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Amanda Anna G

Centre for Policy Studies: Productivity is Key to Securing UK's Economic Recovery - 1 views

  • Centre for Policy Studies: Productivity is Key to Securing UK's Economic Recovery
  • Yesterday saw the release of another good set of jobs figures. Employment rose and youth unemployment and long term unemployment fell. Nevertheless, to secure the recovery and generate sustainable real wage rises, we need to break the decade long stagnation in productivity which is holding back our economy.
  • These increases in employment and hours worked have been crucial in restoring economic growth.
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  • However, at some point the gains to be made from increasing the number of workers and increasing the number of hours will diminish. Education and welfare reforms combined with more robust growth in aggregate demand will cause the pool of available workers to shrink. When we reach that point, productivity will need to rise to support output growth and real wage rises.
  • Weak demand and labour hoarding have often been cited as the causes for this sustained weakness. However, stronger growth in demand in 2013 has not led to significant increases in output per hour. Rising aggregate demand must surely lead to some increases in productivity over time but it is clear that other structural reasons are holding back productivity growth.
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    This article discusses how to secure the UK's economic recovery. It is suggested that increase in employment and hours worked could restore economic growth. At some point, this increase will diminish due to growth in the aggregate demand combined with education and welfare reforms that results in a decrease in the available workers. However, it is argued that rising aggregate demand would lead to increase in the productively over time, but other reasons are holding back productivity growth. 
Marenne M

Demand soars: Sydney houses start going for more than $1m over reserve price | theteleg... - 1 views

  • Demand soars: Sydney houses start going for more than $1m over reserve price
  • ORDINARY suburban homes in Sydney are selling for more than $1 million over reserve owing to intense ­demand and sparse supply.
  • Two properties broke this mark in the first eight weeks of this year’s selling season.But industry experts ­refuse to speculate that Sydney is in the grip of a property bubble, saying the extraordinary prices were a sign of intense buyer fever.
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  • “People are now happier than ever to pay the premium price for the property they want. But now even the ordinary homes, if you want to call them that, are ­inviting extraordinary prices.”
  • “Sydney’s average appreciation for property has gone up by 14 per cent in the last 15 months. That’s enormous and if it continues, there’s room for worry,” he said. “But at the moment the market just appears excited.”Yellow Brick Road founder Mark Bouris was cautious not to hype the property price hikes.“You’d have to be careful in the investor market ­because when aggregate ­demand is so high you have to start considering that their pricing is potentially above where it should be,” he said.
  • Last month, a three-bedroom apartment in Kirribilli sold for $4.325 million, shattering the $3 million reserve.
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    This article explains how rising AD has lead to house prices rising exponentially in Sydney, Australia. Houses are selling for around $1 million AUD over reserve and a three bedroom apartment recently sold for $4.3 million breaking the $3 million reserve. The rising demand for houses is typical of economies at the moment as most workers want to move to large cities to secure jobs. 
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    This article describes the great aggregate demand in the housing industry in Sydney, leading to massive consumer spending. People are buying houses way over their selling price, because the aggregate demand is so high. 
John B

Report: Fresno area aggregate supply slipping - 1 views

  • Despite several approved and extended rock mines in the last 10 years, Fresno County's current aggregate reserves are not expected to last very long
  • aggregate is still in short supply in the Valey
  • Current mining operations in the region are estimated to have less than 10 years remaining to meet the projected demand in construction.
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  • Northern Tulare County was shown to have a little more leeway with 27 million tons of permitted reserves. That represents 22 percent of the area's 50-year demand of 124 million tons, a supply of 11 to 20 years.
  • Much of the aggregates needed in the Fresno area are produced in Coalinga out of mines operated by Granite Construction and Jaxon Enterprises, both of which are reaching the end of their supplies
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    This article deals with the fact that the company Fresno County has little aggregate reserves compared to its competitors. This means that they cannot produce as much as they would need to in order to keep its business going.
Yassine G

World economy needs more aggregate demand - Economic Times - 0 views

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    This might look like a very short article, however, i found it to pretty much sum up the whole theory, Aggregate demand is influenced by the government and hence decisions must be taken to increase aggregate demand. However, they must pay attention to other factors such as inflation and unemployment. this is what happens in real life. It is not just making the decision or finding a solution, it is also considering consequences and real needs and the ability to conduct a change. 
Yassine G

Aggregate Supply, Aggregate Demand, and Coal - NYTimes.com - 1 views

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    this article talks about how a policy change could affect aggregate supply. It is quit hard to understand but it is very interesting. Of course this is from the point of view of an economist, Paul Krugman 
Marenne M

Oil prices will drop if U.S. lifts crude export ban: study | Shanghai Daily - 2 views

  • Gasoline costs are tied to a global market, and this study shows that additional exports could help increase supplies, put downward pressure on the prices at the pump and bring more jobs to America.
  • if export was allowed, the cost of gasoline, heating oil and diesel fuel is projected to fall
  • United States is expected to shift from a net importer to a net exporter by 2020
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  • On an aggregate supply-demand basis, the country is rapidly approaching a self-sufficiency rate of 90 percent
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    This article describes how the U.S. is considering becoming more self-suffiecient in the fuel industry. The want to decrease their  imports and increase exports. Decreasing their imports will decrease import cost, increasing the aggregate supply. Simultaneously, increasing export will increase aggregate demand. This will shift the U.S. from a net importer to a net exporter.
Hardy Hewson

Foreign trade drives fourth quarter German growth as domestic demand disappoints - 1 views

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    This article discusses Germany's GDP in detail
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    The attached article compares and contrasts the contribution made to aggregate demand by varying foreign and domestic demand. It states, that despite relative increases in demand overall (especially in public opinion), domestic demand figures are still low. Instead, foreign trade appears to make up the majority of aggregate demand in the overall economy.
Clemente F

Low Inflation Simply Reflecting Weak Aggregate Demand - 1 views

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    This article discusses how the low inflation is simply the reflection of a week aggregate demand.
Marenne M

Youth unemployment: Generation Jobless at risk of becoming reality - 3 views

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    This article describes the unemployment among youths in Australia. It describes how no matter whether you have a degree or not, it is barely possible to find a job. This is due to a lack in demand for labor, which generally results from a lack of aggregate demand, meaning that the economy isn't operating at its full potential. Therefore there is a surplus of supply for a minimal demand of labor, leading to a decrease in wage cost and a decrease in chances of finding a job. This is why many people are recommending doing internships for free, because firms are no longer paying as much for the employees, but even these internships are hard to get.
Amanda Anna G

DHM Markets/Marketers: Per capita production - 0 views

  • We've all heard about per capita milk consumption – how many pounds of dairy products we consume annually on a milk equivalent basis. Hint: It's about 600 lbs. per person in the United States.
  • But what about per capita milk production?
  • The Central federal milk marketing order administrator's office tracks per capita milk production annually, identifying states producing enough milk within their borders to meet the needs of their population. When compared with population estimates, the information helps reflect the aggregate supply and demand balance for individual states and regions throughout the U.S.
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    This article is about the consumption and production of milk in the US. The comparison helps reflect the aggregate supply, as I believe- milk is a product that is bought in nearly every household in the US, and hence takes up a big proportion of the economy. 
Mariam P

Copper Slumps to 44-Month Low on Concern China Demand Is Slowing - 2 views

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    This article is about the changes in price of the copper in China. And how that changes affect on aggregate demand of China.
John B

Drop in U.S. Jobless Claims, Rising Consumer Confidence Point to Recovery - Bloomberg - 2 views

  • Fewer Americans filed claims for jobless benefits last week and consumer confidence stabilized
  • indicating strengthening sales in the U.S. and overseas are helping manufacturers like United Technologies Corp. (UTX)
  • We have an economy that is growing solidly,
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  • A slowdown in firings and growing payrolls may spur further gains in consumer spending, which accounts for about 70 percent of the economy.
  • report today showed orders placed with factories unexpectedly fell in February for the first time in four months, reflecting weaker demand for capital goods and military aircraft.
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    This article is dealing with the economy in the U.S. It starts with stating that consumer confidence is stabilized, which could be because of the growing economy in the U.S. For example, the sales in U.S. and overseas are strengthen. One could also see from this article that the amount of people being fired from their jobs decrease which contributes to a growing consumer spending. Although, the demand for capital goods and military aircraft is becoming weaker.
Mariam P

No inflationary pressure in budget, say experts - 2 views

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    This article represents the point of view of the experts about the effect of the increase in the budgetary on aggregate supply in Qatar, Peninsula.
Pietro AA

S. Korea's Economy Grows More Than Forecast as Exports Climb - Bloomberg - 0 views

  • South Korea’s economy expanded at a faster pace than forecast, showing momentum that could boost inflation pressures and build a case for a rate increase.
  • Gross domestic product grew 0.9
  • rivate consumption increased,
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  • Exports weathered the won’s 8 percent climb against the dollar
  • rowth will accelerate to the quickest pace this year since 2010, helping push inflation up to its target band.
  • he economy is doing well broadly, across exports, consumption and jobs
  • ncrease in the nation’s exports f
  • Growth was constrained by weakness in business investment,
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    great article about the macroeconomy of S.Korea. Maybe it gives too much info so it leaves less space for analysis.
Haydn W

The return of the US dollar | Mohamed El-Erian | Business | theguardian.com - 4 views

  • The return of the US dollar The resurgence of the US currency could be the first promising step in steering the world economy away from crisis
  • The US dollar is on the move. In the last four months alone, it has soared by more than 7% compared with a basket of more than a dozen global currencies, and by even more against the euro and the Japanese yen.
  • Two major factors are currently working in the dollar’s favour
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  • Second, after a period of alignment, the monetary policies of these three large and systemically important economies are diverging, taking the world economy from a multi-speed trajectory to a multi-track one.
  • First, the United States is consistently outperforming Europe and Japan in terms of economic growth and dynamism – and will likely continue to do so – owing not only to its economic flexibility and entrepreneurial energy, but also to its more decisive policy action since the start of the global financial crisis.
  • With higher US market interest rates attracting additional capital inflows and pushing the dollar even higher, the currency’s revaluation would appear to be just what the doctor ordered when it comes to catalysing a long-awaited global rebalancing – one that promotes stronger growth and mitigates deflation risk in Europe and Japan.
  • ECB President Mario Draghi signalled a willingness to expand his institution’s balance sheet by a massive €1 trillion ($1.25 trillion).
  • Furthermore, sudden large currency moves tend to translate into financial-market instability.
  • There is also the risk that, given the role of the ECB and the Bank of Japan in shaping their currencies’ performance, such a shift could be characterized as a “currency war” in the US Congress, prompting a retaliatory policy response.
  • Today, many of these countries have adopted more flexible exchange-rate regimes, and quite a few retain adequate reserve holdings.
  • an appreciating dollar improves the price competitiveness of European and Japanese companies in the US and other markets
  • But a new issue risks bringing about a similarly problematic outcome: By repeatedly repressing financial-market volatility over the last few years, central-bank policies have inadvertently encouraged excessive risk-taking, which has pushed many financial-asset prices higher than economic fundamentals warrant.
  • This is not to say that the currency re-alignment that is currently underway is necessarily a problematic development; on the contrary, it has the potential to boost the global economy by supporting the recovery of some of its most challenged components. But the only way to take advantage of the re-alignment’s benefits, without experiencing serious economic disruptions and financial-market volatility, is to introduce complementary growth-enhancing policy adjustments, such as accelerating structural reforms, balancing aggregate demand, and reducing or eliminating debt overhangs.
  • The US dollar’s resurgence, while promising, is only a first step. It is up to governments to ensure that the ongoing currency re-alignment supports a balanced, stable, and sustainable economic recovery. Otherwise, they may find themselves again in the unpleasant business of mitigating financial instability.
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    This article details the so called resurgence of the US dollar, in terms of currency value. The currency itself has risen by around 7% against other currencies but Guardian economist Mohamed El-Erian warns that without the appropriate accompanying central bank policies, the rise of the dollar could cause further market volatility and at worst a new crash. El-Erian calls for governments to enact policy to support balance the current currency realignment. 
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