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Contents contributed and discussions participated by Edward Pearson

Edward Pearson

Japan can halve national, local gov't budget deficits in FY 2015: Cabinet Off... - 0 views

  • ady set to rise to 8 percent in 2014 and then to 10 percent in 2015.
  • set to rise to 8 percent in 2014 and then to 10 percent in 2015.
  • The Cabinet Office then estimates that reductions in government spending, coupled with the consumption tax increase, will drastically improve Japan's fiscal condition.
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    Japan is likely to achieve its goal of halving the ratio of national and local government budget deficits to Japan's nominal gross domestic product (GDP) in fiscal 2015 from 2010 levels, according to a final draft of the Cabinet Office's mid- and long-term estimates.
Edward Pearson

BBC News - Samsung and LG fined by regulator for price fixing - 2 views

  • secret meetings in 2008 and 2009
  • The companies face a penalty of 44.6bn won ($39m; £25.2m), said the Fair Trade Commission (FTC).
    • Edward Pearson
       
      -highly illegal -inefficient, lack of competition 
  • "Their price rigging caused damage to many consumers by leading the prices of washing machines, flat-panel TVs and laptop computers to rise
    • Edward Pearson
       
      effectively monopoly - easier to controll prices -non-kinked demand curve
  • ...1 more annotation...
  • South Korea's antitrust regulator has fined Samsung Electronics and LG Electronics for conspiring to fix the prices of some appliances.
    • Edward Pearson
       
      explicit collusion - effectively becomes a monopoly
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    This could be my IA article - colluding oligopoly and monopoly
Edward Pearson

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

  • German business confidence fell more than economists forecast in May,
  • consumer spending also rose more than projected last month, increasing 0.6 percent
Edward Pearson

Lost in inflation: the trap of focusing solely on the consumer price index | The Japan ... - 3 views

  • interest rate policy since February 1999
    • Edward Pearson
       
      -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
       
      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
       
      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
       
      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
       
      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
       
      deflation possibly could be advantages - increase in spending power, international competitiveness etc 
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