Study on the causes, types, and influences of the price fluctuations in Taiwan

• Main Author: 鄭惠琪
• Other Authors: 黃智輝
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/55323946558128918687

碩士 === 佛光大學 === 經濟學系 === 97 === Under the impact of drastic increase in international oil price and bulk commodity price in recent years, price fluctuations have been witnessed around the world. As a small economy, Taiwan is more likely to be subjected to the global economic fluctuations. From 1961 to 2008, Taiwan underwent the economic impacts of two oil crises (1974 and 1980), the Asian Financial Crisis (1997), and the United States subprime mortgage financial crisis (2007). The price fluctuations and the measures as well as results of government policies adopted to stabilize prices are important indexes of the Taiwan’s economic activities. According to inflation theories, prices are influenced by money supplies, money wages, GDP, interest rates, exchanges rates, import and export, even the public anticipation of price increase. Among the various causes of price fluctuations, this study probed into 7 variables through regression analysis, discussed if dependent and independent variables have great influences, and analyzed the results of the government’s price stabilization measures. The results showed that, dependent and independent variables are greatly influential, thus price fluctuations are caused by money supplies, money wages, GDP, import and export. During the period of energy crisis, the price stabilization measures of the government were so successful that the basis of Taiwan’s economic stability and development was established. Currently, facing the impacts of the dramatic fluctuations of international oil prices and bulk commodities, the Taiwanese government will still be able to “face the enemies, and be prepared”, if it understands the causes of price fluctuations and heads towards the goal of considering the well-being of individuals, corporations and the country.