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Economics > Macro Application 2018 > Flashcards

Macro Application 2018 Flashcards

1
Q

LOW Interest Rates

A

UK- 0.5%
Eurozone- 0%
Japan- Negative Interest Rate

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2
Q

HIGH Interest Rate

A

Argentina- 40%

USA- 1.75%

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3
Q

HIGH Consumer Confidence

A

USA- Booming economy— Low Unemployment

Eurozone- Recovery

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4
Q

LOW Consumer Confidence

A

Japan + China- Trump Protectionist Uncertainty

UK- Brexit Uncertainty

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5
Q

HIGH House Prices

A

UK + USA- Wealth Effect

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6
Q

LOW Indebtedness

A

Germany

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7
Q

HIGH Indebtedness

A

UK- 86.6% of GDP
USA
Japan- 200% of GDP

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8
Q

HIGH Real Disposable Income

A

UK + USA
Eurozone
Australia

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9
Q

LOW Real Disposable Income

A

Brazil
Russia
Venezuela

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10
Q

LOW Income Tax

A

UK

USA

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11
Q

INVESTMENT

A

Interest Rates- HIGH + LOW

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12
Q

HIGH Business Confidence

A

USA

Eurozone

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13
Q

LOW Business Confidence

A

Japan + China- Trump Protectionist Uncertainty

UK- Brexit Uncertainty

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14
Q

LOW Corporation Tax

A

UK- 19%—> 17%- 2020
Ireland- 12.5%
USA- 35%—> 20%

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15
Q

HIGH Corporation Tax

A

UK PROPOSED- 26% Jeremy Corbyn

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16
Q

FISCAL Expansion

A

China + Hong Kong
Japan
USA

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17
Q

AUSTERITY

A 
UK- since 2010
Spain
Italy
France
Portugal
GREECE
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18
Q

WEAK Exchange Rate

A

USD $
UK £
Lira, Real, Rouble + Rand- Primary Commodity Exporters

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19
Q

STRONG Exchange Rate

A

Euro €
Yen ¥
Australian Dollar AUD$

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20
Q

HIGH Commodity Prices

A

Oil
Gas + Electricity
Food
SRAS LEFT Shift

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21
Q

HIGHER Wages

A

UK
Eurozone
USA
SRAS LEFT Shift- Increased CoPs

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22
Q

HIGHER Sales Taxes

A

UAE- 2018 Introduced 5% VAT
UK- 2010- VAT 17.5%—> 20%
Japan- 2014—> Recession

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23
Q

WEAK Exchange Rate- Imports

A

USD $
UK £
Rand + Lira
Increase Import Costs- SRAS LEFT Shift

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24
Q

FINANCIAL/BANKING Crisis

A

USA
UK
Eurozone- Spain, Italy Greece + CYPRUS (Bust)

Caused Recession

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25
Q

INCREASED Interest Rates

A

Russia- 2014
South Africa- 2016- Increased to 7.5%—> Recession

UK after BREXIT?

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26
Q

HOUSING Market Crash

A

USA
UK
-2008

27
Q

OIL Shock/Commodity Prices

A

UK- 2009 + 2012- worsened Recession

28
Q

WEAKER Exchange Rate- Import Prices

A 
Russia
South Africa
Brazil
Turkey
Nigeria
29
Q

HIGHER Sales Taxes- Recession

A

Japan- 2014 Recession

30
Q

FALLING Commodity Prices- Exports

A 
Nigeria
Angola
Venezuela
Russia
Brazil
Zambia
31
Q

STAGFLATION

A

South Africa, Nigeria, Turkey + Egypt

Venezuela + Argentina

32
Q

BENEFITS of Growth

A

China + India- Growing Middle-Class

Botswana + Ireland

33
Q

COSTS of Growth

A

China + India- Environmental + Inequality Issues

Nigeria + Angola- Income Inequality + Corruption

34
Q

DEMAND-PULL Inflation

A

China
UK
USA

35
Q

COST-PUSH Inflation

A

UK

South Africa, Turkey + Argentina

36
Q

GOOD Deflation

A

UK
Eurozone
Switzerland
-2015/16

37
Q

BAD Deflation

A

Japan

Greece

38
Q

COSTS of Inflation

A

Argentina
Brazil
UK

39
Q

CYCLICAL Unemployment

A

Eurozone- GREECE- 21%
- Spain- 16%

South Africa- 26%

40
Q

STRUCTURAL Unemployment

A

Eurozone- Cyclical—> Structural- Hysteresis
India- 50% of Population- 25 or Under- Too many with Similar Degrees
UK- too many similar degrees- compete for same jobs

41
Q

REAL-WAGE Unemployment

A

UK- Increased NLW beyond Inflation—> technological unemployment
Germany- 2014- Implemented Minimum Wage
Eurozone- France + Spain- Strong Trade Unions

42
Q

COSTS of Unemployment

A

Eurozone- Greece, Spain + Italy

43
Q

INCOME INEQUALITY- LOW Gini Coefficient

A

Norway
Denmark
Sweden
Finland

44
Q

INCOME INEQUALITY- HIGH Gini Coefficient

A

Nigeria
Angola
Botswana
South Africa

45
Q

ABSOLUTE Poverty

A

China
India
Africa- Zimbabwe, Burundi, Rwanda

46
Q

RELATIVE Poverty

A

UK

USA

47
Q

LOWER Interest Rates- Expansionary Monetary Policy

A

Brazil
Russia
India
South Africa

48
Q

HIGHER Interest Rates- Contractionary Monetary Policy

A

USA + Canada- Normalise Interest Rates
UK- attempting to Normalise
Turkey + Argentina- Control Excessive Inflationary Pressure

49
Q

QUANTITATIVE EASING

A

UK
Eurozone
Japan
USA- Reducing MS now

50
Q

NEGATIVE Interest Rates

A

Japan
Sweden
Switzerland

  • Bank rate- NOT High Street Rate
51
Q

FISCAL Expansion- Increased Gov. Spending

A

Japan + China
USA
UK- £3 Billion spare in case of Brexit Shock

52
Q

TAX CUTS

A

UK + USA

Reduced INCOME + CORPORATION Tax

53
Q

TAX RISES

A

UK- VAT- 2010
Australia
Japan- 2014- Sales Taxes

54
Q

Globalisation WINNERS

A

Asian Tigers- Japan, Singapore, Thailand + South Korea
Europe- Exporters
Gulf States- UAE, Qatar + Kuwait

55
Q

Globalisation LOSERS

A

Sub-Saharan Africa- Primary Commodity Dependence + Corruption
South America- Import Substitution
North America + UK- Unemployment in Lower-Middle Classes

56
Q

PROTECTIONISM

A

USA- Trump Tariffs- Chinese + Japanese- 25% on Steel + Aluminium
— Washing Machines + Cars
China + Japan Retaliation- Soy Beans
EU- Anti-Dumping Tariffs- Chinese Solar Panels + Steel
— Airbus Subsidies- $22 Billion- WTO deemed illegal

57
Q

Current Account DEFICIT

A

UK
USA
India

58
Q

Current Account SURPLUS

A

China
Germany, Netherlands + Norway
Singapore
EU Nations- Greece, Italy, Spain + Portugal

59
Q

FIXED Exchange Rate

A

UAE + Bolivia- fixed to USD $

60
Q

MANAGED Exchange Rate

A

China

61
Q

SUCCESSFUL Market based approach- Development

A

India- attract FDI
China- Trade
Botswana- Diamond Exports
Tanzania + Mauritius- attract FDI

62
Q

FAILED Market based approach- Development

A

Nigeria + Angola- Oil Exports— Corruption prevented Development
Ghana- Primary Commodity Exporter- faced Protectionist measures

63
Q

INTERVENTIONIST Approach- Development

A

RELATIVE Success- Rwanda + Ethiopia— Increased G + Aid on Education + Healthcare
— Low Income Growth + Poor Job Creation- Prevented Development

FAILURE- Zimbabwe + Burundi- High Corruption
- Zambia- 2010- Development stalled since implementation

Economics (20 decks)

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