http://www.tutor2u.net/blog/index.php/economics/ en tutor2u.net Copyright 2012 2012-02-12T07:41:03+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-impact-of-interest-rates http://www.tutor2u.net/blog/index.php/economics/comments/the-impact-of-interest-rates#When:06:31:19Z The US economy may have grown at nearly 3% in the last quarter of 2011, but the Federal Reserve announced last week that they do not expect to raise interest rates until the end of 2014. It has cut its growth forecast for 2012 from 2.5-2.9%, to 2-2.7%, and says that the economy faced “significant downside risks” and that it “expects to maintain a highly accommodative stance for monetary policy” - which I take to mean expansionary. This article about that interest rate decision is useful for economics teachers and students as it highlights a couple of results of that announcement; firstly that the dollar’s exchange rate immediately lost value as the interest rate made the US a less attractive place to keep cash, and secondly that government benefited as the cost of its borrowing in markets for 10 years fell from 2.06% to 1.94%, as traders priced in the lower medium-term interest rate expectations. A2 Macro, AS Macro, Macroeconomic Policies, Monetary Policy, OECD Economies, US Economy, Teaching of Economics, 2012-01-29T06:31:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-money-debt-and-the-new-world-order http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-money-debt-and-the-new-world-order#When:18:40:23Z “All money these days is really a form of debt from somewhere else. We know now in 2012 that our debts cannot be repaid in full.” Philip Coggan from the Economist was on fine form at the LSE last week when he spoke to a packed audience in the new academic building on the subject of his latest book. When trust in the monetary system breaks down we are in a very difficult place and, in a wonderfully broad historical sweep Philip Coggan offered some revealing insights into what a reformed global monetary system might look like in the years ahead. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, Cycles and Shocks, European Economy, The Euro, Financial Markets, Global Economy, Macroeconomic Policies, Monetary Policy, OECD Economies, Teaching of Economics, 2012-01-22T18:40:23+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/france-and-flexible-employment http://www.tutor2u.net/blog/index.php/economics/comments/france-and-flexible-employment#When:10:03:05Z This article could be useful as an illustration of the EU context in relation to employment in general, and flexible employment in particular. Attracting inward FDI is arguably a significant benefit of UK membership of the EU, and one of the advantages which the UK can offer compared to, say, France is relatively flexible employment laws. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, Business Economics, Competitive Markets, European Economy, Labour Market, Macroeconomic Policies, Supply-side policies, OECD Economies, French Economy, Teaching of Economics, 2012-01-22T10:03:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-russia-joins-the-wto http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-russia-joins-the-wto#When:09:50:52Z I am using Russia’s entry to the World Trade Organisation in my teaching on international trade and development this term. It appear to be a significant moment for the global economy. Russia is the last member of the Group of 20 major economies to join, after China gained membership in 2001. Progress towards membership has been delayed by numerous geo-political issues not least the disputes with neighbouring Georgia. Joining the WTO involves making a commitment to the rules of the international trade system - for Russia as with other new members, this will mean reduced import tariffs, the staged elimination of industrial domestic and export subsidies, and better greater access to foreign companies. Russia will also have to improve adherence to international accounting standards. * Russia’s average bound tariff will be 7.3 percent for manufactured products (compared with 9.5 percent currently) * Farm tariffs will be 10.8 percent (compared with 13.2 percent currently) * Russia commits to zero export subsidies on agricultural products - to end by 2017 * Russia will privatise 100 pct of United Grain Company by 2012 * Russia will introduce duty-free and quota-free provisions for the least developed countries * Russia will eliminate preferential tariffs for carmakers making large investments in Russian-based production by July 1, 2018 * Russia plans to introduce International Accounting Standards How would you use a supply and demand diagram to show the impact of a fall in an import tariff? Russian exports as a share of her GDP has actually been on a declining trend in recent years. Will movements towards trade and foreign investment liberalisation reverse this through trade creation and FDI effects? How can a stronger commitment to becoming an open economy supprot higher living standards over time? What are the risks for Russia of WTO accession? AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Development Economics, Russia Economy, Cycles and Shocks, Economic Growth, European Economy, Global Economy, International Trade, Macroeconomic Policies, Trade Policies, Oil and Gas, OECD Economies, Standard of Living, Teaching of Economics, 2012-01-22T09:50:52+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/newsnight-on-rebalancing-the-uk-economy http://www.tutor2u.net/blog/index.php/economics/comments/newsnight-on-rebalancing-the-uk-economy#When:05:11:19Z Last night’s edition of Newsnight should be required viewing for all AS and A level economists - and it is a huge shame that it is only available on i-player for another 7 days. Introduced on the shock news that even Tesco is vulnerable to the downturn, it included reports from Andrew Verity looking at whether the British economy will ever wean itself off shopping and the City, and an excellent (and all-female!) discussion including Deborah Meaden and the FT’s Gillian Tett. Try challenging your students to watch and listen to this while noting down every aspect of the syllabus which is mentioned or referred to - that will keep them busy! There was also a debate between Employment Minister Chris Grayling and disability campaigner Sue Marsh about the government’s welfare reforms, defeated in the House of Lords the night before, and finally Tokyo correspondent Roland Buerk looking at Japanese economic stagnation of the late 1980s and 90s, to consider whether it was a “lost decade” and what could be learnt from it. A2 Macro, AS Macro, Business Economics, Cycles and Shocks, Aggregate Demand, Economic History, Economic Growth, Global Economy, Government Intervention, Macroeconomic Policies, Manufacturing Industry, OECD Economies, Japan Economy, Poverty and Inequality, Standard of Living, Teaching of Economics, UK Economy, Unemployment, 2012-01-13T05:11:19+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-uk-trade-patterns http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-uk-trade-patterns#When:07:56:37Z The Guardian DataBlog has a superb resource here on the patterns of UK exports and imports in 2011. Ideal for printing out and using when introducing international trade. There is more official UK trade data here AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, International Trade, OECD Economies, UK Economy, 2012-01-11T07:56:37+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-a-jobs-boost-for-the-us-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-a-jobs-boost-for-the-us-economy#When:09:34:27Z Could 2012 provide stronger news for the US economy and offer President Obama a decisive electoral dividend in the run up to the November Presidential Election? The recent jobs data in the USA looks more promising for hopes of a significant pick-up in growth and employment all of which will help attempts to control the fiscal deficit. This news report from AlJazeera looks at the latest US unemployment figures. Falling unemployment provides a platform for rising aggregate demand and stronger short term economic growth. And stronger economic activity in the world’s biggest economy is good news for the UK too! AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, OECD Economies, US Economy, Unemployment, 2012-01-08T09:34:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-exchange-rate-economics-where-next-for-the-us-dollar http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-exchange-rate-economics-where-next-for-the-us-dollar#When:14:09:21Z Is the US dollar going to be knocked off its perch as the only true global currency? Professor Barry Eichengreen, the author of Exhorbitant Privelege argues that there are strong reasons to believe that the US dollars’ position in the world financial system will decline in the years ahead. The US dollar has been for many years the world’s most powerful currencies but this power seems to be waning as other currencies rise in significance and the US economy struggles to recover from their financial and economic crisis and the fiscal challenge. Eichengreen argues that there will be three truly global currencies going forward - the dollar, the Euro and the remnimbi. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Exchange Rates, Financial Markets, Global Economy, Macroeconomic Policies, OECD Economies, US Economy, Teaching of Economics, 2011-12-31T14:09:21+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/spain-opts-for-more-austerity-in-2012 http://www.tutor2u.net/blog/index.php/economics/comments/spain-opts-for-more-austerity-in-2012#When:07:57:57Z Spain’s new government has said the public deficit for 2011 will be 8% of GDP, well above its target of 6%, and has announced increases in income and property tax along with a wage freeze for civil servants to tackle it.  Looks like a very tough year ahead for the Spaniards, one of several in the last few years,as illustrated in this timeline. European Economy, OECD Economies, Spain Economy, 2011-12-31T07:57:57+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/european-economics-resources-on-the-cap http://www.tutor2u.net/blog/index.php/economics/comments/european-economics-resources-on-the-cap#When:19:47:30Z This blog entry will provide a regularly updated set of links to resources to the European Union’s Common Agricultural Policy and attempts to reform this contentious and complex system of farm support. Check below for suggested links AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Micro, AS Micro, Agriculture, Emerging Economies, Commodities Markets, European Economy, EU Farming and Fishing, Government Intervention, Buffer Stocks, Government Failure, OECD Economies, French Economy, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, UK Economy, Regional Economics, 2011-12-28T19:47:30+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/2011-in-review-the-us-economy http://www.tutor2u.net/blog/index.php/economics/comments/2011-in-review-the-us-economy#When:15:29:45Z 2011 for the US economy was a year of slow growth and fears of a double-dip recession, but there were some more positive signs as 2011 came to a close. Can the world’s biggest economy sustain a more durable upturn in activity during 2012? Keep in mind that this coming year will be dominated by the lead-in to the November Presidential election. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, OECD Economies, US Economy, 2011-12-27T15:29:45+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/great-economics-blog-to-follow-danny-quah http://www.tutor2u.net/blog/index.php/economics/comments/great-economics-blog-to-follow-danny-quah#When:09:03:57Z Professor Danny Quah from the London School of Economics has a superb blog and I recommend it heartily to economics teachers and students. It is particularly excellent for understanding developments in the global economy, not least Danny’s work in plotting the changing centre of gravity in the world economy over the long term. Here is the link to use. The LSE Public Events team has just released their programme for the New Year, there are plenty of really interesting talks coming up and you can access the Spring 2012 Events Programme by clicking on this link   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Economic Growth, Global Economy, OECD Economies, Teaching of Economics, UK Economy, 2011-12-15T09:03:57+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/jim-oneill-the-growth-map-economic-opportunity-in-the-brics-and-beyond http://www.tutor2u.net/blog/index.php/economics/comments/jim-oneill-the-growth-map-economic-opportunity-in-the-brics-and-beyond#When:20:15:33Z Jim O’Neill the Chairman of Goldman Sachs Asset Management has a new book published early next week and it looks like being a tremendous resource for teachers and students wanting to deepen their understanding of crucial changes in the global economy. The Telegraph has been publishing extracts from the book - to have a view please click on the links below: AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Brazil Economy, China Economy, Indian economy, Russia Economy, Cycles and Shocks, Economic Growth, Global Economy, International Trade, OECD Economies, Teaching of Economics, UK Economy, 2011-11-22T20:15:33+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/stephen-king-great-article-on-macroeconomics http://www.tutor2u.net/blog/index.php/economics/comments/stephen-king-great-article-on-macroeconomics#When:20:08:27Z Stephen’s piece in the Independent on Monday would make for a terrific Unit 4 discussion with your A2 students. Here is the link to follow Ten things people thought they knew about economics You can follow all of Stephen King’s recent economics articles in The Independent by clicking here AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Global Economy, OECD Economies, Teaching of Economics, 2011-11-22T20:08:27+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-should-the-eu-introduce-a-tobin-tax http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-should-the-eu-introduce-a-tobin-tax#When:00:42:14Z AS Economics student Freddie Bickford-Smith looks at some of the argument surrounding proposals to introduce a financial transactions tax in the EU. I will post another essay on this topic from a fellow student, offering an alternative perspective from that developed here! Following the financial crisis of the past few years, and the amassing of blame on the financial sector for it, it has come to the attention of many - including the European Commission - that there must be a way of rectifying the situation, and promoting greater economic stability. One popular suggestion is the ‘Tobin Tax’, an idea proposed by Professor James Tobin (the Nobel prize-winning American economist) for a tax on worldwide financial transactions AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, European Economy, Financial Markets, Global Economy, Government Intervention, Indirect Taxes, Macroeconomic Policies, OECD Economies, Teaching of Economics, 2011-11-15T00:42:14+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/eurozone-crisis-a-selection-of-resources http://www.tutor2u.net/blog/index.php/economics/comments/eurozone-crisis-a-selection-of-resources#When:09:25:05Z How to deal with this in school? I cannot be the only teacher who is struggling to keep up with the eurozone developments myself, let alone help my students to make any sense of it. Some searching this morning has come up with a variety of articles, graphics and interviews which range from the very basic such as the one-minute video reports from Robert Peston, which might be helpful to an AS student who is just starting to get to grips with the principles of macroeconomics, to some analysis of actual and potential threats to the UK economy and graphics showing the interrelated borrowing between the eurozone countries, which might help the ambitious A2 students to stretch themselves. These are listed below, with a brief description of each one. I am sure that you will have many more to add to the list. A2 Macro, AS Macro, European Economy, Financial Markets, Macroeconomic Policies, OECD Economies, UK Economy, 2011-11-12T09:25:05+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-americas-hour-glass-economy http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-americas-hour-glass-economy#When:20:31:58Z Here is a revealing three minute video on the challenges facing America’s declining middle class. Falling real incomes, rising living costs, deep structural unemployment problems - moving on up has got harder to do - what are the social effects of this across so many states? AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, OECD Economies, US Economy, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-11-09T20:31:58+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-has-the-time-come-for-a-tobin-tax http://www.tutor2u.net/blog/index.php/economics/comments/unit-1-micro-has-the-time-come-for-a-tobin-tax#When:15:22:26Z This week I am setting my AS micro students a question on proposals for a Tobin Tax - partly because it is hugely topical and also as a way of developing their evaluation skills on paper and coming to a reasoned final conclusion. Here are some of the links to suggested reading and some video shorts on this topic: AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 2, EdExcel Economics Unit 1, EdExcel Economics Unit 2, AS Macro, AS Micro, European Economy, The Euro, Financial Markets, Global Economy, Government Intervention, Indirect Taxes, OECD Economies, Market Equilibrium and Price, Price Mechanism in Action, Teaching of Economics, 2011-11-06T15:22:26+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-china-and-india-notes-from-martin-wolf http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-china-and-india-notes-from-martin-wolf#When:10:05:08Z Pete Davies from Greenhead College attended a superb talk by Martin Wolf CBE (Financial Times) at Leeds Business School last week. The focus was on the Great Convergence between developed and emerging economies, and Peter kindly took some excellent notes from the talk which will be of great use to teachers and students covering this key globalisation / development topics. They can be downloaded below as a word file - many thanks to Peter for making them available through the blog! Martin_Wolf_Lecture_Oct_2011.docx AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, Development Economics, China Economy, Indian economy, Cycles and Shocks, Economic Growth, Global Economy, IMF, International Trade, OECD Economies, Standard of Living, Teaching of Economics, UK Economy, 2011-11-06T10:05:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-world-economy-how-did-we-get-here-and-where-are-we-going http://www.tutor2u.net/blog/index.php/economics/comments/the-world-economy-how-did-we-get-here-and-where-are-we-going#When:09:02:12Z On Wednesday 26 October 2011, I attended a fascinating lecture at the LSE by Nemat Shafik, Deputy Managing Director of the IMF. She started with outlining the role of the IMF as a cooperative of 188 countries (the newest member being South Sudan), who poor their resources and finances in order to support each in times of difficulty.  She then went on to talk about the current slowdown, its causes, the risks involved if the slowdown was to continue and the potential policies needed to aid a recovery. AS and A2 Specifications, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Economic Growth, Global Economy, IMF, Macroeconomic Policies, OECD Economies, 2011-11-02T09:02:12+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-who-is-to-blame-for-the-crisis http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-who-is-to-blame-for-the-crisis#When:17:40:40Z The new series of Stephanomics is being filmed and made available on the BBC web site. In this episode, Stephanie Flanders asks who is to blame for the global financial crisis? She is joined by the billionaire investor George Soros, Sir Howard Davies, former chairman of the Financial Services Authority and former deputy governor of the Bank of England, and Dr DeAnne Julius, chairman of Chatham House and a former member of the Bank of England’s monetary policy committee. This is gold-dust for unit 4 macro students who want some tremendous evaluation on causation of the crisis from three incredibly well-placed figures. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Cycles and Shocks, Global Economy, Credit Crunch, Macroeconomic Policies, OECD Economies, Teaching of Economics, 2011-10-30T17:40:40+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/tour-of-the-us-income-distribution-the-l-curve http://www.tutor2u.net/blog/index.php/economics/comments/tour-of-the-us-income-distribution-the-l-curve#When:07:52:08Z Everyone knows about the Lorenz Curve but with the OWS events of late I came across the ‘L Curve”. The red line represents a graph of family income across the population. The height of the curve at any point is the height of a stack of $100 bills equalling that income. On the scale of the football field graph shown here the bottom 99% of the population measure their incomes in inches.  The top 1% measure their incomes as stacks of $100 bills feet or even miles high!  The total wealth of the few people in the vertical spike equals the total wealth of the rest of the population combined. AS and A2 Specifications, AQA Economics Unit 1, AQA Economics Unit 3, EdExcel Economics Unit 1, EdExcel Economics Unit 3, OCR A2 Economics Unit F585, A2 Micro, AS Micro, Emerging Economies, OECD Economies, US Economy, Poverty and Inequality, Standard of Living, Teaching of Economics, 2011-10-25T07:52:08+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/can-the-invisible-hand-solve-africas-poverty http://www.tutor2u.net/blog/index.php/economics/comments/can-the-invisible-hand-solve-africas-poverty#When:21:51:10Z At last night’s Senior Economics Society at Oundle we had a riveting talk by Hywel Rees-Jones, Managing Director of CDC, which covered so many areas of the issues of development economics. The talk was entitled “Can the invisible hand solve poverty in Africa?” Whilst conceding that some of the statements were broad generalisations across a variegated continent, Hywel discussed some of the key issues facing Africa. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, African Economy, Development Economics, China Economy, Commodities Markets, Economic Growth, Environmental Economics, European Economy, Global Economy, Government Intervention, International Trade, Manufacturing Industry, OECD Economies, Teaching of Economics, 2011-10-13T21:51:10+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/who-has-become-the-first-major-company-to-back-the-occupy-wall-street-prote http://www.tutor2u.net/blog/index.php/economics/comments/who-has-become-the-first-major-company-to-back-the-occupy-wall-street-prote#When:20:28:13Z This will be today’s starter question for my Economics classes- and it’s an interesting one, as whilst this company expounds the ideals of independence and freedom it’s actually owned by one of the world’s largest consumer companies- who swiftly distanced themselves from the announcement OECD Economies, US Economy, Quirky Trivia, 2011-10-12T20:28:13+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/currency-manipulator http://www.tutor2u.net/blog/index.php/economics/comments/currency-manipulator#When:15:31:13Z The U.S came closer to finally calling the Chinese a currency manipulator and retaliating in the new round of protectionism fears. A good summary of the key issues here. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Emerging Economies, China Economy, Exchange Rates, Global Economy, Macroeconomic Policies, Monetary Policy, Trade Policies, OECD Economies, US Economy, 2011-10-04T15:31:13+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-too-big-to-fail http://www.tutor2u.net/blog/index.php/economics/comments/economics-at-the-movies-too-big-to-fail#When:05:28:01Z A big thank you to my former student Mike Dawes, who recommends the film of the book ‘Too Big to Fail’. The made-for-TV film has recently been shown on Sky Anytime, where you may have caught it, but if not there are some trailers and extracts available here on HBO’s website, as well as a synopsis. Mike has also found a YouTube extract of a scene in the movie where US Treasury officials (Hank Paulson, Neel Kashkari, Jim Wilkinson) are deciding how to break the news of the AIG bailout in a press release and, in his words “there is a Scooby-Doo style unravelling of the recession which for 2 minutes is possibly one of the best explanations I have heard. They also neatly explain Credit-Default Swaps which is equally simple and may help those who were struggling to understand it.” Andrew Ross Sorkin’s book which led to the film is available from Amazon’s US store here. Global Economy, Credit Crunch, OECD Economies, US Economy, Teaching of Economics, Economics at the Movies, 2011-09-29T05:28:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/greek-debt-decision-tree http://www.tutor2u.net/blog/index.php/economics/comments/greek-debt-decision-tree#When:12:16:00Z I have been looking for resources to use with my A2 students to investigate the Greek debt crisis, and why it is causing such global concern. So first I am really grateful to find the powerpoint that Geoff has posted to the blog this morning, which sets out the scale of the problem there very clearly. I would like to suggest another resource I have just come across which I think complements the powerpoint quite well - especially to help answer the question “What will happen if the Greeks do default?”. Someone at the BBC has devised a decision tree looking at possible outcomes which depend on how the Greek authorities respond to their “Troika” of lenders - the European Union, International Monetary Fund and European Central Bank. The potential outcomes range from a pyrrhic victory in which Greece forces its lenders to write off most of its debts, but bankrupts it’s banks, to global meltdown. What the decision tree doesn’t include is probablilites for each outcome. That could be the class activity for the week, perhaps. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, European Economy, The Euro, Global Economy, IMF, OECD Economies, Greece Economy, 2011-09-25T12:16:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-greek-economy-at-defaults-door http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-greek-economy-at-defaults-door#When:10:50:00Z A2 level economists studying macroeconomics are almost certainly going to be discussing the economics of a Greek government default in the coming days and weeks. Many of the main macro indicators for Greece have been heading in the wrong direction for some time and the country provides a rich opportunity to study the causes and consequences of a fiscal, economic and wider social crisis. I haave put together a slide presentation of ten key macroeconomic charts for Greece. Students and teachers might want to use this (and edit / improve) when discussing events as they occur in the days ahead. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, European Economy, The Euro, Global Economy, IMF, OECD Economies, Greece Economy, 2011-09-25T10:50:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-greece-on-the-brink-of-default http://www.tutor2u.net/blog/index.php/economics/comments/unit-2-macro-greece-on-the-brink-of-default#When:10:40:00Z AS level economists studying macroeconomics are almost certainly going to be discussing the economics of a Greek government default in the coming days and weeks. Many of the main macro indicators for Greece have been heading in the wrong direction for some time and the country provides a rich opportunity to study the causes and consequences of a fiscal, economic and wider social crisis. I haave put together a slide presentation of ten key macroeconomic charts for Greece. Students and teachers might want to use this (and edit / improve) when discussing events as they occur in the days ahead. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, European Economy, The Euro, Global Economy, IMF, OECD Economies, Greece Economy, Teaching of Economics, 2011-09-25T10:40:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a-gloomy-outlook-for-the-global-economy http://www.tutor2u.net/blog/index.php/economics/comments/a-gloomy-outlook-for-the-global-economy#When:10:15:00Z Some excellent data and analysis in today’s OECD Interim Economic Assessment.  The overall picture is pretty gloomy - certainly for the US and European economies.  As the press release states; “Economic recovery appears to have come close to a halt in the major industrialised economies, with falling household and business confidence affecting both world trade and employment, according to new analysis from the OECD” AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, European Economy, Global Economy, OECD Economies, 2011-09-08T10:15:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/eurozone-macroeconomics-for-9-year-olds-brick-by-brick http://www.tutor2u.net/blog/index.php/economics/comments/eurozone-macroeconomics-for-9-year-olds-brick-by-brick#When:16:47:00Z It’s time to start treating our A2 economics students like 9 year-olds…in a kind-hearted way.  How?  With this highly creative and engaging piece of analysis by the market analysts at JP Morgan. The Eurozone crisis is both political AND economic, with the underlying issue one of who pays the bill for nation and bank bailouts.  The political impasse in Europe over the crisis is difficult to understand.  But this Lego-inspired graphic does a pretty good job of explaining who wants what. Follow the commentary underneath the graphic to hear the story. Hand it out to your A2 students and see if they can make sense of it. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, European Economy, OECD Economies, French Economy, German Economy, Greece Economy, Ireland Economy, Spain Economy, 2011-09-07T16:47:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-baltic-dry-index-and-global-weakening http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-baltic-dry-index-and-global-weakening#When:07:08:00Z A few years ago the sky-high level of the Baltic Dry Index was widely quoted as a sign of the surge in global trade and the rising cost of shipping products across the world. The index is back in the news today but for more pessimistic reasons; a steep decline in the index is being taken as a harbinger of weaker demand and activity in the world economy. The Baltic Dry Index is a shipping and trade index created by the London-based Baltic Exchange that measures changes in the cost to transport raw materials such as metals and grainby sea. The Baltic Exchange directly contacts shipping brokers to assess price levels for a given route, product to transport and time to delivery (speed). The fall in the Dry Index also reflects a huge rise in shipping capacity - the world supply of ships of all sizes has consistently outstripped demand - and this excess supply has driven down freight shipping rates. In this BBC news video Economic slump hits global shipping trade we see how excess supply capacity is affecting the world freight industry AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Global Economy, OECD Economies, 2011-08-19T07:08:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gdp-per-person-since-the-credit-crunch http://www.tutor2u.net/blog/index.php/economics/comments/unit-4-macro-gdp-per-person-since-the-credit-crunch#When:06:46:00Z The Economist has a tremendous charts available here showing what has happened to GDP per person employed since the Global Financial Crisis hit in 2007. The range of outcomes is huge with countries such as China, India, Indonesia and Poland achieving solid gains (indeed Poland was one of the few EU countries to avoid recession) whilst the PIIGS including Greece, Ireland and Italy have suffered badly. The UK is not immune too as the chart makes clear. The chart would make for a terrific discussion among students starting their Unit 4 course and could also be used as a teaching resource for students new to macroeconomics - not least in prompting discussion of the meaning and measurement of GDP and the concept of the economic cycle. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Cycles and Shocks, Economic Growth, Global Economy, OECD Economies, Teaching of Economics, UK Economy, 2011-08-19T06:46:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/apple-is-richer-than-the-us-government http://www.tutor2u.net/blog/index.php/economics/comments/apple-is-richer-than-the-us-government#When:12:01:00Z Yes- it’s true! Read on to find out more about this incredible statistic. Macroeconomic Policies, Fiscal Policy, OECD Economies, US Economy, 2011-07-30T12:01:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/what-might-happen-on-august-2nd http://www.tutor2u.net/blog/index.php/economics/comments/what-might-happen-on-august-2nd#When:22:06:00Z Well- it’s the day the United States might go bankrupt! Read on to find out more and for links to some useful resources to aid a class discussion of this fascinating topic. AS and A2 Specifications, EdExcel Economics Unit 2, Global Economy, Credit Crunch, Macroeconomic Policies, Fiscal Policy, OECD Economies, US Economy, 2011-07-12T22:06:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-increased-risk-of-future-shocks http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-increased-risk-of-future-shocks#When:07:05:00Z A new OECD report on the risks of external shocks to the global economy looks like being really useful for teachers preparing fresh materials for their courses. “The interconnectedness of the global economy makes it more vulnerable to major shocks…...these shocks include cyber attacks, pandemics, geomagnetic storms, social unrest and financial crises.” The report can be downloaded here. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Business Economics, Management Issues, Cycles and Shocks, Aggregate Demand, Aggregate Supply, Environmental Economics, European Economy, Global Economy, Credit Crunch, Government Intervention, Macroeconomic Policies, OECD Economies, Teaching of Economics, UK Economy, 2011-06-28T07:05:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/econ4-context http://www.tutor2u.net/blog/index.php/economics/comments/econ4-context#When:19:13:00Z Geoff’s blog about ECON4 (see below) is fantastic advice, and I hope that my A2 students will spend much of the next 2 days working their way through it, checking they are secure in their knowledge of the topics he has identified, and can apply them to the context areas suggested there. If they have finished all that, and want yet more up-to-date evidence there is plenty in the news in the last few days. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, Emerging Economies, China Economy, Commodities Markets, Cycles and Shocks, European Economy, International Trade, Macroeconomic Policies, OECD Economies, Standard of Living, UK Economy, 2011-06-20T19:13:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-recession http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-recession#When:21:29:00Z A recession is a hard-landing and means a fall in the level of real national output i.e. a period when the rate of growth is negative, leading to a contraction in employment, incomes and profits.  There is in fact more than one definition and measurement of a recession. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, Cycles and Shocks, Economic Growth, Macroeconomic Policies, OECD Economies, Greece Economy, UK Economy, 2011-05-23T21:29:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/aqa-a2-economics-european-context http://www.tutor2u.net/blog/index.php/economics/comments/aqa-a2-economics-european-context#When:15:37:00Z Each of the AQA a2 economics papers contains data response questions where understanding and awareness of the context of the economics of the European Union comes into play. We have a EU Economy in Focus study companion which is published in updated form each year. Details are available here. One area for revision focuses on the analysis diagrams that might be used to support your answers to EU context questions, I have put together a listing of topic areas where a diagrammatic approach might pay dividends - it is not exhaustive of course, merely some suggestions that might be useful. It appears below: AS and A2 Specifications, AQA Economics Unit 3, AQA Economics Unit 4, A2 Macro, A2 Micro, European Economy, EU Enlargement, EU Farming and Fishing, Single Market, The Euro, OECD Economies, Teaching of Economics, 2011-05-23T15:37:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/comparing-the-uk-with-europe http://www.tutor2u.net/blog/index.php/economics/comments/comparing-the-uk-with-europe#When:07:55:00Z Stephanie Flanders has posted a very useful blog examining Eurozone growth, and whether the UK can best be compared to France and Germany or to Greece, Portugal and Spain. She starts with Ed Balls rejection of the Chancellor’s habit of likening the position of the UK economy to those of the southern states which are struggling so badly at present; the Shadow Chancellor believes a better comparison would be with our traditional competitors in northern Europe. AS and A2 Specifications, AQA Economics Unit 3, AQA Economics Unit 4, A2 Macro, Balance of Payments, European Economy, International Trade, OECD Economies, French Economy, German Economy, Spain Economy, Teaching of Economics, UK Economy, 2011-05-14T07:55:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-revealed-advantage http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-revealed-advantage#When:14:45:02Z Tim Harford’s piece in the New York Times today is a stunning visualisation of what economists term revealed competitive advantage - if you have a few moments please do read through it - superb for understanding the inter-connections between trade performance and structural changes in output, jobs and investment. “Economies change in structure over time, moving from simpler goods to scarcer, more valuable ones. Countries rarely make radical structural changes. Instead, they generate capabilities gradually, and new industries usually develop from existing ones. Unfortunately, some industries — oil extraction, say, or fishing — do not naturally lead to anything new without a huge leap.” Here is the link to the article AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Balance of Payments, Emerging Economies, Economic Growth, Global Economy, International Trade, OECD Economies, Teaching of Economics, 2011-05-12T14:45:02+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-chinese-investment-in-the-eu http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-chinese-investment-in-the-eu#When:13:23:00Z There is much focus on Chinese foreign direct investment in Africa and Latin America - China is also making huge investments in Australia as my friend Mark Johnston writes about in this blog. Here Euro News looks at investment in the European Union by Chinese owned businesses. New motorways in Poland ahead of the 2012 European Football Championships, co-financed by the EU, are being built by Chinese companies. The Chinese are also buying up public debt, in Greece, Spain and Portugal. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, China Economy, Cycles and Shocks, Aggregate Supply, Economic Growth, European Economy, EU Enlargement, Single Market, Global Economy, Macroeconomic Policies, Supply-side policies, OECD Economies, Poland, Teaching of Economics, 2011-05-03T13:23:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/eu-enlargement-evaluating-the-impact http://www.tutor2u.net/blog/index.php/economics/comments/eu-enlargement-evaluating-the-impact#When:17:01:00Z Many of Europe’s newer member states have outperformed established EU countries since they joined the single market in 2004 and 2007. And as a result there has been a process of convergence in average living standards and improved employment opportunities. Europe’s new nations have injected extra dynamism into the region despite inevitable teething problems along the way. For students revising aspects of EU enlargement here is a streamed version of a presentation I gave to a Tutor2u event in London a few weeks ago A streamed version of the presentation is available here PDF Handout of the presentation Related news issues Germany expects influx of Polish workers (BBC news, April 2011)   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, European Economy, EU Enlargement, Labour Market, OECD Economies, French Economy, German Economy, Greece Economy, Ireland Economy, Poland, Spain Economy, Teaching of Economics, UK Economy, 2011-04-30T17:01:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-and-a2-macro-revision-the-china-effect http://www.tutor2u.net/blog/index.php/economics/comments/as-and-a2-macro-revision-the-china-effect#When:11:58:01Z This is a new eight-page revision briefing note for students taking AS and A2 macroeconomics courses on developments in the Chinese economy and their impact on the UK and the wider global economy. Fans on our Facebook page voted for it and we will be adding some more revision briefings in the next week based on the votes and preferences on the page! What is happening in China and in China’s changing economic relationships around the world is and will continue to have a profound impact on the UK and European Economy - this revision briefing looks at some of these connections. Download it here in pdf format Revision_China_Effect_2011.pdf AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Cycles and Shocks, Economic Growth, Global Economy, International Trade, OECD Economies, Teaching of Economics, UK Economy, 2011-04-26T11:58:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-twin-deficits http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-twin-deficits#When:11:00:00Z Here is a revision note on the economics of twin deficits. Twin deficits refer to a situation where an economy is running both a fiscal deficit and also a deficit on the current account of the balance of payments. The revision note is available for download as a pdf file. Twin_Deficits.pdf AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Balance of Payments, Cycles and Shocks, Macroeconomic Policies, Fiscal Policy, Keynesian Economics, OECD Economies, UK Economy, 2011-04-22T11:00:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/australia-booming-ahead http://www.tutor2u.net/blog/index.php/economics/comments/australia-booming-ahead#When:22:34:00Z The Australian Government released unemployment figures showing the rate of unemployment falling ot 4.9%. This figure is lower than previously expected and is now now influencing the value of the exchange rate in Australia. The article makes reference to the possible implications on the interest rate in the economy over the coming months to counteract. Task: The article in the Australian Times could be used as a revision lesson for AS or Year 1 IB Economists to review the links between different macroeconomic variables. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Global Economy, OECD Economies, Unemployment, 2011-04-21T22:34:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/ocr-f585-june-2011-a-brain-drain-from-spain http://www.tutor2u.net/blog/index.php/economics/comments/ocr-f585-june-2011-a-brain-drain-from-spain#When:08:15:00Z High unemployment, declining real wages and worsening employment prospects might be causing a surge in net migration out of the Spanish economy.  The economic and social consequences of high unemployment figures prominently in the OCR F585 stimulus material for the June 2011 exam. One in five under the age of 30 in Spain is unemployed, and a staggering 64% of those age 16 to 19 are unemployed. Youth unemployment rates in Spain are higher than both Egypt and Tunisia Official data shows that 118,000 people left the country in the two years to April 2010 - many of them heading to Germany where economic growth is strong and unemployment rates are falling. There is also growing evidence of younger Spaniards heading to Latin America. 30,000 Spaniards moved to Argentina between June 2009 and November 2010 — an 11 per cent increase over that period. Some 6,400 went to Chile — a jump of 24 per cent in the same timeframe — and 6,800 headed for Uruguay, an increase of 16 per cent. If the brain drain effect gathers momentum consider some of the possible consequences for the Spanish economy. Canadian Press: Portuguese, Spaniards seek new lives in old colonies as they face dead-end future at home Spanish jobless level hits another record high (April 29th)   AS and A2 Specifications, OCR A2 Economics Unit F585, European Economy, OECD Economies, Spain Economy, 2011-04-13T08:15:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/focus-on-irelands-economy http://www.tutor2u.net/blog/index.php/economics/comments/focus-on-irelands-economy#When:12:46:00Z Ireland is an economy suffering an economic, financial and political crisis. Her freedom to operate an independent macroeconomic policy is constrained by her membership of the single European currency and there are many who doubt that Ireland will be able to achieve a sustained recovery without some form of debt default. Our charts below track some of the key macroeconomic indicators for the Irish economy and below them we have gathered together recent blogs on Irish economic issues. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, European Economy, The Euro, OECD Economies, Ireland Economy, 2011-04-12T12:46:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-back-to-roubini-a-year-on http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-back-to-roubini-a-year-on#When:18:51:00Z Almost a year ago I headed to the LSE to hear Nouriel Roubini launch a new book “Crisis Economics”. The notes that I took at the time are reprised below and reading through them again, I am struck by just how accurate the Roubini assessment was of where the next phase of the financial and economic crisis would move. Many of the remarks are relavant to students preparing for the OCR F585 paper for June 2011 and also for other A2 macro students wanting some evaluative comments on the international economic crisis. I have repeated my comments from the May 2010 blog and they appear below. There has been some minor editing and I have supplemented the blog with some charts drawn from the team at Timetric. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, Cycles and Shocks, European Economy, The Euro, OECD Economies, Greece Economy, UK Economy, Recession Watch, 2011-04-11T18:51:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/ocr-f585-june-2011-new-articles-on-the-spanish-economy http://www.tutor2u.net/blog/index.php/economics/comments/ocr-f585-june-2011-new-articles-on-the-spanish-economy#When:17:07:00Z As preparation for the OCR F585 June 2011 economics paper here are some new articles on the Spanish economy - which features heavily in Extract 3 of the pre-release stimulus material. Our toolkit is available from here. AS and A2 Specifications, OCR A2 Economics Unit F585, OECD Economies, Spain Economy, 2011-04-08T17:07:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/ecb-breaks-rank-and-raises-interest-rates http://www.tutor2u.net/blog/index.php/economics/comments/ecb-breaks-rank-and-raises-interest-rates#When:15:20:00Z The European Central Bank has become the first of the four major central banks to lift policy interest rates since the start of the global financial crisis. This decision came on the same day as Portugal applying for emergency support in a bail out that might be worth Euro 80 billion. David Blanchflower, a former member of the Monetary Policy Committee has called the move “a big mistake” hinting that Spain - where more than 80% of mortgages are on variable interest rates - is more vulnerably to financial distress than many are prepared to admit. The ECB is starting to move their policy interest rates towards normal levels - but this tightening of monetary policy starts with the Euro Area suffering 10 per cent unemployment - it takes a hawkish central bank to start increasing the cost of borrowing money when one in ten people in the currency union is out of work and when the Euro has already been appreciating against the US dollar threatening the strength of an export-led recovery for the currency union. The ECB was forced to reverse a rate rise in the autumn of 2008 when the financial crisis took hold. Might they have to do the same sometime this summer? It seems that the ECB has confirmed that the Euro Area will now experience a two-speed currency union for the next few years with Germany leading a group of fast-growing countries and the debt-ridden periphery (the PIIGS) condemned to grow more slowly and suffer the impact of a period of painful fiscal austerity. Eurozone interest rate rise explained (BBC news) Guardian: Portugal bailout analysis: Is Spain next for EU help? - video   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, European Economy, The Euro, Macroeconomic Policies, Monetary Policy, OECD Economies, 2011-04-07T15:20:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/euro-crisis-portugal-reaches-for-bail-out http://www.tutor2u.net/blog/index.php/economics/comments/euro-crisis-portugal-reaches-for-bail-out#When:22:00:01Z Portugal has requested an emergency bail out from the European Union to address it’s sovereign debt crisis. It becomes the third Euro Area economy to require help from European partners in the wake of bail outs for Ireland and Greece. The move came after the Portuguese government was forced to pay an interest rate of more than 5% for borrowing money for just one year and in the expectation of the European Central Bank raising policy interest rates in the near future. The Portuguese economy has a major state-sector debt crisis as our Timetric chart below shows. And the economy has been performing poorly for several years with rising unemployment and a steep fall in relative living standards. Already several of Europe’s new economies (including Slovenia and the Czech Republic) have overtaken Portugal in terms of income per capita (PPP adjusted).  Portugal’s long-term credit rating was downgraded by Moody’s by one notch to Baa1 earlier on this week. BBC: EU austerity drive country by country Independent: Portugal seeks €80bn bailout as third nation falls to eurozone crisis Guardian: Portugal’s bailout was all but inevitable Bloomberg: Goldman Sachs Says Portugal Is Last Euro Nation to Seek Bailout Independent, Sean O’Grady: If Spain fails, it will be too expensive to save   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, European Economy, The Euro, Financial Markets, OECD Economies, UK Economy, 2011-04-06T22:00:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/focus-on-poland http://www.tutor2u.net/blog/index.php/economics/comments/focus-on-poland#When:16:43:00Z Poland is the largest of the central and eastern european countries (CEECs) to have entered the European Union Single Market in the recent enlargement process. And her macroeconomic record during and after the global financial crisis stands comparison as one of the best of the twenty seven EU member nations. Recession has been avoided and the economy is set to continue a long run of economic growth that is (slowly) bringing about a rise in relative living standards and a sustained fall in unemployment. The Guardian newspaper has been running a series on New Europe and this set of articles focuses on some of the challenges and opportunities facing Poland as Europe seeks to drag itself into a durable recovery phase. Guardian - New Europe - Focus on Poland Larry Elliott: Poland’s past and future mix in Gdansk, the start of the road to the 21st century OECD Report on the Polish economy   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, European Economy, EU Enlargement, Global Economy, OECD Economies, Poland, 2011-04-05T16:43:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/prospects-for-the-uk-economy-madrid-presentation http://www.tutor2u.net/blog/index.php/economics/comments/prospects-for-the-uk-economy-madrid-presentation#When:16:28:00Z The updated presentation on prospects for the UK economy that we delivered in Madrid yesterday is available here as a streamed presentation and also as a downloadable pdf handout. All of the data charts are up to speed and we have included some comments on the importance of context for AS and A2 students (in particular) when discussing UK developments in the context of external events and shocks in the international economy. PDF handout of the presentation AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, OECD Economies, Japan Economy, Teaching of Economics, UK Economy, 2011-04-05T16:28:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/tracking-the-effects-of-the-recession-on-gdp http://www.tutor2u.net/blog/index.php/economics/comments/tracking-the-effects-of-the-recession-on-gdp#When:11:59:01Z An excellent resource for Unit 2 and Unit 4 macroeconomics. Vishnu Padmanabhan from Timetric has this excellent look at the impact of the recession on real GDP growth in OECD countries. Which countries did best and worst in the recession? It turns out that Australia, Poland, Israel and South Korea were the countries least affected by the crisis and all avoided a full-blown recession - experiencing instead a soft landing. Here is Vishnu’s article. Our own growing selection of Timetric charts can be found by scrolling down to the bottom of this blog entry. The OECD has just produced their annual review of Going for Growth - a largely supply-side look at policies designed to promote long-term growth in productive potential in the world economy. Details can be found here. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Cycles and Shocks, Economic Growth, European Economy, The Euro, Global Economy, Credit Crunch, OECD Economies, French Economy, German Economy, Greece Economy, Ireland Economy, Japan Economy, Spain Economy, US Economy, Teaching of Economics, UK Economy, 2011-04-05T11:59:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-relative-deflation http://www.tutor2u.net/blog/index.php/economics/comments/as-macro-key-term-relative-deflation#When:08:20:00Z The term “relative deflation” is generally used to describe an economy with an inflation rate, which has not necessarily descended into negative territory, but is markedly lower than comparable economies. Over time, a low relative rate of inflation can lead to an improvement in price competitiveness in international markets, assuming that there has not been a compensating change in the exchange rate between two countries. In our data example shown below we track consumer price inflation in Ireland, Spain and Germany. For most of the period shown, the annual rate of inflation in Germany was substantially lower than two of her partners in the European single currency area - this is an example of relative deflation. AS and A2 Specifications, AQA Economics Unit 2, EdExcel Economics Unit 2, AS Macro, European Economy, The Euro, Inflation and Deflation, OECD Economies, German Economy, Ireland Economy, Spain Economy, 2011-04-02T08:20:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/timetric-unemployment-in-the-us-economy http://www.tutor2u.net/blog/index.php/economics/comments/timetric-unemployment-in-the-us-economy#When:18:12:00Z One of the most keenly awaited macro statistics in the USA is the monthly data on employment and unemployment. For some time there have been fears that the huge fiscal and monetary policy stimulus programs seem to have been having little effect on the jobless rate. As we can see from the charts below there are tentative signs that a more durable economic recovery is setting across the Atlantic. The unemployment rate has fallen to a two year low, employment in private sector businesses is expanding and the steep fall in manufacturing employment seems to have come to an end (for now). Getting unemployment down is crucial for Obama with the next Presidential electoral campaign in view. And it is also important for the wider health of the world’s biggest economy. One of the really striking things about the recent recession and weak recovery has been the dramatic increase in the mean duration of unemployment in the USA compared to previous bouts of cyclical unemployment. My third chart in this blog looks compelling and suggests that it has been really hard for those who have lost their jobs in the wake of the global financial crisis and the subsequent recession to find fresh work. Long-term unemployment is a structural problem in the labour market and it becomes harder to resolve as the length of time spent out of paid work grows month by month.   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Global Economy, Macroeconomic Policies, OECD Economies, US Economy, Unemployment, 2011-04-01T18:12:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/ocr-f585-june-2011-competitiveness http://www.tutor2u.net/blog/index.php/economics/comments/ocr-f585-june-2011-competitiveness#When:11:32:00Z One important aspect of the OCR F585 stimulus materials for June 2011 is the economics of competitiveness within the single currency zone - the Euro Area. A conventional view is that some of Europe’s peripheral countries (notably the PIIGS) have become uncompetitive because they have allowed their producer prices, consumer prices and relative unit labour costs to rise. This - in the absence of a compensating exchange rate depreciation - has made their manufacturing and service industries relatively more expensive leading to a deterioration in trade balances, slower growth and stagnating living standards. European Economy, The Euro, OECD Economies, Spain Economy, Teaching of Economics, OCR F585 Economics, 2011-03-31T11:32:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/pacific-peso-reaches-29-year-high http://www.tutor2u.net/blog/index.php/economics/comments/pacific-peso-reaches-29-year-high#When:16:20:00Z For a currency that used to have the tag of the “Pacific Peso”, these are heady days for the Australian dollar. The external value of the dollar has reached a 29-year high as the Aussie dollar continues to appreciate on the global currency markets. Our Timetric charts follow the Australian dollar against the US dollar and also sterling. This is a good mini case study on the factors that determine the value of a currency when it is allowed to float freely in foreign exchange markets 1/ The Australian economy is growing relatively strongly - increasing the expected returns from foreign investment in the economy 2/ Policy interest rates are relatively high (4.75%) - attracting inflows of hot money - short term banking flows that seek the best risk-adjusted rate of return 3/ Trade - the Australian economy has enjoyed a resurgence in the value of exports, notably from selling minerals and liquid natural gas to fast-growing developing countries in Asia 4/ Changing sentiment in the market - foreign exchange market speculators seem to be buying the Australian dollar as a safe haven investment instead of Japanese Yen In simple terms the expected yield to investors prepared to buy Australian dollars is pretty high - for example compared to that on offer in Japan. This is causing a strong market demand for the Australian dollar AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Exchange Rates, Global Economy, OECD Economies, 2011-03-30T16:20:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/why-is-the-yen-appreciating http://www.tutor2u.net/blog/index.php/economics/comments/why-is-the-yen-appreciating#When:07:32:00Z BBC Business News has an excellent report and supporting video which assesses why the Yen has strengthened following the sad disasters besetting Japan. An example of how financial flows impact on exchange rate volatility. The normal suspect, currency speculation, may not be the major driver here. Or are speculators ‘gambling’ that repatriation of funds to finance reconstruction means the Yen will rise in value so ‘buy cheap, now’ and ‘sell later, dear’? And how can the world’s central banks respond? And why?  Much to debate in class AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, AS Macro, Exchange Rates, OECD Economies, Japan Economy, 2011-03-18T07:32:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/focus-on-spain http://www.tutor2u.net/blog/index.php/economics/comments/focus-on-spain#When:10:18:00Z I will be developing a series of data charts and links to other resources in this blog for students and teachers who want to use developments in the Spanish economy as part of their macro studies. The economy is a member of the single European currency but widely regarded as experiencing deep structural problems and facing a tough adjustment process in the years ahead. At the bottom of the blog we link to recent articles on the Spanish economy. The OCR F585 June 2011 paper focuses on Spain as one of the countries experiencing difficulties within the Euro Area. May 2011 Migrants pushed towards exit by Spanish jobs crisis (BBC) April 2011 Spain economy gets IMF vote of confidence Spanish jobless level hits another record high March 2011 Spain pledges additional measures to strengthen economy   European Economy, OECD Economies, Spain Economy, Teaching of Economics, OCR F585 Economics, 2011-03-16T10:18:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/global-supply-chain-threatened-by-japanese-disaster http://www.tutor2u.net/blog/index.php/economics/comments/global-supply-chain-threatened-by-japanese-disaster#When:06:56:01Z One aspect of globalisation is that manufacturers source their supplies from around the world. This will depend on the comparative advantage those countries have developed in producing various types of components. Japan produces about 30% of the global output of ‘flash memory’ used in electronic cameras and smartphones, and about 15% of the DRAM memory used in PCs. If something happens to disrupt that supply chain, as is clearly the case after the horrific events in Japan, there will be global effects. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, Global Economy, International Trade, Manufacturing Industry, OECD Economies, Japan Economy, Teaching of Economics, 2011-03-16T06:56:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/house-price-rollercoaster http://www.tutor2u.net/blog/index.php/economics/comments/house-price-rollercoaster#When:18:21:00Z This is a terrific visualisation of what has happened to US house prices since the late nineteenth century - we ride the rollercoaster based on data from the Case Shiller index. And if you want the latest Case Shiller data on US house prices - based on the 20 city survey, then click on the Timetric charts below .... hold onto your hats, the Florida property price data in particular looks pretty scary AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, A2 Macro, AS Macro, Cycles and Shocks, Global Economy, Credit Crunch, Housing Economics, OECD Economies, US Economy, Teaching of Economics, Digital Learning, 2011-03-13T18:21:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/focus-on-japan http://www.tutor2u.net/blog/index.php/economics/comments/focus-on-japan#When:10:56:00Z The terrible news coming out of Japan reminds one of the fragility of human life in the face of overwhelming natural forces. The thoughts of everyone at Tutor2u are with the people of the region affected by the earthquake and subsequent tsunami. The narrow economic impact of the natural disaster will take many months to calibrate - Japan is one of the richest countries in the world and ought to have the resources to cope with the immediate aftermath. But her macro-economy has been weak for many years - the country has been struggling to shrug off a lost decade of slow growth and - more recently - one of the deepest recessions in her post war history. Does the third largest but most indebted government in the world have any fiscal freedom to react? What will happen in the short term to industrial production, energy and food supplies and her export sectors? Earthquakes have a special power to create hugely damaging economic consequences. Japan suffered losses of 10 trillion Japanese yen in the 1995 Kobe quake, 2.5 percent of the country’s GDP the previous year. Over time a rebuilding process will help to stabilise economic activity but there is an opportunity cost of having to devote scarce resources to rebuilding. The Japanese economy has endured a period of relative stagnation in part because many Japanese companies have out-sourced their manufacturing production to China and other countries where unit labour costs are lowest. I have produced a series of charts below tracking some of the recent key changes in macroeconomic indicators for Japan and linked to some news coverage and audio-visual resources on how the earthquake may affect the Japanese economy Hamish McRae: The cost of catastrophe and unrest is huge in both human and economic terms BBC News (Feb 2011): Japan is no longer the world’s second largest economy BBC News (Nov 2010): Japan grapples with deflation and demographics BBC news: (Nov 2010): G20: Currency War and Japan Guardian: Japan’s economy heads into freefall after earthquake and tsunami Telegraph: Japan shuts down as economic fears grow AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Global Economy, OECD Economies, Japan Economy, Teaching of Economics, 2011-03-13T10:56:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/timetric-unemployment-rates-for-selected-countries http://www.tutor2u.net/blog/index.php/economics/comments/timetric-unemployment-rates-for-selected-countries#When:20:41:00Z In this Timetric chart blog we look at unemployment rates for a selection of country groups - these automatically updated charts will track what is happening to the standardised jobless rates for clusters of countries starting with one that includes the Euro Area, Germany, USA, UK and Japan. The second chart is the unemployment rates in the so-called PIIGS - Portugal, Italy, Ireland, Greece and Spain AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, European Economy, The Euro, OECD Economies, German Economy, Greece Economy, Ireland Economy, Japan Economy, Spain Economy, US Economy, Teaching of Economics, UK Economy, Unemployment, 2011-03-12T20:41:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/dambisa-moyo-how-the-west-was-lost http://www.tutor2u.net/blog/index.php/economics/comments/dambisa-moyo-how-the-west-was-lost#When:15:51:00Z Dambisa Moyo’s talk at the RSA available here focuses on some of the long term structural problems facing Western Economies in general and the USA in particular.  She argues that there are three crucial ingredients in economic growth - better capital, the quantity and quality of the workforce plus improvements in productivity   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Cycles and Shocks, Global Economy, Macroeconomic Policies, Fiscal Policy, OECD Economies, US Economy, Teaching of Economics, 2011-03-11T15:51:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/ireland-mass-unemployment-and-shrinking-gdp http://www.tutor2u.net/blog/index.php/economics/comments/ireland-mass-unemployment-and-shrinking-gdp#When:18:40:00Z We know that Ireland is in deep economic and financial trouble. Our Timetric chart will keep pace with what is happening to Irish real national output and their unemployment rate (measured as a % of their labour force). And in the links below you can connect to recent blog posts on Ireland - one of the countries inside the Euro Zone that faces a huge sovereign debt crisis that may take years to resolve. Here is the chart AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, European Economy, The Euro, Macroeconomic Policies, OECD Economies, Ireland Economy, 2011-03-10T18:40:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a-virtuous-circle-of-recovery-paul-krugman http://www.tutor2u.net/blog/index.php/economics/comments/a-virtuous-circle-of-recovery-paul-krugman#When:09:44:00Z A hat tip to Larry Spence for flagging up this super piece from Paul Krugamn in the New York Times. His focus is on the dynamics of an economic recovery and the risks of fiscal austerity tipping the US back into recession. “As families have repaired their finances, they have increased their spending; as consumer demand has started to revive, businesses have become more willing to invest; and all this has led to an expanding economy, which further improves families’ financial situation…....... The clear and present danger to recovery, however, comes from politics — specifically, the demand from House Republicans that the government immediately slash spending on infant nutrition, disease control, clean water and more.” More here on How to Kill a Recovery AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Economic Growth, Macroeconomic Policies, Fiscal Policy, OECD Economies, US Economy, UK Economy, Recession Watch, 2011-03-06T09:44:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/unemployment-in-germany-and-spain http://www.tutor2u.net/blog/index.php/economics/comments/unemployment-in-germany-and-spain#When:22:54:00Z For many years Germany was criticised for persistently high unemployment rates and an inflexible labour market. But having weathered the worst of the steep contraction in global manufacturing output and trade in 2009 the German economy is being propelled forward by a strong surge in export sales. Unemployment is falling and for the first time in recent memory, the official jobless rate in East Germany is now lower than the state of California! AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, European Economy, OECD Economies, German Economy, Spain Economy, Unemployment, 2011-02-14T22:54:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-us-china-trade-deficit http://www.tutor2u.net/blog/index.php/economics/comments/the-us-china-trade-deficit#When:10:45:00Z The US trade gap with China hit a record $273.1 billion in 2010 raising fresh fears of a deteriorating trade relationship between the world’s two biggest economies. But a quick look behind the figures suggests that the US economy is enjoying a surge in exports a major stimulus to their recovery hopes. The raw data is that US goods exported to China totaled $91.9 billion in 2010 while imports from China rose 24 percent to $364.9 billion. In fact that represents a rise in the value of US-China exports in 2010 of more than 31%. And the true scale of the trade imbalance with China is likely to be much smaller than the conventionally published data suggests. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Balance of Payments, Emerging Economies, China Economy, Global Economy, International Trade, OECD Economies, US Economy, 2011-02-14T10:45:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/david-smith-on-shifting-sands-in-the-global-economy http://www.tutor2u.net/blog/index.php/economics/comments/david-smith-on-shifting-sands-in-the-global-economy#When:23:50:00Z David Smith from the Sunday Times was on fine form in his talk to the Global Economy Student Enrichment event at Fulham yesterday. I have some brief notes below on some of his key themes and the pdf version of his presentation can be downloaded from the link at the bottom of the blog AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Cycles and Shocks, European Economy, Global Economy, Credit Crunch, Macroeconomic Policies, OECD Economies, Teaching of Economics, UK Economy, Recession Watch, 2011-02-08T23:50:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/wto-finds-boeing-guilty-of-using-illegal-subsidies http://www.tutor2u.net/blog/index.php/economics/comments/wto-finds-boeing-guilty-of-using-illegal-subsidies#When:08:23:00Z This is one of the longest running disputes in trade history. Europe and the US have been fighting for more than six years over each other’s subsidies for large passenger aircraft in the duopolistic battle between Boeing and Airbus. Now the World Trade Organisation has found that Boeing received at least $5bn (£3.1bn) in illegal subsidies and was only able to launch its 787 Dreamliner with such support. Airbus has als been found to be in breach of receiving illegal state aid. Reuters provides useful background here. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Business Economics, Oligopoly, European Economy, Single Market, Global Economy, Government Intervention, Subsidies, OECD Economies, Market Equilibrium and Price, Nature of Demand, Nature of Supply, Teaching of Economics, Transport Economics, 2011-02-01T08:23:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/james-dyson-on-innovation http://www.tutor2u.net/blog/index.php/economics/comments/james-dyson-on-innovation#When:07:56:00Z This is a must read article for every student who wants to appreciate the impact of innovation on competitiveness and growth. Writing in the Business Guardian, James Dyson argues that “For me, the UK economy shouldn’t be built entirely on the City of London or the next digital fad. We need substance – patentable exports. They bring new money into our coffers. And what will generate economic growth is not just talk of spending cuts, but creating the right environment for research and invention.” Dyson is a strong supporter of tax credits and lower corporation tax for research and development projects and also for science and maths graduate teachers to be paid more. More here: Innovation: Britain’s other deficit Tories look to Dyson on hi-tech economy (BBC news video) AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Business Economics, Cycles and Shocks, Aggregate Demand, Aggregate Supply, Economic Growth, Economics of Technology, Global Economy, Government Intervention, Macroeconomic Policies, Supply-side policies, Manufacturing Industry, OECD Economies, Teaching of Economics, UK Economy, 2011-02-01T07:56:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-2011-student-conference-london-feb http://www.tutor2u.net/blog/index.php/economics/comments/global-economy-2011-student-conference-london-feb#When:15:45:01Z I’m pleased to provide more details about our Economics student enrichment conference at Vue Cinema (Fulham Broadway) on Monday 7th February 2011. Global Economy 2011 is designed to allow students (and their teachers!) to deepen their understanding of developments in the international economy as we enter 2011. Confirmed speakers already include: * Geoff Riley (Tutor2u):  An Ever Bigger Union? Has EU Enlargement been a success? * Ruth Tarrant (Tutor2u): Trade Imbalances and Development - A Global Perspective * James Bevan (Chief Economist of CCLA Investment Management, Radio 5 Wake up to Money): The Economics of Global Cities - Challenges facing London * David Smith (Economics Editor of the Sunday Times), The Global Financial Crisis and the Changing World Economy * Mo Tanweer (Head of Economics, Oundle School): The Economics of Currency Wars Monday 7 February 2011 Venue: Vue Cinema, Fulham Broadway Timing: 10:45 am to 3.15 pm There are still some places available for the conference.  Please request places using the following form or by in the office: Booking Form for Global Economy 2011 AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, OCR AS Economics Unit F582, A2 Macro, Emerging Economies, European Economy, Global Economy, International Trade, OECD Economies, Teaching of Economics, 2011-01-23T15:45:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/us-gdp-compared-to-other-countries http://www.tutor2u.net/blog/index.php/economics/comments/us-gdp-compared-to-other-countries#When:09:38:01Z The Economist has a neat graphic looking at how American states compare with other countries in terms of GDP and population. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Global Economy, OECD Economies, US Economy, Teaching of Economics, 2011-01-23T09:38:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/the-us-china-power-balance-trade-and-currencies http://www.tutor2u.net/blog/index.php/economics/comments/the-us-china-power-balance-trade-and-currencies#When:08:18:00Z The BBC produced a nice little graphic this week to go illustrate comparisons between the US and Chinese economies, alongside the talks between President Obama and President Hu Jintao. Relations between the two countries have been strained by issues such as the trade imbalance and China’s growing military might. The figures here give some background to those issues. A2 Macro, Balance of Payments, Emerging Economies, China Economy, Exchange Rates, Global Economy, International Trade, OECD Economies, US Economy, 2011-01-22T08:18:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/will-we-have-to-live-with-high-unemployment http://www.tutor2u.net/blog/index.php/economics/comments/will-we-have-to-live-with-high-unemployment#When:10:23:00Z Will many advanced economies have to live with a new semi-permanently higher level of unemployment as a consequence of the global financial crisis, economic slump and a period of fiscal austerity?   AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Demand, Global Economy, Credit Crunch, Macroeconomic Policies, Fiscal Policy, Monetary Policy, OECD Economies, US Economy, Unemployment, 2011-01-17T10:23:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/economics-qa-why-might-europes-weaker-economies-struggle-to-grow-in-the-nex http://www.tutor2u.net/blog/index.php/economics/comments/economics-qa-why-might-europes-weaker-economies-struggle-to-grow-in-the-nex#When:21:46:00Z A starting point to this question is to discuss what “weaker EU countries” might mean. We can use some of the conventional indicators of macro performance to help us namely: 1. Slow or negative economic growth 2. Rising unemployment and falling employment rates 3. Deteriorating public sector finances and higher government debt 4. Relatively high inflation or perhaps an economy experiencing a period of deflation 5. A high deficit in trade in goods and services Other indicators might be used to identify weaknesses in performance - for example: 1. Relatively low labour productivity 2. A falling share of global trade 3. Rising yields on long term government bond issues 4. Weaknesses in non-price competitiveness AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, European Economy, The Euro, Global Economy, OECD Economies, Greece Economy, Ireland Economy, Spain Economy, Teaching of Economics, Recession Watch, 2011-01-02T21:46:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/european-union-economy-in-charts http://www.tutor2u.net/blog/index.php/economics/comments/european-union-economy-in-charts#When:10:37:00Z Here is an updated twenty five slide streamed presentation on macroeconomic developments in the 27 countries of the EU with a particular focus on the Euro Area and UK/EU comparisons. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, European Economy, EU Enlargement, The Euro, Macroeconomic Policies, OECD Economies, French Economy, German Economy, Greece Economy, Ireland Economy, Spain Economy, UK Economy, 2010-12-29T10:37:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/eu-has-to-reduce-its-import-barriers http://www.tutor2u.net/blog/index.php/economics/comments/eu-has-to-reduce-its-import-barriers#When:11:49:01Z The EU imposes tariffs on imports from China, Vietnam and Cuba, because it considers that they are not market economies. The World Trade Organisation allows importers to place extra duties on goods which are being ‘dumped’ on the world market - that is, being sold at a price which is below the price in the country of origin. These two issues came together at the beginning of 2009, when the EU decided to impose anti-dumping duties of up to 87 percent for the next five years on screws, nuts and bolts imported from China - but in mid-2009 China claimed to the WTO that the threshold price had been wrongly calculated, and that the tariff breaks international trade rules. Over a year later, the WTO has finally reached a decision in China’s favour, saying that the tariffs must be removed - marking a victory for China in its first WTO dispute against the European Union. In a trade dispute between the two, China has imposed its own tariffs on imports from the EU. This story, reported by the BBC and China Daily amongst others, gives evidence for the economic theory that import tariffs tend to lead to retaliation and there is a net reduction in trade - and also for the practical economics which shows that, however sensible the theory may sound, in practice countries often make decisions which suit their own domestic purposes. AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, Balance of Payments, Emerging Economies, China Economy, European Economy, Global Economy, International Trade, Macroeconomic Policies, Trade Policies, OECD Economies, Teaching of Economics, UK Economy, 2010-12-04T11:49:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/trying-to-overcome-deflation-in-japan http://www.tutor2u.net/blog/index.php/economics/comments/trying-to-overcome-deflation-in-japan#When:07:50:00Z The BBC’s Hugh Pym has been in Japan to understand better the deep problems facing a country that has been struggling with persistent deflation, slow growth and rising unemployment for many years. There is a link below to an excellent video piece which focuses on the challenges facing Japan given a rapidly ageing population. Here is the written article. Japan grapples with deflation and demographics What do 20 years of economic stagnation look like? (Aditya Chakrabortty writing in the Guardian) AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Economic Growth, Macroeconomic Policies, OECD Economies, Japan Economy, Teaching of Economics, 2010-12-01T07:50:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/using-google-docs-the-irish-financial-crisis http://www.tutor2u.net/blog/index.php/economics/comments/using-google-docs-the-irish-financial-crisis#When:17:58:00Z My Year 13 students have worked on a collaborative piece this week on the Irish financial and economic crisis. We considered the background to the crisis, why the UK is helping with the bail out and some of the consequences for the future stability of the Euro. The final version of the Google Doc is available to download here. A2_Macro_Irish_Crisis.pdf AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, European Economy, The Euro, Macroeconomic Policies, Keynesian Economics, OECD Economies, Ireland Economy, Teaching of Economics, UK Economy, Recession Watch, Credit Crunch, 2010-11-29T17:58:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/iland-shareholders-and-taxpayers-feel-the-pain http://www.tutor2u.net/blog/index.php/economics/comments/iland-shareholders-and-taxpayers-feel-the-pain#When:19:45:00Z On a scale of 1 to Ireland, how broke are you? In February 2007 The Bank of Ireland had a market capitalisation of over sixty billion euro. Market cap is the market value of a company’s issued share capital, i.e. the number of shares multiplied by the current price of those shares on the stock market. Today that market cap has collapsed - and as of this morning - With a market cap of $1.4bln, the bookmaker Paddy Power is now Ireland’s largest financial stock! Another perspective: Facebook’s latest stock market valuation is €105bn. Ireland’s annual GNP: €130bn. And low-cost airline Ryanair’s market cap tonight is nearly three times that of the entire Irish banking system! The destruction of shareholder value in the Irish banking system is immense - but the losses and debts of the banks have been socialised and are being borne by Irish taxpayers. The emergency budget will hit people tremendously hard - among the announcements: * €200 per household property tax for Ireland * VAT will rise twice to 23% * A cut in the national minimum wage in Ireland - cut by one euro to 7.65 euros per hour * Pay cuts in the private sector * The introduction of domestic water charges by 2014. Rumours that Steve Jobs is set to use some of Apple’s cash pile to purchase the country and re-brand it iLand appear to be a little wide of the mark!   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, European Economy, The Euro, Macroeconomic Policies, OECD Economies, Ireland Economy, Teaching of Economics, Credit Crunch, 2010-11-24T19:45:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/why-is-the-uk-helping-ireland http://www.tutor2u.net/blog/index.php/economics/comments/why-is-the-uk-helping-ireland#When:20:18:00Z This was a question posed this morning by one of my year 12 students and led to an interesting class discussion as to whether we should indeed be lending the Irish £7 billion. I’ve now found a BBC news video which will illuminate this topic further… AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, A2 Macro, AS Macro, European Economy, The Euro, OECD Economies, Ireland Economy, UK Economy, 2010-11-22T20:18:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/time-for-the-eagles-to-fly http://www.tutor2u.net/blog/index.php/economics/comments/time-for-the-eagles-to-fly#When:17:38:00Z Jim O’Neill at Goldman Sachs has been able to dine out for many years with his BRICs acronym - a tag for the emergence of four critically important economies in the global economic system. But is there a new acronym on the block? Economists at the Spanish bank BBVA have just published new research on a cluster of countries dubbed collectively as the EAGLES – each is an Emerging And Growth-Leading Economy, defined by its growth of GDP (incremental growth) rather than absolute size. This indicator is chosen in part because incremental demand is more relevant for new business opportunities including FDI flows. The founding 10 are China, India, Brazil, Korea, Indonesia, Russia, Mexico, Turkey, Egypt and Taiwan. According to the BBVA team, “This group will include any country which will contribute more to global GDP growth than the average of the largest developed economies during the next ten years…..” And nestled in there too is EAGLE’s nest, which included fledglings that might soon grow up to soar – Nigeria, Poland, South Africa, Thailand, Colombia, Vietnam, Bangladesh, Malaysia, Argentina, Peru and the Philippines. Download their report here AS and A2 Specifications, AQA Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, Global Economy, OECD Economies, Teaching of Economics, 2010-11-15T17:38:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/fix-the-budget-us-style http://www.tutor2u.net/blog/index.php/economics/comments/fix-the-budget-us-style#When:12:15:00Z A hat tip to Shani Hartley for spotting this fantastic resource from the New York Times. Readers are invited to survey a large number of policy options that might either control fiscal spending or raise extra tax revenues. Checking the boxes you prefer feeds through to deficit reduction and fiscal packages can be shared online. Here is the link. Macroeconomic Policies, Fiscal Policy, OECD Economies, US Economy, Teaching of Economics, 2010-11-15T12:15:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a-hip-hop-take-on-currency-wars http://www.tutor2u.net/blog/index.php/economics/comments/a-hip-hop-take-on-currency-wars#When:18:02:00Z A hat tip to Brian Rafferty for spotting this super hip hop take on the unspoken currency war between the United States and China. Check out the US-Sino Currency Battle! AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, China Economy, Exchange Rates, OECD Economies, US Economy, Teaching of Economics, 2010-11-14T18:02:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/tea-with-the-economist-stephen-king http://www.tutor2u.net/blog/index.php/economics/comments/tea-with-the-economist-stephen-king#When:20:50:00Z Stephen King, Chief Global Economist of HSBC is a good friend of Tutor2u having appeared at several of our recent teacher conferences. He has a terrific grasp and feel for some of the salient global shifts in economic power and influence and he speaks in this video to The Economist about the growing demand for scarce resources from fast growing emerging markets and the challenges this poses for the West. AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Cycles and Shocks, Global Economy, Oil and Gas, OECD Economies, Teaching of Economics, 2010-10-13T20:50:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/here-we-go-again-high-tariffs-and-currency-wars http://www.tutor2u.net/blog/index.php/economics/comments/here-we-go-again-high-tariffs-and-currency-wars#When:09:37:01Z In 1930 the Hawley-Smoot Tariff Act was passed by the Republican-controlled House of Representatives. It was an attempt (by increasing tariffs) to ease the effects of the Great Depression but in fact it made it worse. Recently the House of Representatives passed legislation aimed at imposing trade sanctions against China unless it allows its currency to appreciate, thus diminishing its export advantage. Furthermore Treasury Secretary Tim Geithner warned against currency policies that might intensify “short-term distortions in favour of exports.” A2 Macro, AS Macro, Global Economy, International Trade, Macroeconomic Policies, Monetary Policy, OECD Economies, US Economy, Teaching of Economics, 2010-10-09T09:37:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/irish-economy-sinks-deeper-into-recession http://www.tutor2u.net/blog/index.php/economics/comments/irish-economy-sinks-deeper-into-recession#When:14:52:00Z The latest growth figures for the ailing Irish economy make for sorry reading. National output continues to shrink and this is reducing the size of the tax base from which the government draws revenue to pay off the huge level of debt. This BBC news video provides a background on the debt-recession spiral.   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, OECD Economies, Ireland Economy, Teaching of Economics, UK Economy, Credit Crunch, 2010-09-26T14:52:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/what-would-adam-smith-think-of-a-graduate-tax http://www.tutor2u.net/blog/index.php/economics/comments/what-would-adam-smith-think-of-a-graduate-tax#When:06:40:01Z The Institute of Directors reports that a graduate tax would be bad for the UK’s competitiveness. How well would a Graduate Tax fare when scrutinised by Adam Smith? He developed his four Canons of Taxation to determine how ‘good’ a tax will be. The four are: 1. The cost of collection must be low relative to the yield 2. The timing and amount to be paid must be certain to the payer (It should all be open and above board and clearly set out so that people know what their obligations will be.) 3. The means and timing of payment must be convenient to the payer 4. Taxes should be levied according to ability to pay However much the undergraduates of the future may dislike the idea, a direct tax which is collected with standard income tax and based on the level of income generated by those with degrees would seem to meet those pretty well. Government Intervention, Government Failure, Macroeconomic Policies, Fiscal Policy, Supply-side policies, OECD Economies, Greece Economy, UK Economy, 2010-09-22T06:40:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-economic-growth-charts http://www.tutor2u.net/blog/index.php/economics/comments/a2-macro-economic-growth-charts#When:19:50:00Z We started our teaching this year by looking at issues related to measuring living standards and now we are moving onto aspects of the causes and consequences of economic growth. I like to put growth into some kind of context by drawing on recent UK cyclical data and growth information for a range of other countries. I have attached a brief powerpoint of such charts with this blog which may be of some use for colleagues. One of the interesting trends for many OECD countries is that estimated trend growth (the % change in potentail) GDP has fallen sharply in recent years. Indeed for Spain and Ireland, trend growth estimates have dropped into negative territory. Mo’s recent blog on hysteresis links in part to why this is happening. Download the A2 Macro Growth Charts Economic_Growth_Charts.pptx AS and A2 Specifications, AQA Economics Unit 4, EdExcel Economics Unit 4, A2 Macro, Emerging Economies, Cycles and Shocks, Economic Growth, OECD Economies, Ireland Economy, Japan Economy, Spain Economy, US Economy, Teaching of Economics, UK Economy, Recession Watch, Credit Crunch, 2010-09-21T19:50:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/hysteresis1 http://www.tutor2u.net/blog/index.php/economics/comments/hysteresis1#When:17:45:01Z The idea of hysteresis from the current recession is well illustrated in this article. Millions of Americans risk falling out of the job market forever, the Organisation for Economic Co-operation and Development said today, as it cautioned a full recovery will take years. This recession has left the US with a long-term unemployment rate - a measure of those without work for more than six months - of 4.5pc, almost double that seen in the downturns of the 1980s and 1990s… Read more here. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Cycles and Shocks, Aggregate Supply, OECD Economies, US Economy, Unemployment, Credit Crunch, 2010-09-21T17:45:01+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/us-recession http://www.tutor2u.net/blog/index.php/economics/comments/us-recession#When:18:48:00Z The U.S. recession will probably be the longest since World War Two and could worsen without heavy government spending, according to a closely-watched survey of economists released on Saturday. Read more here… AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Global Economy, OECD Economies, US Economy, Recession Watch, 2010-09-20T18:48:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/currencies-in-the-news-two-videos http://www.tutor2u.net/blog/index.php/economics/comments/currencies-in-the-news-two-videos#When:10:08:00Z Movements in the external value of currencies have direct and indirect effects on plenty of macroeconomic variables such as inflation, exports, output, profits and - ultimately - jobs. This week we have seen the Japanese central bank intervening in the foreign exchange market in an attempt to drive the value of the Yen lower. Japan is struggling to sustain a recovery after the global financial crisis and a weaker currency is seen as a vital part of the attempt to prevent another draining bout of price deflation. And the long-running dispute between the United States and China about the alleged under-valuation of the Yuan against the US dollar continues to rumble. This BBC news video takes a swing through New Jersey to find trade unions lobbying government for more action on the exchange rate issue. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, Emerging Economies, China Economy, Cycles and Shocks, Exchange Rates, Global Economy, Credit Crunch, International Trade, Macroeconomic Policies, Monetary Policy, OECD Economies, Japan Economy, US Economy, Teaching of Economics, 2010-09-16T10:08:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/greek-brain-drain http://www.tutor2u.net/blog/index.php/economics/comments/greek-brain-drain#When:20:33:00Z There is evidence today for the theory that an inhospitable macroeconomic climate will drive some of the more valuable labour resources out of a nation’s economy. The International Herald Tribune reports on the exodus of young graduates from Greece, in search of employment opportunities elsewhere. A number of reasons are given; a deepening recession, a job market already crippled by an entrenched culture of cronyism, a national debt which is larger than Greece’s gross domestic product suggesting that years of austerity budgets lie ahead and finally a string of political corruption scandals has left many young Greeks disillusioned about the future. AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, European Economy, Macroeconomic Policies, OECD Economies, Greece Economy, UK Economy, 2010-09-15T20:33:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/policies-for-long-term-unemployed-in-denmark http://www.tutor2u.net/blog/index.php/economics/comments/policies-for-long-term-unemployed-in-denmark#When:11:42:00Z Here is an intersting clip from the New York Times website that looks at the Danish model for dealing with the unemployed. In Denmark unemployment is at 4.2% which is well below the EU average of 9.7%. When you become unemployed you are guaranteed 70% of your income for 2 years – was 4 years before the financial crisis. They also spend big money on education and training. How do they fund this? Income tax rates range from 42.9% – 63% and not surprisingly it is the most taxed country in the world. Click here to go to the video on the NYT site AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, A2 Macro, AS Macro, European Economy, Macroeconomic Policies, OECD Economies, Unemployment, 2010-09-12T11:42:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/macroeconomic-developments-in-the-uk-economy-september-2010 http://www.tutor2u.net/blog/index.php/economics/comments/macroeconomic-developments-in-the-uk-economy-september-2010#When:21:29:00Z Here is an updated version of the keynote tutor2u teacher presentation on key developments in the UK Economy… AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR AS Economics Unit F582, A2 Macro, AS Macro, Global Economy, Macroeconomic Policies, Fiscal Policy, Monetary Policy, Supply-side policies, Trade Policies, OECD Economies, Teaching of Economics, UK Economy, Recession Watch, 2010-09-04T21:29:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/greece-smoking-ban http://www.tutor2u.net/blog/index.php/economics/comments/greece-smoking-ban#When:07:55:00Z A new law has come into force this week in Greece banning smoking in enclosed public spaces and tobacco advertising. It is estimated that more than 40% of Greek adults smoke - well above the EU’s average of 29% - which is perhaps why at a time of fiscal austerity, it is surprising/impressive that the Greek government have pursued this policy. Cigarettes bring in a significant amount of tax revenue (either via indirect or corporation taxes) which will be lost. But then maybe it will save a lot more money via its health bill. (or maybe they are just hoping people will flaunt the rules and collect fines!). Having said this, this latest attempt to stop smokers, is its 4th attempt in a decade - following a tobacco ban in public places on July 1 of this year too. The demand for habit-forming goods is too inelastic to go away overnight… AS and A2 Specifications, AQA Economics Unit 1, EdExcel Economics Unit 1, AS Micro, European Economy, Single Market, Government Intervention, Indirect Taxes, Minimum Prices, Health Economics, Market Failure, De-Merit Goods, Externalities, Information Failure, OECD Economies, Greece Economy, Market Equilibrium and Price, Nature of Supply, Price Mechanism in Action, Teaching of Economics, 2010-09-03T07:55:00+00:00 http://www.tutor2u.net/blog/index.php/economics/comments/autumn-leaves-are-falling-for-the-global-economy http://www.tutor2u.net/blog/index.php/economics/comments/autumn-leaves-are-falling-for-the-global-economy#When:07:04:00Z The arrival of the Fall is often a time to take stock of where the global economy is heading and there have been several perceptive and fascinating blogs on this in recent days.   AS and A2 Specifications, AQA Economics Unit 2, AQA Economics Unit 4, EdExcel Economics Unit 2, EdExcel Economics Unit 4, OCR A2 Economics Unit F585, A2 Macro, AS Macro, Emerging Economies, Indian economy, Global Economy, IMF, Credit Crunch, Macroeconomic Policies, OECD Economies, Teaching of Economics, UK Economy, Recession Watch, 2010-09-02T07:04:00+00:00