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J Hwang

China cuts interest rates - 1 views

money.cnn.com/...index.htm

macroeconomics monetary policy

shared by J Hwang on 07 Jun 12 - No Cached
  • J Hwang on 07 Jun 12
     
    -macroeconomics -Monetary Policy - China's central bank decided to decrease interest rates -however, the lending rate is still much higher than that in USA, Europe and Japan. -recently China decreased the reserved ratio as well. -Eurozone crisis - decrease in demand for exports - damaging to Chinese economy -previously, China raised interest rates to decrease inflation --> however led to a slowdown in economics growth
Fuyuka Nakamura

India's GDP growth slows sharply - May. 31, 2012 - 2 views

money.cnn.com/...index.htm

shared by Fuyuka Nakamura on 06 Jun 12 - No Cached
  • sharply
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      AD/AS changed in time fast
  • In the first quarter, the country's manufacturing sector contracted and its agricultural sector slowed substantially
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      An aggregate demand and supply curve can be shown to demonstrate the decline in GDP, which resulted from the contraction in the agricultural sector/manufacturing sector. The supply curve can shift down to demonstrate how the economy is producing less.
  • due primarily to weakness in its manufacturing and agricultural sectors
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      Reason for the decline in economic growth in India. Shift in AS.
  • ...8 more annotations...
  • Spending by both consumers and the government decelerated slightly.
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      By spending to decrease, the demand curve will shift, as people demand/spend less on the good/service.
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      Consumer confidence is affected by the high interest rates (mentioned below)
  • tighter monetary policy
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      Monetary Policy can be described. The interest rate and supply of money can be described to show how goods/services can affect economic growth.
  • interest rates high for three years to battle rapid inflation
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      As interest rates are high, the sectors will not want to borrow money, as they will be losing out on money. Consumers will also save their money rather than spend it, which then affects the aggregate demand curve. Which then affects the economic growth.
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      Contrationary Monetary Policy, as the Gov is trying to fight the inflation. In other words they want to lower the price levels. They do this by rising the interest rate to decrease the supply of money.
  • lower that rate slightly to try to stimulate economic growth.
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      Can talk about the effect of lowering the interest rates. How the consumers will start to spend rather than save and how the businesses (sectors) start to borrow money for investment, which then pumps up the economic growth.
  • lower rates further
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      the Reserve Bank of India can impose Expansionary Monetary Policy, lowering the interest rates, increasing the money supply, encouraging new consumption and investments. This will shift the AD out, increasing India's GDP within time. This will be their solution.
  • economic growth
    • Fuyuka Nakamura
      Fuyuka Nakamura on 06 Jun 12
       
      About India's GDP It will involve AD and AS
  • sharply
  • India is the world's second most populous nation after China, and the 11th largest economy,
Aili Saito

U.S. economy picks up speed but doubts surround 2012 outlook - Jan. 27, 2012 - 1 views

money.cnn.com/...index.htm

shared by Aili Saito on 07 Jun 12 - No Cached
  • seasonal trends
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      GDP can vary due to seasons - similar to seasonal unemployment
  • business investment
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      will lead to a decrease in AD
  • The United States economy picked up speed
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      GDP increase = could express this on an AD/AS graph where the AD shifts to the right as well as AS shifts to to the right (both increase) - also leads to inflation
  • ...7 more annotations...
  • their inventories
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      production increased
  • consumers increased their spending
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      consumption increased (leads to a shift in AD to the right)
  • overall weakness
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      could possibly lead to a recession in the future
  • businesses building up their stock of goods
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      main reason of increase in GDP is the increase of production and increase of stock (AS related)
  • confidence
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      consumer/business confidence will lead to an increase in AD
  • the report showed GDP grew only 0.8% in the fourth quarter, compared with 3.2% in the third.
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      there is a decrease in GDP growth - could possibly lead to a recession (negative GDP growth)
  • too weak to warrant higher interest rates any time soon
    • Aili Saito
      Aili Saito on 07 Jun 12
       
      as interest rates increase, it will lead to an increase in government revenue/profit for banks but also, a decrease in AD
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