IMPACTS OF PUBLIC DEBTS ON THE ECONOMIC GROWTH Government debt is also known as public debt. It is the debt owed by a federal government to the internal or external sources. It is required when the stocks of government securities are insufficient to cover previous budget deficits. Budget deficits occur when the level of government expenditures exceeds its revenues. Based on macroeconomic theory‚ the level of government expenditure must be positive with the economic growth. The higher the expenditure
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Economic Policy Reforms 2012 Going for Growth © OECD 2012 PART II Chapter 5 Reducing income inequality while boosting economic growth: Can it be done? This chapter identifies inequality patterns across OECD countries and provides new analysis of their policy and non-policy drivers. One key finding is that education and anti-discrimination policies‚ well-designed labour market institutions and large and/or progressive tax and transfer systems can all reduce income inequality. On this basis
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THE IMPACT OF MONEY SUPPLY ON THE ECONOMIC GROWTH OF NIGERIA CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY In the critical observation of the recent Nigerian economic position‚ there has been a great divergence between the rate at which money is supplied and the exact impact it has on the general price level‚ which results in inflation and deflation on one hand‚ and the output growth (productivity) on the other hand. Although‚ it had occurred to our mind that Nigerian
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ECO 365 - International Monetary Economics Prof. Jordi Mondria Problem Set 1 Solution SHORT-ANSWER QUESTIONS 1. Because‚ they argue‚ Americans are living beyond their means. They say a trade deficit and inflow of foreign capital can be healthy if the U.S. is investing in projects that generate future wealth. But in recent years‚ investment has been weak. Imported capital has primarily allowed U.S. consumers to go on a spending binge. In the third quarter‚ personal saving was just 0.4% of after-tax
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Economic Growth Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product‚ or real GDP. Growth is usually calculated in real terms‚ i.e. inflation-adjusted terms‚ in order to obviate the distorting effect of inflation on the price of the goods produced. Economic growth typically refers to growth of potential output‚ i.e.‚ production at "full employment". It
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Monetary policy and inflation in Thailand By Virinrat Sitithanasart 5445902329 Presented to Mr. Chawaruth Musigchai In fulfillment for the course 2952341 Course: Economics of money and financial markets Bachelor of Art in Economics (EBA) of Chulalongkorn University‚ Bangkok‚ Thailand. Background on monetary policy in Thailand Monetary Policy Transmission Mechanism I investment ‚ Consumption Domestic Monetary policy) M YD P ฿ Export ‚ Import
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a rapid annual growth rate of 10%. Since 2004‚ it has become the world’s third largest trading nation‚ after US and German. However‚ behind the fast growth of the economy‚ some potential challenges still exist and require effective policies if China want to sustain fast development in the future. By examining the components of China’s GDP‚ it can be found that the economy has been over reliant on investment (42% in 2005) and export (net export account 10% in 2006). This growth model is considered
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ABSTRACT This research paper presents empirically analysis of the impact of GDP growth rate and employment rate on inflation. For this purpose data from 1995 to 2008 has been collected and analyzed through OLS technique. The result of the model shows that GDP growth rate and employment rate adequately affect inflation. With the increase in GDP and employment‚ inflation decreases. INTRODUCTION Inflation is a burning issue in Pakistan. It is generally felt that for several years Pakistan has
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Economic Growth Economic growth is the percentage increase in real national output in a given time period or the increase in the productive potential of the economy. Countries grwo at different rates‚ this is partly due to the fact that they are at different stages of their economic cycle. The economic growth for the UK is at 0.2%. The main measure of output is gross domestic product (GDP). GDP is the total value of goods and services produced in an economy during one year. Economic growth
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effectiveness of monetary policy in Pakistan ARTICLE (December 09 2008): Alongside is the text of the speech of the Governor‚ State Bank of Pakistan‚ at the Institute of Business Management on December 6. Economic policies aim to increase the welfare of the general public‚ and monetary policy supports this broad objective by focusing its efforts to promote price stability. Embedded in this objective is the belief that persistent inflation would compromise the long term economic prospects of the
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