supporting students studying Econ 3 and Econ 4 of the AQA Economics (2140) specification for examination in 2014.
Friday 28 October 2011
income distribution
l curve - representation of income distributionhttp://www.blogger.com/img/blank.gif
Tuesday 18 October 2011
why is the euro stronger than the pound?
guardian 15 oct 2011
Why is the euro stronger than the pound?
With the eurozone mired in economic and political crisis, what is keeping the single currency so strong?
guardian euro page
Why is the euro stronger than the pound?
With the eurozone mired in economic and political crisis, what is keeping the single currency so strong?
guardian euro page
eurozone crisis debate
Basic Euro History
1991: Maastricht Treaty – pathway for Euro
1999: Euro starts life as a currency
1999-2001: Original members of system lock their currencies for two years
2002: Notes and coins come into circulation
2007: Slovenia becomes first of the new member states to enter the currency union
2008-09: Three new nations – Slovakia, Cyprus and Malta – the Euro Area extends to 16 nations
2011; estonia joins 17 nations in Eurozone
the future of the euro (bbc stephanie flanders oct 2011)
Euro essentials
Monetary union is a deepening of economic integration between participating countries
A single currency requires a common interest rate for the Euro Zone – i.e. a common monetary policy
Countries have locked their currencies together forever and adopted one currency as a medium of exchange
Euro as a currency floats against US dollar and sterling
Member nations are also required (in principle) to keep control of government borrowing i.e. They are not allowed to run large budget deficits > 3% of their GDP (in normal times)
Challenges facing the Euro Zone
1/Little common fiscal policy
Big differences in size of fiscal deficits and debt levels
Fiscal stability pact has effectively collapsed
2/ Growing risk of one or more Euro Area countries defaulting on some of their debts
Will Euro Area nations bail out fellow members?
Years of fiscal austerity for some nations will create deep economic and social pressures
3/ Doubts about the likely strength of recovery
Unemployment high and rising
4/ Longer term challenges
Growth and employment creation in the Euro Area has not been noticeably higher than in countries outside the currency union
2008-10 crisis has highlighted the problems of setting a common interest rate for 16 nations
Larger economic imbalances within the 16 nation currency union over wage levels, trade balances and productivity will also need to be addressed if the Euro Zone is to avoid future crises
Several weaker countries have become uncompetitive inside the Euro and this requires painful corrective policies which will be unpopular
Rising cost-push inflation could lead to higher interest rates and choke off confidence as recovery starts
Crisis links 2011:
ft eurozone crisis page
bbc eurozone crisis + global economy page
aljazeera euro crisis page
martin wolf oct 18 2011
chain reaction default
bbc on launch of euro (1999)
map growth of eurozone
where is the coin from?
eu euro homepage
monetary policy issues:
ecb homepage
price stability cartoon
price stablility report
inflation dashboard
eurozone report 2009
Research links
http://observer.guardian.co.uk/euro
inside europe (bbc)
eurozone graphics
euro introduction (t2u)
t2u blog posts euro
greece in depth (ft)
newsnight 24/06/2011 (1.00-15.00/ 27.48-43.30)
#euro (twitter)
#greece (twitter)
1991: Maastricht Treaty – pathway for Euro
1999: Euro starts life as a currency
1999-2001: Original members of system lock their currencies for two years
2002: Notes and coins come into circulation
2007: Slovenia becomes first of the new member states to enter the currency union
2008-09: Three new nations – Slovakia, Cyprus and Malta – the Euro Area extends to 16 nations
2011; estonia joins 17 nations in Eurozone
the future of the euro (bbc stephanie flanders oct 2011)
Euro essentials
Monetary union is a deepening of economic integration between participating countries
A single currency requires a common interest rate for the Euro Zone – i.e. a common monetary policy
Countries have locked their currencies together forever and adopted one currency as a medium of exchange
Euro as a currency floats against US dollar and sterling
Member nations are also required (in principle) to keep control of government borrowing i.e. They are not allowed to run large budget deficits > 3% of their GDP (in normal times)
Challenges facing the Euro Zone
1/Little common fiscal policy
Big differences in size of fiscal deficits and debt levels
Fiscal stability pact has effectively collapsed
2/ Growing risk of one or more Euro Area countries defaulting on some of their debts
Will Euro Area nations bail out fellow members?
Years of fiscal austerity for some nations will create deep economic and social pressures
3/ Doubts about the likely strength of recovery
Unemployment high and rising
4/ Longer term challenges
Growth and employment creation in the Euro Area has not been noticeably higher than in countries outside the currency union
2008-10 crisis has highlighted the problems of setting a common interest rate for 16 nations
Larger economic imbalances within the 16 nation currency union over wage levels, trade balances and productivity will also need to be addressed if the Euro Zone is to avoid future crises
Several weaker countries have become uncompetitive inside the Euro and this requires painful corrective policies which will be unpopular
Rising cost-push inflation could lead to higher interest rates and choke off confidence as recovery starts
Crisis links 2011:
ft eurozone crisis page
bbc eurozone crisis + global economy page
aljazeera euro crisis page
martin wolf oct 18 2011
chain reaction default
bbc on launch of euro (1999)
map growth of eurozone
where is the coin from?
eu euro homepage
monetary policy issues:
ecb homepage
price stability cartoon
price stablility report
inflation dashboard
eurozone report 2009
Research links
http://observer.guardian.co.uk/euro
inside europe (bbc)
eurozone graphics
euro introduction (t2u)
t2u blog posts euro
greece in depth (ft)
newsnight 24/06/2011 (1.00-15.00/ 27.48-43.30)
#euro (twitter)
#greece (twitter)
Sunday 16 October 2011
exchange rates
Sterling outlook: What next for the pound? | This is Money
currency wars and QE (ft 31 oct 2011)
demise of the dollar (wsj)
wsj currency page
currency wars flanders (bbc)
the currency puzzle - project syndicate
ex latest (t2u pdf)
revision note of floating x-rates
presentation on fixed and floating exchange rates
Download printable handout (pdf) of presentation slides
Rejoice – the pound is down again - Times Online
assignment on xrates (t2u)
x-rates intro as (t2u)
effects of x-rate movements (t2u)
dollar as the world currency - discussion (bbc newsnight)
ft interactive on currencies
depreciation of pound short term fix (independent 2010)
roger bootle independent 15/03/10 time lags exchange rate and deficit
streamed presenation on world x-rates (t2u)
ocr x rate essays
Quiz
Currency_Crossword_Quiz.pdf
Answers
Currency_Crossword_Answers.pdf
Wednesday 12 October 2011
Monday 10 October 2011
Friday 7 October 2011
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