was real, na may correlation yung policies sa weather kasi it is affecting the
productivity of the people which in turn has effects on the economy as a whole like a
domino effect.
- Expected na naman yung results, in my opinion. Lit rev pa lang e dami na niya sinabi, so
malamang sa malamang no, may fuction talaga na makikita.
The main goal of the study was to know the relationship of money supply, exchange
rate, and inflation of Mongolia. The researchers used data from 1994 to 2004, and
used it in their formulas, indicators, and such to find a correlation between the three.
While reading halfway into the journal, I kind of expected the results, which is indeed,
there is a high correlation between money supply, exchange rate, and inflation in the
said country. This is because the literature review indicated similar studies and
investigations like this and the results were somehow expected or at least in line with
the basic theory of finance, money, and the economy. This lead me to think that
there is an invisible function that the finance industry and economy in general is
following, and this is where we see patterns that makes real life events and decisions
less risky, and somehow converts an opinion into a fact. I realized that while these
theories are “just” theories, they are not there and they are not studied, for the sake
of just being there or just to be studied, and that these things happen in real life.

Another thing that got my attention was stated in the introduction part. I was
surprised that natural or geographical location has significant effects on inflation or
monetary policies. It never occurred to me because, in all honesty, I have never
really given it a thought and I guess because I live in a neutral country, in terms of
climate, where extremes of weathers don’t come about. And I realized that it was
theoretically and partially true because climate really does affect the movement of
people, their productivity, and even the natural resources. And this, in turn will have
a domino effect on the prices of commodities, the GDP of the country, and of course,
the economy as a whole.