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Contents contributed and discussions participated by Amelie Spaniol

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Germany Generates Budget Surplus in First Half of 2012 - SPIEGEL ONLINE - 1 views

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    Based on the article it can be deduced that budget deficit plan in Germany is quite successful. Overall Germany has been able to accumulate a surplus of 8.3 billion Euros through tax revenues and social security funding in only 6 months. The surplus was quite unexpected because in 2011 their was a deficit in Germany. However, this surplus also suggests that the revised tax plan and fiscal policy in Germany are quite successful and that the nation is working towards fully reaching the 4 major economic goals, in particularly that of economic growth. However, the article also suggests that this surplus could decrease by the end of 2012, in which case the fiscal policy may not be as successful after all. To fully examine this budget deficit in Germany data from the whole year of 2012 is needed. However, as of now the article suggests that the policy implemented is quite a successful one.  
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Central Bank of Turkey predicts inflation target overshoot until 2013 - Central Banking - 0 views

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    According to this Article inflation in Turkey increased to 10.45% and the central bank's Inflation rate was 5.5%. This difference in inflation rate occurs because when a country's central bank tries to fight inflation, as is being done in Turkey, the nominal interest rate will still tend to increase. Consequently, investment and consumption are discouraged due to the high inflation rate set by banks. This is because firms will not invest anymore because it is more expensive to borrow money and consume. In addition, consumption will decrease because the cost of borrowing money to consume large goods such as cars or houses is a lot more expensive.  
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LABOR - Turkish unemployment falls unlike EU countries - 0 views

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    The article discusses how the unemployment rate in Turkey increases unlike any other EU country. In March the Employment rate went from 10.8 percent in the previous year to 9.9 percent. The number of rural employment was 6.4 percent and the urban employment 11.6 percent. The total number of unemployment decreased 2.6 million and the number of employed people rose to 23.8 million. According to a Turkish economist, Gulay Elif Girgin, in future the unemployment rate will continue to rise and he does not anticipate any unexpected decreases.
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German retail sales drop unexpectedly in July | Reuters - 0 views

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    The article explains how the German retail sales decreased by 0.9 percent in July, as a result of the increasing fuel prices.  The inflated prices of fuel have caused the consumption on other goods and services of households in Germany to decrease. Consumption is one of the four factors that affects the aggregate demand or the total demand for final goods and services in an economy at a given time and price level, in an economy. Therefore, if consumption of households decreases the aggregate demand in an economy also decreases. Hence, the aggregate demand in Germany's economy has decreased significantly and therefore their retail sales have also decreased, by 0.9 percent as the article claims. This is because if consumption is lower than the units of output sold are also lower. 
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