Table below represent US trade balance with China over years (2007-2011): Years Export 2007 62‚936‚891‚576 2008 69‚732‚837‚543 2009 69‚496‚678‚611 2010 91‚880‚613‚079 2011 103‚939‚433‚941 Years Import 2007 321‚442‚866‚934 2008 337‚772‚627‚823 2009 296‚373‚883‚488 2010 364‚943‚854‚151 2011 399‚361‚922‚088 Years Trade balance with China (millions of dollars) 2007 -258‚505‚975‚358 2008 -268‚039‚790‚280 2009 -226‚877‚204‚877 2010 -273‚063‚241‚072 2011 -295‚422‚488‚147 China
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reserves increase. This result will be a rise in the monetary base and also the money supply during a boom. Also during a recession if the market interest rate was above the discount rate then if they fall there will be less borrowing from the discount window and the monetary base will fall‚ this will then lead to a decline in the money supply. However the procyclical movement of the money supply will be undesirable because it would be expansionary when the economy is booming and contrationary when
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the lessons that were learned‚ policy in response to the Great Financial Crisis has contrasted sharply with policy during the Great Depression era. I will examine how national policy responses and international co-operation have differed‚ as well as highlighting how in creating the Euro‚ policymakers have unwittingly replicated many of the structural weaknesses of the Gold Standard. I will also consider how policy in the recovery phase has so far compared to policy during the recovery from the Great
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What is the bank lending channel of monetary policy? Should we expect quantitative easing to give rise to a bank lending channel? Introduction The global financial crisis that followed the infamous collapse of Lehman Brothers in 2008 shook the very roots of the modern financial world. As a result‚ central banks across the globe were forced to re-evaluate and introduce new strategies in order to neutralise the damaging effects this crisis could potentially have had‚ and this process continues to
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Open Economy Macroeconomics: The IS-LM-BP Model When we open the economy to international transactions we have to take into account the effects of trade in goods and services (i.e. items in the current account) as well as trade in assets (i.e. items in the capital account). Opening the economy to international trade in goods and services means that we have to take into account the increased demand for our goods by foreigners (our exports)‚ as well as the decreased demand for our goods that occurs
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indicators will be able to face the recession with expansionary policies. However‚ countries with poor macroeconomic indicators at the onset of the recession can follow the expansionary policies only at the cost triggering a crisis of greater proportion. The global recession has posed policymakers around the world with unprecedented challenges. Severely damaged financial sectors seemed immune to most responses‚ while fiscal stimuli and other policy tools have‚ at best‚ been sluggish to establish
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world in a very similar way. Nigeria suffered a fall in oil prices ‚ reduction in exports and a downward trend in the stock market whilst South Africa suffered the same effects but rather than crude oil they suffered in the fall of commodity prices. Policies to stimulate the economy are different in terms of trade where Nigeria is more free trade and South Africa became more protectionist after the crisis. The Nigerian economy lacks diversity and is overly dependent on Oil ‚ while South Africa has a
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undermined by state regulation and ownership of many enterprises‚ and the financial sector is primarily an instrument of state control through subsidies and credit manipulation. In the face of the economic slowdown‚ the government has tried expansionary fiscal and monetary interventions to little effect. 2009 2010 2011 2012 2013 Country Comparisons Country World Average Regional Average Free Economies 0 20 40 60 80 51.9 59.6 57.4 84.5 100 backgRound: China’s Communist Party maintains
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Barrons Final Test 1. In the long run an increase in the money supply results in E a proportional increase in price level because the classical notion of monetary neutrality is based on the idea that the money supply and the price level is proportionally related. 2. You buy 100 shares in XYZ Corporation on the internet and your broker charges you $29.95 C this increase the GDP by $29.95 because financial transactions are not counted in GDP but the commission is
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Summary of information on each subject/module | |Name of Subject/Module |Introductory Macroeconomics | | |Subject Code |BME1024 | | |Status of Subject |Foundation | |
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