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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
Mariya L

Emerging markets' growth slowing, HSBC PMI report says - 2 views

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    In this article the author talks about the slow down in the economic growth of 16 leading emerging markets. Earlier compare to the Eurozone countries, UK and the US, the economic growth of those 16 countries was far higher. After this short period of stagnation, the world economists ask whether the growth, which depends a lot on exports, will increase or not. It weather will "wobble along, buffeted by worries in the developed world"; or temporary stop and then "bring back the days of the strong growth". Right now, the world economy is in the state of the recovery, in the past it went through the recession that started in 2008 and the trough. The fall in indicators mostly stopped, and the economic health very slowly continues to recover from the past.
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    "The index covers 16 leading emerging markets, including India, Brazil and China, which all saw their rate of growth fall. Rates of economic growth in these countries have been far higher than in developed nations, often coming in at about 10% a year." I think that the author is trying to say that Brazil in China have the highest rates of economic growth and not UK and the US. The exports in these two countries are very important; China is the country which more products export in the world. Their economic growth is slowing because of the recession in the other counties where the consumption has decrease and the people try to save money so the imports of products from China is not so high as it would be in a period of economic growth in all the world. I think that only in few countries the economy started to recover from the recession, in most of the economies are in stagnation. This suggest us the probably the worst part of the recession is behind us and the economies will start to recover, however these fluctuations in economic activity do not follow a mechanical or predictable periodic pattern so we can´t be sure when the recovery will start.
Caitlyn S

In This Recovery, the Rich Get Richer - 2 views

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    The article discusses how during recessions, the rich become richer and how the businesses cycles still disadvantage the poor and benefit the rich. During recessions, income inequality increases and favors those who are wealthy. As unemployment rises, many people see a significant decline in their income and saving abilities. They are no longer able to afford common resources. For example, people will need to sell their business, houses… This leaves the rich buy up such resources for a cheaper price. This is what keeps the rich constantly "on top" and the poor even poorer. There is a chart which really illustrates this statement put forth by the author.
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    I think it's funny to see how rich people can get even richer during recession.
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    This article talks about how the top 1% doesn't get affected by recessions and actually gets richer while the poorer get poor. This came as a surprise to me as I thought recession always had a negative effect on the incomes of the population, but obviously this isn't true. The article states since the recovery period of 2009, the bottom 99% of workers incomes decreased by 0.4% while the top 1% workers income raised by 11.2%, an enormous amount during a recession. In my opinion I think this might be because of the increase in black market activity during a recession, due to the fact that the richest people in the world have earned their income, one way or another, through illegal activity.
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.
Andrzej Z

Spain digs deeper into recession, not out - 0 views

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    It is an article about the recession and unemployment in Spain. The unemployment is a very serious problem in Spain because the rate of unemployment is about 25% or more so is a lot. This article report that the Spanish situation is stabilizing but we can´t assume that is the end of the recession and the start of the new business cycle. The business cycle is the periodic fluctuations in economic activity measured by changes in real GDP. Output cannot continue to fall for ever as there will always be some people with jobs to maintain a given level of consumption, foreigners will demand exports, governments will continue to spend by running budget deficits, and people will be able to use savings to finance their consumption. Additionally, the low demand for money for investment will result in lower interest rates. Thus, aggregate demand will pick up, the economy will enter the recovery phase, and the cycle will repeat itself. So after the recession the national economy of Spain will suffer an economic growth, the amount of the goods and services produced by an economy over time will increase.
Jina K

UK services sector growth eases triple-dip recession fears - 0 views

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    The article talks about Britain's key services factor showing a growth in output. The purchasing managers index (PMI) shows an increase from 51.5 to 51.8. A figure above 50 suggests that the sector is growing.This pust away triple-dip recession fears as figures show a 0.3% decrease in Britain's economy for the last 3 months of 2012. Confidence has increased for service companies, which contributes to more employment of the sector. Some economist suggests a brighter economy growth in March, but some economists are still reluctant to believe, stating that a triple-dip recession is still possible. This relates to business cycle as we can notice how several factors can contribute to the business cycle. Here, we can see that output for service facts are increase, though contradicting to output in manufacturing and construction factor. Service sector is the biggest of Britain's sector. This suggests that Britain is still in a recession or possible a trough. It has probably reached its lowest point, but hasn't yet emerged to a full recovery just yet.
Saskia vK

Is the UK economy ready for recovery? - 0 views

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    If aggregate demand were to expand, would there be sufficient spare capacity to allow aggregate supply to expand to meet the additional demand? This is the question addressed by the podcast and article below.
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

Recovery signs: PSU banks to hire 56,500 jobs in next 6 months - 0 views

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    Public sector banks, from State Bank of India to Allahabad Bank, will hire as many as 56,500 people in the next six months in the highest ever recruitment drive by the industry in more than a decade as business grows and the threat of new banks looms as the Reserve Bank of India plans to issue new licences soon. The recruitments by more than a dozen banks will be 30% higher than last year's numbers as hopes of business cycle turning for the better grow, bankers said.
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    This article talks about the public sector banks, from State Bank of India to Allahabad Bank and that they will hire many people over six months.
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    This article talks about the Indian Private Sector Banks planning to hire more than 56500 people to work for them in the next 6 months, essentially creating 56500 jobs. It would be the highest recruitment of jobs in more than a decade and would help solve the economic crisis. It states that the recruitments by more than a dozen banks will be higher 30% higher than last years. What we can see here is the trough of the business cycle where the economy cannot get any worse, so therefore it will improve. India made the important leap of changing from the contraction area of the curve to the expansion area where Real GDP will grow !
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    This is a rather intersting article as it shows us how the industry in India is growing and how this has given jobs to that incredible amount of people. I agree with your point that the economy can't get any worse, thus there will be improvements when it reaches a certain point and therefore the real GDP wil grow.
Andrzej Z

Claims for unemployment benefits hit 5-year low - 0 views

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    I find this article very interesting because it is really related to our actual theme and it is about a recent topic. It talks about the decrease in the unemployment benefits and the decrease in the unemployment rate is USA. The unemployment rate fell to a four-year low of 7.7%, however, is not so low because probably in the USA there is a big hidden unemployment (people who are working in an industry that doesn't utilize their skill set properly or those who have given up on looking for another job are not counted in the official figures and are thus considered a part of hidden unemployment). The good aspect is that the government is reducing the spending's on the unemployment benefits. The unemployment have very big costs, cost for the unemployed people (they receive less employment and some of them suffer mental problems like depression), the society (poverty, homelessness, higher rates of crime and vandalism, increased gang activities, however not all of them are created by the unemployment) and the whole economy (It´s not operating at full capacity).
JaJa C

Thailand economic recovery picks pace in fourth quarter - 3 views

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    This article's talking about Thailand's economic growth in the last three months of 2012 that it was recovering from the previous year's floods and had increased a lot more than what expected. On October-December period GDP had surged 18.9%, which most analysts had forecast a figure close to 15%. If we compared with the previous quarter, the economic grew by 3.6%, so we can say that even though last year the floods had impacted on many factories, but Thailand's government implemented different ways to help stoke domestic demand in an attempt to offset the decline in exports and sustain growth in the economy.
Jean Eric

What's wrong with the economy? Two clashing views - 0 views

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    What this article talks about is the two points of view, which are completely different in nature, to why the US economy is failing. The one point of view is that there is too little aggregate demand and an excesive supply of wasted potencial. The other view is that there is too much government intervention. It talks about how the recession has effected investments and aggregate demand and therefore decreased the average wages of the country. The article states that a solution to the problem would be the fiscal policy where the governmnet would lower percentage taxes in order for the rich to start investing again. This would then promote the recovery of the economy.
Jina K

German economy to pick up this year: economy ministry - 0 views

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    The article talks about the overall German economy. The economy ministry states that although there is weak development in industrial output to the point where there is contraction the GDP during the fourth quarter of 2012, there are many signs that indicate the growing economy. He states that the economy has reached its lowest point already. The country sees a growth of 0.8 percent in industrial orders as there is an increase in euro zone. Furthermore, many surveys indicate that many businesses, investors, and consumers are becoming more optimistic. Data has shown that there is increase in exports, international trade, and as well as a decrease in unemployment. Contribute by a narrowed US trade deficit indicates an increase in global demand. This article can be related back to the business cycle. As you can see, by description, German's economy is in a trough phase and with evidences indicating that it is leading towards the recovery phase. This shows that there is a lowest point in the phase where the economy can not get any worse. There is a point that there is still consumption. We can also see that during the recession, GDP decreases, aggregate output decreases, aggregate demand decreases, and unemployment increases. This clearly reflects the business cycle.
Caitlyn S

South Korea Growth Hits Three-Year Lows - 1 views

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    This article explains how South Korea's export-driven economy picked up slightly in the final quarter of 2012 on private consumption, yet recovery will likely be delayed until global demand gathers momentum. Asia's fourth-largest economy increased by 0.4% from October-December which was better considering in September there was only a 0.1 % rise, the slowest growth in over three years. This was the seventh consecutive quarter with growth of less than 1%, the longest in more than four decades. South Korea's economy has been hit hard by the depressed global demand, as it had to rely on exports due to high consumer debt surpassing private consumption. The nation's economic growth rate has obviously been stunted with further government intervention needed.
Benjamin D

Recovery Is it the aggregate demand? - 0 views

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    This article talks about how the unemployment is affecting the United States and how it is related to a decrease in the aggregate demand of the country. And how this possibly causes the real GDP being 6 percent under the trend path.
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    This article tells us how the recession in the United States has affected the unemployment rate; people consume less thus the aggregate demand is lower and remains like this as unemployment increases. I also found important something that is mentioned: "During a deep recession, more workers move into the category of those who take a long time to find new jobs, and so the decline in unemployment across the labour force as a whole is quite slow" Factors mentioned in this article are what determine the real GDP to be 6% under the trend path.
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.
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