...Fundamentals of Macroeconomics There are many terms that are important to understand when it comes to the fundamentals of Macroeconomics. Gross domestic product, (GDP) refers to the values of all goods and services produced within a country, including all of the countries exports, during a given period of time, usually annually. Real GDP or gross domestic product is an inflation-adjusted measure that reflects the value of all goods and services produced in a given year expressed in base-year prices. Nominal GDP is a gross domestic product figure that has not been adjusted to reflect inflation. The unemployment rates are the percentage of people actively seeking and willing to work, but are unemployed among the labor force. Inflation rate refers to the rate at which the prices for goods and services rise, while purchases decline. Interest rate is the amount that is charged, usually annually, by a lender to the borrower in exchange for the money or asset to be used, in addition to the principle amount. Economic Activities In the United States, there are many economic activities that affect the government, households, and businesses. For example, activities such as purchasing groceries directly affect households by providing the supply for the aggregate demand of food that is needed for people and families. This has an affect on households because the consumer needs to eat, therefore buy groceries. Purchasing of groceries also has an affect on the business that the groceries...
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...Macroeconomic and Microeconomic environment Macroeconomics looks at aspects of economies as a whole instead of the individual markets, basically a study looking at the bigger picture of the economy. Offering a broader focus is probably the most important difference between microeconomics and macroeconomics. This branch of economics is one of the two most general fields, particularly looking at the structure, behaviour, decision-making and performance of national, regional and global economies. Through the study of aggregated indicators, macroeconomists understand the functioning of whole economies. By using GOP, unemployment rates and price indices an explanation can be made in regards to the relationships between national income, current unemployment levels, changes in employment, pricing levels, inflation, savings, investment, international trade and the rate of growth. Even though there is a broad field of study where macroeconomics is concerned, two areas of research are of utmost importance: * Understanding the causes and consequences of the business cycle, which include fluctuations in trade, economic activity and trade during periods of rapid economic growth and periods of decline. * Understanding the demands of a particular product, service or commodity during a long period of time in which national income increases. Macroeconomics enables large corporations and governments to analyse variables and behaviour's to find answers to questions such as...
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...Public Debt 8 Recent developments with regard to the sovereign debt situation of countries ranging from Iceland to the United Arab Emirates, and more recently, of countries in the Euro‐zone, most prominently Greece, have been a rude awakening for global financial markets. After a protracted period of benign neglect, policymakers as well as investors are beginning to scrutinize more carefully the health of sovereign public finances. Lessons from previous debt crises are being re‐learnt. Escalating public debt does not bode well for macro‐economic stability and growth as it exerts upward pressure on interest rates and crowds‐out domestic private investment. For developing countries, the higher interest cost associated with domestic debt places a substantial strain on budgetary resources, with a negative spill‐over effect on social sector and development outlays and a slowdown in growth momentum. For external debt, creditors may charge a lower interest rate (as is the case with most multilateral and bilateral donors), but the exchange rate risk inherent in the accumulation of foreign currency debt leaves a country vulnerable to developments on the external account and in international markets. Therefore, policymakers are faced with choices not only of what levels of public debt to accumulate, but also the composition of the portfolio with regards to source...
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...Focus THE CAUSES OF THE FINANCIAL CRISIS1 MARTIN HELLWIG* Introduction For the media in Germany, the cause of the financial crisis is obvious: Blinded by greed, bank managers thought only about their bonuses and miscalculated badly in betting on American subprime mortgages when the very name of these securities should have alerted them to their risks. If an economist suggests that the matter might be more complicated, he is denounced as a homo exculpans, a person who will excuse anything that managers do.2 If we look at the numbers, however, we see that there is something more to be explained. According to the Global Financial Stability Report of the International Monetary Fund (IMF) of October 2008, losses on non-prime mortgage-backed securities in US residential real-estate amount to some 500 billion dollars. This figure is both too small and too large. The figure is too small in the sense that losses of 500 billion dollars by themselves cannot explain why the financial system worldwide has been so devastated by the crisis. Around 1990, losses of savings and loans institutions in the United States were said to amount to some 600 to 800 billion dollars. A decade later, losses on NASDAQ and on the New York Stock Exchange amounted to 1.6 trillion dollars in the calendar year 2000, 1.4 trillion dollars in the calendar year 2001, and again 2.7 trillion dollars in the calendar year 2002. Neither episode caused a worldwide financial crisis. At the same time, the figure of 500...
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...Human Development Index 1 Human Development Index The Human Development Index (HDI) is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development. It was created by the Pakistani economist Mahbub ul Haq and the Indian economist Amartya Sen in 1990[1] and was published by the United Nations Development Programme.[2] World map by quartiles of Human Development Index in 2013. Origins The origins of the HDI are found in the annual Development Reports of the United Nations Development Programme (UNDP). These were devised and launched by Pakistani economist Mahbub ul Haq in 1990 and had the explicit purpose "to shift the focus of development economics from national income accounting to people-centered policies". To produce the Human Development Reports, Mahbub ul Haq brought together a group of well-known development economists including: Paul Streeten, Frances Stewart, Gustav Ranis, Keith Griffin, Sudhir Anand and Meghnad Desai. Working along with Nobel laureate Amartya Sen, they worked on capabilities and functionings that provided the underlying conceptual framework. Haq was sure that a simple composite measure of human development was needed in order to convince the public, academics, and policy-makers that they can and should evaluate development not only by economic advances but also improvements in human well-being. Sen initially opposed this idea, but he went on to help Haq develop the Index...
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...1 SPRING, 2014-2015 SCIENCE AND INFORMATION TECHNOLOGY Class Id 00001 00002 00003 00004 00005 00006 Course Name ADVANCED COMPUTER NETWORKS LABORATORY ADVANCED COMPUTER NETWORKS LABORATORY ADVANCED COMPUTER NETWORKS LABORATORY ADVANCED COMPUTER NETWORKS LABORATORY ADVANCED TOPICS IN PROGRAMMING III LABORATORY ALGORITHM LABORATORY 00007 00008 00009 00010 00011 00012 00013 00014 00015 00016 00017 00018 ALGORITHM LABORATORY ALGORITHM LABORATORY ALGORITHM LABORATORY ALGORITHM LABORATORY ALGORITHM LABORATORY ALGORITHM LABORATORY ARTIFICIAL INTELLIGENCE AND EXPERT SYSTEM LABORATORY ARTIFICIAL INTELLIGENCE AND EXPERT SYSTEM LABORATORY ARTIFICIAL INTELLIGENCE AND EXPERT SYSTEM LABORATORY ARTIFICIAL INTELLIGENCE AND EXPERT SYSTEM LABORATORY COMPUTER GRAPHICS LABORATORY COMPUTER GRAPHICS LABORATORY 00019 00020 00021 COMPUTER GRAPHICS LABORATORY COMPUTER GRAPHICS LABORATORY COMPILER DESIGN A D C B A D C B A G F E D C B A A B C D Sec A Time 12:0-2:0 11:0-2:0 10:0-12:0 11:0-2:0 4:0-6:0 2:0-5:0 4:0-6:0 5:0-8:0 4:0-6:0 5:0-8:0 08:0-10:0 08:0-11:0 10:0-12:0 08:0-11:0 12:0-2:0 11:0-2:0 2:0-4:0 2:0-5:0 08:0-10:0 08:0-11:0 4:0-6:0 08:0-11:0 4:0-6:0 5:0-8:0 2:0-4:0 2:0-5:0 4:0-6:0 11:0-2:0 12:0-2:0 11:0-2:0 4:0-6:0 5:0-8:0 08:0-10:0 08:0-11:0 10:0-12:0 08:0-11:0 12:0-2:0 11:0-2:0 2:0-4:0 2:0-5:0 12:30-2:0 Day T S W M S T T S M W S T M W T S W M M W W TH S T T S T TH W M M W W M T S W M T S ST RM 441 CL8 441 CL8 441 CL8 422 CL7 424 CL5 441 CL3 441 CL2 431 CL3 431 CL3 434 CL6 434 CL6 424 CL3 441 CL4...
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...Economic Modelling 30 (2013) 643–662 Contents lists available at SciVerse ScienceDirect Economic Modelling journal homepage: www.elsevier.com/locate/ecmod The effects of fiscal spending shocks on the performance of simple monetary policy rules Ali K. Malik ⁎ Karachi School for Business and Leadership (KSBL), Bahadurabad, National Stadium Road, Karachi 74800, Pakistan a r t i c l e i n f o Article history: Accepted 26 August 2012 JEL classification: E50 E52 E58 Keywords: Fiscal policy Monetary policy Inflation targeting Impulse response analysis Macroeconomic variables 1. Introduction a b s t r a c t We examine the effects of fiscal shocks on the performance of alternative monetary policy rules in a small dynamic general equilibrium framework. We explicitly consider the interaction between fiscal and monetary policy rules which may be present in the real world. We use a simple specification for the fiscal policy rule and various specifications for the (simple) monetary policy rule. Our analysis suggests that some form of flex- ible inflation targeting regime would perform well in response to fiscal shocks compared to other forms of policy regimes. © 2012 Elsevier B.V. All rights reserved. monetary policy has developed largely in isolation. The terminology ‘fiscal theory of the price level’ does however correspond to some ear- Monetary policy rules have come under extensive examination in the literature on monetary...
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...pResented by the society of ActuARies, the cAsuAlty ActuARiAl society And the cAnAdiAn institute of ActuARies Risk Management: The Current Financial Crisis, Lessons Learned and Future Implications Copyright 2008 by the Society of Actuaries. R I s k M a n a g e M e n T: the current financial crisis, lessons learned and future implications introduction the current financial crisis presents a case study of a “financial tsunami” (as former federal Reserve chairman Alan Greenspan recently called it) on what can go wrong. its ramifications are far-reaching and the lessons learned will be embedded in risk management practices for years to come. As one of the premier enterprise risk professions in practice today, the actuarial profession is sharing its substantial insight into what went wrong and the implications for the future. on behalf of the society of Actuaries, the casualty Actuarial society and the canadian institute of Actuaries, we are pleased to provide a series of essays on Risk Management: The Current Financial Crisis, Lessons Learned and Future Implications. this e-book is the result of a call for essays on the subject coordinated by the following groups: • • • • The Joint Risk Management Section of the Society of Actuaries, Casualty Actuarial Society and Canadian institute of Actuaries The Investment Section of the Society of Actuaries International Network of Actuarial Risk Managers Enterprise Risk Management Institute International ...
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...The World is Flat Thomas L Friedman Kq p K To Matt and Kay and to Ron Kq p K Contents How the World Became Flat One: While I Was Sleeping / 3 Two: The Ten Forces That Flattened the World / 48 Flattener#l. 11/9/89 Flattener #2. 8/9/95 Flattener #3. Work Flow Software Flattener #4. Open-Sourcing Flattener #5. Outsourcing Flattener #6. Offshoring Flattener #7. Supply-Chaining Flattener #8. Insourcing Flattener #9. In-forming Flattener #10. The Steroids Three: The Triple Convergence / 173 Four: The Great Sorting Out / 201 America and the Flat World Five: America and Free Trade / 225 Six: The Untouchables / 237 Seven: The Quiet Crisis / 250 Eight: This Is Not a Test / 276 Developing Countries and the Flat World Nine: The Virgin of Guadalupe / 309 Companies and the Flat World Geopolitics and the Flat World Eleven: The Unflat World / 371 Twelve: The Dell Theory of Conflict Prevention / 414 Conclusion: Imagination Thirteen: 11/9 Versus 9/11 / 441 Acknowledgments I 471 Index I 475 Kq p K :::::How the World Became Flat ::::: ONE While I Was Sleeping Your Highnesses, as Catholic Christians, and princes who love and promote the holy Christian faith, and are enemies of the doctrine of Mahomet, and of all idolatry and heresy, determined to send me, Christopher Columbus, to the above-mentioned countries of India, to see the said princes, people, and territories, and to learn their disposition and the proper method of converting them to our...
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