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Contents contributed and discussions participated by Yihan Li

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Yihan Li

BBC News - UK unemployment falls again in three months to July - 0 views

www.bbc.co.uk/...business-19569316

shared by Yihan Li on 14 Sep 12 - No Cached
  • unemployment falls
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      Decrease in unemployment = increase in demand 
  • The unemployment rate was 8.1%, down 0.1% on the previous quarter.
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      Even though unemployment is lower, its still high
  • The ONS said the Olympic Games was likely to have been a factor behind the jump in employment, with London accounting for 91,000 of the increase.
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      Seasonal employment, employment created by one-time event. Might rebound after the end of olympic 
  • ...1 more annotation...
  • The number of people in work increased by 236,000 to 29.6 million, the largest quarterly rise for two years.
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      Bigger work force, smaller increase in supply--> high unemployment
  • Yihan Li on 14 Sep 12
     
    unemployment falls
Yihan Li

BBC News - Federal Reserve to buy more debt to boost US economy - 0 views

www.bbc.co.uk/...business-19592151

shared by Yihan Li on 14 Sep 12 - No Cached
  • buy "additional agency mortgage-backed securities at a pace of $40bn (£25bn) per month".
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      Buying the securities increases the supply of money in the market
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      Increase in supply of money is used to expand aggregate demand
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      (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
      Yihan Li on 14 Sep 12
       
      Low interest rate keeps aggregate demand high -> more spending and investment 
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      Draw interest rate vs quantity of money diagram
  • quantitative easing
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      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
      Yihan Li on 14 Sep 12
       
      (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
      Yihan Li on 14 Sep 12
       
      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
      Yihan Li on 14 Sep 12
       
      high unemployment = the economy is not doing well. 
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      The main reason why Fed implemented the policy 
  • US presidential election.
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      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
      Yihan Li on 14 Sep 12
       
      Fed decided to implement the policy because economy is not growing quickly enough 
    • Yihan Li
      Yihan Li on 14 Sep 12
       
      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
      Yihan Li on 14 Sep 12
       
      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
      Yihan Li on 17 Sep 12
       
      Why using monetary policy, not using fiscal policy? What are other options?  
Yihan Li

Republican Lawmaker Considering a Tobacco Tax Increase Bill | StateImpact Idaho - 0 views

stateimpact.npr.org/...ng-a-tobacco-tax-increase-bill

shared by Yihan Li on 11 Jun 12 - No Cached
  • Tobacco Tax Increase
    • Yihan Li
      Yihan Li on 11 Jun 12
       
      Taxation on demerit good 
  • would tack on an additional $1.25 to Idaho’s tobacco tax
    • Yihan Li
      Yihan Li on 11 Jun 12
       
      Massive increase on the tax of tobacco 
  • Supporters estimate the $1.25 per pack increase could raise $50 million for the state as well as encourage people to quit or not pick up the habit
  • ...1 more annotation...
  • Medicaid program at least $83 million each year and cost taxpayers as much as $319 million in other health-related costs annually.
    • Yihan Li
      Yihan Li on 11 Jun 12
       
      negative consumption externalities  (benefit-cost curve) 
  • Yihan Li on 11 Jun 12
     
    Tobacco Tax
Yihan Li

Automakers enjoy jump in U.S. sales : Business : DAILY YOMIURI ONLINE (The Daily Yomiuri) - 0 views

www.yomiuri.co.jp/...T120602002588.htm

shared by Yihan Li on 06 Jun 12 - No Cached
  • Automakers enjoy jump in U.S. sales
    • Yihan Li
      Yihan Li on 08 Jun 12
       
      Draw S-D curves and talk about substitute goods 
Yihan Li

China's farm subsidies soar but OECD states' at record low - 1 views

phys.org/...-farm-subsidies-soar-oecd.html

shared by Yihan Li on 07 Jun 12 - No Cached
  • China's farm subsidies soar but OECD states' at record low
Yihan Li

$6 billion-a-year ethanol subsidy dies -- but wait there's more - U.S. News - 2 views

usnews.msnbc.msn.com/...sidy-dies-but-wait-theres-more

shared by Yihan Li on 07 Jun 12 - No Cached
  • America's corn farmers have been benefiting from annual federal subsidies of around $6 billion in recent years, all in the name of ethanol used as an additive for the nation's vehicles.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      A supply and demand diagram showing how the loss of subsidy should affect price
  • thanks in part to high oil prices that make ethanol competitive.
    • Yihan Li
      Yihan Li on 13 Jun 12
       
       Ethanol is a substitute good of oil. High price of oil thus make ethanol relatively cheap (Calculate XED if with sufficient data)
  • tax credit
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      tax credit is "sum deducted from the total amount a taxpayer owes to"  
  • ...4 more annotations...
  • tax credit is up to $1.01 per gallon.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      Tax credit, a form of subsidy, keeps the price low and companies profitable. 
  • corn ethanol, which now takes a larger share of the U.S. corn crop than cattle, hogs and poultry, as a factor in driving food prices higher.
  • What the industry doesn’t want to see, however, is an end to a separate tax credit for ethanol made not from corn but non-foodstuffs like switchgrass, wood chips and even the leaves and stalks of corn.
    • Yihan Li
      Yihan Li on 13 Jun 12
       
      Possible evaluations 1) why government wants to keep one type of subsidy while getting rid of the another type? 2) pros and cons of keeping this subsidy 
  • That ends on Jan. 1
    • Yihan Li
      Yihan Li on 13 Jun 12
       
      Possible evaluations 1)pros and cons of having subsidies for ethanol 2)was the subsidy effective 3) why did the government implement this in the first place 4) what could the government have used other than tax credit
Yihan Li

BBC News - Spain's jobless level falls for second month - 0 views

www.bbc.co.uk/...business-18321088

shared by Yihan Li on 06 Jun 12 - No Cached
  • Yihan Li on 06 Jun 12
     
    Unemployment and Macroeconomics 
Yihan Li

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

www.bbc.co.uk/...business-18327769

shared by Yihan Li on 06 Jun 12 - No Cached
  • The bank cut its key rate to 3.5% from 3.75%.
    • Yihan Li
      Yihan Li on 07 Jun 12
       
      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
      Yihan Li on 07 Jun 12
       
      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
      Yihan Li on 07 Jun 12
       
      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
      Yihan Li on 07 Jun 12
       
      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
      Yihan Li on 07 Jun 12
       
      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
      Yihan Li on 07 Jun 12
       
      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
      Yihan Li on 07 Jun 12
       
      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
      Yihan Li on 07 Jun 12
       
      House is most people's biggest asset. The decrease in its price will reduce people's disposable income, thus consumption and AD 
  • Yihan Li on 06 Jun 12
     
    Interest Rate and Macroeconomy  
Yihan Li

BBC News - India growth rate slows to 5.3% in first quarter - 0 views

www.bbc.co.uk/...business-18275858

shared by Yihan Li on 31 May 12 - No Cached
  • India growth rate slows to 5.3% in first quarter
  • India growth rate slows to 5.3% in first quarter
  • Yihan Li on 31 May 12
     
    Indian economy slowing down 
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