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Interpreting Macroeconomic Conditions

In: Business and Management

Submitted By tocarlos
Words 1546
Pages 7
We live in a global economy. There are trading exchanges all over the world, i.e. China, Tokyo, Brazil, Russia, India, Australia, London, etc. The stock exchanges in China and Brazil are some of the largest in the world. Everybody in the world can access securities exchanges via the Internet. The dollar is weak right now. Europe has a debt crisis and the Euro is not so stable. Not long ago, one of Europe’s leading independent forecasters for the Treasury asserted that the Euro could collapse as a result of Europe’s debt crisis. The European Central Bank’s Governing Council Member asserted that it is not up to the bank to save countries where governments run the risk of being insolvent.
Germany had good growth in 2010 but their economic model is centered on exports, i.e. cars and machines. Asia (China) drove Germany’s growth in 2010. Can Germany sustain their economic model since other European countries have stagnant economies re: exports and imports? The European debt crisis has pushed the Euro down which has made German exports more competitive. Right now, US exports are even better than German exports because the US dollar is weak, too. Since Germany appears to be in the best economic position in Europe more people are putting capital in Germany when investing in Europe. German exporters could take a huge hit if Europe’s debt crisis runs into other European countries.
Unemployment rates were lower in April than a year earlier in 297 of the 372 metropolitan areas, higher in 54 areas, and unchanged in 21 areas, the U.S. Bureau of Labor Statistics reported today. Twelve areas recorded jobless rates of at least 15.0 percent, while 16 areas registered rates of less than 5.0 percent.
Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 1.8 percent

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