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This article from Belarusian news agency BeITA explains the exchange rate policy of the Belarusian National Bank, as described by Deputy Chairman Sergei Kalechits. It explains policy regarding the managed float status of the Belarusian Ruble and how the government pursues a balanced policy surrounding the currency, aiming to reduce the interest rate whilst maintaining competitive advantage with domestic exports.

This article is about the exchange rate in the UK for the Pund (GBP), which has become weaker during the past weeks. This implies that the UK economy is slowing down. 

Agustin Carstens, governor of the Central Bank of Mexico warns about the spillover affects into the developing world from advanced economies' banks' monetary policies. Money has found its way into emerging markets leading to higher exchange rates and weakening exports according to Carstens. This is a dangerous bubble that could be liable to burst should growth pick up soon. Overall this article provides an interesting insight into how one countries policy choices can have global consequences and how international economics really is.

Japan's inflation rate continues to rise according to this article from the Guardian. Prime minister Shinzo Abe aims to boost the inflation rate in the country to an approximate 2% level but, as typical with many countries, wages have not caught up with these levels and thus consumer spending power has been reduced drastically. Other interesting things to note are the rise in electricity and gas prices contributing to the increased CPI data.

This article presents how a report done by the Monetary Policy Committee of the UK has lead to the value of the pound falling slightly against the dollar. This shows how the direct action of a central bank (here refusing to increase the interest rate) can impact the exchange rate.

Credit: Reuters This article concerns the apparent policy decision facing China as to whether it should cut interest rates and loosen lending so as to decrease the deflation in Chinese growth. Historically China has artificially manufactured low exchange rates so as to benefit their exports to other countries. This new policy therefore represents a step away from this traditional approach.

From Al Jazeera I chose this article about the poor state of the economy in South Africa, 20 years after Nelson Mandela and the ANC came to power, ending the system of political, social and economic segregation, Apartheid. Despite reforms in the 90's the majority of wealth and power is still held by rich whites. With around 30% unemployment rate and young people struggling to find work many feel only anger and resentment to the current ANC government led by Jacob Zuma. Economically speaking South Africa's imports are up and exports down, reducing GDP as AS is shifted left. This is especially evident in industries like mining and banking which many are now calling for to be nationalised. 20 years on from Nelson Mandela's historic victory in the 1994 general election, South Africa, despite being free of the shackles of segregation is not in the boom many predict. The ANC must be careful in there actions, should they, following the death of Madiba lose contact with his legacy and what he stood for.

This article relates to equilibrium and price mechanism because it describes changes in impacts of the market. Stakes are growing, there are "intensified speculation about America's long-term stability" due to a downgrade in the country's credit rating, and an unstable state at the "fiscal cliff". These worries and a political impasse in Washington are some impacts that has threatened negative economic repercussions in the US, moving the market equilibrium. In response to changes in price, resources are allocated and re-allocated. However, profits are still able to be made making the equilibrium more stable without excess demand and supply, due to that the US has its popular culture and economic innovation, helping the country to retain attractive qualities for many foreigners.

I think this is a very serious matter, that could affect the world's over all economy if it goes on for a while. We can see that obviously a majority of the world's largest companies are american and based in america. If this effects any of those companies, the market they operate at will see a big change, both in the good way and the bad one.

This article describes the devaluation of the fixed currency rate of Nigeria as a result of the decreased energy prices. Nigeria is an oil producing country and therefore earns a lot of its income through oil exports. Now that the prices of other energy has dropped, there is a lower demand for the Nigerian oil, leading to fewer exports. The Nigerian central bank has now devaluated its currency by 8.4 percent in the hope that the lower prices will encourage a greater demand for their oil exports.

This article from the London Evening Standard details how the IMF have warned the UK government over remaining household debt and the dangers it poses to the economy. The IMF have also called for 'supply side measures... to safeguard housing affordability' - a growing problem in both London and the UK as a whole.

this is relevent to this weeks reading because it amother way of the government making changes, however here its not the government its the central bank. and acts of the central baks are more monetary poilicy as they predominantly affect AD

The unemployment rate, though, tells a much cheerier story: it dropped to 6.6% in January from 7% in November. Indeed, it could soon hit the Federal Reserve's 6.5% threshold at which it may consider raising interest rates.

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. 

The article talks aboutthe quantative easing the FED gave and how it may affect the markets. "As interest rates rise, so does the expected return. This, in turn, pushes down the price that investors are willing to pay for a dollar in earnings" this is the concept of equilibrium in a more financial point of view. It says that the steeper the field curve is the higher the interests will be and therefore the equilibrium rises.

This article from Forbes is primarily titled to be a forecast about inflation in the coming fiscal year but it also interestingly (and relevant to our studies) discusses the different arguments and criticism surrounding the modelled Phillips Curve. The article also contains an interesting graph that is based on recorded statistics about inflation and unemployment which helps to demonstrate the problems with the Phillips Curve model. 

This article shows how elastic Indias currency the Rupie is, and how a small increase in interest rate can cause a huge increase in inflation

This article shows how important it is to sustain proper inflation. It should be not too high as well as not too low. Central Bank is able to control it with the interest rate.

This is a very interesting article because it presents a well-known health care reform in the context of a supply-side policy. The article is about how Republicans have been blaming Obamacare for having negative supply-side effects on the economy and the labour force by reserving budgets for subsidising the system.

Republicans believed that supply rather than demand was to be blamed for the economy's state. However, there has been clear evidence that the job market was held back due to low demand. The article then starts to delve int Obamacare and how it had negative supply-side effects on the economy.

Obamacare is nothing new - it has been debated about for months, if not years, in one shape or form. This problem with Obamacare is that it has negative supply-side effects. These effects were offset by a half, with the presence of Medicaid, but now that the subsidies for health care have shrunken, the marginal tax rate would rise, thus discouraging people to find work and keep working. Politicians are pushing for supply-side reforms, but the Congress isn't budging due to the possibility that Obamacare, an expensive and time-consuming venture, might be scrapped.

As a number of officials wanted to give more information about how long the US Federal Reserve will wait before it starts to reduce the size of its balance sheet, the central bank starts to plan an exit from easy monetary policy. 

The recent fall in oil prices, largely due to America's newfound dominance in the market, will cause Russia to experience a balance of payments deficit, according to this article from the Guardian. This is based on Russia's overestimate of the forecast for the global oil price and can be said to be an example of how global prices often influence balance of payments for countries, especially when it concerns national resources.