...decision to purchase a home is often the most important financial decision and individual or family will be faced with. The largest single financial purchase in an individual's lifetime is often the purchase of a house and one of the largest factors of personal wealth. All ten of the principles of economics are directly related to the decision to purchase a house on some level. These economic principles will have an impact on the purchasing decision and the long term financial aspects of home ownership so it is wise to incorporate these ten principles into the decision making process to ensure a sound financial decision is the outcome. When considering the purchase of a house, the ten principles of economics that need to be addressed can be broken down into three stages of the decision making process. The first step is to examine how the decision is made by incorporating the first four principles of economics which include, the trade off that comes with every financial decision, the real cost of any item or service is what is given up to get the item or service, rational people think at the margin, and people respond to incentives. Once it is clear how the decision is made, the next three principles of economics address how people interact with economics and include factors such as, trade is beneficial to everyone, markets are a good way to organize economic activity, and the government can improve the markets with fiscal policy and all three will have an impact on...
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...Economic and Financial Outlook in 2015 External Shocks Creating New Opportunities FSDH Research January 2015 Economic and Financial Outlook: 2015-2019 1.0 Global Economic Growth: According to the World Economic Outlook (WEO) Update of the International Monetary Fund (IMF), January 2015 Edition, the global economic growth is forecast at 3.5% and 3.7%, for 2015 and 2016 respectively. The forecasts were reviewed downward by 0.3% The IMF forecasts a global economic growth of 3.5% and 3.7% for 2015 and 2016 respectively. relative to the October 2014 WEO. The revisions reflect a reassessment of prospects in China, Russia, the Euro-area, and Japan as well as the weaker activity in some major oil exporters because of the sharp drop in oil prices. The United States (U.S.) is the only major economy for which growth projections have been raised upward. The IMF added that the global growth will receive a boost from the lower oil prices. However, this boost is projected to be more than offset by the negative factors, including investment weakness as adjustment to diminished expectations about medium-term growth continues in many advanced and emerging market economies. The U.S. is expected to grow by 3.6% in 2015 and slow down to 3.3% in 2016, supported by domestic demand due to lower oil prices, more moderate fiscal adjustment, and The U.S. is expected to grow by 3.6% in 2015 and slow down to 3.3% in 2016. continued support from an accommodative monetary policy stance...
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...Please cite this note as: OECD (2014), “OECD forecasts during and after the financial crisis: A Post Mortem”, OECD Economics Department Policy Notes, No. 23 February 2014. OECD FORECASTS DURING AND AFTER THE FINANCIAL CRISIS: A POST MORTEM OECD Economics Department Policy Note no. 23 February 2014 This Policy Note is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. © OECD 2014 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted...
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...…………………………………………………………………….....1 Analysis of the Financial Crisis and Emerging Markets………………………….1 Conclusions………………………………………………………………………..8 List of Tables and Figures…………………………………………………….......9 References……………………………………………………………………......10 Introduction In the last years we all heard about financial crisis, economic crisis or even strong words like recession or depression. The goal of this paper is to define these terms and to analyze the effects that they produce in the economy. Another objective is to understand the emerging markets and compare then with developed economies. The effects of the crisis are different from country to country but also have some similarities at a global level. I. Analysis of the Financial Crisis and Emerging Markets The term financial crisis is used when financial institutions or assets suddenly lose a large part of their value. This can result in a loss of paper wealth and not as a change in the real economy, unless a recession or depression follows which is the case here. So we can say that the recession is the result of the financial crisis that started in U.S in 2008 from the burst of housing bubble and the subprime lending. There are more types of financial crises: banking crises (bank runs – when depositors withdraw their money suddenly. This type of behavior can result in bankruptcy), speculative bubbles and crashes (when a financial asset price exceeds the present value of future income...
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...The impact of the global financial crisis on social services TABLE OF CONTENTS EXECUTIVE SUMMARY ......................................................................................................... 1 1. 2. Introduction ...................................................................................................................2 Background: an overview of the financial crisis........................................................ 4 2.1 2.2 2.3 Origins of the global financial crisis .....................................................................................4 Impacts on the real economy...............................................................................................4 Implications for the economic outlook..................................................................................5 Macroeconomic overview ....................................................................................................6 Key impacts on low-income households............................................................................13 The social services sector..................................................................................................17 Services provided to individuals and families ....................................................................21 Capacity of the system to deliver .......................................................................................27 3. Australia’s economic outlook .........................
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...99/14 11 FEBRUARY 1999 The Asian Economic Crisis This paper considers the economic crisis that began in the financial markets of South East Asia in 1997 and the consequences for the economies of the region and the rest of the world. The paper provides a chronology of and explores the factors that led to the crisis. An overview is given of the policy measures that the international financial institutions (IFIs), such as the IMF, have taken to deal with the crisis. Some of the arguments and policy proposals made to try to avoid future crises are also covered. Eshan Karunatilleka ECONOMIC POLICY AND STATISTICS SECTION HOUSE OF COMMONS LIBRARY Recent Library Research Papers include: 98/119 98/120 99/1 Unemployment by Constituency - November 1998 Defence Statistics 1998 The Local Government Bill: Best Value and Council Tax Capping Bill No 5 of 1998-99 16.12.98 22.12.98 08.01.99 99/2 99/3 99/4 Unemployment by Constituency - December 1998 Tax Credits Bill Bill 9 of 1998-9 The Sexual Offences (Amendment) Bill: 'Age of consent' and abuse of a position of trust [Bill 10 of 1998-99] 13.01.99 18.01.99 21.01.99 99/5 99/6 99/7 The House of Lords Bill: 'Stage One' Issues Bill 34 of 1998-99 The House of Lords Bill: Options for 'Stage Two' Bill 34 of 1998-99 The House of Lords Bill: Lords reform and wider constitutional reform Bill 34 of 1998-99 28.01.99 28.01.99 28.01.99 99/8 99/9 99/10 99/11 99/12 Economic Indicators Local Government Finance Settlement:...
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...Economy September 2010 UAE Economic Outlook 2010 UAE Economic Outlook 2010 GDP expected to grow in 2010 Inflation expected to drop to 0.4% in 2010 UAE struggled to post a budget surplus in 2009 Dubai World reaches agreement to restructure its debt UAE GDP expected to grow by 0.6% in 2010 The global recession, which started in Q4-2008, halted UAE‟s economic growth significantly. After a 7.5% growth in real GDP in 2008, UAE‟s GDP increased by only 1.3% to reach AED515bn in 2009. Despite the global recession, the non-oil GDP grew by 8.4% in 2009. Due to the decrease in oil prices and production, the non-oil sector contributed 71% of the GDP in 2009 compared to 66% during the previous year. Overall Broad Money supply decreased by 0.3% as of Q2-2010; grew by 5.4% in 2009 The UAE government implemented expansionary monetary and fiscal policies to stimulate aggregate demand in 2009. Due to the effects of the recession on the economy, the UAE government wanted to expand the money supply and encourage growth. Money Supply (M1) and Broad Money (M2) grew by 3.7% and 2.2% respectively, while the overall broad money (M3) decreased by 0.25% as of Q2-2010 due to a decrease in government deposits. UAE maintained a budget surplus for its fifth consecutive year The budget surplus in recent years was largely credited to high gas and oil profits due to high oil prices. Total government revenue was almost AED293bn for 2009, a decline of 35% from the previous year, while hydrocarbon...
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...will first briefly review the U.S. and global economic outlook. I will then discuss the basic rationale underlying the Federal Reserve's recent policy decisions and place these actions in an international context. what happens when there is a surplus of imports brought into the U.S.? what is a specific product with an import surplus, and the impact that has on the U.S. businesses and consumer involded. The U.S. economy has faced significant headwinds, and, although the economy has been expanding since mid-2009, the pace of our recovery has been frustratingly slow. The headwinds include the effects deleveraging by households, the still-weak U.S. housing market, tight credit conditions in some sectors, spillovers from the situation in Europe, fiscal contraction at all levels of government, and concerns about the medium-term U.S. fiscal outlook. In this environment, households and businesses have been quite cautious in increasing spending. Accordingly, the pace of economic growth has been insufficient to support significant improvement in the job market; indeed, the unemployment rate, at 7.8 percent, is well above what we judge to be its long-run normal level. With large and persistent margins of resource slack, U.S. inflation has generally been subdued despite periodic fluctuations in commodity prices. Consumer price inflation is running somewhat below the Federal Reserve's 2 percent longer-run objective, and survey- and market-based measures of longer-term inflation expectations...
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...made the better choice? ------------------------------------------------- Contents 1. Introduction to the financial crisis 2 2. Conditions leading up to the Irish and Icelandic economic crisis 3 2.1 The business cycle 3 2.2 The era of the Irish ‘Celtic Tiger’ 4 2.3 The ‘Financial Vikings’ of Iceland 5 3. Financial crisis response 6 3.1 Government response to the financial crisis 6 3.2 The default decision 10 4. Economic outlook and long-term repercussions 14 5. Conclusion 18 1. Introduction to the financial crisis The Great Recession began in 2007 as the United States housing market fell into a sharp decline. Many economists consider the resulting financial crisis to be the worst financial crisis since the Great Depression. While the crisis can be traced back to a variety of economic origins, the volatility that existed in the world economy from the 1990’s undoubtedly played a large role (Roubini, 2010). The Asian Crisis that arose after the fall of car manufacturer Kia in 1997 and the burst of the Dotcom Bubble in the early 2000’s resulted in many wealthy countries decreasing interest rates to all-time lows to encourage growth in their economies (Roubini, 2010). These low interest rates led consumers, particularly those in the US, to borrow more money than they could afford to repay (Roubini, 2010). During the financial crisis, credit defaults brought the solvency of a number of major international banks into question, and several governments...
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...Developed Countries: 2 Emerging Markets: 2 Risks to the Global Economy 3 Exit Strategy from Policy Stimulus 4 Repair and reform of the financial sector 4 Fiscal Crises and underinvestment in Infrastructure 4 Socio and Political Implications of Unemployment and Private Demand 5 Asset Price Collapse and the risk appetite of investors 5 Return to Previous Growth Path or Not 5 Will the current crises be “DÉJÀ VU ‘” for the world wide economy? 6 Fundamental Changes in Origins & Nature of Economic Activity 6 Global warming / Climate Change: 7 Population Growth: 7 Power shift to the east: 7 Innovation: 7 Economic Activity: 7 Impact of Global Crisis on South Africa’s Growth Outlook 8 Conclusion 8 BIBLIOGRAPHY: 10 STRENGTH OF THE RECOVERY All of the world’s high-income countries returned to positive real GDP growth during the fourth quarter of 2009 and the Economist Intelligence Unit’s forecasts for 2010 indicate a return to marginally below the growth trajectory that was achieved prior to the recession. Developed Countries: UNITED STATES Economic recovery in the US has been remarkably strong, with fourth quarter real GDP growth of almost 6% suggesting the presence of a “V”-shaped trend. Further, news emanating from recently published official data includes a recovery of private sector investment in capital formation, particularly on information technology software and machinery & equipment. A recovery of growth in labour markets has also been reported, with the...
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...Asian Development Outlook 2015 Highlights The full report is available on the ADB website at http://www.adb.org/ado2015 About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to approximately two-thirds of the world’s poor: 1.6 billion people who live on less than $2 a day, with 733 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. ASIAN DEVELOPMENT OUTLOOK 2015 FINANCING ASIA’S FUTURE GROWTH HIGHLIGHTS ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org ASIAN DEVELOPMENT BANK ASIAN DEVELOPMENT OUTLOOK 2015 Financing asia’s future GROWTH HIGHLIGHTS EVELOPMENT BANK ASIAN DEVELOPMENT BANK Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2015 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 632 4444; Fax +63 2 636 2444 www.adb.org; openaccess.adb.org OARsupport@adb...
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...Outlook for 2012 Highlights • 2011 proved an extremely volatile year, largely due to ongoing uncertainty surrounding the eurozone sovereign debt situation Growth has slowed throughout the year, with the International Monetary Fund (IMF) cutting its 2011 Gross Domestic Product (GDP) economic growth forecast for Western economies from 2.5% to 1.6% Developed economies – with the US a major exception - are engaged in austerity measures while the emerging world is looking to dampen its much stronger growth to stave off any threat of inflation Any improvement next year rests largely on the eurozone finding an appropriate solution to its problems Against this background, many investors have fled to what they saw as safe havens, forcing gold prices to record highs and government bonds yields to generational lows Short-termism is rife in such volatile markets, creating opportunities in some asset classes for investors who can take a longer-term view Equities currently look to offer the best value, with many corporates in solid financial shape after applying their own austerity measures amid the credit crunch. Strong balance sheets are allowing ongoing dividend growth Share valuations remain low, reflecting the muted economic outlook in the West. This ignores two key factors: that many Western companies have growing Eastern earnings exposure, and the potential for emerging market equities to benefit from the region’s stronger macro outlook Core Western government bonds represent poor...
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...Labour Markets ------------------------------------------------- ------------------------------------------------- FIRST REPORT – 2013 ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Submission 27/03/2013 Contents Page: Front Cover………………………………………………………….Page 1 Contents Page………………………………………………………Page 2 Questions...…………………………………………………………Page 3 Part One…………………………………………………………….Pages 4-9 Part Two…………………………………………………………….Pages 10-15 Bibliography……………………………………………………….Pages 16-21 Questions Country Case Study You are required to write a 2000 word report which provides a critical assessment of the labour market of a particular country. You will be allocated the country in the seminar in week 1. If you have not attended this seminar, then you need to consult the module leader to obtain the country you will cover. Part 1 of the report (worth 40% of the marks) requires you to provide a statistical profile of your allocated country’s labour market and present an overview of the most important trends and developments in this country’s labour market over the past decade. Part 2 of the report (worth 60% of the marks) requires you to provide a critical review of the particular situation in your country of NEETs – young people not in employment, education or training. Specifically, using appropriate economic concepts...
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...2008 to December 2008. This was the midst of the Great Recession, though by looking at the statements from the FED, one wouldn’t tell. The statements from the Federal Open Market Committee in the months June, August and September show relatively ‘calm economic weather’ with a mildly negative outlook. It’s not until the unscheduled meeting of October 8 2008 that the committee mentions a financial crisis. In this narrative, you’ll find the statements from the first three months grouped together and the statements from the second three months grouped together. June – September 2008 The press releases in June, August and September of 2008 are largely similar in terms of the message they convey, and even use the same sentences in big parts of the statements. In the following tables you’ll find a summary of the description of the current economic activity, the future economic expectations and the policies pursued by the FED. In the paragraphs below you’ll find further detail to the economic situation described in each statement. Current economy: | June 2008 | August 2008 | September 2008 | Economic activity | Continues to expand | Expanded in the second quarter | Economic growth appeared to have slowed | Labor markets | Continue to soften | Have softened further | Have weakened further | Financial markets |...
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...and developing economies continues to be strong. Overall, the global economy expanded at an annualized rate of 4.3 percent in the first quarter, and forecasts for 2011–12 are broadly unchanged, with offsetting changes across various economies. However, greater-than-anticipated weakness in U.S. activity and renewed financial volatility from concerns about the depth of fiscal challenges in the euro area periphery pose greater downside risks. Risks also draw from persistent fiscal and financial sector imbalances in many advanced economies, while signs of overheating are becoming increasingly apparent in many emerging and developing economies. Strong adjustments—credible and balanced fiscal consolidation and financial sector repair and reform in many advanced economies, and prompter macroeconomic policy tightening and demand rebalancing in many emerging and developing economies—are critical for securing growth and job creation over the medium term. The global economy has continued to expand Despite some negative surprises, global growth attained an annualized rate of 4.3 percent in the first quarter of 2011, broadly as expected in the April 2011 World Economic Outlook (Figure 1, top panel; Table 1). The outturn was underpinned by many unanticipated offsetting factors. Key among the negative surprises was the devastating effect of the earthquake...
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