Random news from the week
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Links from this week:
Japanese earthquake (exogenous shock) triggers yen and stock markets fall (link to hot money; confidence, animal spirits; supply-side issues)
U.S trade deficit affects investors – link to inter-relationships between macroeconomic variables and negative multipliers – and affect on AD / real GDP
Two years running on base rate (promise the pupils that one day it WILL change!)
China’s inflation rate steadies (explain to pupils this doesn’t mean prices unchanged); video clip mentions reserve requirements and yuan appreciation as ways to lower inflation – explain transmission mechanisms of this.
China posts trade deficit!
Strong UK trade deficit falls: (explain that trade deficit can fall if X rises; or M rises; or X rises by faster than M rises; or if X falls less than M falls etc):
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