...Module Title: Principles of Economics Essay Title: A part of China’s economy Contents Introduction of China economics…………………………………………..…..….4 Summary of article…………………………………………………………………...….4 Aggregate supply (AS) models……………………………………………………..…5 Aggregate demand (AD) models………………………………………………..….....6 Government policies to overcome above problems and effectiveness…………7 Conclusion…………………………………………………………………………………..8 Reference list…………………………………………………………………………………9 Introduction of China economics China’s economy is rapidly huge and expanding in these years. It is the fourth largest country in area after Russia, Canada and USA has experienced multifarious changes in its economic system which has seen it become the second largest economy in the world after USA if measured on the Purchasing Power Parity (PPP) scale. However, China still considered as an emerging economy as per capita incomes fall in the lower-middle level, China is making its presence felt in the global stage by taking big strides in opening up its economy to international trade. There are many economic problems faced by China during the years. And the inflation has become a serious challenge for the developing economy; the surplus of population and the rising unemployment rate and price. According to statistics, more than 250 million migrant workers and their dependents had removed to urban areas to find work. Hence, as China’s economy slows down due to falling external and internal...
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...Executive Summary 2 2.0 Introduction 2 3.0 Key Economic Issue 2 4.0 Economic Implications 4.1 Advantages of globalisation 2 4.2 Disadvantages of globalisation 4 5.0 Conclusion 5 6.0 References 6 7.0 Appendices 7 1.0 Executive Summary While research was being done for this assignment, the article “Hong Kong surpasses S’pore as world’s most globalised economy” (Tao, 25 January 2011) piqued my interest, especially the word globalisation. I have heard about the word globalisation but have never understood what it really meant. This essay will explain briefly what globalisation is, and highlight the key economic implications with reference to Singapore, by attempting to explain how globalisation affects the economy. 2.0 Introduction “Globalization (or globalisation) describes the process by which regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade. The term is most closely associated with the term economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence. The term can also refer to the transnational circulation of ideas, languages, or popular culture through acculturation.” (Tao, (n.d.) ) 3.0 Key Economic Issue The key economic issues in the article is the...
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...HOW THE GLOBAL DEBT CRISIS COULD AFECT YOU Reasons for selecting the article The reasons for choosing the article are that firstly, it stated that aggregates for economic consequences, GDP, recession and unemployment have greatly affected Singapore economy. The article also focused on the nation behaviour of the declining economy for US and Greece due to finance crisis which in turn affect other nations, in this case, Singapore. In fact, the article briefly explained how aggregates like national income and output have affected US and Greece economy, which in turn affected Singapore. It will be further discussed whether this mentioned global crisis will affect Singapore inflation, causing a rise in unemployment rate and the slowing of GDP growth for emerging markets. Summary of the article The article comments on how two of Singapore’s trading partners, mainly US and Greece, are hurting themselves with their debt problems and the impact of their problems on Singapore economy. It briefly describes what US debt ceiling is and the heavy borrowing of Greek government which has greatly contributed to the global debt crisis. It also explains on US debt problem and other aftershocks if the debt ceiling is not rise. Moreover, it explains the debts that Greece had incurred and what will happen if Greece defaults on its debts. Lastly, it further highlighted that the Singapore economy is affected by the two countries’ debt problems. Identify and discuss on the economics...
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...Article 1: “Economists see cost pressure fuelling consumer prices” Table of content A: Introduction……………………………………………………………………….1 1.Summary………………………………………………………………………1 2.Theories applied………………………………………………………………1 B: Analysis……………………………………………………………………………2 1. Research findings……………………………………………………………...2 2. Interpretation……………………………………………………………………2 . I. Cost-push inflation……..……………………………………………………2 II. Demand-pull inflation………………………………………………………..3 3. Application………………………………………………………………………5 4. Conclusion……………………………………………………………………...6 5, Recommendation………………………………………………………………7 C: References list……………………………………………………………………7 A: Introduction 1.Summary Headline in-inflation may have moderated more than expected in December. But economists say inflation is unlikely to stay this low for long, especially with domestic cost pressure driving up consumer prices in 2014. A decline in private road transport costs which was in turn thanks to lower COE premiums. Economists polled by Bloomberg had been expecting a 2 per cent rise in (CPI) in December from a year ago. COE premiums were lower last year than in 2012, but we probably underestimated the magnitude of the impact this would have on head line inflation was said by DBS economist Irvin Seah. So the monetary Authority of Singapore ( MAS) and the Ministry of Trade and Industry (MTI) said the recent weakness in car COE premiums partly reflected a high base as premiums surged in the same period one year earlier...
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...Executive Summary The topic of this paper is mainly discussed on the causes of inflation by explaining how the sustained inflation occurs as well as the role of played by monetary policy in the inflation process. The author in this paper agreed that sustained inflation is always and everywhere a monetary phenomenon and this has been agreed by both monetarist and Keynesian assumption. Besides that, the author also mentioned that we need to understand why inflationary monetary policy occurs. This paper also examines the inflation issue faced by United States and accommodating policy which has been used in order to achieve high employment target. Contractually, expectation is an important element in the anti-inflation policy to minimize the cost and output loss due to unemployment. Thus, a non-accommodating policy may be optimal to prevent the sustained inflation. The structure of this working paper began with executive summary followed by the assumptions of the paper and key concepts as well as the empirical evidence provided by the author. The author also provides some suggestions on how the monetary policy can be conducted to deal with the inflation process. Background/Assumptions of the paper Frederic S. Mishkin, the author of the working paper of ‘The Causes of Inflation’ is currently teaching at the Columbia Business School since 1983. This working paper was published in September, 1984 in National Bureau of Economic Research. He is also...
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...Prices and Macroeconomic Performance For macoreconomic performance, it will be influenced by the variation in asset prices. In another word, the variation in asset prices refer to the change in household's wealth. We call the causal effect of exogenous changes in wealth upon consumption behavior as the wealth effect (Karl E. Case, John M. Quigley and Robert J. Shiller, 2001). In daily life, the house and stock price represent the major wealth for household, and in my following paper, I will introduce how house and stock price changes will influence the aggregate economic activity. First of all, the theoretical basis for the important macroeconomic implications of house and stock price. The wealth effect can be divided to two categories, one is positive and another is nagetive. If the price of house and stock increase, for example, it exists a positve effect for househld. How this temporary positive effect affect the aggregate supply (work effort) and demand (consumption)? Because Here is the mechanism. Firstly we consider about the work effort. a. In response to the increase of wealth, household can produce more goods or services. And this will reduce household's leisure and increase the work effort relatively. But this effect will be very small relative to its magnitude if the incresement is perceived as temporary. This is an implication of the Permanant Income Hypothesis. b. The intratemporal substitution of work effort. I want to introduce a concept first, this concept is...
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...Part A Question (a) According to the Statistics Department for the month of November, exports to the US, China and Asean region rose 11.0%, 5.4% and 7.8% respectively. For the same period, there is a decline of 16.2% and 11.3% in sales to Japan and European Union respectively. From the above statement, we can conclude that the importance of Malaysia’s trading partners have shifted from Japan and European Union to US, China and Asean region (Chong 2013). Question (b) Malaysia’s manufactured exports has been relying on imports especially capital goods such as machinery and transport equipment. The THREE (3) ways on how the economy can reduce imports are as follow: 1) Import Substitution Policy Import substitution policy is a policy that promotes the replacement of foreign imports with domestic production. By implementing this policy, Malaysia attempts to reduce its foreign dependency through the local production of industrialised products until they reach a level of development when they are able to compete in the global market (Wikipedia 2013). According to Lee (2005), this type of industrial policy accompanied by tariff protection, import restrictions and sometimes government procurement favouring locally produced products is targeted at government investments such as Proton (car) and Perwaja (steel). Another long-term solution for import substitution policy is through encouragement of Foreign Direct Investment (FDI) in Malaysia. Malaysia is a politically stable...
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...ECO 372 Course Syllabus Course Description This course provides students with the basic theories, concepts, terminology, and uses of macroeconomics. Students learn practical applications for macroeconomics in their personal and professional lives through assimilation of fundamental concepts and analysis of actual economic events. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Colander, D. C. (2010). Macroeconomics (8th ed.). Boston, MA: McGraw-Hill/Irwin. All electronic materials are available on the student website. Week One: Fundamentals of Macroeconomics | | Details | Due | Points | Objectives | 1.1 Explain the economic interaction of resources among households, government, and business. 1.2 Describe gross domestic product, inflation rate, unemployment rate, and interest rate. 1.3 Identify sources of historical economic data and economic forecasts. | | | Reading...
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...NP ltd | Policy Brief | Canadian Immigration Reform: Macroeconomic Impacts | | | 7/28/2014 | | Table of Contents 1.0 Executive summary 2.0 Distribution List 3.0 Introduction 4.1 History 4.2 Policy 4.3 Federal Skilled Worker Program 4.4 Temporary Foreign Worker Program 4.0 Policy Outcomes 5.5 Labour Supply 5.6 Keynesian Theory – Aggregate Supply and Demand 5.7 Demands for Goods and Service 5.8 ADI/IA – Aggregate Demand and Inflation 5.9 Aggregate Supply 5.10 Multiplier effect 5.11 Money market 5.12 Short Term/Long Term Immigration Impacts on GDP 5.0 Policy Recommendations 1.0 Executive Summary The World Bank (2014) identifies Canada as having the 11th largest economy in the world with a gross domestic product (GDP) of $1.82 trillion in 2013 with a population of 35 million (Canada 2013). Immigration has been a crucial element of the development and generation of revenue for the country. Skilled workers play a vital role in the growth of the Canadian economy and range from general skilled workers, professionals as well as business immigrants and foreign investors. There is evidence demonstrating that immigrants do experience some challenges assimilating and this does cause some fiscal burden as more social support is required. Delays integrating into the social system impact numerous social resources...
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...On Our Way to Inclusive Growth By Cesar B. Bautista Philippine Daily Inquirer 3:53 am | Monday, March 4th, 2013 http://philippinedailyinquirer.newspaperdirect.com/epaper/viewer.aspx The Philippines has achieved considerable progress in tackling corruption and upgrading competitiveness, which makes it earn the respect of world economists, thanks to the high confidence enjoyed by President Aquino. From the “Sick Man of Asia” in the past, the country is now considered as the possible “Tiger Economy” before long. The President has stated that in the second half of his term, the government will focus on providing opportunities for the creation of quality employment and livelihood, since these are the country’s pathway out of poverty. Building on the substantial improvements so far reached by the Cabinet economic cluster, the various business organizations have reiterated the need for sectoral economic planning of products and services, which have the potentials to be globally competitive and where the country can benefit from the global economies of scale that will meet the challenging targets of generating 14.6 million employment and livelihood until 2016. The Philippines will become a global player in a broad field of products and services, which will benefit its resources (both human and natural), financially, technologically, socially and culturally. It will provide the seed of economic renaissance, which was proposed by the combined local and joint foreign business chambers...
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...Table of Contents 1. Summary of the article-------------------------------------------------------------------------2 2. Reason of Selected This Article-------------------------------------------------------------3 3. Analyse the Article------------------------------------------------------------------------------3 3.1 Demand and Supply Concepts---------------------------------------------------3 3.2 Fiscal Policy---------------------------------------------------------------------------4 3.3 Monetary Policy ----------------------------------------------------------------------4 3.4 GDP -------------------------------------------------------------------------------------5 4. Conclusion----------------------------------------------------------------------------------------6 1. Summary of the article Resale private flat prices up; bigger homes in demand. Prices of resale private flats rose 1 per cent last month, fuelled by demand for suburban apartments, according to flash figures from the Singapore Residential Prices Index (SRPI) yesterday. Resale prices of suburban homes climbed 1 per cent in October, the same increase recorded in September. Apartment prices in the central region rose 0.9 per cent last month, following growth of 1 per cent in September. Shoebox flats – those less than 500 sq ft – were up 0.6 per cent last month compared with September’s 2 per cent prices increase. Property analysts said bigger homes dominate the resale market. Shoebox homes...
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...Role of Aggregate Demand and Supply Shocks in a Low-Income Country: Evidence from Bangladesh Omar H.M.N. Bashar The Journal of Developing Areas, Volume 44, Number 2, Spring 2011, pp. 243-264 (Article) Published by Tennessee State University College of Business DOI: 10.1353/jda.0.0095 For additional information about this article http://muse.jhu.edu/journals/jda/summary/v044/44.2.bashar.html Access Provided by Bangladesh University of Professionals at 05/29/11 5:42AM GMT THE ROLE OF AGGREGATE DEMAND AND SUPPLY SHOCKS IN A LOW-INCOME COUNTRY: EVIDENCE FROM BANGLADESH Omar H.M.N. Bashar Deakin University, Australia ABSTRACT This paper explores the relative role of aggregate demand and supply shocks in affecting the output level and inflation rate in a low-income country vulnerable to various economic shocks. The study uses Bangladesh data, and following Cover et al (2006), employs a modification of the BlanchardQuah (BQ) approach, in which the two shocks are allowed to be correlated. Strong evidence is found for the hypothesis that aggregate demand and supply shocks are interrelated in Bangladesh. For the case in which causality is assumed to be running from demand to supply shocks, it was found that an independent supply shock plays significant role for fluctuations in inflation, which was absent in the standard BQ model. The results suggest that a tightening of monetary policy may lead to an adverse effect on the long-run growth potential and some supply-side policies...
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...Research paper 2 Summary of U.S. Economy High unemployment and slow growth are still the dominant features of the US economy. Growth during 2011 has been at a very slow pace, and slightly improved Q4 figures just released are likely due to temporary factors. While there has been real, if modest job growth in each of the last five monthsi, much of the drop in the official unemployment rate is due to unemployed workers giving up looking for j obs. There is wide agreement that any recovery is likely to be sluggish over the next couple of years. For example, Paul Krugman writes, "...the state of the economy remains terrible... But there are reasons to think that we're finally on the (slow) road to better times."ii The recovery, at least in terms of economic output, may continue and even strengthen -- eventually. With profits restored at the expense of wages and social benefits1, business investment could continue to increase. With almost no new housing construction and a growing potential demand from multi-family households, there could be a new housing boom at some point. But there is still a strong possibility, in the immediate future, of a new financial crisis and resumption of the downward economic spiral of 2008-2009. This danger comes from: * The overhang of unpayable household debt, particularly in home mortgagesiii. * The global capitalist crisis, most immediately the European crisis, which can destabilize the US financial system, and will reduce the market for...
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...Inflation – Impacts On The Economic Growth Of Nigeria By DoubleGist | Published: June 5, 2013 Inflation – Impacts On The Economic Growth Of Nigeria Inflation – Impacts On The Economic Growth Of Nigeria A macroeconomics problem facing Nigeria, and the most disturbing, is the problem of inflation. As a result of its growing rate, Nigerian government is concerned about its impacts on her economic growth. To place an order for the Complete Project Material, pay N5,000 to GTBank (Guaranty Trust Bank) Account Name – Chudi-Oji Chukwuka Account No – 0044157183 Then text the name of the Project topic, email address and your names to 08060565721. Many authors have written on Impacts of inflation on Nigerian economy, but the authors have different views because inflation analysis, nevertheless, one thing common is that all the authors agree that inflation has Impact on Nigerian economic growth. Samuelson (1973), defines inflation as “a general rising prices for breeds, cars, haircut, rising wages, rent etc. Onwukwe (2003), on his side defines inflation as “a significant and sustained rise in the general price level or a declining value of the monetary units. The problem created by the rising prices of goods and services has become two difficult for government to solve. During inflationary period, fixed amounts of money buy less quantity of goods and services. The real value of money is drastically reduced i.e the purchasing power of consumers are reduced. The Impact of rapid...
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...Summary of article The central bank of Singapore; Monetary Authority of Singapore (MAS), has reported slowing down the pace of the Singapore dollar's appreciation to stimulate the economic growth. During the beginning of the 4th quarter this year, it was reported that Singapore's core inflation had reached a six-month high record of 0.6 per cent in the year, but the possible issue of deflation due to the slow global growth is still the primary concern for most. One of the other reason that why MAS wants to use a more aggressive easing approach to slow the local dollar’s gain against its trading partners could be the need of guarding against the import inflation. Due to high demand, Singapore yearly imports around S$464 billion of goods and major of them are the fruits and vegetables, the weakening of Singapore dollar compared to US dollar makes the prices of most imported perishable items more expensive. The secondary reason could be coming up with fiscal expansionary policy measures to revive the growth mainly because the government’s spending on building infrastructure over the past years have shown positive effects. Lastly, the estimation of unexpectedly stronger advance Gross Domestic Product (GDP) growth in the third quarter could be the reason for slowing the pace of local dollar appreciation. Introduction Due to the scarcity of land and labor, Singapore is facing not enough manpower and at the same time underemployment and...
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