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Assuming an EMU, what are the economic effects of one? We saw last week that the EU was almost certainly not and OCA, yet the EU exists as a functioning currency area. What are the likely effects of this on growth amongst member states? We developed the canonical model used to describe economic [...]
Also tagged Business, economy, EU, European Union, Government, Member State of the European Union, MultilateralIn the last few lectures, we’ve looked at growth theory and the stakes involved in getting the basics wrong. We saw the Solow model’s predictions about sustained capital accumulation (): keep population growth low, keep savings () and therefore investment() rather high, and try to curb depreciation on assets. Technical progress and human capital move [...]
Also tagged Economic, Exogenous growth model, General equilibrium, Gross domestic product, Macroeconomics, Model, Population growthWhy are we so rich and they so poor? This is the fundamental question in macroeconomics. Economists agree that the main way to enrich a country and its people is to create the conditions which allow it to grow its way out of poverty. By growth, I mean GDP growth of course.
We have seen in [...]
The Solow Growth model attempts to explain the features of growth we encountered in the last lecture. We need to be able to explain movements in capital accumulation, labour force growth, and technology.
Beginning from the growth accounting equation
and simplifying the notation to look at accumulation in per worker (, etc) terms with no technological change, [...]
Also tagged Economic, Economy of the United States, Exogenous growth model, Gross domestic product, Net Domestic Product, Recession, United StatesLast week we looked at the scope of macroeconomics, albeit quite briefly. This week we’ll get into some national accounts and growth questions. We’ll talk about the main questions in growth theory, motivate it with an example, and discuss the macroeconomic particulars a theory of growth and development has to explain. It’s always useful to [...]
Also tagged Economic, Gross domestic product, Health, Macroeconomics, National Accounts, Social Sciences, United StatesI’ve got some numbers for you.
There are 6.7 billion people on planet earth right now. 300 people are born every minute, 1/10 of them born to teenagers. 16 of those 300 babies will die by age 5. One of their mothers will die in childbirth, which if you work it out is 40,000 people dead [...]
Introduction
Economics for Business will extend the microeconomics and macroeconomics you learned in first year in two distinct areas.
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David McWilliams, echoing Martin Feldstein in the FT earlier this week, suggests a Central Bank refinancing of banks to introduce liquidity into the system using the fact we are in an economic and monetary union. McWilliams’ sense of social justice ensures the developers, whom he blames for the present mess (and he’s [...]