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Emily Hoshi

BBC News - China inflation growth dims hopes of interest rate cut - 0 views

  • inflation
    • Emily Hoshi
       
      definition for inflation 
  • interest rate
    • Emily Hoshi
       
      definition for interest rate
  • costs pushed up
    • Emily Hoshi
       
      definition for cost push inflation
  • ...15 more annotations...
  • Consumer prices grew by 3.6% in March from a year earlier, up from 3.2% in February. Analysts had forecast an increase of 3.3%.
    • Emily Hoshi
       
      graph showing the increase in consumer prices 
  • set a target of 4% for 2012.
    • Emily Hoshi
       
      the effect of setting a 4% inflation (?) --> graph and show
  • central bank to hold back on monetary policy easing for now.
    • Emily Hoshi
       
      the reason why (?)
  • stronger-than-expected inflation could slow down the pace of monetary policy relaxin
  • China's economy grew by 8.9% in the three months
    • Emily Hoshi
       
      giving reasons to it why their economy is slowing down 
  • slowest pace of growth in more than two years.
  • markets such as the US and eurozone.
  • slowing demand for its exports
    • Emily Hoshi
       
      point this in the graph 
  • China's central bank has been easing its monetary policy in recent months.
  • sustain its pace of growth
  • boost
  • cut the amount of money banks must keep in reserve
  • sustain economic growth
  • speculation that the central bank may cut the cost of borrowing in a further attempt to boost growth.
  • money at low rates may push consumer prices higher.
  •  
    Mr. Seldis: Is this okay for my IA2?
Nayana Devadas

CURRENCIES & BONDS / Dollar below 81.50 yen in Tokyo, cutting early gains ahead of BOJ ... - 0 views

  • At 5 p.m., the dollar was quoted at 81.27-30 yen, still up from 81.11-12 yen at the same time Friday.
  • The dollar pared its early gains to trade mostly below 81.50 yen in Tokyo trading Monday, as the recent yen-selling spree took a pause before the Bank of Japan's upcoming monetary policy decision.
  • where it was supported by hopes for an early deal to avoid the "fiscal cliff," or a combination of looming tax increases and spending cuts.
  • ...3 more annotations...
  • consider a plan under which the central bank buys construction bonds directly from the government
  • expectations for drastic monetary easing by the central bank. Abe's repeated calls for "unlimited" monetary easing, aimed at beating the deflation, sparked such expectations.
  • In futures trading on the Tokyo Stock Exchange, the lead December contract on 10-year JGBs edged down 0.08 point from Friday to end at 144.62. Volume decreased to 25,289 contracts from 33,371.
Yihan Li

BBC News - Federal Reserve to buy more debt to boost US economy - 0 views

  • buy "additional agency mortgage-backed securities at a pace of $40bn (£25bn) per month".
    • Yihan Li
       
      Buying the securities increases the supply of money in the market
    • Yihan Li
       
      Increase in supply of money is used to expand aggregate demand
    • Yihan Li
       
      (evaluation) talk about the merits and demerits of increase in AD
  • nterest rates in the US have been close to zero for several years now, and the Fed again kept them at below 0.25% on Thursday.
    • Yihan Li
       
      Low interest rate keeps aggregate demand high -> more spending and investment 
    • Yihan Li
       
      Draw interest rate vs quantity of money diagram
  • quantitative easing
    • Yihan Li
       
      quantitative easing = A monetary policy used to increase the money supply by buying government securities or other securities from the market
  • ...7 more annotations...
  • "We doubt it will be enough to get the economy on the right track. It's only a matter of time before speculation begins as to when the Fed will raise its purchases from $40bn a month."
    • Yihan Li
       
      (evaluation) not enough money is spent by Federal Reserve 
  • the central bank buys bonds to keep the long-term cost of borrowing down.
    • Yihan Li
       
      Increase in supply of money keeps cost of borrowing (long-term interest rate) low
  • The unemployment rate in the US has been above 8% since January 2009, but the current 8.1% is down from the recent high of 10% in October 2009.
    • Yihan Li
       
      high unemployment = the economy is not doing well. 
    • Yihan Li
       
      The main reason why Fed implemented the policy 
  • US presidential election.
    • Yihan Li
       
      The decision is influenced by political factors 
  • Ben Bernanke also lowered the Fed's growth forecast for the US economy to 2% this year, down from the 2.4% it predicted in June
    • Yihan Li
       
      Fed decided to implement the policy because economy is not growing quickly enough 
    • Yihan Li
       
      Draw a AD-AS diagram to explain the results of AD shift on economy 
  • "The committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labour market conditions,
    • Yihan Li
       
      Without Fed's help, unemployment may increase or be stagnant. Maybe talk about Okun's law, which states that 3% increase in output corresponds to a 1% decline in the rate of unemployment
  • Federal Reserve to buy more debt to boost US economy
    • Yihan Li
       
      Why using monetary policy, not using fiscal policy? What are other options?  
Ayaka Matsumura

BBC News - China inflation rate dips to a 30-month low in July - 0 views

  • inflation
  • Consumer
  • dips to a 30-month low
  • ...24 more annotations...
  • rose by 1.8%
  • down from a 2.2%
  • 3% rise
  • spur domestic consumption
  • domestic consumption
  • domestic consumption
  • many Asian economies
  • Rising consumer prices
  • China's economy grew at its slowest pace in three years in second quarter.
  • 18.7%
  • and 6.1%
  • key drivers of the slowdown in the rate of inflation.
  • China's economy grew at an annual rate of 7.6%
  • slowing global demand for its exports.
  • down from an 8.1% expansion
  • boost stimulus measures
  • world's second-largest economy may slow further
  • Beijing has taken various measures to spur growth.
  • the People's Bank of China, has cut its key interest rates twice since the start of June.
  • benchmark lending rate down to 6%
  • more money to lend to consumers and businesses
  • slowdown in the growth of consumer prices may see policymakers introduce further measures to boost growth
  • more room for policy easing
  • rate of inflation was "likely be below the official 4% percent target for the year, so the policy focus for the government can stay clearly on growth
  •  
    China's inflation dipped to a 30-month low in July, giving policymakers a bigger cushion to boost stimulus measures to spur economic growth. Consumer prices rose by 1.8% in July, from a year earlier. That was down from a 2.2% growth rate in June and a 3% rise in May.
Derek Schwung

BBC News - Spanish unemployment hits record 5.64 million - 0 views

    • Derek Schwung
       
      Current unemployment rates in Spain
  • Monday are expected to confirm that Spain has fallen back into recession.
    • Derek Schwung
       
      A result/consequence of the unemployment levels. 
  • ...17 more annotations...
  • 0.4% in first three months of this year, after shrinking by 0.3% in the final quarter of last year.
    • Derek Schwung
       
      Decrease in GDP is a cause for the high unemployment. 
  • Spanish retail sales were down 3.7% in March from the same point a year ago, the 21st month in row sales have fallen.
    • Derek Schwung
       
      Sales = consumer spending. Less consumer spending/confidence will result in a decrease in GDP
  • The rate has risen sharply since April 2007, when it stood at 7.9%.
    • Derek Schwung
       
      Comparison to what the unemployment figures before the recession. 
  • The new government has announced reforms to the labour market, including cutting back on severance pay and restricting i
  • nflation-linked salary increases, that it hopes will ease the problem.
    • Derek Schwung
       
      What spain is doing to remedy the unemployment. 
  • The government has also introduced drastic spending cuts designed to reduce its debt levels and meet deficit targets agreed with the European Union. These cuts are contributing to Spain's economic contraction.
    • Derek Schwung
       
      Even though government expenditure would increase the AD/GDP, which would result in more employment, Spain is being forced to reduce government spending. 
  • S&P predicts the Spanish economy will shrink by 1.5% this year, having previously forecast 0.3% growth.
    • Derek Schwung
       
      Large decrease in GDP 
  • "We believe that the new government has been front-loading and implementing a comprehensive set of structural reforms, which should support economic growth over the longer term," S&P said. "In particular, authorities have implemented a comprehensive reform of the Spanish labour market, which we believe could significantly reduce many of the existing structural rigidities and improve the flexibility in wage setting."
    • Derek Schwung
       
      Solutions to the problem by analysts. 
  • The yield on 10-year bonds rose to 5.96%, up from 5.81%, suggesting investors were becoming more wary of Spain's ability to repay its debts.
    • Derek Schwung
       
      Investors are also key in GDP, which would boost economy, but they are weary. 
Edward Pearson

Euro-Region Inflation Rate Declines More Than Forecast - Bloomberg - 2 views

  • fell to 2.4 percent from 2.6 percent
    • Joe Kanagawa
       
      Inflation rate has gone down, but it's still positive, so "disinflation" is happening in the said region.
    • Edward Pearson
       
      below 5% - deflation possible in future
  • Crude-oil prices have dropped about 16 percent in the past two months, easing inflation pressures
    • Joe Kanagawa
       
      The type of inflation the region is in could be "cost-push inflation" due to changes in the prices of oil affecting the inflation rate.
    • Edward Pearson
       
      decrease in oil - oil would be part of basket of goods for CPI - inflation could be higher because governments could underrate the spending on oil and change figures 
  • Still, data today showed the German unemployment rate fell to 6.7 percent in May from 6.8 percent
    • Joe Kanagawa
       
      Fall in unemployment rate will normally cause the inflation rate to increase, but in this case, it didn't
    • Edward Pearson
       
      -possible shift in SRPC 
    • Edward Pearson
       
      -low inflation and low unemployment is ideal for economy 
  • ...2 more annotations...
  • German business confidence fell more than economists forecast in May,
  • consumer spending also rose more than projected last month, increasing 0.6 percent
Erica Nozawa

BBC News - India inflation rate rises faster than expected - 0 views

  • India inflation rate rises
  • Higher food prices
  • mainly behind the rise
  • ...7 more annotations...
  • decide interest rate policy.
  • central bank policymakers with a "tricky call".
  • government cut fuel subsidies, which will force up prices.
  • The fundamentals don't justify a rate cut at this point of time because the inflationary expectations are still quite high.
  • The quantitative easing in the US is also likely to push up global commodity prices and add to inflation
  • needs a boost from lower interest rates
  • industrial output rose by just 0.1%
  •  
    My Macro Economics IA article.
Derek Schwung

US airlines boost domestic long-haul fares | Reuters - 0 views

    • Derek Schwung
       
      Increase in prices in overseas flights 
  • United Continental Holdings (UAL.N), AMR Corp's American Airlines (AAMRQ.PK), Southwest Airlines (LUV.N) and US Airways (LCC.N) all said they have matched it
    • Derek Schwung
       
      Many firms in the market are 
  • ...7 more annotations...
  • higher oil prices raise costs and threaten profitability
    • Derek Schwung
       
      Increase in FoP
    • Derek Schwung
       
      Inward shift in supply 
  • Oil prices initially rose on Thursday as the euro rallied and a Nigerian union threatened to shut down output, but they later eased on a report that the European Union could delay a ban on Iranian exports by six months. U.S. February crude oil was down 1.6 percent at $99.26 a barrel after earlier reaching above $102.
  • European law requiring airlines to pay for aircraft emissions.
    • Derek Schwung
       
      Negative Production Externality - tax Market failure 
  • d a $3 surcharge each way unveiled by Delta on fares purchased in the United States for flights between the United States and Europe
    • Derek Schwung
       
      Increase in price, tax put on consumer 
Cynthia Huang

More foreign currencies sold -- Shanghai Daily | 上海日报 -- English Window to Ch... - 0 views

  • BANKS in China sold more foreign currencies in August than July
  • yuan funds
  • fell by 17.4 billion yuan last month from July to 25.6 trillion yuan
  • ...6 more annotations...
  • apparent capital outflow from China due to the weak economic situation
  • outflow occurred as the yuan weakened against the US dollar
  • exchange rate fell from 6.3146
  • to 6.3449
  • predicts the outflow to cease
  • quantitative easing moves by the US Federal Reserve may increase liquidity worldwide and fuel the risk appetite of investors
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