Tuesday, 30 March 2010
The Single Market & the euro - Notes
Comprehensive notes on the single currency you all love to hate!!!The Single Market & the euro - Notes
A 10 minute clip on success of Euro....
Friday, 26 March 2010
Deflation is just as bad!!!!!
We constantly talk about inflation being a problem for economies, this article shows why deflation can be worse!!!!Thursday, 25 March 2010
Wednesday, 24 March 2010
Tuesday, 23 March 2010
BBC News - UK inflation rate falls to 3% in February
Calling all macro-economists, click on link below....Milad..this ones for you!!
Britain to expel Israeli diplomat
Britain is to expel an Israeli diplomat over the cloning of British passports linked to the hit-squad killing of a Hamas commander, the BBC has learned.
Foreign Secretary David Miliband is due to make a statement to Parliament later.
Israel has denied allegations that its agents were behind the killing of Mahmoud al-Mabhouh, in a Dubai hotel room in January.
Mr Miliband demanded that Tel Aviv co-operate fully with the investigation.
Twelve fake British passports were used in the killing of Mr al-Mabhouh, the founder of Hamas's military wing, in his hotel room in Dubai on 19 January.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/8582518.stm
Published: 2010/03/23 09:53:39 GMT
© BBC MMX
Print Sponsor
Britain is to expel an Israeli diplomat over the cloning of British passports linked to the hit-squad killing of a Hamas commander, the BBC has learned.
Foreign Secretary David Miliband is due to make a statement to Parliament later.
Israel has denied allegations that its agents were behind the killing of Mahmoud al-Mabhouh, in a Dubai hotel room in January.
Mr Miliband demanded that Tel Aviv co-operate fully with the investigation.
Twelve fake British passports were used in the killing of Mr al-Mabhouh, the founder of Hamas's military wing, in his hotel room in Dubai on 19 January.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/8582518.stm
Published: 2010/03/23 09:53:39 GMT
© BBC MMX
Print Sponsor
Wednesday, 17 March 2010
Climate talks - Unsuccessful?????
'Arrogance' undid climate talks
By Richard Black (Environment correspondent, BBC News)
The "disappointing" outcome of December's climate summit was largely down to "arrogance" on the part of rich countries, according to Lord Stern.
The economist told BBC News that the US and EU nations had not understood well enough the concerns of poorer nations.
But, he said, the summit had led to a number of countries outlining what they were prepared to do to curb emissions.
Seventy-three countries have now signed up to the non-binding Copenhagen Accord, the summit's outcome document.
The weak nature of the document led many to condemn the summit as a failure; but Lord Stern said that view was mistaken.
"The fact of Copenhagen and the setting of the deadline two years previously at Bali did concentrate minds, and it did lead... to quite specific plans from countries that hadn't set them out before," he said.
“ The reality is different from half a year ago ”
Gro Harlem Brundtland UN special envoy on climate change
"So this process has itself been a key part of countries stating what their intentions on emissions reductions are - countries that had not stated them before, including China and the US.
"So that was a product of the UNFCCC (UN climate convention) process that we should respect."
The former World Bank chief economist and author of the influential 2006 review into the economics of climate change was speaking to BBC News following a lecture at the London School of Economics (LSE), where he now chairs the Grantham Research Institute on Climate Change and the Environment.
During the lecture, he compared the atmosphere at the Copenhagen summit to student politics in the 1960s - "chaotic, wearing, tiring, disappointing" - and said it was one in which countries had little room for real negotiating.
However, he said, it was vital to stick with the UN process, whatever its frustrations.
Twin tracks
Having failed to agree a treaty to supplant or supplement the Kyoto Protocol, and having failed to set a timetable for agreeing such a treaty, opinions are inevitably split on how countries seeking stronger curbs on greenhouse gas emissions should move forward.
“ It could have been much better handled by the rich countries ”
Lord Stern
The economist told BBC News that the US and EU nations had not understood well enough the concerns of poorer nations.
But, he said, the summit had led to a number of countries outlining what they were prepared to do to curb emissions.
Seventy-three countries have now signed up to the non-binding Copenhagen Accord, the summit's outcome document.
The weak nature of the document led many to condemn the summit as a failure; but Lord Stern said that view was mistaken.
"The fact of Copenhagen and the setting of the deadline two years previously at Bali did concentrate minds, and it did lead... to quite specific plans from countries that hadn't set them out before," he said.
“ The reality is different from half a year ago ”
Gro Harlem Brundtland UN special envoy on climate change
"So this process has itself been a key part of countries stating what their intentions on emissions reductions are - countries that had not stated them before, including China and the US.
"So that was a product of the UNFCCC (UN climate convention) process that we should respect."
The former World Bank chief economist and author of the influential 2006 review into the economics of climate change was speaking to BBC News following a lecture at the London School of Economics (LSE), where he now chairs the Grantham Research Institute on Climate Change and the Environment.
During the lecture, he compared the atmosphere at the Copenhagen summit to student politics in the 1960s - "chaotic, wearing, tiring, disappointing" - and said it was one in which countries had little room for real negotiating.
However, he said, it was vital to stick with the UN process, whatever its frustrations.
Twin tracks
Having failed to agree a treaty to supplant or supplement the Kyoto Protocol, and having failed to set a timetable for agreeing such a treaty, opinions are inevitably split on how countries seeking stronger curbs on greenhouse gas emissions should move forward.
“ It could have been much better handled by the rich countries ”
Lord Stern
Speaking in Brussels, Gro Harlem Brundtland - the UN's special envoy on climate change - suggested there would now be a twin-track approach, with some of the important discussions taking place outside the UNFCCC umbrella.
She also acknowledged that the talks had proved much more problematical than some governments - particularly in the EU - had anticipated.
"They got the message that it was much more complicated than [they had believed], and that they have to work with Brazil and China and others, not only in the broad framework of UN negotiations but also more directly and pragmatically," she said.
"The reality is different from half a year ago."
Lord Stern agreed that what he described as the "disappointing" outcome of the Copenhagen talks was largely down to rich nations' failure to understand developing world positions and concerns.
She also acknowledged that the talks had proved much more problematical than some governments - particularly in the EU - had anticipated.
"They got the message that it was much more complicated than [they had believed], and that they have to work with Brazil and China and others, not only in the broad framework of UN negotiations but also more directly and pragmatically," she said.
"The reality is different from half a year ago."
Lord Stern agreed that what he described as the "disappointing" outcome of the Copenhagen talks was largely down to rich nations' failure to understand developing world positions and concerns.
"[There was] less arrogance than in previous years - we have, I think, moved beyond the G8 world to the G20 world where more countries are involved - but [there was] still arrogance and it could have been much better handled by the rich countries," he said.
The EU limited its room for manoeuvre, he said, because too many of the leading political figures wanted to demonstrate that they were leading.
Brass from pockets
The most concrete part of the Copenhagen Accord is an agreement that richer countries should raise funds to help poorer nations adapt to climate impacts and "green" their economies.
Lord Stern is a member of the group set up by UN Secretary-General Ban Ki-moon to advise on how to raise $100bn (£66bn) per year by 2020 using various "innovative mechanisms" that could include taxes on international aviation and banking transactions.
But the immediate objective, he suggested, was to enact the short-term promise of providing $30bn over the period 2010-12 from the public purses of western nations.
If that money did not start to move fairly quickly, he said, that would further erode trust among developing countries.
Speaking in Brussels during a meeting with EU leaders, Mexico's environment secretary Juan Rafael Elvira endorsed the point.
"The developing world needs to see clear signals to have something in their hands at Cancun," he said.
The Mexican coastal city will host this year's UNFCCC summit.
"The developing countries want to see this money unblocked; the island nations especially are waiting for this funding," said Mr Elvira.
How and where these funds are to be disbursed has yet to be decided.
The EU limited its room for manoeuvre, he said, because too many of the leading political figures wanted to demonstrate that they were leading.
Brass from pockets
The most concrete part of the Copenhagen Accord is an agreement that richer countries should raise funds to help poorer nations adapt to climate impacts and "green" their economies.
Lord Stern is a member of the group set up by UN Secretary-General Ban Ki-moon to advise on how to raise $100bn (£66bn) per year by 2020 using various "innovative mechanisms" that could include taxes on international aviation and banking transactions.
But the immediate objective, he suggested, was to enact the short-term promise of providing $30bn over the period 2010-12 from the public purses of western nations.
If that money did not start to move fairly quickly, he said, that would further erode trust among developing countries.
Speaking in Brussels during a meeting with EU leaders, Mexico's environment secretary Juan Rafael Elvira endorsed the point.
"The developing world needs to see clear signals to have something in their hands at Cancun," he said.
The Mexican coastal city will host this year's UNFCCC summit.
"The developing countries want to see this money unblocked; the island nations especially are waiting for this funding," said Mr Elvira.
How and where these funds are to be disbursed has yet to be decided.
Tuesday, 16 March 2010
GSCE Economics - Great short macro video
Check out this macro video, it highlights many of the concepts we have discussed in class.
GSCE Economics - Great short macro video
GSCE Economics - Great short macro video
The competitive pound is one of the few things we have got going for us - Telegraph
Excellent article on exchange rates, Marshall Lerner, J Curve etc...read it!!!BBC News - UK trade deficit widens to biggest in 17 months
Watch the video and think about why this has happened and is it actually a cause for concern??GSCE Economics - Basket of goods – lip-gloss in, disposable cameras out
A useful article that describes what is in and what is out of the latest 'Basket of Goods'GSCE Economics - Basket of goods – lip-gloss in, disposable cameras out
Question: How does this effect you, if at all?
Development Economics: Helping Singapore become an advanced economy.
Click on the link to read an interesting article on Singapore, excellent for introduction to development economics.Sunday, 14 March 2010
Tuesday, 9 March 2010
Does a current account deficit matter?
A current account deficit measures the balance of trade in•goods
•services
•Net Investment incomes
A deficit on the current account means a country is importing more than we are exporting. This will have to be matched by a surplus on the financial and / or capital account.
The financial account comprises of 2 main features:
•a) Short Term Capital flows e.g. hot money flows and purchase of securities
•b) Long Term Capital flows e.g. investment in building new factories
Some economists argue we need not worry about a Current Account Deficit. This is because:
1. If a current account deficit is financed from long term capital inflows then this can be beneficial for the economy. Inward investment can increase the productive capacity of the economy.
2. In an era of globalisation it is much easier to attract sufficient capital flows to finance the deficit.
3. If the deficit gets too large it will cause a devaluation which helps to reduce the deficit. Also when there is a slowdown in consumer spending the deficit will fall.
Reasons to Worry about a Current Account Deficit.
1. There could be problems financing the deficit in the long term. A short term deficit is not a problem, but if you have a deficit of over 6% of GDP then it is a problem if you rely on Capital flows. A significant part of the current account deficit in US is finance by Chinese investors buying US securities, at relatively low interest rates.
2. Most countries would not be able to borrow such large amounts at low interest rates. The US currently can because the US is seen as the World’s reserve currency. However if attitudes to the US economy change and investors lose their confidence in the US economy, they will stop buying US debt. This will cause 2 problems.
1.US interest rates will need to rise to attract enough people to buy the debt. These higher interest rates will reduce demand in the economy. Higher interest rates will particularly hurt American consumers who have large amounts of debt at the moment.
2.If capital flows can’t be attracted then the dollar will continue to devalue further. This could cause inflationary pressures, interest rates may need to rise to stabilise the dollar.
Basically to correct the deficit would be a painful experience for the US economy and result in a slowdown or possibly recession
3. In the US the current account deficit is to a large extent caused by excess spending in the economy. It is partly caused by government borrowing which increases Aggregate Demand in the economy and hence growing demand for imports. A large current account deficit is often a sign of an unbalanced economy. It could be a sign of structural weakness and an uncompetitive manufacturing sector.
4. A deficit on the current account increases foreign liabilities. In the beginning a current account deficit could be just a deficit on buying goods. However over time the deficit will be increased by the interest payments on the capital surplus. Foreigners invest in the US. On these investments they receive interest payments or dividends. These dividends count as a debit on the current account. Therefore the longer the deficit goes on the higher the level of investment income debits will be accrued. This means that in the future the economy will need to attract capital flows just to pay off the investment income. As well as the deficit on goods and services.
Thursday, 4 March 2010
The pound takes a hammering!!
Excellent article and youtube clip and why the pound is struggling against other currencies....Economics - Sterling takes a hammering!!
Really useful for all students, Y11, 12 & 13.
Mr Bentley
Wednesday, 3 March 2010
Y13 - International Trdae: Obama’s bad decision | Economics in Plain English
Despite all the advantages of free trade, President Obama has recently enforced existing trade laws. This actually limits free trade between America and one of its largest trading partners, China.
Obama’s bad decision Economics in Plain English
Wise decision????
Obama’s bad decision Economics in Plain English
Wise decision????
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