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Home/ Economics HL - Jacob Solomon's group - Year 1/ Contents contributed and discussions participated by Robert A

Contents contributed and discussions participated by Robert A

Robert A

Multiple equilibria - 3 views

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    In the article the demand for Italian bonds is examined and is shown to deviate from the standard demand relations. As shown in the chart in the article, at a certain point when the price of Italian bonds increase, the demand falls. The author of this article dubs this anomaly as a zone of vulnerability.
Robert A

Crowded out - 0 views

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    This article talks about the rising prices of commodities due to the aggressive and proactive economic policy of China. With the surge in Chinese purchases of commodities such as iron ore and oil, a huge demand has been created in the commodity markets, which were previously unprecedented. The sluggish reactions to the commodity demand,due to archaic infrastructure and depleted resources, have lead to a substantial spike in the prices of commodities. I personally believe that the massive purchases of resources by China is leading to a bubble in the commodity markets. As said in the article Iron ore was once 13$ a tonne in 2001, and now is 178$ a tonne. Although some might say that the rise in prices are a corollary to the rise of China as a economic power, I do not believe the mass consumption of commodities can be sustained over time.
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