crisis
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Spain in eurozone crisis cross-hairs - CNN.com - 0 views
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financial crisis
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borrowing costs
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unemployment rates at devastating levels.
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bad investments
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When the economy collapsed in 2008, people lost their jobs -- and with them their homes.
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strengthening the banking sector.
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Spain also has an unemployment crisis, with more than half those under 24 out of work, and almost one in four people overall. Spain's jobless rate has helped pushed the eurozone's total unemployment rate to 11% -- its highest since the eurozone was created in 1999
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The situation in Spain is developing like a "perfect storm," with money being pulled out of the country, despite the desperate need to stem capital flight and support its banking system.
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This leaves Spain in a precarious financial state, driving investors away, pushing up its borrowing costs and making it more likely to need a bailout.
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The retirement age has been raised from 65 to 67, while public sector wages and welfare payments have been cut.
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Academics and financiers are also wading into the policy debate, with billionaire George Soros saying in a speech this month that the "wrong remedy" has been applied to the crisis. "You cannot reduce the debt burden by shrinking the economy, only by growing your way out of it," he said.
BBC News - Japan to write off $3.7bn Burma debt - 1 views
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BBC News - Spanish unemployment hits record 5.64 million - 0 views
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Spanish retail sales were down 3.7% in March from the same point a year ago, the 21st month in row sales have fallen.
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The new government has announced reforms to the labour market, including cutting back on severance pay and restricting i
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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.
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S&P predicts the Spanish economy will shrink by 1.5% this year, having previously forecast 0.3% growth.
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"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."
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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.
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BBC News - Federal Reserve to buy more debt to boost US economy - 0 views
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buy "additional agency mortgage-backed securities at a pace of $40bn (£25bn) per month".
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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.
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quantitative easing
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"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."
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the central bank buys bonds to keep the long-term cost of borrowing down.
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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.
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US presidential election.
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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
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"The committee is concerned that, without further policy accommodation, economic growth might not be strong enough to generate sustained improvement in labour market conditions,
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Federal Reserve to buy more debt to boost US economy
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Weak Job Growth in May as Unemployment Rate Ticked Up - NYTimes.com - 0 views
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The unemployment rate rose to 8.2 percent in May from 8.1 in April, though largely because more people began looking for work.
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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.
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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.
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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.
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Yields on United States and German government bonds also slumped as investors bid up the bonds’ prices looking for safety.
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The underlying pace of the domestic economy is a slog, driven by manufacturing and restrained by slackening global demand.
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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.
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BBC NEWS - Australia's economy grows by more than expected - 1 views
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strong consumption numbers and an unusually large contribution from professional and scientific services
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Smokers feel the pinch as France raises taxes (France 24 France) - 0 views
www.france24.com/...ent-debt-beer-economy-hollande
smokers taxes france cigarette Demand & Supply externalities market failure
shared by senkoffa on 02 Jun 13
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French smokers began paying 6.5% to 10% more for tobacco, as an unpopular price rise went into effect
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It is not clear whether this price hike will finally push French smokers to quit, as France’s 2008 full smoking ban failed to reduce the number of smokers. The number of 18 to 75-years-olds smokers actually increased by 2 points between 2005 and 2012 to near 30% of the population.
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French anti-tobacco groups said 40 cents per pack was a modest price hike that would not encourage smokers to stub it out in significant numbers.
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“A slow and incremental increase, like we’ve seen in the previous five years, has very little effect on consumption,”
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The last significant drop in the number of daily smokers in France - 27% fewer from 2002 to 2004 – was prompted by a significant price rise in 2003.
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U.K. House Prices Rose on Supply Shortage, Nationwide Says - Bloomberg - 1 views
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lack of homes for sale supported values
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Prices gained 0.3 percent from April, when they fell by the same amount
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Demand for homes remains subdued on the back of weak labor-market conditions, but the lack of homes coming onto the market is providing support for prices,
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rising unemployment and concerns about the euro-area debt crisis undermine consumer confidence
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“Even though optimism about how the economy will perform” has improved, “it is still significantly down on where it was this time last year.”
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consumer confidence rose in May for the first time in four months as Britons became more optimistic about the economy.
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the number of U.K. mortgage approvals climbed in April, they remained about half the monthly average in the decade to 2007 before the financial crisis struck.
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Lost in inflation: the trap of focusing solely on the consumer price index | The Japan ... - 3 views
www.japantimes.co.jp/...nb20120220jp.html
Inflation Monetary Policy Fiscal Policy Balance of Payments
shared by Edward Pearson on 31 May 12
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interest rate policy since February 1999
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the government's fiscal policy options are starting to run out
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This is reflected by globalized Japan's descent into its first trade deficit since 1980
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prices in Japan remain very high by international standards.
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cannot pin their hopes on wage increases
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They should step back and take a look at the big picture, including Japan's abnormally high prices,
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Spain goes from boom to bust in a hectic 10 years - Yahoo! News - 4 views
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—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.
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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)
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the jobless rate for those aged between 16 and 24 is 52 percent.
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in sales taxes to get a handle on the size of government debt and appease markets.
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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)
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London Luxury-Home Price Gains Slow After Property-Tax Increase - 1 views
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-microeconomics -small growth in luxury-home prices in London after the "the government increased a tax on purchases of 2 million pounds ($3.1 million) or more" -consumers must pay more for the same good compared to before - fall in demand -prices of homes/luxury homes were growing -"Europe's debt crisis has prompted overseas investors to acquire real estate in London to preserve their wealth." - homes more scarce, hence increase in price
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-use of demand/supply curves to show the increase in demand, then show a less increase in demand after taxing
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German Jobless Rate Hits Low - WSJ.com - 3 views
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The seasonally adjusted unemployment rate fell to 6.7%—the lowest since comparable records began in 1998—from 6.8% in April, according to data from the country's labor agency Thursday. Economists had expected the adjusted unemployment rate to remain at 6.8%.
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Earlier Thursday, Germany's statistics office reported a higher than expected rise in retail sales in April, which economists attributed in part to the robust labor market.
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However, Germany's Bundesbank warned last week that the first-quarter growth figure likely overstates the country's trend pace. Germany's powerful industrial sector will only make "a relatively small contribution" to growth given the still falling demand from the euro zone, the central bank said. However, a significant growth contribution could come both from construction and consumption, it added.
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BBC News - Thailand exports fall in April as global demand slows - 5 views
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Thailand exports fall in April as global demand slows
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falling demand
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exports
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Manufacturing and export sector are key contributors to Thailand's economic growth
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eurozone's ongoing problems will continue to drag
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foreign sales accounting for more than half of Thailand's gross domestic product
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on Thai
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Excessive flooding last last year caused damage to factories and businesses, hurting production
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boosting domestic consumption
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Thailand