Edexcel AS Economics Unit 2: Macro Economics. Upload Mind Mapper Twitter Mind Mapper Loading... Working... ► Play all Edexcel AS Economics Unit 2: Macro Economics Mind Mapper28 videos38,966 viewsLast updated on May 10, 2014 Play all Sign in to YouTube Sign in History Sign in to add this to Watch Later Add to Loading playlists... A2 Macro Exam Skills – Globalisation Question | Economics. Exchange Rates | Economics. Currencies: How sustainable is the riyal/dollar peg? | Economics. Inflation - Explained | Economics. China’s textile exports decline in 2015 | Economics. The contraction of overseas sales is a good pointer to the short and medium term challenges facing this sector as the sands of comparative advantage shift decisively to Southeast Asian economies such as Bangladesh, Vietnam and Indonesia. A large depreciation in the external value of the Japanese yen - Japan is a key export market for ChinaA weaker Euro and continued slow growth of consumer demand in many Euro Zone economies - another key export destination for Chinese apparel Transnational corporations shifting their textile manufacturing to Southeast Asia where labour costs are three to four times cheaperOperating costs have also been increased by the growing burden of environmental controls imposed by the Chinese governmentChina's textile export to the European Union fell by 10.6 percentExports to Japan dropped 12 percentOverseas sales to to ASEAN countries dipped by nearly 2 percent.
Is private sector debt sinking China? | Economics. The title itself was exciting: ‘Is capitalism doomed to have crises?’ Judging by the beards and dress style of the audience, many may have expected a Corbynesque rant. Instead, we heard an elegant exposition based on a set of non-linear differential equations. Private sector debt is the sum of the debts held by individuals and the debts of companies, excluding financial sector ones like banks. He pointed out that in the decade prior to the massive crash of 1929, the size of private debt relative to the output of the economy as a whole (GDP) rose by well over 50 per cent. The increase from the late 1990s onwards meant that debt once again reached dizzy heights. Japan experienced a huge financial crash at the end of the 1980s.
In China, in 2005, the value of private debt was around 1.2 times GDP. So is it all doom and gloom? Up to a point, Lord Copper. Japanese shares fell 80 per cent and have not yet recovered their late 1980s levels. European shares post sharp falls in early trading. Image copyright Getty Images European shares sank in early trading as the continued slide in oil prices unsettled investors. In early trading London's FTSE 100 was down 3%, Germany's Dax was down 3% and the Cac-40 in Paris was down 3.4%. Shares in Shell tumbled almost 6% after it said that annual profits would be slightly below City expectations. Oil shares were also hit by the continued fall in crude prices. Brent Crude was down 2.4% at $28.07 a barrel in early trading.
Crude oil prices have been falling since 2014 but despite that fall, producer countries have maintained output. On Tuesday the International Energy Agency warned that oil markets could "drown in oversupply" in 2016. Analysis: What's worrying the markets? "Investors have decided the world is a riskier place," said Laura Lambie, senior investment director at Investec Wealth Investment. "There's been a short-term change in sentiment," she said.
Other analysts expect further stock market volatility. Why Labour’s Mansion Tax shows that it has lost touch with financial reality. It is to avoid falling into these sorts of traps that taxes in this country have traditionally been based on transactions; the state gets a cut when people get paid, buy something, earn a profit or sell an asset. Of course, under a wealth tax, which targets stocks rather than flows, it might be possible for those with a liquidity issue to remortgage or extract equity in other ways from their homes, but they would then face having to pay punitive rates of interest to borrow money that they shouldn’t be having to hand over to the state in the first place.
What is especially galling about the Mansion Tax is that it is sometimes justified as a means of recouping “unearned” wealth. It is true that house prices have rocketed, often to absurd levels, and not just in London. But there is a simple reason for that: bad, short-termist public policy. Planning rules have restricted house building for years, putting massive pressure on prices. France is a much better comparator.
Tech firms growing at four times rate of UK GDP. Britain’s technology businesses are expecting to grow at an exponential rate this year, with the average firm forecasting an 11pc rise in sales, four times the growth in UK GDP growth, which hit 2.6pc in 2014. According to the companies polled in Barclays’ Fast Growth Tech survey, this growth rate will accelerate again next year, with the average technology firm expecting an additional 15pc in 2016. Of the technology CEOs polled, 16pc are seeking growth of 20pc. “The fact that many firms are expecting further growth in 2016 shows that this trend isn’t transient and the UK is a real launch pad for innovative tech businesses,” said Sean Duffy, managing director of Barclays’ Technology, Media and Telecoms division, which commissioned the research.
“Investors are seeing the UK as an international talent magnet and a platform to grow or launch their business for a number of compelling reasons, including the culture, light-touch regulation, supportive Government policies and access to finance.” Global debts rise $57tn since crash. 4 February 2015Last updated at 19:26 ET China's ballooning debt - much of it is linked to property developments, local authority infrastructure investment and "shadow banking" After the explosion of borrowing in the boom years that led to the great crash and recession of 2007-08, most governments - especially those of rich developed countries - said they would embark on policies that would lead to greater saving, debt reduction and what's known as deleveraging.
They implied they would encourage prudence, so that the sum of household, business and government debt would fall. So what has actually happened to global debt? According to a new study by the influential consultancy McKinsey Global Institute, global debt has grown by $57tn or 17 percentage points of GDP or worldwide income since 2007, to stand at $199tn, equivalent to 286% of GDP. And the single biggest contributor to the rise and rise of global indebtedness is that government debts have increased by $25tn over these seven years.
UK planning for possible Greece exit from the eurozone. 9 February 2015Last updated at 05:48 ET The prime minister this morning chaired a meeting of senior officials to discuss the impact on the UK of possible Greek exit from the eurozone - and to take steps to ensure British banks and companies would not be excessively damaged. Attended by the head of the Treasury, Nick Macpherson, the Treasury's director of financial stability, Lowrie Kahn, and the Bank of England's international director Phil Evans, David Cameron asked for information on the impact on Greece and the rest of the eurozone of Greece leaving the eurozone. The chancellor did not attend, because he is on his way to the G20 meeting in Istanbul - though he has been kept in the loop on discussions. There was agreement that the probability of Greece adopting a new currency had increased, as per my column of this morning.
David Cameron heard that Greek people would see their savings wiped out, inflation would take off, and there would be a massive devaluation, India growth figures baffle economists. 9 February 2015Last updated at 09:02 ET Many experts say the economy is still waiting to gather momentum The Indian economy grew by 7.5% between October and December compared with the same period a year earlier, official figures say. But there was confusion regarding the statistics after the way in which the gross domestic product (GDP) figure was calculated was changed. Economists warned the figures needed to be treated with caution. Growth for the previous three months was also revised up sharply to 8.2% from an earlier figure of 5.3%. And India's statistics ministry revised up its forecast for annual economic growth to 7.4% for the year to the end of March. That compared with a previous forecast of 6.9% using the new formula, and 4.7% before the revised formula was introduced.
The country's new way of calculating GDP has baffled analysts since its release last month. India said the new formula is closer to international standards. Slowdown 9 February 2015Last updated at 09:02 ET Slowdown. UK trade deficit last year widest since 2010. 6 February 2015Last updated at 06:28 ET The UK's trade deficit widened last year to £34.8bn, the biggest gap since 2010 according to the Office for National Statistics (ONS). It said a fall in exports was largely to blame for the rising trade deficit. The value of exported goods fell by £14.6bn compared to the previous year. Imports of goods fell for the first time since 2009, down by £7.3bn. For December the deficit widened to £2.9bn from £1.8bn in November, which was more than economists expected. Oil impact December was a very unusual month as oil imports surged by 37%.
So despite a fall in the price of oil, the actual value of oil brought into the UK jumped by more than 20% and contributed to a widening trade deficit in December. Economists say, however, that if you strip out the effects of oil, the outlook for the trade situation is still not great. Aggregate Demand and Aggregate Supply. European Council - UK won't pay £1.7bn EU bill says David Cameron. UK economic growth to fall to 2.4% in 2015, says EY Item Club. 19 October 2014Last updated at 19:04 ET The weak eurozone means export prospects look "dreadful", says the EY Item Club The UK economy will grow by 2.4% in 2015, well below the 3.1% growth expected this year, forecasting group EY Item Club has said.
It says the forthcoming election and accompanying political uncertainty will hold business back from investing. Growth will also be constrained by worries about the eurozone and the Ukraine conflict, EY Item Club says. The 2.4% figure undershoots forecasts issued by the Bank of England, the CBI and the International Monetary Fund. Last week, the Bank's chief economist, Andrew Haldane, said he was downbeat over the UK economy because of weaker global growth, low wage growth and financial and political risks. He said interest rates should remain low to avoid long-term economic stagnation. 'Dreadful' Peter Spencer, EY Item Club's chief economic adviser, said: "The forecast for GDP growth is still relatively good.
IMF warns of low interest rates 'risk' to economy. 8 October 2014Last updated at 11:30 ET By Andrew Walker BBC World Service Economics correspondent Investors could chase riskier assets if interest rates stay low, the IMF says The International Monetary Fund has warned of new risks to global financial stability. Low interest rates could lead investors to buy riskier assets as they seek better returns, the IMF says.
In a new report, it says there is a danger that this behaviour could derail the economic recovery, which the IMF has already described as "weak and uneven". The report says the risks require "increased vigilance". The IMF has already given its assessment of the wider economic recovery and is concerned about its lack of vigour. This new report takes a closer look at the health of the financial system. Side-effects The conclusions are unsettling. The IMF report does not for a moment dispute that they are necessary. The measures involved are very low interest rates, now in place in the US, Britain, Japan and the eurozone, for example.
Factsheet -- The IMF at a Glance. Explicit cookie consent. IF THE 20th century belonged to the rich countries of North America and Europe, some economists argue, then the 21st will be the era of the emerging world. Economic growth across emerging markets has been scorching since 2000. Some of the largest countries, like India and China, managed growth rates above 10% per year. Continued growth at such rates would lead to “convergence” with the rich world.
That would mean higher living standards in developing countries and a shift in the balance of economic and political power. Yet those prospects seem to be diminishing. When comparing income levels across countries, most economists use GDP per person, adjusted for purchasing-power parity, or PPP. Over the past 15 years, most emerging economies have enjoyed faster growth in GDP per person than rich ones, leading to convergence in incomes. Yet the forces that drove convergence are now acting as a drag on emerging-market growth. China's Economy Just Overtook The U.S. In One Key Measure. This was inevitable, but it still feels momentous: By one important measure, China's economy is now the biggest in the world, topping the United States. China's gross domestic product is worth $17.6 trillion, adjusted for China's relatively low cost of living, compared with $17.4 trillion for the U.S., the International Monetary Fund estimated as part of its latest World Economic Outlook.
Here's how that looks in chart form: Note the chart extends to 2018. The IMF expects this trend to continue indefinitely. (h/t to Business Insider for the news and the idea to use Google Public Data's amazing charts.) Here's another way of looking at it -- China's share of the global economy is now slightly bigger than America's, at 16.5 percent to 16.3 percent: It's important to note that these figures are adjusted for the relative costs of living in both countries, known to fancy economists as "purchasing power parity. " Again, though, that $8,000 goes a long way. Britain - an akward partner. BBC iPlayer - Politics Europe - 05/09/2014. Money, Debt, ecominics & Finances. International Monetary Fund Home Page. European Union website, the official EU website. John Maynard Keynes. John Maynard Keynes.