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Since it's not in the government's favor to impose taxes or increase interest so as to gain the people's voices in the case of re-election, some country's central banks have become independent, as in the case of Mexico in this article. With this independence, the central banks opt to impose their control of inflation through the increase and decrease of interest rates with the objective of maintaining a low, stable rate of inflation. Recently, Mexico's annual inflation rate cooled in February to its lowest in 14 months despite some sharp increases in food prices. This kept the pressure off the central bank to raise interest rates soon.

India, Mumbai, April 12: The weak industrial output numbers may have sparked calls for a pause in monetary tightening, but the Reserve Bank of India is unlikely to oblige. Also, a sticky inflation situation may force the RBI to raise key rates for the ninth time in 15 months.... It seems as though India is stuck between raising interest rates and reducing inflation or reducing interest rates for the sake of maintaining and stimulating its economic growth...

The article that I bookmarked for this week is about how exchange rates and bad climate are affecting Brazil's melon shipments. Brazil is a large exporter of melons and Europe is their biggest importer of melons. Because of the recent financial problems in Europe the exchange rates are not in Brazil's favor for exports. Due to these bad exchange rates for an exporting industry and the bad weather also hurting the melons, Brazil's melon farmers are facing some problems.

Over the weekend there were proposals that Germany and the other 5 AAA-rated nations of Europe might start jointly issuing 'Elite' bonds. Pound rates are today being driven by attitude to risk - and what a morning it has been. Equity markets have surged, and risk associated currencies such as the Australian dollar have moved higher.

Many rich countries' debt levels are uncomfortably close to 150-year highs, despite relative peace in much of the world. There is a no easy way out. For now, low world interest rates are restraining debt-service costs, but debt levels can be reduced only very gradually over long periods, whereas real (inflation-adjusted) interest rates can rise far more quickly, even for rich countries. More examples regarding indebted countries and whether or not they should reconsider their fiscal policies to relieve their debt are further discussed in the article.

"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."

This article details the reduced appreciation of the chinese yuan possible due to accelerated outflow of international capital. This doesn't pose any serious threat to chinese industry or trade but does show a pessimistic outlook on the Chinese economy. HOwever this reduced appreciation of the chinese yuan could force the government re-evaluate its exchange rate mechanism.

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.

The article discusses Scotland's high literacy rates. As the article itself states 'Literacy levels are a very important measure of the social and economic well-being of any society'. 73 % of Scots have 'internationally recognized' literacy skills from the article. This provides a good indication of Scotland's development. Literacy rates are also key determinants of economic growth (plentiful and educated workforce more likely to be productive and contribute to economic growth) and thus reflects well upon Scotland's economic and social potential.

Good article to talk about unemployment. Not only does it talk about the unemployment rates in the last few months in the US but it also talks about which job sectors are hiring (a good example of structural unemployment/employment)

People are dropping out of their jobs at a higher rate than ever, even though hiring has bounced back a bit. Unemployment rate is up to 8.9%. The recession has driven younger people out of the job market and back into school. People over 55 are going back to work because their savings were depleted due to the recession. -Michael

this article is about Brown County and its unemployment rate. Unemployment rate in Brown County keeps rising from December 2010 to today. In December 2010, it was 11.4 % and now it is 13.7%. also, it means that 2900 were unemployed out of 21500 civilian work force last month. Highest unemployment rate was in January 2010, when it was 14.7%.

This article discusses how the US Federal Reserve will keep interest rates low, using monetary policy to try and increase spending. It also explains their reasoning for it and the possible times when they will finally rise and to what extent.

In India, new cars are being registered at a rate of nearly two million per year. The Indian auto industry has become the world's seventh largest, now having overtaken every European country except for Germany. This exponential rate of production comes at an opportunity cost however. A mixed externality takes place. The stimulation in the auto industry increases the demand, and therefore the possession of cars in the country, which will hence increase the amount of green house gases released by general motor transport, aggravating atmospheric pollution.

Asian economic growth and expansion, more notably in Indonesia and India trigger a rise in the countries' respective currencies.

This article indicates that economic growth in India will slow down to a little over 8 % in fiscal year 2012. This is in part due to a spike in interest rates in order to curb inflation. An increase in interest rates attracts saving and deters investment (the cost of borrowing is higher). In addition to this, the increased saving reduces the amount of expenditure in the economy thus contributing to slower economic growth. The reduction is also attributed to a slowing manufacturing and services sector (which is expected to have strong momentum in 2011 but slower growth in 2012).

Although Turkey's economic indicators outpace many countries around the world, major differences in regional development are still an issue in the country and call state policies into question. Turkey has witnessed noteworthy growth in the last decade. At the same time, the country was also successful in lowering the yearly inflation rate to a 41-year low, 6.4 percent, in 2010. But despite these and similar advancements, economic development has not attained the same pace in every region in the country.

This article discusses how a flexible labor market model can only lead to less permanent-job contracts, lower wages, and even lead to eventual unemployment. For example, the share of employees with temporary contracts is much higher in the EU than in Romania, however, it has been noted that the EU has higher unemployment rates than Romania... Further consequences of the implementation of a flexible labor market model are also evaluated. Link to "What is a Flexible Labour Market?": http://tutor2u.net/economics/revision-notes/a2-macro-flexible-labour-markets.html

China's fast growth may be a contributor towards higher inflation rates. If high Inflation rates persist it is believed that the leadership will come under pressure. High food and housing prices are the measures of inflation.

This article talks about how the unemployment rates are starting to strike Europe too, making special emphasis on the fact of the unemployment rates in some countries such as Spain and Ireland, that are passing through several difficulties recently.