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Christopher P

China January foreign direct investment rises in sign of confidence - 0 views

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    Although the rate of economic growth in China has slowed recently, a high amount of Foreign Direct Investment in China shows that there is still a large amount of confidence in the economy. Investment increased 16.1% over last year, up to $10.76 billion. Growth has shifted away from manufacturing towards services, partly due to an effort by the government to restructure the economy. In addition, the FDI by China to foreign countries has increased by nearly 50% to $7.23 billion, showing that the country receives nearly the same amount in FDI as it provides to other countries, reflecting balanced investment,
Adil R

Man buys $27 of bitcoin, forgets about them, finds they're now worth $886k - 0 views

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    Since our topic this week is on exchange rates i thought it would be a good time to address a topic of interest to me - virtual money. the bitcoin is accepted as a form of currency by many and from the article, we can deduce that it has a high exchange rate. A norwegian man had bout $27 worth of bitcoins which now translates to $886,000. this value and exchange rate is un-paramounted and extremely high but there are reasons for this. Bitcoins are now being used as a form of currency for illegal trading - forged documentation serving as an example. This increase in demand has lead to appreciation for the value however many countries are just starting to recognise the bitcoins currency value. many owners are just starting to accept bitcoins as a form of payment in the hopes that it can appreciate and they can sell it for more in the future. However in the article we get an understanding that the bitcoin fluctuates greatly. This detracts consumer confidence however the sheer idea of investing in virtual money is enticing to many, increasing the demand for the bitcoin.
Christopher P

Economy Gains Strength as Retail Sales Jump - 1 views

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    According to the Commerce Department, consumer sales have risen 1.1% in February, the largest increase in 5 months. The good news calmed fears that the recent expiration of the payroll tax cut would reduce the willingness of consumers to purchase goods. Consumer spending makes up 2/3 of the macroeconomy and it therefore always a reliable gauge of the current status of the national economy.
Jackie k

Deflation - 1 views

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    Japan is facing deflation, and it will effect the consumer confidence because of the exchange rate, this will cause a downward slope in the aggregate demand to shift to the left.
Nehir D

Industries prefer monopolies - 0 views

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    In the old days there wasnt really monopolies they were mostly quasi-monopolies. The government owned enterprisis and there were not really private sectors and only customers were the one that was suffering but since the old days are gone most of things changed. They believe that monopolies are preffered by consumers and companies instead of competition. The developing technology is a great factor in a way of helping firms to advertise their product to convince people or take people's attention to buy the product. The advertisements and the high prices of products convince people to buy the product because they trust the price and the trusworthiness of the firm.
Christopher P

Terms of trade at 40-year high - 0 views

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    Statistics New Zealand is reporting that the Terms of Trade of the country are the highest that they have been in 40 years. The improvement is due largely to the prices of dairy exports, which have risen sharply in recent months. The TOT of merchandise have risen by 7.5 percent, driving the them to their highest since 1973. At the same time, the unemployment rate has been steadily decreasing and surveys show that consumer and business confidence is increasing.
anonymous

Grain and thunder - 0 views

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    This article is just talking about an event in late 2013 about obama who was hoping that the "trade-promotion authority" agreement would be passed by congress giving confidence to some of the producers.
Nehir D

Choose growth over exchange rate - 0 views

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    The areticle is about the Reserve Bank of India stopped listening to lullabies of praise on its exemplary handling of monetary and exchange rate policies. The current policy keeps piling up useless reserves, offers wholly avoidable arbitrage opportunities to patriotic residents and even more patriotic non-residents, hikes interest rates, depresses growth and widens the fiscal deficit. People are raising dollar debt and not bothering to cover forward. They are confident that the rupee would either appreciate against the dollar or at least hold steady till repayment time.When dollars come into India, they have to be converted into rupees. This conversion bloats our forex reserves and injects rupees into the system. If all the rupees created as a result of dollar inflows were to be allowed to add to the money supply, that would reduce interest rates and also create the potential for inflation. So the RBI sterilises such rupee injections by selling government bonds and mopping up rupees from the system. The increased supply of government bonds brings down their price, hiking the yield. Thus, sterilisation pushes up interest rates.
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