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After Weeks of Struggle and Hard Work To Complete Assignment Given To Us by Our Teacher

The document discusses the history of early price indices. It describes some of the earliest known work on tracking price levels by Welshman Rice Vaughan in 1675 and William Fleetwood's creation of perhaps the first true price index in 1707 to help Oxford students arguing that the value of money had changed over time. The summary provides high-level information about the key figures and topics discussed in the document.

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Seow Woei Seong
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19 views2 pages

After Weeks of Struggle and Hard Work To Complete Assignment Given To Us by Our Teacher

The document discusses the history of early price indices. It describes some of the earliest known work on tracking price levels by Welshman Rice Vaughan in 1675 and William Fleetwood's creation of perhaps the first true price index in 1707 to help Oxford students arguing that the value of money had changed over time. The summary provides high-level information about the key figures and topics discussed in the document.

Uploaded by

Seow Woei Seong
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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After weeks of struggle and hard work to complete assignment given to us by our teacher, Puan Kamariah bt Zakaria.

I finally did it within 2 weeks with satisfaction and senses of success because I have understood more deeply about the interest and investment more than before. I have to be grateful and thankful to all parties who have helped me in the process of completing my assignment. It was a great experience for me as I have learnt to be more independent and to work as group. For this, I would like to take this opportunity to express my thankfulness once again to all parties concerned.

Firstly, I would like to thanks my Additional Mathematics teacher, Puan Kamariah for patiently explained to us the proper and precise way to complete this assignment. With her help and guidance, many problems I have encountered had been solved.

Beside that, I would like to thanks my parents for all their support and encouragement they have given to me. In addition, my parents had given me guidance on the methods to account for investment which have greatly enhanced my knowledge on particular area. Last but not least, I would like to express my thankfulness to my cousin and friends, who have patiently explained to me and did this project with me in group.

REFLECTION While I was conducting the project, I had learned many moral values that I practice. This project work had taught me to be more confident when doing something especially the homework given by the teacher. I also learned to be a disciplined type of student which is always sharp on time while doing some work, complete the work by myself and researching the informations from the internet. I also felt very enjoy when making this project during the school holidays.

History of early price indices


No clear consensus has emerged on who created the first price index. The earliest reported research in this area came from Welshman Rice Vaughan who examined price level change in his 1675 book A Discourse of Coin and Coinage. Vaughan wanted to separate the inflationary impact of the influx of precious metals brought by Spain from the New World from the effect due to currency debasement. Vaughan compared labor statutes from his own time to similar statutes dating back to Edward III. These statutes set wages for certain tasks and provided a good record of the change in wage levels. Vaughan reasoned that the market for basic labor did not fluctuate much with time and that a basic laborers salary would probably buy the same amount of goods in different time periods, so that a laborer's salary acted as a basket of goods. Vaughan's analysis indicated that price levels in England had risen six to eightfold over the preceding century.[1] While Vaughan can be considered a forerunner of price index research, his analysis did not actually involve calculating an index.[1] In 1707 Englishman William Fleetwood created perhaps the first true price index. An Oxford student asked Fleetwood to help show how prices had changed. The student stood to lose his fellowship since a fifteenth century stipulation barred students with annual incomes over five pounds from receiving a fellowship. Fleetwood, who already had an interest in price change, had collected a large amount of price data going back hundreds of years. Fleetwood proposed an index consisting of averaged price relatives and used his methods to show that the value of five pounds had changed greatly over the course of 260 years. He argued on behalf of the Oxford students and published his findings anonymously in a volume entitled Chronicon Preciosum.[2]

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