Case Studies Flashcards
What is Rwanda’s gini coefficient
0.54
What is Rwanda’s GNI per capita
$2410
What is Rwanda’s unemployment rate
13.3%
What is Rwanda’s inflation rate
30%
What is Rwanda’s interest rate
7.5%
What is Rwanda’s government debt as a % of GDP and what was it in 2014
68% (27% in 2014)
What is Rwanda’s fiscal deficit as a percentage of GDP
8%
What is Rwanda’s youth unemployment rate
24%
What is Rwanda’s human development ranking
165th out of 191 countries
What is Rwanda’s corruption ranking
54th / 190 countries
What is Rwanda’s life expectancy at birth and what was it in 1996
67yrs (46 in 1996)
What is Rwanda’s mean years of schooling and what was it in 1996
4.4yrs (2.1 in 1996)
What is Rwanda’s percentage of the economy who have access to electricity
46 %
What is Rwanda’s current account deficit/surplus
-11.6 (deficit)
What is Rwanda’s corporate tax rate
30%
What is Rwanda’s main 3 exporters and percentage
Gold -23.2%
Refined petroleum - 6.73%
Tin ores - 6.25%
What fiscal policies were done during coronavirus
- Mortgage holiday for 3 months
- £25,000 cash grants for smaller businesses in hospitality & leisure industry
- Government guaranteed interest-free loan scheme for businesses (12 months)
- Coronavirus Job Retention Scheme: Government grants to cover 80% of the salary ofretained(furloughed) workersup to a total of £2,500 a month
- Deferral of business VAT payments until the end of June2020
- Universal Credit standard allowance, for the next 12 months raised by £1,000 a year.
What monetary policies were used during corona virus
Monetary:
Quantitative easing expanded by £200bn
Cutting interest rates from 0.75% to 0.1%
Causes of the 2008 financial crisis
US housing and mortgage bust-Over lending and introductory deals that attracted low income earners
Selling of Mortgages between banks-Prime (could repay)and Subprime (struggled to pay)mortgages together to spread risk but then so all banks impacted
Repossessions, Negative Equity
Liquidity and credit crunch spread to all credit and financial markets
Economy wide recession in the US
Loss of confidence
Recession in most advanced economies including Europe
Banking crisis led to sovereign debt crisis
Great Recession of 2008-09 bottomed out in late 2009
But long period of slow growth in countries burdened by debt
Banks stopped lending
Structural issues of the 2008 financial crisis
Years of low interest rates
Lax supervision and regulation of the financial system – regulatory failure
Excessive risk taking and leverage of the banks – especially sub prime lending
Global current account imbalances and global savings glut
Irrational exuberance and animal spirits leading to financial bubbles
Distorted incentives of credit rating agencies
Macro policies used to combat the 2008 financial crisis
Large conventional/unconventional monetary easing involving deep cuts in policy interest rates and quantitative easing
Massive fiscal stimulus for a while – especially in China and (to a lesser extent) in the USA and Europe
Backstop and bailout of the private sector (financial system, households, corporations) - including (in the UK) bail-outs and nationalisation of some banks
Side effects of the macro policy response post 2008
Ultra-low interest rates and quantitative easing caused
Surge in demand for assets – rising house prices (again)
Increase in demand for commodities
Limited reductions in private sector debt
Continued survival of zombie businesses
Issues about how and when to exit from QE and near-zero interest rates – dependency on low interest rates?
Worse national debt
