This document provides an overview of a course on the British economy. It introduces the aims of examining UK macroeconomic policy and trends since World War 2. Key topics to be covered over the next 5 weeks include post-war macroeconomic policies, the rise and fall of Keynesianism, policies under Thatcher, Blair and currently. The assessment will be a written exam weighing 45% of the grade. Various macroeconomic indicators and policy tools used by governments are also defined, such as fiscal and monetary policy, and their objectives like inflation and growth are outlined.
The early effects of the reform programme have triggered a surge in the Japanese stock market, accelerated by the anticipation of growth revival. So far, so good for the markets and traders. But how will Abenomics accommodate public debt of over 200% GDP, and will Abe’s radical policies inspire a long-term economic recovery in Japan? Do you think fiscal stimulus, monetary policy and structural reforms will revitalise the Japanese economy? Check out Saxo’s latest infographic and join the debate on Twitter @SaxoMarkets.
Consequences of Abenomics on the Economy and Financial Markets, Ryutaro Kono,...Asia Matters
Ryutaro Kono, Chief Economist, BNP Paribas speaks at Asia Matters' Fifth EU Asia Top Economist Round Table in Japan, looking at the consequences of Abenomics:
Why is private consumption slow in recovering?
Is weak aggregate demand the reason economic growth does not accelerate?
Has the trend growth rate dropped into negative territory?
Why are exports still slow in reviving despite the yen’s weak tone?
Despite the advantages posed by the yen’s marked depreciation in real terms, why don’t manufacturers beef up domestic production capacity?
Will inflation accelerate?
Does Japan have any domestic savings left to finance its net domestic investment?
Can financial repression be avoided?
Can a hard landing be avoided?
The early effects of the reform programme have triggered a surge in the Japanese stock market, accelerated by the anticipation of growth revival. So far, so good for the markets and traders. But how will Abenomics accommodate public debt of over 200% GDP, and will Abe’s radical policies inspire a long-term economic recovery in Japan? Do you think fiscal stimulus, monetary policy and structural reforms will revitalise the Japanese economy? Check out Saxo’s latest infographic and join the debate on Twitter @SaxoMarkets.
Consequences of Abenomics on the Economy and Financial Markets, Ryutaro Kono,...Asia Matters
Ryutaro Kono, Chief Economist, BNP Paribas speaks at Asia Matters' Fifth EU Asia Top Economist Round Table in Japan, looking at the consequences of Abenomics:
Why is private consumption slow in recovering?
Is weak aggregate demand the reason economic growth does not accelerate?
Has the trend growth rate dropped into negative territory?
Why are exports still slow in reviving despite the yen’s weak tone?
Despite the advantages posed by the yen’s marked depreciation in real terms, why don’t manufacturers beef up domestic production capacity?
Will inflation accelerate?
Does Japan have any domestic savings left to finance its net domestic investment?
Can financial repression be avoided?
Can a hard landing be avoided?
Deliverable length 1,100 to 1,500 words. Please go in-depth.Tw.docxcargillfilberto
Deliverable length 1,100 to 1,500 words. Please go in-depth.
Two important policy goals of the government and the Fed are to keep unemployment and inflation low, while at the same time making sure that GDP is increasing at an average of 3% per year. It is important to have the right mix of policies and that all the variables be timed perfectly.
Government is fiscal Policy and Federal is Monetary Policy. Monetary Policy is the one that cares if inflation gets out of hand.
Part 1:
Assume that the country is in a period of high unemployment, interest rates are at almost zero,
inflation is about 2% per year
, and GDP growth is less than 2% per year.
Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same.
What is the first action you would take as the president? As the chairman of the Fed? Why?
What would be your subsequent steps?
Make sure you include both the positive and negative effects of your actions, and include the trade-offs or opportunity costs.
Include the following concepts in your discussion:
Demand and supply of money
- (This is a Fed issue)
Interest rates – (This is a Fed issue)
The Phillips curve
Taxation – (This is a Government issue)
Government spending – (This is a Government issue)
Wages – (This is a Fed issue)
Costs of inflation - (This is a Fed issue)
The multiplier and the tax multiplier – (This is a Government issue)
The idea of tax rebates to stimulate the economy – (This is a Government issue)
Part 2:
Assume that the country is in a budget deficit and carrying a very large debt. Discuss the dangers of a high debt to GDP ratio and a growing budget deficit. Would this affect any policy changes you discussed in Part 1?
Describe the concepts and measurement of Gross Domestic Product (GDP), unemployment, and inflation.
Explain what is meant by “business cycles” and “economic growth and describe the factors that contribute to each.
Demonstrate understanding of the relevance and impact of macroeconomics and how it impacts politics, the workplace, and people.
References required
.
This is a short presentation of my research paper "Inflation and economic growth". Purpose of this paper is to research how inflation affects economic growth. We explore multi facets of inflation within the frame of its interference with economic output. To avoid short view and generalization we will explore parameters of inflation and real GDP for four different countries: United States, United Kingdom, Germany and Japan during seven time periods covering economic output from 1914 up to 2016.
ECO 202 Final Project Guidelines and Rubric Overview .docxSALU18
ECO 202 Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of economic history analysis presentation. Macroeconomics is the part of the study of economics that is concerned
with the aggregate or the whole. Macroeconomics provides us with tools and methods to understand how our economy works as a whole. It deals with
economy-wide issues such as price levels, employment, national income, and growth. As a student of macroeconomics, you will learn how to understand the
changes occurring throughout our economy and how our economy is influenced by our decisions, by our government, and by other countries.
In this assignment, you will perform an in-depth analysis of a 10-year period in U.S. economic history between 1950 and today. In your analysis, you will examine
macroeconomic data, basic macroeconomic principles, government actions, and historical/current events to give a clear and comprehensive picture of your
chosen time period and detail how they are related to one another.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Two, Four, and Five. The final project will be submitted in Module Seven.
In this assignment, you will demonstrate your mastery of the following course outcomes:
Apply macroeconomic models to historical and current events for drawing connections between the events and their economic impact
Determine the effects of government intervention and fiscal and monetary policy actions for their impact on the economy
Analyze macroeconomic data for their implication to economic outcomes and forecasting
Analyze macroeconomics trends and government policies for their influence on industries and households
Prompt
For this assignment, you will first need to choose a 10-year period in U.S. economic history between 1950 and today. You will then present the data collected
from government sources related to a variety of macroeconomic phenomena and analyze them in conjunction with the models and core principles to explain the
economy-wide changes during your chosen time period. You will also examine the events of the time in their relation to the macroeconomic issues as well as the
corresponding government actions taken (fiscal and monetary policies) to address the issues. The final presentation should be 15–20 slides using PowerPoint,
Prezi, Keynote, or PreZentit, including title and reference slides. Be sure to include speaker notes to accompany the data and graphs, information, and
explanations presented on the slide.
Specifically, the following critical elements must be addressed:
I. Examination of Macroeconomic Data (Be sure to include speaker notes to accompany all of your responses.)
a) Gross Domestic Product (GDP) and Growth
i. Analyze the annual GDP during the time frame ...
ECO 202 Final Project Guidelines and Rubric Overview .docxmadlynplamondon
ECO 202 Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of economic history analysis presentation. Macroeconomics is the part of the study of economics that is concerned
with the aggregate or the whole. Macroeconomics provides us with tools and methods to understand how our economy works as a whole. It deals with
economy-wide issues such as price levels, employment, national income, and growth. As a student of macroeconomics, you will learn how to understand the
changes occurring throughout our economy and how our economy is influenced by our decisions, by our government, and by other countries.
In this assignment, you will perform an in-depth analysis of a 10-year period in U.S. economic history between 1950 and today. In your analysis, you will examine
macroeconomic data, basic macroeconomic principles, government actions, and historical/current events to give a clear and comprehensive picture of your
chosen time period and detail how they are related to one another.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Two, Four, and Five. The final project will be submitted in Module Seven.
In this assignment, you will demonstrate your mastery of the following course outcomes:
Apply macroeconomic models to historical and current events for drawing connections between the events and their economic impact
Determine the effects of government intervention and fiscal and monetary policy actions for their impact on the economy
Analyze macroeconomic data for their implication to economic outcomes and forecasting
Analyze macroeconomics trends and government policies for their influence on industries and households
Prompt
For this assignment, you will first need to choose a 10-year period in U.S. economic history between 1950 and today. You will then present the data collected
from government sources related to a variety of macroeconomic phenomena and analyze them in conjunction with the models and core principles to explain the
economy-wide changes during your chosen time period. You will also examine the events of the time in their relation to the macroeconomic issues as well as the
corresponding government actions taken (fiscal and monetary policies) to address the issues. The final presentation should be 15–20 slides using PowerPoint,
Prezi, Keynote, or PreZentit, including title and reference slides. Be sure to include speaker notes to accompany the data and graphs, information, and
explanations presented on the slide.
Specifically, the following critical elements must be addressed:
I. Examination of Macroeconomic Data (Be sure to include speaker notes to accompany all of your responses.)
a) Gross Domestic Product (GDP) and Growth
i. Analyze the annual GDP during the time frame ...
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
ECO 202 Final Project Guidelines and Rubric Overvie.docxjack60216
ECO 202 Final Project Guidelines and Rubric
Overview
The final project for this course is the creation of economic history analysis presentation. Macroeconomics is the part of the study of economics that is concerned
with the aggregate or the whole. Macroeconomics provides us with tools and methods to understand how our economy works as a whole. It deals with
economy-wide issues such as price levels, employment, national income, and growth. As a student of macroeconomics, you will learn how to understand the
changes occurring throughout our economy and how our economy is influenced by our decisions, by our government, and by other countries.
In this assignment, you will perform an in-depth analysis of a 10-year period in U.S. economic history between 1950 and today. In your analysis, you will examine
macroeconomic data, basic macroeconomic principles, government actions, and historical/current events to give a clear and comprehensive picture of your
chosen time period and detail how they are related to one another.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final
submissions. These milestones will be submitted in Modules Two, Four, and Five. The final project will be submitted in Module Seven.
In this assignment, you will demonstrate your mastery of the following course outcomes:
Apply macroeconomic models to historical and current events for drawing connections between the events and their economic impact
Determine the effects of government intervention and fiscal and monetary policy actions for their impact on the economy
Analyze macroeconomic data for their implication to economic outcomes and forecasting
Analyze macroeconomics trends and government policies for their influence on industries and households
Prompt
For this assignment, you will first need to choose a 10-year period in U.S. economic history between 1950 and today. You will then present the data collected
from government sources related to a variety of macroeconomic phenomena and analyze them in conjunction with the models and core principles to explain the
economy-wide changes during your chosen time period. You will also examine the events of the time in their relation to the macroeconomic issues as well as the
corresponding government actions taken (fiscal and monetary policies) to address the issues. The final presentation should be 15–20 slides using PowerPoint,
Prezi, Keynote, or PreZentit, including title and reference slides. Be sure to include speaker notes to accompany the data and graphs, information, and
explanations presented on the slide.
Specifically, the following critical elements must be addressed:
I. Examination of Macroeconomic Data (Be sure to include speaker notes to accompany all of your responses.)
a) Gross Domestic Product (GDP) and Growth
i. Analyze the annual GDP during the time fra ...
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
AS Macro Economics: Economic Cycle and Objectivestutor2u
In this session we are going to focus on the performance of
the UK economy over recent years and see how economic
growth appears to follow a cyclical pattern
A comment on the Economic Policy Council 2017 report by professor emeritus Lars Jonung, former Chairman of the Swedish Fiscal Policy Council 2012-2013.
Prof. Jonung gave his remarks at Finland's Economic Policy Council 2017 report launch seminar. Launch was held in Helsinki on 23rd January, 2018.
See also:
http://www.talouspolitiikanarviointineuvosto.fi/en/reports/report-2017/
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Normal Labour/ Stages of Labour/ Mechanism of LabourWasim Ak
Normal labor is also termed spontaneous labor, defined as the natural physiological process through which the fetus, placenta, and membranes are expelled from the uterus through the birth canal at term (37 to 42 weeks
Embracing GenAI - A Strategic ImperativePeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
1. EC-111: British Economy
Recent Macro Economic
Policy and Trends
Dr Catherine Robinson
F35, Richard Price
Office hours: Monday 10.30-11.30 and Thursday 9.30-10.30
Appointments: c.robinson@swansea.ac.uk
Week 1:1 1
2. Introduction
Aim of this section of the course
Outline key texts and structure of the next 5 weeks
Defining the macro-economy
What variables are we looking at?
Assessment:
2 hour written examination at the end of semester 2 (45%) 5
questions in total – split between me and John’s regional
topic
I’ll go over some pointers in the last week
Week 1:1
2
3. Aim of the course
To provide an understanding of the macroeconomic
fortunes of the UK in the post war period
Discuss some policies
ideological influences
Identifying different schools of economic thought
Bit of economic history, but bringing it up to date with the
financial crisis and the ‘great recession’
Show you some data on UK performance
But not just about the UK – need to look at it in context
Empirically driven – not too much theory, but designed to
put your theory into (a UK) context
Week 1:1
3
5. Macro Outline Introduction
What are we looking at?
What does Britain look like, in comparison?
Post War British Macro Economic Policy
The rise and fall of Keynesianism
From the Welfare State to the Winter of discontent
The Thatcher Years
Monetarism and miners strike
ERM and inflation targeting
Blair
Bank of England independence and the birth of the MPC
Things can only get better? ICT and the productivity paradox
The Great Recession
Causes and consequences
Policy solutions?
Productivity paradox (II)
Week 1:1
5
6. Recommended Reading
Griffiths and Wall is a good place to start
Older editions of the book have a chapter on Managing the Economy
(Ch24 in 9th edition), available in the library.
For the final part of the course, financial institutions and Ch30 –
managing the economy post credit crunch – will be very informative
This will be supplemented with recommended reading each week
Need to recommend some articles and alternatives for the economic
history sections of the course
The early lectures will be based on BWE Alford’s 1988 book, ‘British Economic
Performance 1945-1975’.
Tagged in the library – 4 copies available
If you want some good, up-to-date commentary, take a look at the Green
Budget by the IFS
Week 1:1
6
7. Definitions:
The Macro Economy
Country-level indicators, constructed as part of the National Accounts
Y=C+I+G+(X-M)
But includes things that are left out of NA
Price levels (inflation)
Employment/labour force participation rates
Indicators of performance and welfare
PRODUCTIVITY (rate at which outputs are generated from inputs)
Longer run indicators of economic footing
National debt
What are the policy levers available to governments?
Varies over time and across different institutional set-ups
Short termism versus medium and long term strategies
Increasingly influenced by the wider global environment (Globalisation)
Week 1:1
7
8. Objectives of Policy
Full employment
Anything below 3% was seen as acceptable
Not been seen as a viable objective since the 1960s
Stable prices
In other words, low inflation
2.5% is the MPC’s specific target
Economic Growth
Results in higher living standards in most Western Economies
RA Butler (1954) suggested a doubling of living standards every 25 years could be
an explicit target
Balance of Payments
Aim for equilibrium (although surpluses are always considered positive)
There are others, of a more socio-economic type
Achieving one of these ‘objectives’ might be feasible, but all at once??
Week 1:1
8
9. Instruments of policy
Why isn’t this the equilibrium situation?
Market Failure rationale
Almost all government subsidies/industrial support have to
reason with the Treasury that the market has in some way
‘failed’ before they can intervene
How do governments go about it?
Policy instruments:
Fiscal policy
Monetary policy
Prices and incomes policy
Exchange rate or import controls
Week 1:1
9
10. Fiscal Policy
Taxation and government spending
Aim is to affect the composition and the level of
Aggregate Demand in the economy
Addresses redistribution of wealth – sort of…
Higher taxes and lower spending is likely to lower AD
Conversely – lower tax and higher spending should
encourage AD
Concerns about the Public Sector Borrowing Deficit (the
PSBR) <<more next week>>
Week 1:1
10
11. Monetary Policy
The interest rate
Affects the cost of borrowing
And the returns to lending
both long and short term investment decisions
Leads consumers to change their behaviour also
Low rates of interest offer little incentive to save
Affects the balance of payments also
Capital flows between countries
Money Supply
Monetarists versus Keynesians
Monetarists see MS as affecting prices
Keynesians see its impact on output and employment
These two are linked, clearly….
expansionary or contractionary strategy will typically use the two together
Week 1:1
11
12. Prices and Incomes Policy
Direct attempts to control inflation
EG public Sector pay freeze
Regarded as irrelevant to monetarists
But an important tool in periods of expansion to
Keynesians
Not been extensively used since 1979 although limits on
public sector spending have in effect constrained wages
Week 1:1
12
13. Exchange Rate
Used to influence the balance of payments
Isn’t always something the national government can affect
Prior to 1972, IMF system was implemented (Bretton Woods)
Exchange rates affect the relative prices of domestic and foreign
goods
Appreciation(Ex) => X and M
Depreciation(Ex) => X and M
Assuming appropriate elasticities for imports and exports, lower
exchange rate improves the balance of payments
But it will also have an adverse effect on costs
Rising input costs => higher prices=> higher wage demands
==INFLATION
Week 1:1
13
14. Import Controls
Not used much in the UK as a policy instrument
In fact, membership of EU (and its commitment to the
freedom of movement of goods and services) and long-
standing Commonwealth links, trade has been
relatively unhindered by government intervention for
decades (excluding WWII)
The UK does participate in GATT (general agreement
on tariff & trade) reductions for goods that have
traditionally carried a levy
Week 1:1
14
15. There are trade-offs
Between inflation and unemployment
The Phillips Curve (1958)
Curbing government spending lowers earnings for
public sector workers or reduce employment
Raising the exchange rate makes exports relatively
more expensive and lowers (manufacturing) output
So how do you balance multiple objectives?
Instruments are not independent of one another
AND instruments have in the past become
objectives
Exchange rate instrument <<more when we
discuss the ERM>>
Week 1:1
15
16. The Phillips Curve
Each dot represents a
year
1913-1948
As wages increase
(inflation)
unemployment declines
Week 1:1
16
17. Theory of Economic Policy
Tinbergen (1952)
Fixed targets
Tinbergen’s rule – there should be at least as many instruments as
there are objectives
Flexible targets (Theil, 1956)
Pre-supposes that there is welfare loss associated with missing the
fixed targets
Implicitly assumes that there is a social welfare function for the
population
It then becomes a question of weighting
‘Satisficing’ (Mosley, 1976)
Policy makers are satisficing agents, influenced primarily by recent
levels
Looking at the 1946-71 period Mosley found that any balance of
payments deficit resulted in policy change – so that only zero or
positive BoP was satisfactory.
Benchmark for unemployment was variable over time
Week 1:1
17
18. Which of these definitions best
describes the term ‘satisficing’?
18
1. Bureaucratic organisations
maximise profits
2. Bureaucratic organisations
continually strive for the best
possible outcomes
3. Bureaucratic organisations
react only when welfare
reaches an unsatisfactory
level
19. Two instruments, two objective
case
Week 1:1
19
O1
O2
Instrument 1 (eg
monetary policy)
Instrument 2 (eg fiscal
policy)
0
I1`
I2`
Source: Griffiths and Wall, 2001
Movement away from the
origin is an expansionary
path
O1 is objective 1 (internal
balance) at a particular
target value
O2 is the objective 2
(external balance) at a
particular target value
E
Assume O1 is full
employment and
O2 is balance of
payments equilibrium
20. Two instruments, 3 objective case
Week 1:1
20
O1
O2
Instrument 1 (eg
monetary policy)
Instrument 2
(eg fiscal
policy)0
I1`
I2`
Source: Griffiths and Wall, 2001
O3
G
F
E
now with O3 –
assume it is
economic growth
(positively sloped)
21. So, now you know…
What we plan to cover over the next few weeks
What the macro economy is, specifically concerned
with
What are the chief objectives of government economic
policy
The tools available to governments who wish to
influence the economy
Week 1:1
21
22. Tomorrow…
We will look at Britain in context
Plotting some of these key variables over time and
across countries that might reasonably be compared to
Britain
Discussing some of the reasons put forward for the UK
position
Week 1:1
22
23. References used this week:
Griffiths and Wall (2011) 12th Edition – handy for the
Tinbergen theory
Mosley (1976) Towards a Satisficing theory of
Economic Policy’, The Economic Journal, 86(341), 59-
72 (available on JSTOR)
Week 1:1
23
Editor's Notes
Consumption – affected by: you will have looked at this – the Keynesian view – what determines consumption? (mpc). Post Keynesian views…permanent income hypothesis (wealth rather than income); life cycle hypothesis..builds on Friedmans theory (PIH) but appreciates the importance of age in determining consumption and rational expectationsInvestment, affected by: the rate of interest, profitability, uncertainty, public policies, capital market imperfections, Skills and the labour market, depreciation rate,