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anonymous

Factories in New York Area Expanded in March for Second Month - 0 views

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    This article states that the aggregate demand has been expanding at a steady pace, and this has resulted to an expansion of manufacturing as well. Because the "growth in orders and sales show manufacturing is on the mend," we can see that demand is rising because companies usually buy inventory in line with demand.
Christopher P

Japan Keeps Monetary Policy Steady - 0 views

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    This article discusses the efforts of Japan to combat deflation and improve economic growth using monetary policy through the Bank of Japan. The country is in a particularly peculiar position because Japan's public debt is twice the size of its economy, therefore rising interest rates could prove to become a potentially out-of-control situation. There is much debate over which policies the country should take to best correct its economic situation, while some are suggesting that the current policies being used may be successful without causing much inflation at all.
Nehir D

Gold prices continue to crash: No need for Indian investors to worry? - 0 views

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    The article is talking about India is projected to grow by 6 per cent in the current fiscal while growth is expected to be steady in most of the Asia Pacific economies.It, however, cautioned that a weaker global risk appetite and a poor monsoon would pull down growth to around 5 per cent in 2013-14 fiscal. In India, poor monsoon seasons would pull growth down to around 5 per cent in 2013 and would reach 6.5 per cent.India's growth forecast has been lowered to 6 per cent in 2013 and 6.7 per cent in 2014 on weaker consumption and exports.
Christopher P

Household Incomes Remain Flat Despite Improving Economy - 0 views

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    A new report from the Census Bureau shows that despite signs that the economy is improving in the United States, including dropping unemployment and increasing economic growth, the distribution of income in the country remains the same. Gains have been made for the top 5% of earners yet many others remain reliant on government aid. This brings up an important issue regarding what economic growth actually means for the people of a country. Although the economy may be expanding, the standard of living for struggling families may not be improving.
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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