an adverse external environment‚ the Indian economy during 2011-12 traversed a difficult terrain characterised by inflationary pressures‚ growth slowdown and deteriorating fiscal and external sector balances. Against the backdrop of a difficult macroeconomic setting‚ monetary policy had the difficult task of reining in inflation‚ arresting the growth slowdown‚ providing adequate liquidity in the system to ensure non-disruptive functioning of the financial markets and containing volatility in the forex
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international monetary economics or international macroeconomics) is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries. International finance examines the dynamics of the global financial system‚ international monetary systems‚ balance of payments‚ exchange rates‚ foreign direct investment‚ and how these topics relate to international trade EXPLANATION: International macroeconomics (or international finance) as a subject covers
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the rate of money growth. d) Society ought to require welfare recipients to look for jobs. e) Lower tax rates encourage more work and more saving. 2. Classify the following topics as relating to microeconomics or macroeconomics. a) A family’s decision about how much income to save. b) The effect of government regulations on auto emissions. c) The impact of higher national saving on economic growth. d) A firm’s decision about how
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Say’s Law. According to this principle‚ “Aggregative supply creates its own aggregative demand”. In other words‚ every manufacturer is the purchaser at the same time‚ and sooner or later everyone needs goods that produced by others. Thus‚ the macroeconomic market will always be in equilibrium. Adam Smith‚ a major proponent of the classical approach‚ wrote: “It is not from the benevolence of the butcher‚ the brewer‚ or the baker‚ that we can expect our dinner‚ but from their regard to their own interest
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2000 coup alone has created 10% decline in economy growth‚ productivity and competitiveness declined. Slide 5 – now lets see the factors that are preventing Fiji from achieving macroeconomic stability (as u can see from the slide‚ just read them all by looking at the slide) Slide 6 – when a county has no macroeconomic stability‚ what will happen? What can political instability do to the economy? Here are the answers – (read all the list in the slides) Slide 7 –
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Cost) There are five obstacles according to McKinsey that Brazil has to pay attention to in order to grow in the future as a global player. These obstacles are a reduction of size and importance for the informal sector‚ to correct deficiencies of macroeconomic nature‚ which are for example the high real interest rate and a high government debt-to-GDP ratio. Further does McKinsey advice the Brazilian government to reduce the excessive bureaucratic regulation and to improve the quality of its public services
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Macroeconomic Stability of HPAE Countries In the past forty years‚ specific countries in East Asia have presented a sustained economic growth in comparison to others globally. These eight countries are Japan‚ Singapore‚ Hong Kong‚ South Korea‚ Taiwan‚ Indonesia‚ Malaysia‚ and Thailand. They are referred to as the high performing Asian economies (HPAEs) because of their miraculous growth in the past several decades (World Bank‚ 1993). Macroeconomic stability is one of the factors that contribute
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In economics‚ a recession is a business cycle contraction‚ a general slowdown in economic activity. Macroeconomic indicators such as GDP‚ employment‚ investment spending‚ capacity utilization‚ household income‚ business profits‚ and inflation fall‚ while bankruptcies and the unemployment rate rise. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events‚ such as a financial crisis‚ an external trade shock‚ an adverse supply
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Way to Reduce Unemployment and Keynes’s Own Discussion of the Trade Cycle John Maynard Keynes (June 1883 – April 1946)‚ one of the founders of modern macroeconomics‚ was a British economist who till this day is known as one of the most influential economists of his time. Keynes’s ideas greatly affected the theory and practice of modern macroeconomics and in addition enlightened the economic policies of governments. Keynes became famous in the 1930’s when he challenged the views of classical economic
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accepting or not some credit risks‚ specially those ones represented by the possibility of restriction of payment‚ imposed by a country. Furthermore‚ it is important to observe that the capacity of payment of a debtor may be deeply threatened if some macroeconomic instabilities affect its commercial environment‚ constraining its activity as a whole. Nowadays‚ such issues are getting more relevant around the world‚ for the so called globalization has led the countries towards economic disclosures‚ essential
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