Group items tagged

"The chain of logic for supply-side policies to work requires the following. Lower tax rates on savings (or on those who save more) leads to higher saving rates. Higher saving leads to more economic investments and greater capital accumulation. Finally, more capital leads to greater economic growth. At each of these steps, however, there is reason to doubt the theory-there are other possible outcomes and conflicting theories. Rep. Ryan's plan is supply-side economics on steroids. His budget for fiscal year 2012 beginning in October would curtail spending, end Medicare as we know it, and reduce taxes on the wealthy while keeping overall tax revenue constant. This can only mean taxes will go up on the "nonwealthy." Ryan boasts that all this pain will be for good. And he is backed by the Heritage Foundation, which predicts-among other fantastical claims-that his budget will add an estimated additional 1 million jobs in 2012. Those 1 million jobs, however, are fictional."

"Putting caps on prices is only a short-term solution" Asian countries, China, Malaysia, and the like, are reluctant to raise prices on fundamental goods such as food and petrol. This allows the people of the country to have access to cheap petrol and thus more motivation for actions which lead to economic growth using petrol. Although the price caps seem beneficial for the country, that is only true in the short run. In the long run, the price caps will increase consumption in the country, and thus increase the demand for more crude oil from abroad which will lead to a rise in global prices of crude oil. Thus, looking ahead, it is for their own sakes that Asian countries should cut down on their price controls on such goods.

This is an article examining how other products are dependent on oil, and therefore argues whether or not we are irreversibly dependent on oil. That is, it is examining a cross elasticity between oil and many other products by way of a strong bond between the two.

The HDI is a measure of development that captures achievements in health and education alongside economic growth. Egypt and Tunisia did well enough on the growth front, but where they really shone was on these broader indicators.

Perhaps the most striking finding in the United Nations' recent 20th anniversary "Human Development Report" is the outstanding performance of the Muslim countries of the Middle East and North Africa. Here was Tunisia, ranked sixth among 135 countries in terms of improvement in its Human Development Index, or HDI, over the previous four decades, ahead of Malaysia, Hong Kong, Mexico and India. Not far behind was Egypt, ranked 14th. The HDI is a measure of development that captures achievements in health and education alongside economic growth. Egypt and especially Tunisia did well enough on the growth front, but where they really shone was on these broader indicators...

USA: this article discusses how, following the most recent recession, the US labor market improved throughout the country, driven by rising retail sales and "solid growth" in manufacturing. "Labor market conditions continued to strengthen modestly, with all Districts reporting some degree of improvement," The article also goes on to discuss labor demand and growing economies.

Japan's struggle to avert a nuclear disaster and prepare for a reconstruction of epic proportions is one more risk for a global economy already grappling with mounting risks. The threats to the fragile recovery were already rising before the devastating earthquake and tsunami brought the world's third-largest industrial economy to its knees. And they span the globe - from conflict and oil disruptions in the Middle East and rising inflation in China and other high-growth emerging economies to continuing debt woes in Europe and persistent weakness in U.S. housing and employment, whose recovery is essential to any sustained U.S. rebound. Adding to the wall of worry, governments have pulled the plug on massive stimulus programs, which played a crucial role in turning around economic fortunes in the wake of the 2008 financial meltdown and ensuing recession. Are these symptoms of an upcoming recession?

The article discusses the stability and growth Pact that regulates EU member states' budgets, and its impact on fiscal policy on member nations. Another dimension of fiscal policy is its political implications, and the article articulates this dilemma. Particularly in the case of the EU, where one government's spending has an effect on all other countries as the currency is common, a government's fiscal policy adjustments have political impacts. thus, aside from the economic implications, governments must consider the political ramifications of their actions before implementing fiscal policy.

This article discusses a tariff that the Bush administration in the US imposed on Roquefort cheese in retaliation to the ban on hormone-fed beef. The tariff is 300% which does not ban it however it puts such an increased cost on it that it practically prevents farmers in Roquefort from exporting it to the US.

The article discusses whether Denmark made the right choice in having a fixed exchange rate between the Danish Kroner and the Euro. On one hand it has brought stability/predictability to Denmark as an exporting nation, on the other hand Denmark is unable to use a change in exchange rate to boost the economy.

This article is an opinionated view on price controls regarding prescription drugs. The author, David B. Kendall, wishes that the US will not import foreign price controls on prescription drugs and instead create their own thus making them completely tailored to the US' needs and limitations. This is because of safety concerns of some foreign drugs that can not be regulated by the FDA (Food and Drug Administration).

This article discusses price controls on rice in Sri Lanka. It explains why price controls were set on different types of rice.

The article highlights certain industries/producers that succeed during a recession, all related to the idea of negative income elasticities or inferior products. Examples from the article include discount retailers such as Walmart, 'sin industries' e.g. cigarettes, selected services e.g. renovation (people focus on what they have and try to improve it rather than purchasing something new). The article also praises firms that tighten up costs and expand on 'core product' ranges and using 'vast economies of scale' to provide affordable goods to consumers.

Excel Energy Inc. in Denver Colorado decides to transfer switch one of its coal-fired power plant units to run on natural gas as part of its plan to cut emissions. By this, they attempt to decrease the negative externalities, or, on other words, the colossal amounts of pollution and green house gases emitted by coal-fired power plants. The question is; will this switch be effective in reducing the pollution negative externality?

Global warming, the "mother of all negative externalities", may be a substantial opportunity for development for Africa. Pavan Sukhdev and other prominent economists claim that monetization of natural assets by "rediscovering" economics may bring great wealth to Africa.

The article (interview) exposes the posible reccession that the crisis at the araba world can carry, as everybody knows the oil is one of the main components of production, if it´s prices increase is possible LRAS will decrease or increase it´s prices.

This article is about Hong Kong. Food and rental costs increased significantly in February. The inflation was described as one of the 2 challenges of local government. It is because consumer prices increased by 4.5%.

There is a risk of a double-dip recession because of the chronic lack of aggregate demand and the failure of the austerity packages provided by the European countries.

This article talks mainly about all the economical problems, especially deficits, between European countries and who is to blame for it. And what should we do? Well one statement was: "it will be only a matter of time before one or more countries resort to protectionism. That could, as in the 1930s, lead to a disastrous collapse in activity around the world," He definitely prefers free trade and thinks it is important to focus on a collaborative strategy, so countries should help each other out in these hard economic times instead of work against each other.

The governor of the New Zealand central bank said monetary policy would continue to focus on medium term inflation pressures and would be used if they rise because of high commodity prices and the exchange rate.

This article talks about Obama's fiscal policy with regards to taxes on the rich, and the benefits/limitations of increasing or decreasing taxes on specific income brackets.

After the tsunami in Japan, it destroyed a place that focussed on fishing the Pacific Saury, therefore to ease supply shortfalls they set an import quota on this kind of fish.The quota amounts almost triple the size of actual imports last year.