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Andrzej Z

Axa Fram's Thompson: Fiscal policy can ensure emerging market growth - 0 views

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    It is an article about the important of fiscal policies in the emergent economies, where the fiscal policies remain very conservative. The fiscal policy would be very helpful to continue the economic growth and create jobs. The fiscal policy is a very good method to encourage greater consumption or investments, and as when know, when there is an increase in investments or consumption there will be an increase in the aggregate demand. Axa Framlington fund manager Julian use as example the Mexico's economy that is demonstrating a strong economic growth because they use efficiently the fiscal policy.
Jina K

Turkey's Economic Growth Slows Sharply - 1 views

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    Turkey's economic growth rate has decreased to 2.2% in 2012 after two years of rapid expansion. This is due to weak domestic demand and indirect effect of public expenditure from the European debt crisis. The GDP expanded 1.4% in the fourth quarter, half of the 2.7% forecast. The slow down in economic growth was largely due to Turkey's central bank tightened monetary policy implemented in 2011 and in early 2012 after Turkey's rapid expansion. This caused fear among the investors that the economy was overheating. Despite central's bank easing policies, Turkey still sees a slowdown in the rate of economic growth. We can notice that this slowdown in economic growth is largely due to decrease in investment.
Andrzej Z

Spanish PM: Countries should take appropriate measures to deal with crisis - 0 views

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    I found a similar article today in a Spanish newspaper and I decided to blog it in bookmark because it is about economics and politics. So I looked for the same article in English and here it is. It is very interesting because it is short, concrete and very actual. It is about Mariano Rajoy, talking about the recession. He thinks that is very important to be united, coordinated and that Countries that can afford stimulus policies should implement them, while other nations should focus on reducing their budget deficits. Also he said that is very important that the Latin countries must avoid protectionist policies. I wonder how the conference in Santiago will end because they will determine the future economic policies.
Jina K

IMF Official: U.S. Fiscal Policy Dragging on Economy - 0 views

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    The IMF, International Monetary Fund, points out that US's economy is likely to see a 1.5 or 2% growth without the tightening fiscal policies. IMF also points out that there is very low private demand in Great Britain. They suggest government to adjust its initial fiscal plans. We can see that this relates to the use of fiscal policies and their impacts. Here, we can notice that instead of boosting economic growth, US fiscal policies, which I believe is the fiscal cliff. The government's plan is to increase tax rates and decrease government spending. This could possible reduces income and slows the growth of the economy.
Matthew R

Ahsan vows to invest in human resources for economic development - 0 views

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    In this article, Pakistan's Federal Minister, Ahsan, vows to invest in Human Resources for Economic Development. A skilled population and knowledge based society would be the "solution" Ahsan believes. He also believes that economic development may be achieved through community volunteering in Masses.
Nikhil M

Turkey misses economic growth goal for the first time - 0 views

Turkey for the first time after a number of years have missed their economic growth goal, although the governer is undertaking different policies to result in a higher economic growth rate, it is l...

turkey economic growth

started by Nikhil M on 21 Sep 12 no follow-up yet
Benjamin D

Economic recovery weak in November: BluFin Business Cycle Indicator - 0 views

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    This article talks about how the recovery in the economic growth in India has weakened after three months of straight-increase, however the economic growth of India remains positive. This situation has been manly caused by the fact that there has been a slowdown in consumer sectors and investor demand and mantaining the confidence for these two would be essential to ensure a sustained economic growth. The BluFin Business Cycle Indicator (BCI), aims to meet everthing of the business cycle, and took into account five areas -- capital markets, foreign trade, policy, real economy and survey to determine and measure this situation
Kyuhwan L

Canada's economy lost 21,900 jobs last month - 4 views

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    Canada's economy seems to have taken a hit as housing, jobs and exports fell. First there was a 21,900 jobs loss in January plus a 58,000 decrease in Canadians looking for work. In addition, exports fell 2.1%, exports to the US alone dropped, 4 points and imports fell as well. Furthermore a 19% reduction in the housing industry topped Canada's misfortune these past 2 months. Many Canadians are questioning the actions of the conservative government as economic growth is slowing to a crawl.
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    I think that you have chosen a very nice and interesting article because it's related to our actual topics. Is a good example about the importance of the exchange rates in the exports. If a country's exchange rate becomes stronger, then this makes the country's exports relatively more expensive to foreigners. According to the law of demand, this will cause the quantity of exports to fall. Another think to highlight is the increase of the unemployment rate, this will probably decrease the consumption because However, if people expect economic conditions to worsen then they are likely to reduce their consumption today in order to save for the future. In brief i think that it's a great article to talk about the aggregated demand, macroeconomic and the monetary policies.
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    I find this article particularly interesting because i never knew that Canada was suffering so much from the recession. Since it states in the article that 21,900 jobs were lost means that the household cinsumption must be very low a resulting in a low agregate demand, and since the agregate demand is low firms gain less proffit and therefore have to cut costs which in this case would be workers.
Tisha D

Tea Party Movement - 0 views

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    This article is about the Tea Party supporters who sprang into action in the United States last year. They demand to block the democratic agenda on the economy and also the environment and health care. Tea Party supporters are Republicans and believe President Obama and the Democrats to be 'far too liberal'. These supporters are strongly backed up by Republican politicians, Sarah Palin in particular. One of the major issues that the tea party argues is the misuse of economic resources in health care. They feel that all the health care opportunities are targeted towards the poor section of the country, not the middle or rich class. However since the latter are tax payers, the health benefits should be more focused on them. Thus in this situation a political party has a direct influence on the economic policies taken in a country.
Kyuhwan L

How to Know When to Tax and When to Spend - 1 views

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    I really found this article interesting because it explains the strategy of taxation that aligns with the business cycle. It explains that during times of economic hardship, a recession, then government should increase spending to first "soft blow for businesses and average working people," but to also stimulate the economy and move on to recover. This is reflected by the Keynesian theory of economy, where the government intervention is necessary to put the economy back on the right track. On the other hand, the government should relax expenditure and slightly increase tax to pay off deficit. This strategy is also supported by history, where the article gives examples of past U.S. presidents and government decisions during different times of the business cycle.
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    I agree with you that this article is very interesting. Like you said before it reflect the Keynesian school of economics. However, there is one problem with these theory, you don´t know if the government intervention are helping the economy or not. It is impossible to state which theory is better or if the economy work better with government intervention or without them. To investigate which one is better you would need two identic economies (this is impossible) in recession and intervene in one economy and in the other don´t make any intervention and expect that the market forces will solve the problem. "This strategy is also supported by history, where the article gives examples of past U.S. presidents and government decisions during different times of the business cycle." However the business cycle doesn´t affect all the economies in the same ways. For example the Spanish government is making a lot intervention but the economy is not recovering. On the other hand the biggest problem with the government interventions is that you can´t be sure in 100% about the effect of the intervention. You can study a lot the economy and prepar the intervention for months but you will know the result after the intervention, and the result may not be positive. The other problem with the government interventions is that many of them are not popular and many governments won´t risk losing popularity.
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    I agree with what Andrzej said about the fatc that we don't what are the best ways to help the economy, either making a goverment intervention or not. The problem is that none of this policies are 100% efficient and the example that Andrzej gives us about the Spanish government shows us how sometimes intervention doesnt recover the economy.
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    I agree with what Andrzej said about the fact that we don't what are the best ways to help the economy, either making a goverment intervention or not. The problem is that none of this policies are 100% efficient and the example that Andrzej gives us about the Spanish government shows us how sometimes intervention doesnt recover the economy.
Paul J

El Alto: Where Leftism Meets Laissez Faire - 0 views

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    This article is an interesting one, as it is a rarity. I searched for quite a long time in order to find an article in which laissez faire policies are explicitly discussed, and alas, I found. This article is quite informative as it directly describes how such an approach affects a city, in this case El Alto, Bolivia.
Caitlyn S

USA - 0 views

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    The United States remains desperate for faster growth and stronger job creation as it continues its slow recovery from the 2009 recession. Peter Blair Henry, the dean of NYU's Leonard N. Stern School of Business states private investment is falling $1 trillion short per year due a to disputes over the "fiscal cliff," the federal borrowing limit and other issues." Monetary policy and fiscal policy are working at "cross purposes" - one is expanding while the other contracts." Governments should save money during times of economic prosperity and spend it to boost the economy when growth decreases. Lawmakers should prioritize predictability in policymaking to trigger private investment and government investments, particularly in education, should be off-limits to cuts. Henry points out that a solution to closing the wage gap is to produce more skilled workers. Raising taxes on the highest tax bracket may also be part of the solution to overall sustainability concerning the fiscal side, but not a solution for income inequality.
Benjamin D

WTO warns of trade slowdown due to protectionism - 2 views

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    Although this article focuses on protectionism, in my opinion trade barriers come along. The WTO has lately noticed of an economic and trade slowdown because ofprotectionism, the global trade growth is estimated to decline from 5% to 4.5% next year which is alarming due to the fact the world's economy needs to recover. The article also talks about how trade protectionism is becoming more difficult to fight because it is difficult to fight because of the complexity and because its coming in different ways that we are not used to (for example:tariffs and export subsidies), and more and more regulations are being imposed each day.
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    As my fellow peer said this article is a perfect example of why protection policies shouldnt be used in some cases. The article states that due to trade protectionism policies the estimated anual growth will decrease from 5% do 4.5%! What should really happen is that countries should decrease their protectionism policies, let the economy gain a bit a stamina,in order to recover from the recesion, and only then increase protectionism once the economy has recovered and is growing.
Mariya L

Australia adds 71,500 jobs, the biggest jump since 2000 - 0 views

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    In this article author describes the main news - new additional jobs and overall improving economic state of Australia: "Full-time employment jumped by 17,800 and part-time employment was up by 53,700." The total workforce has been increased, altogether, it served as a sign of the improvement in economic conditions of the country. To keep the growth at the same level, the monetary policy has been eased up. Previous rate cuts are beginning to have a positive effect on the economy. The housing market shows some improvement. But the strength of Australian dollar is the main source of concerns: "The Australian dollar jumped by more than half a cent to $1.036, as traders became less hopeful that another interest rate cut was on the way."
Jean Eric

The Euro Is Killing Southern Europe - 0 views

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    This article talks about how other countries, but in this case Spain, are sufferig from a very profound economic crises where its unemployment rate is 24.3%. It explains that with this rate of unemployment no foreign countryis going to invest in the country and that most young spaniards are going to travel abroad, further worsening the spanish situation, stating that its partly due to bad macroeconomic managemeent. It states that Spain should learn from Argentina, a country very similar from an economic point of view. It advises that Spain should leave the Euro zone because its constructed around a German macroeconomic policy that doesnt work for some countries, in this case Spain. So what is it says is that spain has a better chance of going by its own macroeconomic rules than piggybacking on Germanies
Benjamin D

Deflation, Recession and Aggregate Supply - 0 views

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    This article talks about the possibility of deflation in the US. Deflation would be a problem for a number of reasons: first, deflation would make it more difficult to engineer an economic recovery; second, deflation could result in a "death spiral" like what happened (according to one interpretation) during the early 1930s. This article suggests that unlike times of good economic state, the policy that should be taken during a crisis should be decreasing supply instead of increasing it, this would be the easiest way to stop deflation.
Jina K

High crime rate hampering Caribbean economic development - UN Read more: http://www.ca... - 0 views

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    High crime rate has hindered Caribbean economic development, report the United Nations Development Program. 8.5 percent of human population resides in Latin America and the Caribbean, but 27 percent of crimes occur in that region. Corruption in the policies is one of the difficulties in trying to combat crime. Although insecurity and violence are not directly a part of the high development index, these situations may effect health indicators and may reflect the standard of living of the people in the countries. High rates of crime may reflect poor standard of living, such as people not having enough to feed themselves. This could be reflected in low human development index of Caribbean countries. Insecurity and violence certain affect the well-being of the people, both mentally and physically.
Andrzej Z

Africa: Invest in Human Capital for Africa Growth - 0 views

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    It is an article about supply side policies in Africa specially investing in human capital in order to increase the potential output of the African countries. We know that education creates positive externalities and the benefits of education and training are not just felt by those who receive education, it will help the economy as a whole because it will increase the potential output of the economy. Greater regional integration and investment in social entrepreneurship and industry are also necessary for inclusive growth. Competition hast the effect of encouraging greater efficiency. Therefore, any policies that increase competition will increase efficiency and improve the productive potential of an economy. After reading this article I research a bit about the economic growth in Africa and I found this: Six of the world's ten fastest growing economies of the past decade are in sub-Saharan Africa. A clutch of countries have enjoyed growth in income per person of more than 5% a year since 2007.
Jina K

Central Bank of Russia is to further cut interest rates - 0 views

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    Central Bank of Russia will continue to cut interest rates to 8% at which central bank lends to commercial banks. This target is to be completed in early May. This action is done in the hope to boost Russia's economy after a slow down. In addition, inflation rates are beginning to decline. Lower interest rates will lower costs of saving and thus encourage people to invest or get a loan to consume goods such as houses. This will move aggregate demand outwards and as well ad economy's potential output. This, in turn, will encourage economic growth. As such, this method can be classified as a part of an expansionary monetary policy or reflationary policy.
Benjamin D

WTO praises Japan for avoiding protectionism - 1 views

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    This article talks about how members of the WTO have a possitive view towards Japan because they didnt apply protectionism policies even though their situation was critical at a certain point. Japan would have not been able to go through all the issues that have affected the country in the past few years if it wasn't for taking the right decissions. In order to boost up the economy, and local producers the government did not intervene so there would still be competition from international producers thus encouraging local producers to work hard to improve the quality of their goods and recover as quick as possible from the natural and economical catastrophes the country has gone through.
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