The Relationship Between Interest Rates and Inflation

Everything in an economy in interlinked with each other and in a broad sense the economies of the world are linked with each other as well. Countries export and import with each other and this is why if one country has a problem in its economy the other country will get affected as well. Just look at how the whole world felt the ripples of the effect of the collapse of the US housing market. This phenomenon is known as the ripple effect or the multiplier effect. Likewise, interest rates and inflation both are very strongly linked.

Lets first define inflation and interest rates just so that everyone is on the same page; inflation is defined as a general increase in the prices of commodities over a period of time. Interest rates are the percentage at which you borrow money, meaning if you borrow a set amount of money you will have to pay back more than your borrowed amount, this is because the value of money decreases over time.

The best way to understand the concept of the relationship between interest rates and inflation is with an example, so let's say interest rates in your economy have fallen, it gets cheaper to borrow from banks, getting credit cards, loans, and everything. You see people around you getting loans and using credit cards, and it compels you to think, why shouldn't I? As a result, you get involved in bank borrowing as well, taking advantage of the interest rates, life seems great initially, you are able to pay your debts and monthly payments on time and you get used to it. However, after sometime the case doesn't remain the same due to changes in demand and supply. You need to realize that time changes and as it passes, demand for everything will be so high that there wouldn't be enough supply to meet that demand. For example everyone now has a car or a motorbike, and the demand for petrol has risen so much that supply becomes inadequate, and when this happens we see an increase in price because people are be willing to pay higher prices to get it, and this is when things start to go wrong. Now imagine every good and service starts to face this same problem, everything will become expensive and even if some commodities do not face this problem of increased demand they will have to increase prices because in general prices have risen and that's affecting their income as well. This is known as demand pull inflation.

Similarly when interest rates increase, borrowing becomes expensive and people save rather than spend because when they save, the same interest rate applies to their savings and saving seems a better option. This eventually results in a decrease in demand and when there is less demand in the market it leads to an excess of supply which force prices to decrease and inflation levels go down. And that's how interest rates and inflation are connected with each other.

By Jamie P. Johnson

All About Prescription Drug Financial Assistance Programs

Everything in this world needs finances. From the basic needs like food, shelter, health care, education and clothing, money plays a very vital role in getting things moving. It is why one needs to have access to money in order to get life moving easily. In matters related to health, money also plays a very big role. Many people are locked out of accessing quality healthcare as a result of lacking funds. Luckily for them, prescription drug financial assistance programs exist. These programs help in securing the most needed medical assistance for the person who applies for their help.

The most important thing to a patient is getting treatment (and right treatment for that matter). The patient may need urgent treatment for illnesses in instances where money is not allowing for direct purchase of the prescribe drugs. Drug financial assistance programs come in handy in helping patients who are in situations like these. They are also suited for patients with persisting health problems that need regular medication. They provide financial help to the patient whose medical bills may be an uphill task for him/her to pay. The best thing about using these programs is the fact that one only needs to meet a number of requirements which luckily, many patients are able to meet. Once accepted, the patient can rest assured that his/her drug prescription problems are all kept in check.

For any patient to qualify, he/she must not be covered by any insurance cover that pays for his/her prescription drugs. These programs also ensure that the patient applying for their help dos not qualify for any government, state or federal program that offers payment help for prescription drugs. The program also makes sure that the patient will no doubt have financial hiccups when paying for the prescription drugs. If the patient qualifies for all the above requirements, then he/she can fill the application process and forward his/her application giving all the relevant required information. In some instances, the prescription drug financial assistance program may allow the applicant's doctor to write a simple short letter attesting to the fact that the applicant has financial difficulties. This plays a great role in getting the applicant accepted in the program.

When making the application, all the applicant needs is to carefully read and follow all the instructions in the application form. In instances where he/she does not understand, consultations should be made to people who can help in interpreting and advising. Some forms require proof of income. This helps the patient in getting the appropriate needed help for his drug prescription problems.

Every application form should be taken to the doctor for approval. After the doctor has approved and supported the application process (by even giving a list of all medicines needed), the applicant should then mail the forms to the relevant drug companies. Every application should be accompanied by it's relevant prescriptions. To keep the drug prescriptions coming, it is important that the applicant re-applies for refills. This also helps in indicating instances where the prescription has changed so that it is also considered in the prescription help. In every step of the application process, the patient/s personal doctor should be involved. These programs rely a lot in the doctor's recommendations in order to effectively help the applicant.

By Kevin Wynn

How to Build Customer Satisfaction and Brand Loyalty

If your company is built on the core value of providing exceptional customer service it will be important to foster employee engagement. To boost employee engagement, start by instilling a "CEO mindset" in every employee of your firm, from senior management down to support staff. Instilling a CEO mindset means empowering your employees to take ownership of their roles by taking the initiative in resolving customer issues.

Employees with a CEO mindset do not stick to their job descriptions or wait for direction but apply creative and innovative methods to improve and enhance work processes that result in superior service. Empowering employees will differentiate your company from your competitors and build brand loyalty.

Let's take three examples to highlight how employee initiative drives exceptional service.

Case Study 1

During the early days of Starbucks, CEO Howard Schultz didn't see a need to purchase blenders-the store was selling coffee after all and what possible use could a blender have? A Starbucks store manager in Los Angeles, not dissuaded by his reluctance, took the initiative to purchase her own blender to create a new drink that she then tested with her café customers. As greater numbers of patrons began asking for this drink over time, Schultz became convinced that an investment in blenders wasn't such a bad idea after all. Since then, the Frappuccino has become one of the best-selling beverages served at Starbucks and has generated hundreds of millions of dollars in revenue.

Case Study 2

Managers at UPS frequently tell stories of initiative during staff meetings to build employee morale and foster this behavior in all employees. Here's just one example. A UPS driver was delivering packages to a U.S. military base in Aberdeen, Maryland one snowy evening not too long before Christmas. The driver noticed that part of the address was missing one package. The easy solution was simply for the driver to leave the package with the base HQ to be re-routed at some later point. However, this driver took the initiative and made the extra effort to locate the solider to whom the package was addressed. The solider was very grateful for no little reason: inside the package was an airplane ticket home for the holiday! Had the UPS driver not made the extra effort the solider would have missed the flight and the chance to spend Christmas with his family.

Case Study 3

Southwest Airlines has been able to effectively combat rising oil and gas prices and maintain healthy revenue even during the recent economic recession. The main strategy was to build a strategy team composed of senior management down through baggage crews. The team met once per week for brainstorming sessions and was encouraged by top management to take the initiative in generating ideas that would improve productivity while reducing costs. Southwest's Chief Information Officer, Tom Nealon stated that having a cross-functional team allowed members to develop a "big picture" perspective and ask insightful questions that led to innovative solutions. These ideas have helped the company gain a substantial competitive edge in its market by delivering superior service (e.g. streamlined reservations, limited delays, quick boarding) at lower costs.

By Divyesh Nathoo