Case 2: CHINESE MERCANTILISM Text 1. Chinese New Year China has become a major financial and trade power. But it doesn’t act like other big economies. Instead, it follows a mercantilist policy, keeping its trade surplus artificially high. And in today’s depressed world, that policy is, to put it bluntly, predatory. Here’s how it works: Unlike the dollar, the euro or the yen, whose values fluctuate freely, China’s currency is pegged by official policy at about 6.8 yuan to the dollar. At this
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The Relationship between Real Interest Rates and Inflation Michał Brzoza-Brzezina* Abstract In the recent decade, a huge amount of papers, describing monetary policy rules based on nominal interest rates, has been written. As it is, however, well known, it is in fact the real and not the nominal interest rate, that can influence spending decisions of enterprises and households and thus inflation. One way, to describe the relationship between real interest rates and inflation, is based on our
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Macroeconomy Chapter 6: * Central Park contained one of the “Hoovervilles” that had sprung up all across America as a result of a catastrophic economic slump in 1929. (The Great Depression) * During the time of Great Depression, microeconomics was a well-developed branch of economics, but macroeconomics was not. * In the 1930’s, there were no expanding industries; everything was headed downward. * Microeconomics focuses on how decisions are made by individuals and
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The SARS Epidemic in 2003 Relevant Economics Variables in China SARS (Severe Acute Respiratory Syndrome) was a new infectious disease which was first recognized in late February 2003 and has put the world on alert. This is a respiratory disease in humans which is caused by the SARS corona virus. The virus appears to be highly contagious and fatal. World Health Organization reported that the SARS between November 2002 and July 2003 cause 8,096 known infected cases and 774 deaths (a mortality
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Introduction to Economics Course outline Instructor/ teaching assistants details Details | Instructors name | Ayesha Samie | Email address | ayesha_samie@yahoo.com | Counseling hours | | Teaching assistants name | Uroosa Jeelani | Email address | uroosaj@gmail.com | Tutorial timings and days | Thursday 12:45-13:45 | About the course. This course will teach students the basic tools of microeconomics and macroeconomics issues such as price determination, supply and demand
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A short history on the economic background of the country United Kingdom is a very old country consists of England, Scotland, Wales and Northern Ireland. In the 18th century, the UK was among the first country in the world to industrialize and during the next century it became one of the dominating countries in the global economy. (Martinez, 2013) In the turn of the century, the UK remains among the great economies of the world trailing behind the US and some European countries. In recent times
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Comparative Analysis of the Impact of Macro-economic Variables on the GDP of China and India by Manish Chandi Shrestha Submitted to the Program of Analytics in the Postgraduate Division of the Business School As part of the requirement for Master of Business Administration at Bournemouth University March, 2015 Contents List of acronyms i List of figures and tables ii Abstract 1 Introduction 1 Methodology 2 Data source 3 Findings 3 Interpretation
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that banks are required to hold as reserves. In other words, it is money used to create more money and is calculated by dividing total bank deposits by the reserve requirement. The multiplier effect depends on the set reserve requirement. So, to calculate the impact of the multiplier effect on the money supply, we start with the amount banks initially take in through deposits and divide this by the reserve ratio. If, for example, the reserve requirement is 20%, for every $100 a customer deposits into
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Energy Economics 31 (2009) 882–887 Contents lists available at ScienceDirect Energy Economics j o u r n a l h o m e p a g e : w w w. e l s ev i e r. c o m / l o c a t e / e n e c o Economic impacts of higher oil and gas prices The role of international trade for Germany Christian Lutz a,⁎, Bernd Meyer a,b a b Institute for Economic Structures Research (GWS), Osnabrueck, Germany University of Osnabrueck, Germany a r t i c l e i n f o a b s t r a c t The analysis concentrates
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Abstract The following paper offers a research, which raises a question. To what extent, has the Greek economy suffered as a result of the economic breakdown? Over the past decade, the Greek government has been relying heavily on foreign aid and the reliance on financing from international capital markets resulted to an accumulation in national debt. The interference of fiscal policy by the injection of money in the economy and the increase of money supply and the encouragement of consumption
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