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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
INCREASED Interest Rates
Russia- 2014 South Africa- 2016- Increased to 7.5%—> Recession UK after BREXIT?
26
HOUSING Market Crash
USA UK -2008
27
OIL Shock/Commodity Prices
UK- 2009 + 2012- worsened Recession
28
WEAKER Exchange Rate- Import Prices
``` Russia South Africa Brazil Turkey Nigeria ```
29
HIGHER Sales Taxes- Recession
Japan- 2014 Recession
30
FALLING Commodity Prices- Exports
``` Nigeria Angola Venezuela Russia Brazil Zambia ```
31
STAGFLATION
South Africa, Nigeria, Turkey + Egypt | Venezuela + Argentina
32
BENEFITS of Growth
China + India- Growing Middle-Class | Botswana + Ireland
33
COSTS of Growth
China + India- Environmental + Inequality Issues | Nigeria + Angola- Income Inequality + Corruption
34
DEMAND-PULL Inflation
China UK USA
35
COST-PUSH Inflation
UK | South Africa, Turkey + Argentina
36
GOOD Deflation
UK Eurozone Switzerland -2015/16
37
BAD Deflation
Japan | Greece
38
COSTS of Inflation
Argentina Brazil UK
39
CYCLICAL Unemployment
Eurozone- GREECE- 21% - Spain- 16% South Africa- 26%
40
STRUCTURAL Unemployment
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
REAL-WAGE Unemployment
UK- Increased NLW beyond Inflation—> technological unemployment Germany- 2014- Implemented Minimum Wage Eurozone- France + Spain- Strong Trade Unions
42
COSTS of Unemployment
Eurozone- Greece, Spain + Italy
43
INCOME INEQUALITY- LOW Gini Coefficient
Norway Denmark Sweden Finland
44
INCOME INEQUALITY- HIGH Gini Coefficient
Nigeria Angola Botswana South Africa
45
ABSOLUTE Poverty
China India Africa- Zimbabwe, Burundi, Rwanda
46
RELATIVE Poverty
UK | USA
47
LOWER Interest Rates- Expansionary Monetary Policy
Brazil Russia India South Africa
48
HIGHER Interest Rates- Contractionary Monetary Policy
USA + Canada- Normalise Interest Rates UK- attempting to Normalise Turkey + Argentina- Control Excessive Inflationary Pressure
49
QUANTITATIVE EASING
UK Eurozone Japan USA- Reducing MS now
50
NEGATIVE Interest Rates
Japan Sweden Switzerland - Bank rate- NOT High Street Rate
51
FISCAL Expansion- Increased Gov. Spending
Japan + China USA UK- £3 Billion spare in case of Brexit Shock
52
TAX CUTS
UK + USA Reduced INCOME + CORPORATION Tax
53
TAX RISES
UK- VAT- 2010 Australia Japan- 2014- Sales Taxes
54
Globalisation WINNERS
Asian Tigers- Japan, Singapore, Thailand + South Korea Europe- Exporters Gulf States- UAE, Qatar + Kuwait
55
Globalisation LOSERS
Sub-Saharan Africa- Primary Commodity Dependence + Corruption South America- Import Substitution North America + UK- Unemployment in Lower-Middle Classes
56
PROTECTIONISM
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
Current Account DEFICIT
UK USA India
58
Current Account SURPLUS
China Germany, Netherlands + Norway Singapore EU Nations- Greece, Italy, Spain + Portugal
59
FIXED Exchange Rate
UAE + Bolivia- fixed to USD $
60
MANAGED Exchange Rate
China
61
SUCCESSFUL Market based approach- Development
India- attract FDI China- Trade Botswana- Diamond Exports Tanzania + Mauritius- attract FDI
62
FAILED Market based approach- Development
Nigeria + Angola- Oil Exports— Corruption prevented Development Ghana- Primary Commodity Exporter- faced Protectionist measures
63
INTERVENTIONIST Approach- Development
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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