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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?  
Adam Seldis

BBC News - Who what why: Why is there more oilseed rape being grown? - 31 views

  • Why is there more oilseed rape being grown?
    • Adam Seldis
       
      This looks like it might a supply issue - so microeconomics supply and demand
  • more than ever before
    • Adam Seldis
       
      So there has been a shift outwards in supply. I can show this on a diagram. However I need to explain why it has shifted.
  • rocketing prices as it becomes more desirable for food
    • Adam Seldis
       
      So the only way this can be explained is that demand has increased more than the increase in supply, therefore leading to a 'rocketing' in prices. Again, would be good if I could explain why.
  • ...9 more annotations...
  • £388 per tonne, which compares to £240 in 2010
    • Adam Seldis
       
      I can use these numbers on my diagram. 240GBP was the original equilibrium price, 388GBP the new equilibrium.
  • 698,000 hectares in England and Wales and around 37,000 hectares in Scotland have been sown with oilseed rape this year, up about 6% on last year
    • Adam Seldis
       
      Again, I can use these figures in my diagram on the Quantity axis.
  • rapeseed oil is actually one of the highest quality vegetable oils, and it has gained a certain culinary respectability over recent years.
    • Adam Seldis
       
      This explains the shift in demand
  • "It's being used as mayonnaise, in margarine, salads, anywhere vegetables are used. It has a good health profile, has low saturated fat, is high in omega-3, and some claim it is better than sunflower oil," he say
    • Adam Seldis
       
      As does this.
  • The UK's "consistently high yields" of rapeseed have made the crop a success, according to Gagen.
    • Adam Seldis
       
      This partly explains the shift in supply
  • Other places like Germany, Poland and Ukraine have had a dreadful winter, the crops were exposed to severe cold temperatures, I suspect the French suffered as well.
    • Adam Seldis
       
      I can bring in here the concept of substitute goods - that German etc rape crops are a substitute good. That their fall in supply will have lead to an increase in the price for them, leading to a fall in demand. This will have lead to an increase in demand for UK rape crops. Could show this diagrammatically if needed.
  • and they are 45% oil - and the other 55% is high protein animal feed - they are an amazing piece of nature," he says. Burnett says oilseed rape is also being used for biodiesel, while a very small amount has specialist industrial uses, for instance as lubricants.
    • Adam Seldis
       
      Again, this explains the surge in demand. It has a number of different uses. (Called composite demand).
  • Burnett says oilseed rape has probably been more visible this year because it has flowered for almost twice its normal length of time - eight weeks, instead of four - as a cold and wet April and May stopped flowers developing and dying at their normal rate.
    • Adam Seldis
       
      We could start to use this as some kind of evaluation - the fact that there might not have been a shift in supply at all.
    • Adam Seldis
       
      So, overall, I could write a commentary about how a small shift in supply and a large shift in demand has led to an increase in the price for rape seed. I can easily show this with a diagram and explain the factors behind each movement. I would need to show the shift in supply being less than the shift in demand. For evaluation I could start to look at the impacts of PED and PES. Might they be inelastic or elastic and how might this impact the price mechanism. I could also speculate a little about what might happen in the future, based on the information in the article, and its impact on the price of rape seed in the UK
  •  
    This is the article I would like you to read first. You may not use this one in the future.
Nich Fabrici

US economy points to jobless misery | Latest Business & Australian Stock market News | ... - 1 views

  • US economy points to jobless misery
  • US economy grew
  • slowly
  • ...16 more annotations...
  • 1.9 percent in the first quarter, instead of the 2.2 percent pace initially estimated last month.
  • 2.0 percent,
  • US unemployment benefits - indicating the pace of layoffs - rose by 10,000 to 383,000 in the week ending May 26,
  • Payrolls firm ADP reported private-sector employment rose by a modest 133,000 jobs in May, well below expectations, from April's 113,000 number.
    • Derek Schwung
       
      New jobs --> indicator of lower unemployment 
    • Nich Fabrici
       
      More jobs should stimulate the second quarter Economic growth, but didn't.
  • The four-week moving average also increased
    • Derek Schwung
       
      Find out what the four-week moving average is, could possibly be interesting 
  • The lackluster data came just five months ahead of the November presidential election in a race dominated by high unemployment concerns.
    • Derek Schwung
       
      Maybe just a political move? 
    • Nich Fabrici
       
      or an economic fault? need deeper research on this point.
  • The first-quarter slowdown was due in part to declines in private inventory investment and a pick-up in imports,
    • Derek Schwung
       
      Causes as to why it happened
  • stalled with growth at about 2.0 percent,
    • Derek Schwung
       
      Growth is stalled Could talk about what no growth would result in. 
  • Fresh jobs indicators for May on Thursday suggested that second-quarter economic conditions would do little to spur recovery in the sick labor market.
    • Nich Fabrici
       
      Decrease in Growth could mean disinflation is on it's way, to the already injured US economy.
  • 3.0 percent growth rate in the final quarter of 2011
Christina Seward

US subsidy decision welcomed | Business | The Guardian - 1 views

    • Christina Seward
       
      with no cotton subsidy from the government, what effect will that have on the market?
    • Christina Seward
       
      this is whats happening now. with the subsidy, it means that the US cotton market is going well because they can sell more with the subsidy from the government
    • Christina Seward
       
      what effect the US having no subsidy on the cotton will have for the 3rd world cotton that is being sold as a second to the US cotton
  • ...3 more annotations...
  • Subsidies paid by the US government make it financially viable for textile manufacturers to buy expensive US cotton rather than cheaper, third-world cotton
  • Oxfam estimates that poor African cotton-producing countries missed out on almost $400m (£230m) in revenues between 2001 and 2003. About 10 million Africans depend directly on the crop for a living.
  • World Trade Organisation.
Adam Seldis

Kenya inflation slows to 12.2 pct in May | Reuters - 3 views

  • inflation slows to 12.2 pct in May
  • fall in
    • Adam Seldis
       
      This response will be about falling inflation. So I'm hoping to find some information on perhaps why it is falling, to what extent the government played a part, and what might the consequences be?
  • ...6 more annotations...
    • Adam Seldis
       
      This explains why there was the fall. So it is a cost-push disinflation. I can explain this using a diagram.
    • Adam Seldis
       
      I can now bring in monetary policy and explain not only why a government may wish to lower interest rates (to boost AD) but also how a lowering of inflation might allow this situation.
    • Adam Seldis
       
      I can use this data in my diagrams
    • Adam Seldis
       
      So I can use this to explain how the government has been using interest rates to lower inflation and what the relationship is between them.
    • Adam Seldis
       
      Could also do some evaluation to suggest that cost-push disinflation is better to have than demand-pull disinflation, as with cost-push disinflation you still get GDP growth.
    • Adam Seldis
       
      I can use this to explain what might happen in the future. What might be the impact of high international commodity prices.
senkoffa

Canada threatens higher tariffs on US wine imports | decanter.com - 0 views

  • 'retaliatory tariffs' on a range of US imports, including wine
  • US failed to change its country of origin labelling rules to comply with the WTO ruling. But, he said Canada would seek WTO approval before making a move. 
  • Canada represents the second largest export market for US wines by value behind the European Union
  • ...1 more annotation...
  • EU agreed a free trade agreement with Canada
Ryo Sakai

Spain goes from boom to bust in a hectic 10 years - Yahoo! News - 4 views

  • —Unemployment starts ticking higher. The jobless rate, which stood at 8.3 percent in 2007, jumps to 18 percent in 2009. It is now almost 25 percent. Property prices begin to decline, and the real estate boom eventually bursts, as demand plummets.
    • Ryo Sakai
       
      Boom and the bust represents the business cycle. The boom being the positive output gap and the bust representing a negative output gap (recession) In this case Spain was experiencing a boom, but after a while they faced a recession because they did not have spare capacity in the factors of production as they use to have (used too much doing the boom)
  • the jobless rate for those aged between 16 and 24 is 52 percent.
    • Faizal Zubir
       
      Because of the very high unemployment rate, it is very difficult for Spain to get out of recession. This is one of the reasons why Spain may be forced to ask for a bailout.
  • in sales taxes to get a handle on the size of government debt and appease markets.
    • Faizal Zubir
       
      Possible evaluation: Higher tax may increase the government's income, but based on Laffer Curve, if the new tax rate is beyond the most effective tax rate, then in reality, income can be lower.
  • ...1 more annotation...
  • —The conservative Popular Party, led by Mariano Rajoy, takes office in December 2011.
  •  
    Boom and the bust represents the business cycle. The boom being the positive output gap and the bust representing a negative output gap (recession) In this case Spain was experiencing a boom, but after a while they faced a recession because they did not have spare capacity in the factors of production as they use to have (used too much doing the boom)
alisaw

Liverpool and Manchester United fans to launch ticket price campaign as Man City return... - 2 views

  • cost £62 each, making them unaffordable for many fans
    • alisaw
       
      Demand - less people are willing and able to pay for the tickets
    • alisaw
       
      Could mention how usually ticket prices are rather inelastic but in this case it's gone to the point that people are complaining
  • demand a reduction in ticket prices.
  • We're going to be launching a campaign within a few weeks, we will be calling for a maximum ticket price in the Premier League for away fans
    • alisaw
       
      Can show diagrammatically the effect of a maximum price on ticket prices
  • ...3 more annotations...
  • He added that TV revenue could be used to subsidise ticket prices, and claimed that the extra money coming into the game next season could be used to reduce ticket prices by £32.
    • alisaw
       
      -What is TV Revenue? -How would subsidising the tickets lead to solving this problem?
    • alisaw
       
      (Can also use the values)
  • When Stoke, a less glamorous side, visit the Emirates, for example, their supporters will be able to get in for just £32.50.
    • alisaw
       
      Can talk about why it is that certain teams are more expensive to watch
  • the campaign.
senkoffa

Northern Ireland's new five-pence carrier bag tax (BBC News UK) - 3 views

  • Retailers must now charge shoppers at least five pence for each new single-use carrier bag.
  • The department hopes to see an 80% reduction in the use of carrier bags as a result of the levy.
    • senkoffa
       
      The goal is to reduce the consumption in plastic bag usage in supermarkets and stores
  • "If we have a wonderful, clean and green country in the north of Ireland, let's protect it," he added. "I think most people will see the benefit of this and most people will embrace this new proposal."
    • senkoffa
       
      Negative Externalities; Plastic bag will lead to pollution and possible damage to wildlife
  • ...3 more annotations...
  • realised that plastic bags and single use bags were a "threat to our environment".
  • "Although there's been a lot of communication about this there seem to be a few consumers out there not quite ready for it yet.
  • "What we're really talking about here is a culture change and for that to happen it's going to take quite a while to embed, all we're asking for is a bit of patience."
Aili Saito

US complains about China import duties | News.com.au - 0 views

  • car makers have been affected by the tariffs
  • countries are allowed to impose tariffs to offset damage from subsidies and dumping
  • successfully challenged Chinese tariffs on high-tech steel products and has also disputed tariffs on chicken products.
  • ...5 more annotations...
  • impose a tariff on US imports of low-grade Chinese tyres
  • anti-dumping
  • virtual monopoly
  • China says curbing rare earth exports is for environmental protection, not intended to help Chinese companies.
  • Chinese Commerce Minister Chen Deming said the vehicle duties were legal
Melanie Arxhoek

Mass strikes across India over fuel prices - Central & South Asia - Al Jazeera English - 2 views

    • Melanie Arxhoek
       
      The economic growth in India has slowed down as the figures show for the first quarter of this year as it only expanded by 5.3%. There could be different reasons for this.
  • The strike came on the same day as shock economic growth figures for the January-March quarter showed the slowest quarterly expansion in nine years, of 5.3 per cent
  • The listless economy, high inflation and a series of corruption scandals have weakened the coalition government headed by the 79-year-old Singh and his Congress party
  • ...5 more annotations...
    • Melanie Arxhoek
       
      Here some problems are mentioned, which would impact the recent decrease in growth and thus the rise in fuel costs.
  • Last week, Indian state-run oil firms announced the sharpest jump in petrol prices in nearly a decade to offset growing losses caused by subsidised rates
  • Once taxes are included, the price increase of Rs6.28 (11 US cents) per litre will result in a Rs7.5-rupee rise for consumers in cities such as Delhi
    • Melanie Arxhoek
       
      This further expands into the reasons of why the fuel prices have risen.
    • Melanie Arxhoek
       
      In this sentence we finally get some statistics that we could use to draw a graph and show the shift in price.
  •  
    11% increase in fuel costs, going from Rs 6.28 per litre to Rs 7.5. Growth figures for the first quarter showed the slowest expansion in 9 years of 5.3%. Listless economy, high inflation and corruption has weakened the economy. Annual inflation is currently at 7%
  •  
    Article I will use for Macro IA
Christian Bager

REVE - Regulación Eólica con Vehículos Eléctricos - - 1 views

  • Expo 2012 at Yeosu, South Korea.
    • Christian Bager
       
      Target date of reveal for their further plans
  • Offshore wind holds vast potential as a sustainable energy source for rapidly growing countries, such as South Korea with its substantial coastal areas.
    • Christian Bager
       
      Showing where there is an increase in demand of the product.
  • A solid foundation for Danish-Korean collaboration on wind energy has already been laid through Vestas’ long history and presence in South Korea and the strong government commitment to ensuring green growth in both Denmark and Korea.
  • ...5 more annotations...
  • Both countries have clearly acknowledged that wind energy is a reliable and sustainable energy solution for the futur
    • Christian Bager
       
      Showing how both side believe that the demand for wind turbines may increase over the next years, and how it currently stands.
  • In Denmark, the government has set a goal of achieving 50 per cent of our electricity consumption from wind energy by 2020, and Korea is leading the way by systematically implementing policies required to spur Green Growth.
  • We have installed more than 200 onshore wind power turbines in the country since 1998, and almost 70 per cent of installed wind power plants are currently using Vestas wind turbines.
    • Christian Bager
       
      Showing the current supply of wind turbines in Korea and how that compares to the Vestas Market share
  • With our many years of experience in turning the wind into energy on land and on sea, Vestas will strive to partner with South Korea to reach their goal of building sustainable cities and ensuring future generations have a reliable source of energy
  • So far, we have installed 581 offshore turbines, equalling 38 per cent of all such turbines in the world. In 2010 alone, we installed a total of 555 MW at the Robin Rigg, Thanet and Bligh Bank offshore wind farms, increasing our installed capacity to more than 1,400 MW.
  •  
    The one I will use from my IA
  •  
    First IA
Shoko Kuroda

Weak Job Growth in May as Unemployment Rate Ticked Up - NYTimes.com - 0 views

    • Shoko Kuroda
       
      The title of the article indicates that it is about unemployment which is in the field od macroeconomics. 
  • global slowdown as the European crisis escalates.
    • Shoko Kuroda
       
      This sentence indicates the correlation between the unemployment fear of workers in America and the European crisis with countries referred as 'PIGS'. 
  • ...22 more annotations...
  • the nation’s employers added the fewest jobs in a year and the unemployment rate actually rose,
  • serious vulnerability for President Obama as he faces re-election
    • Shoko Kuroda
       
      The significance of unemployment rate is clearly indicated, such as the the impact on Obama's re-election. 
  • The unemployment rate rose to 8.2 percent in May from 8.1 in April, though largely because more people began looking for work.
    • Shoko Kuroda
       
      Unemployment raises when there is more demand for working because no matter whether there is an increase or decrease in the working labour force, the number of available jobs are limited. Because there is a limited number in the number of jobs, the increase in demand for employment raises the unemployment rate. 
  • another recession.
    • Shoko Kuroda
       
      The word 'recession' can used to introduce the Keynesian economics with the boom and the busts cycles and monetary and fiscal policies to reduce these cycles. 
  • The report on American jobs added to the global pall that has deepened with Europe’s debt crisis and slowing growth in China and India.
    • Shoko Kuroda
       
      This indicates the influence of America's unemployment rate as well as their economic growth to the other major countries, such as China and India. A increase in America's unemployment rate resulting in a decrease in America's GDP growth has affect on the economy of China and India, such as in exporting goods. 
  • Yields on United States and German government bonds also slumped as investors bid up the bonds’ prices looking for safety.
    • Shoko Kuroda
       
      The decrease in the prices of government bonds in Germany and United States indicates that the citizens dont have the trust to these countries for their skill to return the money with a fixed amount of tax. This is also another indication for the economy not doing well. 
  • The underlying pace of the domestic economy is a slog, driven by manufacturing and restrained by slackening global demand.
    • Shoko Kuroda
       
      The main factor of decrease in America's GDP is stated as the overall decrease in the demand for goods since many economies are not successful. 
  • “Manufacturers are very concerned about Europe because a blowup in Europe means a global slowdown,”
    • Shoko Kuroda
       
      Europe can be noted as one of the important continents which greatly affect the global economy. 
  • diverse,
    • Shoko Kuroda
       
      Whether a company has a diverse target audience or not can be a indicator to determine the impacts of global slow down in markets. 
    • Shoko Kuroda
       
      A graph illustrating a global decrease in demand can be applied to draw the consequences of decrease in GDP. 
  • Obama’s economic policies.
    • Shoko Kuroda
       
      The economic policies which President Obama used can be described thoroughly in this section, such as fiscal and monetary and their success. 
  • The May jobs report showed gains in health care, transportation and warehousing, and wholesale trade, while construction jobs fell by a seasonally adjusted 28,000. Even some bright spots, like booming auto sales, failed to meet expectations or to bolster manufacturing employment by much — only 12,000 jobs.
    • Shoko Kuroda
       
      Both the positives and the negatives of America's economy can be explained more in depth and the impact of each factor to the market. 
Yihan Li

BBC News - Australia cuts interest rates in a bid to boost growth - 0 views

  • The bank cut its key rate to 3.5% from 3.75%.
    • Yihan Li
       
      Australia's central bank cut its interest rate, which is a monetary policy. This is intended to increase consumption and investment, thus the aggregate demand   
  • At the same time, domestic demand has also been stagnant despite efforts to spur consumption.
  • At the same time, domestic demand has also been stagnant despite efforts to spur consumption.
  • ...14 more annotations...
  • At the same time, domestic demand has also been stagnant despite efforts to spur consumption.
  • At the same time, domestic demand has also been stagnant despite efforts to spur consumption.
    • Yihan Li
       
      Both monetary and fiscal policies are used to stimulate the consumption, thus AD. However this has not worked. 
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
  • ere have been concerns that Australia's resources-led boom may be hurt by falling
  • ave been concerns that Australia's resources-led boom may be hurt by falling
  • There have been concerns that Australia's resources-led boom may be hurt by falling demand due to a slowdown in global growth.
    • Yihan Li
       
      Main component of Australia's GDP growth was export of natural resources. Due to unstable international economy, foreign companies manufacture less good, so less Australia's resources will be demanded. Thus GDP growth slows down.
    • Yihan Li
       
      AD-AS curves can be used 
  • In China, one of the biggest markets for Australian commodity exports, both the manufacturing and non-manufacturing sectors have seen the pace of growth slow in May, raising concerns about a slowdown in its economy.
    • Yihan Li
       
      Since China is Australia's biggest exporter, stagnation of Chinese economy will reduce the export, thus AD
  • Meanwhile there have been fears about the recovery in the US economy losing its pace after it reported weaker-than-expected jobs data for May.
    • Yihan Li
       
      Low consumer and business confidence, which may reduce consumption and investment 
  • However, there has been a slew of weak economic data that has come out since then.
  • accommodative stance
    • Yihan Li
       
      accommodative stance = looser monetary policies
  • The country's housing market has seen prices fall and continues to remain subdued despite earlier cuts to the cost of borrowing
    • Yihan Li
       
      House is most people's biggest asset. The decrease in its price will reduce people's disposable income, thus consumption and AD 
  •  
    Interest Rate and Macroeconomy  
Risako Okamoto

BBC News - US economy creates 96,000 jobs but figure disappoints - 0 views

  • The US economy created 96,000 jobs
    • Risako Okamoto
       
      More jobs for the people. Supposed to decrease unemployment rate
  • The unemployment rate fell to 8.1
    • Risako Okamoto
       
      unemployment rate fell which is good for the economy but it is because more people gave up looking for work
Ayaka Matsumura

Australian dollar to drop 10pc against greenback in 2013, says MS | The Australian - 0 views

  •  
    International IA Article
Joe Kanagawa

BBC News - US imposes import tariffs on Chinese solar panels - 0 views

  • US imposes import tariffs on Chinese solar panels
    • Joe Kanagawa
       
      mine.
grace turner

Commentary: Minimum Wage Boost Aids Consumers and Retailers - The Jakarta Globe - 0 views

  •  
    I would like to use this one :)
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