Summary Macroeconomics

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ISBN-13 9781787265418
117 Flashcards & Notes
1 Students
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This is the summary of the book "Macroeconomics". The author(s) of the book is/are Blan chard, O , Amighini, A , and F Giavazzi (. The ISBN of the book is 9781787265418. This summary is written by students who study efficient with the Study Tool of Study Smart With Chris.

Summary - Macroeconomics

  • 1 A tour of the world

  • SAMENVATTINGEN VAN MARCOECONOMIE MOET JE NOG BESTELLEN!
  • 3.7.1.1 Europe and the Euro

  • At which free variables do economists look first, when studying an economy?

    • Output
    • The unemployment rate
    • The inflation rate
  • The economic performance of European countries after the turn of the millennium has not been as good as it was in the 1990s, what are 4 characteristics of this period?

    • Average annual output growth reflected a significant slowdown in   all of the largest European economies since 2008, and a   recession in 2009.
    • Low output growth was accompanied by persistently high   unemployment.
    • The only good news is about inflation. Average annual inflation   was   1.9% in the EU and 1% in the euro area.
    • In the economies of central Europe inflation jumped during the   transition but it stabilised in the following decade. 
  • Which three issues dominate the agenda of European macro-economists?

    • High unemployment
    • Growth of income per person
    • Common currency
  • There is still disagreement about the causes of high European unemployment, what is the general opinion of politicians and what of macro-economists?
    • Politicians: often blame macroeconomic policy.
    • Macro-economists: 
      • Most economists believe, however, that the source of  the problem is labour market institutions. 
      • Some economists point to what they call labour market rigidities. 
      • Other economists emphasise the fact that unemployment is not high everywhere in Europe.
  • Where do supporters of the Euro point at?

    Supporters of the euro point first to its enormous symbolic importanceafter a long history of wars and conflicts,a large number of European countries are now linked by a common currency
  • Where do skeptics of the Euro point at?

    ... Others worry that the symbolism of the euro may come with some economic costs: the recent crisis that hit the euro and the euro countries is among those costs
  • 3.7.1.2 The economic outlook in the USA

  • What can we say about the economy of the USA in the past decades?
    • From an economic point of view, there is no question that the 1990s were amongst the best years in recent memory.
    • In the recent past, however, the economy has slowed down. Data for 2011 do not seem to suggest that the economy has started growing again.
  • What are the 3 reasons for the recent slow down in the economy of the USA?
    1. The price of oil reached a historic hight in 2008.
    2. House prices in the USA boomed after 2000.
    3. The US trade deficit(=handelstekort) has increased by about 1% of GDP in 1990 to 5% of GDP in 2008.
  • Herhaling 3 oorzaken achteruitgang Amerikaanse economie in plaatjes.
    Herhaling 3 oorzaken achteruitgang Amerikaanse economie in plaatjes.
  • Herhaling 3 oorzaken achteruitgang Amerikaanse economie in plaatjes.
  • 3.7.1.3 The largest emerging economies

  • What are the largest emerging economies?
    Brazil, China, India and Russia (which are often called BRICs) have grown rapidly over the last decade and are now the largest economies outside of the group of advanced countries.
  • From what 2 things does the economic growth of the emerging economies come from?

    • High accumulation of capital
    • Very fast technological progress
  • 3.7.1.4 Looking ahead

  • These are the questions to which you have been exposed in this chapter:

    • What determines expansions and recessions? Can monetary policy be used to prevent a recession in the United States? How will the euro affect monetary policy in Europe?
    • Why is inflation so much lower today than it was in the past? Can Europe reduce its unemployment rate? Should the United States reduce its trade deficit?
    • Why do growth rates differ so much across countries, even over long periods? Has the United States entered a New Economy, in which growth will be much higher in the future? Can other countries emulate(=wedijveren) China and grow at the same rate?
  • 3.7.1.5 Gathering macro data


  • Gathering Macro Data
    • International organisations, such as the Organisation for Economic Cooperation and Development (OECD), gather data for the richest countries.
    • For countries that are not members of the OECD, one of the main sources of information is the International Financial Statistics (IFS), published by the International Monetary Fund (IMF).
    • The IMF also publishes, twice a year, the World Economic Outlook, an assessment of macroeconomic developments in various parts of the world.
    • In the United States, an extremely good annual resource is the Economic Report of the President, prepared by the Council of Economic Advisors.
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