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Liselotte r

Top China central banker says currency rate is near equilibrium, reforms to push ahead - 1 views

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    This article mainly focuses on China's economic growth and its fast approach to what could put it's economy in an equilibrium state."The rate, the spot rate and future rate, determined by the market supply and demand, basically are very close to the equilibrium rate," said Zhou Xiaochuan, governor of the People's Bank of China. He also warns that at this time China is trying to maintain low prices and if external governments begin to have inflation problems this could potentially create problems for China's economy. This comment was a directly linked with China's exchange rate against the US dollar, an issue that has yet to be addressed.
Jan d

G-20 Moves Toward Common Ground on Currencies - 0 views

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    As the article states: "The world's largest economies took a step toward common global guidelines for exchange-rate policies with a pledge Saturday to refrain from targeting their currency policies to gain a competitive trading advantage." This is well-involved in this week's topic, which is aggregate demand. Particularly, this article refers to its component, net exports (export revenue minus import expenditure, or simply X-M) and then its subsidiary component, changes in exchange rates. If a country's exchange rate becomes stronger, then this makes the country's exports more expensive to foreigners and vice versa. Manipulating with exchange rates can bring a certain country substantial trading advantage and this is what G-20 wants to overcome and allow free-trade market as it should be.
Stephen b

Nigeria's Inflation Rate Climbs to 9.5% in February - 0 views

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    What I like about this article is not just that it's related to inflation (which is definitely a plus) but that it also discuss one of the factors of an economy affected by inflation, interest rates. This is very important because many articles will talk about how inflation has increased or decreased and how this is good or bad for the economy, but they don't explain in what way. You all get a sense for how the government of Nigeria intends to react to this inflationary event and what role the control of interest rates plays in the reaction.
Annabelle b

Investigating the effect of exchange-rate changes in Japan, China, east Asia, and Europe - 1 views

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    This article discusses the hard empirical evidence, arguing that, in fact, Japan is behaving rather responsibly and that other strong economies have themselves benefited from undervalued currencies. That said, it is true that politicians' short time horizons often lead to stealthy policy and large swings in exchange rates. Economists should therefore aim to promote longer-run cosmopolitan interests rather than shorter-run nationalistic agendas where possible.
Andreas k

Australia adds 71,500 jobs, the biggest jump since 2000 - 1 views

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    Although new jobs are created, there is no improvement on the unemployment rate, which remains at 5.4%. However this is a sign of economic improvement in Australia. And the 71,500 are just a start, more jobs were planed for February (9000). In 2011 Economists have predicted a resource boom, due to the monetary policy by the governor Glenn Steves. The bank has tried to boost certain sectors in the economy, however he kept the interest rates at 3%. That might cut into the current boom and slow it down. The main concern is on the value of the Australian dollar.
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    Even though there had been a rise in total workforce, unemployment has not improved and remained at 5.4%. Nevertheless, there are optimistic signs of economic improvement for Australia.
Maya m

Student Loans Doubling or Not? - 0 views

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    The congress is now thinking about new solutions so that the student loan interest rates won't double.
Martina d

Bank of England keeps interest rates and QE unchanged - 0 views

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    The article talks about the interest rates set by the Bank of England previously and how those interest rates created an economic growth in the UK.
Annabelle b

Some Fed Members Fear Monetary Policy Effects - 0 views

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    This article talks mainly about several problems affecting monetary policy. Among those are instability to the financial system, a sudden rise in interest rates and inflation. Presently, Fed is using easy monetary policy to increase AD. There is also quantitative easing mentioned in the article, which refers to purchases by the central bank of long-term bonds or $85 billion a month in Treasurys and mortgage-backed securities so that the money supply increases. Again, the major problem related to this Fed strategy is inflationary pressure (also by selling $1.1 trillion mortgage-backed securities)...
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    This article by Jeff Cox discusses how the Fed is using the monetary policy to increase aggregate demand. It also presents problems affecting monetary policy. The problems are as follows: "Among those concerns are instability to the financial system, a sudden rise in interest rates and inflation."
Sebastian a

How much will the 50% tax rate raise? - 0 views

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    the article talks about a change in the income tax paid by the highest bracket of the English economy; this means that all the money earned above £130,000 will have to pay 50p per pound (50%) rather than 40p per pound. Economists predict that the income change will not have any effect on the earnings as the income elasticity of the bracket of economy is 0.46.
Annabelle b

Eurozone unemployment hits 11.9% - 0 views

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    This article discusses how there are 17 countries that use the euro -- and the unemployment rate increased to 11.9% in those countries. It mentions how in Greece the unemployment rate grew to 27% because the country is bankrupt, therefore, the government cannot afford to employ people.
Martina d

More than one in 10 high street shops left empty - 0 views

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    This article talks about the crisis in the UK, and how the stores keep on closing and will keep on closing if the government doesn't freeze rates by 2013. Therefore, this article is not about something that the government has done (putting taxes) but something it needs to do to help the market in the UK.
Jan d

US durable goods orders fall in January - 0 views

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    Fall in demand for durable goods (orders for durable goods in the US fell 5.2% in January) means also fall in aggregate demand. Falling aggregate demand - the total spending on goods and services implies firms will start to lay off workers and unemployment rates are likely to rise. According to the business cycle, at current point there is a negative output gap, because economy is producing below its long-term trend economy can sustain.
David s

G7 No Comment on Japanese Monetary Policy Triggers Weaker Yen - 0 views

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    This article mentions how Japan's monetary policy has led to the weakening of its currency, the Yen. In other words, this is an example of monetary policy leading to inflation. To do this, the Japanese likely decreased interest rates too much, or increased the supply of money too much. Both of these are the result of loose monetary policy, and were attempts at expansion.
Sebastian a

Easy fed softens fiscal policy punch on economy - 0 views

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    This article discusses the failed prediction from most economist regarding the future of governmental cuts and taxes. The eading is mst interesting, as you get insight to the reasoning behind the prediction, and also the reason why they failed, which is becase the Federal Reserve's unexpected numbers and interest rates.
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    economists thought higher taxes and government spendings were going to delay economic growth in the first quarter of the year, but economic data has so far proven them wrong.
Jan d

U.S. Defense Cuts Lead to First Drop in Global Arms Spending in 15 Years - 0 views

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    Fiscal policy is the set of policies relating to government's spending and taxation rates. Military spending is a part of government spending and is closely related to domestic industries, particularly in the U.S. The U.S. government is lowering the military budget, therefore decreasing aggregate demand both through government spending and through implications to other industries interwoven with military. So this is deflationary fiscal policy, which is reducing U.S. military power on a global scale.
Sebastian a

2013 to see slow economic growth in the us and an increase in 2014. - 0 views

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    US economies are still growing after thee great recession and according to economists the US should see an increase in economic growth by 2014. It is also mentioned that unemployment rate will continue to decline as economic growth becomes faster.
Andreas k

America's job recovery - 1 views

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    The article talks about the recent recovery of american jobs. There is a annual real GDP growth of 2.2% to 3.0% by 2013. Also the unemployment rate will decrease from 9.3% to 6.9% by 2013. America is slowly recovering.
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    The Article referrs to how the government has to interact, to improve employment and annual real GDP
Liselotte r

Inflation unchanged for fourth month in a row - 0 views

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    This article is about the current inflation rate in Great Britain and its unchanging status in the past four years. Jeremy Cook, chief economist at the World First foreign exchange company said, "Home-grown price pressures are also increasing with transport, food and utilities boosting upwards in the latter part of 2012; this will continue to erode wage value through 2013, hurting consumer confidence and limiting spending."
Jan d

Plumbing problems - 0 views

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    This article opens a question whether circular flow in Britain still operates normally, because firms do not have a wide access to the savings of households (banks) anymore, which leads to the lack of investment (injections to circular flow). This also affects GDP as expenditure method involves spending by firms and means less or even negative GDP growth rate. Lack of the investment spirit is partially present because of the firms' fear of weak demand as well. Yet the latest policies might open the tap, especially the new Funding For Lending Scheme (FFL).
Annabelle b

Unemployment - 1 views

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    We started macroeconomics and I thought finding an article about unemployment would hit the target! So this article discusses how the government keeps track of how many unemployed citizens there are. It's called the Current Population Survey which is conducted monthly by the federal Bureau of Labor Statistics. If you've ever heard of the Census, it's kind of like that. The article also looks at how the unemployment rates have increased or decreased throughout the years and how there are some citizens that do not fit either category "These people are not employed, but they also don't fit the government's definition of the unemployed." The government is searching for ways to improve unemployment.
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