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Edward Pearson

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 - No Cached
  • interest rate policy since February 1999
    • Edward Pearson
      Edward Pearson on 31 May 12
       
      -Increase borrowing and decreasing savings -however, real interest rates are positive due to deflation 
  • the government's fiscal policy options are starting to run out
    • Edward Pearson
      Edward Pearson on 31 May 12
       
      Increase in budget deficit as spending increases and tax revenue decreases - along with debt of 215% of GDP
  • This is reflected by globalized Japan's descent into its first trade deficit since 1980
    • Edward Pearson
      Edward Pearson on 31 May 12
       
      GDP=C+!+G+X-M  demand for domestic products decrease because foreign products are relatively cheaper - increase in M and decrease in X, so AD decreases and GDP decrease causing deflation
  • ...4 more annotations...
  • prices in Japan remain very high by international standards.
    • Edward Pearson
      Edward Pearson on 31 May 12
       
      Lack of factors of production - mainly land need for importing from foreign countries possible solutions- Free trade
  • This is one factor behind Japan's high prices.
  • cannot pin their hopes on wage increases
    • Edward Pearson
      Edward Pearson on 31 May 12
       
      should be a decrease in wages as revenue decreases - sticky wages 
  • They should step back and take a look at the big picture, including Japan's abnormally high prices,
    • Edward Pearson
      Edward Pearson on 31 May 12
       
      deflation possibly could be advantages - increase in spending power, international competitiveness etc 
Yuuji Mitsuta

BBC News - Yen dips as Yoshihiko Noda proposes snap elections - 0 views

www.bbc.co.uk/...business-20335142

shared by Yuuji Mitsuta on 20 Nov 12 - No Cached
  • It fell as low as 80.83 yen
    • Yuuji Mitsuta
      Yuuji Mitsuta on 20 Nov 12
       
      Depreciation
  • print "unlimited yen" to help fight deflation.
  • Analysts said such a move would weaken the yen even further.
  • ...5 more annotations...
  • We are expecting the dollar/yen to head up to around 82 yen by the end of the year."
  • Meanwhile, policymakers have found it increasingly tough to boost domestic consumption, as they continue to fight deflation or falling consumer prices, which tend to make customers put off their purchases in hope of a better deal down the road.
  • needed to set an inflation target of 3% instead of its current 1% goal to help revive growth in the economy.
  • monetary policy would be key
  • Japan's exports, one of the biggest drivers of growth, have been hurt by a slowdown in key markets such as the US and Europe.
Sean Dolan

Japan tax hikes can't wait - Chicago Tribune - 0 views

articles.chicagotribune.com/...2_1_oecd-tomasz-janowski-japan

shared by Sean Dolan on 06 Jun 12 - No Cached
  • target of 1 percent
    • Sean Dolan
      Sean Dolan on 06 Jun 12
       
      most countries aim at around 3. Japan needs to get out of inflation so 1 is good enough
    • Sean Dolan
      Sean Dolan on 06 Jun 12
       
      most countries aim at around 3. Japan needs to get out of inflation so 1 is good enough
  • zero rate
    • Sean Dolan
      Sean Dolan on 06 Jun 12
       
      more investments because the interest rate or discount rate is zero. so increase in consumption. GDP increase if all goes well
  • budget deficits projected at about 10 percent
  • ...4 more annotations...
  • 10 percent
    • Sean Dolan
      Sean Dolan on 06 Jun 12
       
      ad valorem
  • deflation
    • Sean Dolan
      Sean Dolan on 06 Jun 12
       
      the deflation decreased consumption and investments because people will wait for the price to decrease then buy it at a higher price
  • exports
    • Sean Dolan
      Sean Dolan on 06 Jun 12
       
      x will increase because it decreased drastically last year
  • energy shortages
    • Sean Dolan
      Sean Dolan on 06 Jun 12
       
      decrease in supply of electricity. So electric companies are increasing the price of electricity
Nayana Devadas

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

www.yomiuri.co.jp/...T121119003949.htm

shared by Nayana Devadas on 29 Nov 12 - No Cached
  • 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.
Jin Seo

BP, Shell raided over alleged price fixing | News.com.au - 1 views

www.news.com.au/...story-fnda1bsz-1226642946822

pricefixing EU shell BP

shared by Jin Seo on 12 Jun 13 - No Cached
  • cartels
    • Jin Seo
      Jin Seo on 12 Jun 13
       
      formal collusion; cartels are group of competitive firms colluding together to act as a monopoly - why is a monopoly market structure attractive to producers?
  • market manipulation
    • Jin Seo
      Jin Seo on 12 Jun 13
       
      The act of artificially inflating or deflating the price of a security 
  • prices of crude oil, refined oil products and biofuels purchases and sales, potentially harming final consumers
    • Jin Seo
      Jin Seo on 12 Jun 13
       
      oil- one of the most inelastic goods due to its high demand and usage in producing a lot of consumer goods 
  • ...9 more annotations...
  • price fixing
    • Jin Seo
      Jin Seo on 12 Jun 13
       
      price fixing = market manipulation 
  • BP, Shell and Norway's Statoil
    • Jin Seo
      Jin Seo on 12 Jun 13
       
      what sort of market structure are they in? oligopoly and their tendency to collude = because they are profit maximizers 
  • European Commission
    • Jin Seo
      Jin Seo on 12 Jun 13
       
      have monitoring for these companies due to high probabilities of collusion 
  • collude
  • prevented others from participating in the price assessment process
    • Jin Seo
      Jin Seo on 12 Jun 13
       
      fairly high barriers to entry - one of the characteristics of an oligopoly 
  • the market vulnerable to abuse
  • Consumers need to know that the prices they pay for their energy or petrol are fair, transparent and not being manipulated by traders
  • High oil prices are crushing families across Britain
  • market transparency
    • Jin Seo
      Jin Seo on 12 Jun 13
       
      EVALUATION: what would the evaluation contain?   - is it good or bad? (for consumers (benefits of colluding) and producers)   - BP oil competition = shows how having contest ability may be dangerous   - what can the governments do to stop collusion from happening? 
  • Jin Seo on 12 Jun 13
     
    Price fixing of oil companies in the EU
Erica Nozawa

Spain 'in huge crisis' as unemployment hits record levels - Telegraph - 3 views

www.telegraph.co.uk/...oyment-hits-record-levels.html

shared by Erica Nozawa on 31 May 12 - No Cached
    • Erica Nozawa
      Erica Nozawa on 31 May 12
       
      This suggests Spain's involvement in the Euro crisis, and how unemployment rose as a result. 
    • Erica Nozawa
      Erica Nozawa on 31 May 12
       
      'Record unemployment' gives us an idea of the magnitude of the impact the euro crisis had on Spain. I could discuss the type of unemployment and what could be done to improve the situation. In this case, the type of unemployment would be cyclical, as it occurs partly as a result of the business cycle.
    • Erica Nozawa
      Erica Nozawa on 31 May 12
       
      Unemployment is macroeconomics. 
  • ...1 more annotation...
    • Erica Nozawa
      Erica Nozawa on 31 May 12
       
      Consumer spending is one of the key factors of macroeconomics. Consumer spending could have dropped partly because of the increasing unemployment rate, causing consumers to hold off spending. This means a drop in demand, thus a drop in supply, a decline in GDP, the shifting inwards on the PPF curve, the increase in government spending to pay for unemployment benefit, thus an increase in deficit, and in some cases the outset of deflation.
Edward Pearson

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

www.bloomberg.com/...han-economist-forecast-1-.html

shared by Edward Pearson on 31 May 12 - No Cached
  • fell to 2.4 percent from 2.6 percent
    • Joe Kanagawa
      Joe Kanagawa on 31 May 12
       
      Inflation rate has gone down, but it's still positive, so "disinflation" is happening in the said region.
    • Edward Pearson
      Edward Pearson on 01 Jun 12
       
      below 5% - deflation possible in future
  • Crude-oil prices have dropped about 16 percent in the past two months, easing inflation pressures
    • Joe Kanagawa
      Joe Kanagawa on 31 May 12
       
      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
      Edward Pearson on 01 Jun 12
       
      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
      Joe Kanagawa on 01 Jun 12
       
      Fall in unemployment rate will normally cause the inflation rate to increase, but in this case, it didn't
    • Edward Pearson
      Edward Pearson on 01 Jun 12
       
      -possible shift in SRPC 
    • Edward Pearson
      Edward Pearson on 01 Jun 12
       
      -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
Cynthia Huang

Food prices rise, but CPI below 2% - Taipei Times - 0 views

www.taipeitimes.com/...2003534594

Inflation deflation

shared by Cynthia Huang on 06 Jun 12 - No Cached
  • Vegetable prices increased by 25.35% from a year ago because rainy weather cut supplies, and partly because of a low comparison base from last year
    • Cynthia Huang
      Cynthia Huang on 06 Jun 12
       
      The prices increased due to bad weather. The supply must have decreased as prices increased. 
  • Lowering telecoms and Internet subscription costs
  • annual increases in the consumer price index (CPI) remained below 2 percent last month
  • ...8 more annotations...
  • Telecoms and Internet connection prices tumbled 10.15 percent
  • dragging down the annual increase
  • central bank will probably not raise Taiwan’s policy rates
  • rainy weather cut supplies and drove up costs
  • Expenses for eating out expanded by 2.38 percent last month
  • government’s recent cut to its full-year CPI growth forecast would further strengthen the central bank’s resolve in holding rates at their current levels
  • 25.35 percent
  • Without the lower prices of telecoms and Internet expenses, the annual growth in CPI would have climbed over 2 percent last month
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