Premium Essay

Macroeco

In: Business and Management

Submitted By saifchowdhury
Words 666
Pages 3
Team Assignment #1
Lessons 1 to 9
Class, you have been assigned into teams of 4 or 5. You need to discuss amongst yourselves how the duties of the assignment will be divided and the manner in which it will be presented to me. Working together will ensure that all parts will be done well and on time.

Question 1: Overview of the Macroeconomy: Interpretation (25 marks)
Please discuss the current state of the macroeconomy in Canada. In particular please discuss the growth rates and gross domestic product, the unemployment rate and lastly inflation. Please discuss how these variables compare to both the short and long run averages. In providing answers, please provide where data was obtained. You can use the internet or more authorative sources such as the Bank of Canada, Statistical Canada (Cansim) dataset or the IMF/World Bank websites. After you have ascertained this information, please make a determination as to whether the economy is at its long run equilibrium level (full employment), or whether it is in a recessionary or expansionary gap. (Hint: the economy is rarely at its long run level).

Question 2: Legislative Overview (15 Marks)
Please discuss 2 important institutions in Canada responsible for conducting fiscal and monetary policy, name the Department of Finance and the Bank of Canada. What are the roles of each and what are each responsible for obtaining? What are the responsibilities of each institution and what tools do they have at their disposable to impact the economy? Can you say that their objections are in tandem with one another or due they sometimes conflict? Please explain.

Question 3: Mechanical Aspects of Conducting Fiscal and Monetary Policy (25 Marks)
Briefly explain the tools that governments have to move the economy from either a recessionary or expansionary gap to the long run equilibrium level. Based on your…...

Similar Documents

Premium Essay

Fundamentals of Macroeco

...Fundamentals of Macroeconomics There are many terms that are important to understand when it comes to the fundamentals of Macroeconomics. Gross domestic product, (GDP) refers to the values of all goods and services produced within a country, including all of the countries exports, during a given period of time, usually annually. Real GDP or gross domestic product is an inflation-adjusted measure that reflects the value of all goods and services produced in a given year expressed in base-year prices. Nominal GDP is a gross domestic product figure that has not been adjusted to reflect inflation. The unemployment rates are the percentage of people actively seeking and willing to work, but are unemployed among the labor force. Inflation rate refers to the rate at which the prices for goods and services rise, while purchases decline. Interest rate is the amount that is charged, usually annually, by a lender to the borrower in exchange for the money or asset to be used, in addition to the principle amount. Economic Activities In the United States, there are many economic activities that affect the government, households, and businesses. For example, activities such as purchasing groceries directly affect households by providing the supply for the aggregate demand of food that is needed for people and families. This has an affect on households because the consumer needs to eat, therefore buy groceries. Purchasing of groceries also has an affect on the business that the......

Words: 759 - Pages: 4

Premium Essay

Moneybank Credit

...preserve as far as possible the contents, structure, and page numbering of the two previous editions. However, changes have been necessary in certain cases, as I have taken this new opportunity to raise some additional arguments and points, both in the main text and in several footnotes. Also, the bibliography has been updated with the new editions and Spanish translations which have appeared in the four years since the previous edition, and with a few new books and articles which have a particular bearing on the topics covered in the book.1 Finally, the editor of the English version, Money, Bank Credit, and Economic Cycles,2 Judith Thommesen, very patiently and painstakingly I 1One such book is Roger W. Garrison’s Time and Money: The Macroeco- nomics of Capital Structure, published by Routledge in London and New York in 2001, three years after the appearance of the first Spanish edition of Money, Bank Credit, and Economic Cycles. Garrison’s text can be viewed as complementary to this one. His book is especially noteworthy, because in it he develops the Austrian analysis of capital and economic cycles in the context of the different paradigms of modern macroeconomics, and the approach and language he uses to do so are fully consistent with those used by the mainstream in our discipline. Hence, Garrison’s book will undoubtedly help build awareness among economists in general of the need to consider the Austrian perspective and its comparative advantages. I do feel......

Words: 317148 - Pages: 1269

Premium Essay

世界是平的

...are sticklers for the rules. You need a license to open a lemonade stand on the Indian streets. Luckily, the local cops can be bribed, and the successful entrepreneurs all have their own generators to run their factories and the latest cell phones to get 317 around the fact that the local telephone poles are all down. Africa, sadly, is that part of town where the businesses are boarded up, life expectancy is declining, and the only new buildings are health-care clinics. The point here is that every region of the world has its strengths and weaknesses, and all are in need of reform retail to some degree. What is reform retail? In the simplest terms, it is more than just opening your country to foreign trade and investment and making a few macroeco-nomic policy changes from the top. That is reform wholesale. Reform retail presumes you have already done reform wholesale. It involves looking at four key aspects of your society-infrastructure, regulatory institutions, education, and culture (the general way your country and leaders relate to the world)-and upgrading each one to remove as many friction points as possible. The idea of reform retail is to enable the greatest number of your people to have the best legal and institutional framework within which to innovate, start companies, and become attractive partners for those who want to collaborate with them from elsewhere in the world. Many of the key elements of reform retail were best defined by the research done by the World......

Words: 170179 - Pages: 681

Free Essay

Accounts

...KMcD, Kabulzamin, Kahuzi, Kaldosh, Kallme, Kardrak, Kartano, Kedorlaomer, Keizuko, Kerotan, Kgf0, Khoikhoi, Kiddie Techie, Kildor, Kim Bruning, King jakob c 2, King of Hearts, Kingka625, Kingpin13, Kintetsubuffalo, Kirbyn Joel Berrios, Kitch, Klilidiplomus, Koavf, Koregaonpark, Kozuch, Krashlandon, Ktrinko, Kungming2, Kurykh, L Kensington, LAMPOO, LOL, Lachalan smyt5h, Lampak, Larklight, Laurens-af, LeaveSleaves, Lebanon2011, Lectonar, Legatumltd, Levineps, Lia Todua, Liam987, Libera, Ligulem, Lijah9, LindsayH, Lionelbrits, Liop32, Little Mountain 5, Livajo, Live and let Troll, Lneal001, Lobizón, Locate Words!, Lord Eru, Loren36, Lugia2453, Luisldq, Luna Santin, M.M.S., M0rphzone, MAKootage, MAXXX-309, MER-C, MITBeaverRocks, MJK, MRRT21, MaCRoEco, Mac, Maddie!, Madskillzediter, Magnode, Malarious, Mangostar, Mangwanani, Mar4d, Marek69, Margetts, Marianocecowski, Markustwofour, Marosvari.gergo, Materialscientist, Mathsci, Matt Clacher, Mattbrundage, Matthardingu, Maxcrc, Mb nl, Mb1000, Mboverload, Mcrfan910, Meaghan, Mediatech492, Mediran, MementoVivere, Mentifisto, Merrick79, Mesfin, Mexxxicano, Mgiganteus1, Michael Hardy, MichealH, Mikael Häggström, Mikanz001, Mike Linksvayer, Mike Rosoft, MikeAn, Mikko Paananen, Minvogt, Mirri cat warrior, Misiu mp, Mistakefinder, Mitarani, MithrandirAgain, Moeng, MrFish, MrOllie, Mschel, Msrasnw, MuZemike, Murraybuckley, Mydogategodshat, Mygerardromance, Mywayyy, Naman297, Nappyboyradio, Nauticashades, Nautilator, Naval Scene, Nentrex,......

Words: 8369 - Pages: 34

Free Essay

Business

...a group of companies (either banking group, insurance group or a conglomerate). A micro-crisis is restricted to the group and is local in nature. Let a micro-crisis be a crisis that is faced by a certain investor differ so radically? Governments spend, leverage, lio is society, and this portfolio should at minimum be balRecoGnition of diveRsificAtion benefits Within conGloMeRAtes Rebalancing is the term used to denote the macro-level, fund tRAnsfeRAbility sell and lately invest in distressed securities. Their portfoanced. So, rebalancing seems quite essential not only for case too. Letting big-company financial establishments be- nomic factors and consequently real economy. And let a macro-crisis be a crisis that affects macroeco- the average institutional or individual investor but in this come bigger is like letting your originally strategic alloca- 18 R I s k M a n a g e M e n T: the current financial crisis, lessons learned and future implications It is Time to Decide What kind of Crises We Want to Have in the Future by Ioannis Chatzivasiloglou and Charalampos Fytros tion drift away while undertaking a series of concentrated exposures that might affect the value of your whole portfolio—in this case, society itself. Financial institutions have find two antidiametrically placed massive bobs: “Fund transferability” and “Recognition of diversification benefits within conglomerates.” The higher their masses (when, for the potential to......

Words: 52470 - Pages: 210

Premium Essay

Economic Environment

...brand and further hurting their empire. References BBC News Magazine (2010) Tesco - A new unit of measurement. Online at http://news.bbc.co.uk/2/hi/uk_newsjmagazine/8638714.stm Business Dictionary, Microeconomics. Online at http://www.businessdictionary.com/definition/microeconomics.html [accessed 15 September, 2013] C NN Money. Fortune 500. Online at http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/2255.html [Accessed 15 September, 2013] Rogers, Sand and Sedghi, A (2013) UKGDP since 1955. Online at http:/ /www.theguardian.com/news/datablog/2009/nov/25/gdp-uk-1948-growth­economy [accessed 17 September, 2013] Tutor2u. What is Macroeconomics? Online at http://www.tutor2u.Net/Eco nom icsIContent/Topics/Macroeco no my/Macroeconomics.Htm [accessed 25 January, 2013] The World Bank. GOP ranking. Online at http://data.worldbank.org/dat:a catalog/GDP-ranking-table [accessed 25 January, 2013] Wikipedia. Tesco. Online at http://en.wikipedia.org/wiki/Tesco [accessed 20 September, 2013]...

Words: 1187 - Pages: 5

Premium Essay

Hellwig Crisis

...faced with further price declines. Insufficiency of regulatory capital: Banks were also economizing on regulatory capital. Using the modelbased approach to determine regulatory capital for market risks, some of the most sophisticated institutions had managed to reduce their equity to a small fraction of the balance sheet, in the case of UBS somewhere between 2 and 3 percent. At such low levels, it doesn’t take much of an asset price decline to raise doubts about solvency. Even if solvency is not of an issue, deleveraging needs are likely to by quite drastic. It is important to appreciate the role of capital adequacy requirements in the downward spiral. Whereas past studies had discussed pro-cyclical effects of capital regulation in terms of macroeco- 6 5 I am treating the breakdown of maturity transformation by conduits and SIVs as an “independent” surprise. While this breakdown was triggered by the downgrades of subprime-mortgage-backed securities, financing structures of these institutions were so unhealthy that some other shock, e.g. a general increase in interest rates, would have had the same effect. Thus, for a long time in the nineties, Japanese banks did not write down their loan portfolios even when it was clear that many of the loans in these portfolios were bad; this failure to acknowledge losses delayed the cleanup of the crisis and thus contributed to the prolonged recession in Japan. In the early eighties, US savings and loans institutions kept......

Words: 8111 - Pages: 33

Free Essay

Cv Model

...9:30 Time 5:0 - 6:30 11:0 - 12:30 Day ST ST Day MW ST RM 7102 7093 RM 7093 7091 ENGLISH MAJOR IN LITERATURE Course Name SHAKESPEARE CONTEMPORARY SOUTH ASIAN WRITING IN ENG 26 BSS ECONOMICS Class Id 00970 00971 00972 Course Name INTERMEDIATE MICROECONOMICS INTERMEDIATE MACROECONOMICS AGRICULTURE ECONOMICS MICROECO FOR DEVELOPING COUNTRIES MACROECONOMICS OF DEVELOPING COUNTRIES MATHEMATICAL ECONOMICS BANGLADESH ECONOMIC STUDIES & CONTEMPORARY ISSUES GLOBAL TRADE Sec A A A A A A A Time 8:0 - 9:30 3.30-5.0 11:0 - 12:30 8:0 - 9:30 9:30 - 11:0 2:0 - 3:30 3.30-5.0 Day ST MW ST MW MW MW MW RM 7103 7102 7103 7103 7091 7083 7082 00973 00976 00977 BSS ECONOMICS AND BBA MAJOR IN ECONOMICS Class Id 00978 00980 00885 00974 Course Name MACROECO FOR DEVELOPING COUNTRIES BANGLADESH ECONOMY DEVELOPMENT ECONOMICS MATHEMATICAL ECONOMICS Sec A A A A Time 8:0 - 9:30 8:0 - 9:30 9:30 - 11:0 5:0 - 6:30 Day MW ST ST ST RM 545 535 161 534 27 SPRING, 2014-2015 BUSINESS ADMINISTRATION (GENERAL COURSES) Class Id 00982 00983 00984 00985 00986 00987 00988 00989 00990 00991 00992 00993 00994 00995 00996 00997 00998 00999 01000 01001 01002 01003 01004 01005 Course Name ENGINEERING MANAGEMENT ENGINEERING MANAGEMENT ENGINEERING MANAGEMENT ENGINEERING MANAGEMENT ENGINEERING MANAGEMENT ENGINEERING MANAGEMENT ENGINEERING MANAGEMENT ENGINEERING MANAGEMENT ENGINEERING MANAGEMENT PRIN OF ACCOUNTING (GEN) PRIN OF ACCOUNTING (GEN) PRIN OF ACCOUNTING (GEN) PRIN OF ACCOUNTING (GEN) PRIN OF......

Words: 15098 - Pages: 61

Premium Essay

Macroeconomics

... from flexible exchange rates, to fixed exchange rates, currency boards, and dollarization. ■ Chapters 22 through 24 return to macroeconomic policy. Although most of the first 21 chapters constantly discuss macroeconomic policy in one form or another, the purpose of Chapters 22 through 24 is to tie the threads together. Chapter 22 looks at the role and the limits of macroeconomic policy in general. Chapters 23 and 24 review monetary policy and fiscal policy. Some instructors may want to use parts of these chapters earlier. For example, it is easy to move forward the discussion of the government budget constraint in Chapter 23 or the discussion of inflation targeting in Chapter 24. ■ Chapter 25 serves as an epilogue; it puts macroeco- nomics in historical perspective by showing the evolution of macroeconomics in the last 70 years, discussing current directions of research, and the lessons of the crisis for macroeconomics. Changes from the Fifth to the Sixth Edition The structure of the sixth edition, namely the organization around a core and two extensions, is fundamentally the same as that of the fifth edition. This edition is, however, dominated in many ways by the crisis, and the many issues it raises. Thus, in addition to a first discussion of the crisis in Chapter 1, and numerous boxes and discussions throughout the book, we have added a new chapter, Chapter 9, specifically devoted to the crisis. At the same time, we have removed the two......

Words: 352657 - Pages: 1411

Premium Essay

The Effects of Fi Scal Spending Shocks on the Performance of Simple Monetary Policy Rules

...assignment in the light of recent developments. The Economic Journal 119 (541), 482–496. Leeper, E.M., 1991. Equilibria under ‘active’ and ‘passive’ monetary and fiscal policies. Journal of Monetary Economics 27, 129–147. Leith, C., Wren-Lewis, S., 2000. Interactions between monetary and fiscal policy rules. The Economic Journal 110, 93–108. Monacelli, T., Perotti, R., 2008. Fiscal policy, wealth effects, and markups. NBER Working Paper No. 14584. Mountford, A., Uhlig, H., 2009. What are the effects of fiscal policy shocks? Journal of Applied Econometrics 24 (6), 960–992. Perotti, R., 2007. In search of the transmission mechanism of fiscal policy. NBER Working Paper No. 13143. : In: Acemoglu, D., Rogoff, K., Woodford, M. (Eds.), NBER Macroeco- nomics Annual 2007, vol. 22. University of Chicago Press, Chicago, pp. 169–226. Perotti, R., 2004. Estimating the Effects of Fiscal Policy in OECD Countries. Working paper. IGIER, Milan. Ramey, V., Shapiro, M., 1998. Costly capital reallocation and the effect of government spending. Carnegie-Rochester Conference Series on Public Policy 48, 145–194. Ramey, V.A., 2007. Identifying government spending shocks: it's all in the timing. Manuscript. University of California, San Diego. Schmitt-Grohe, S., Uribe, M., 2004. Optimal fiscal and monetary policy under imperfect competition. Journal of Macroeconomics 26, 183–209. Schmitt-Grohe, S., Uribe, M., 2006. Optimal Fiscal and Monetary Policy in a Medium-Scale Macroeconomic......

Words: 12497 - Pages: 50

Free Essay

Economic Survey 2005-10

...600 300 0 FY05 FY06 FY07 F FY0 08 FY09 FY10 (Rs. billion) NSS PIBs MRTBs MTBs Source: Bud dget Wing, DPC CO Staff Calculation Moreover compliance with  the  po r,  e  olicy  steps  ta aken  in  the  p previous  year to  draw  a  line  between  debt  r  creation  a monetar policy  exec and  ry  cution  has  im mparted  certa ainty  to  the  g government  securities  ma arket.  These ste eps include publication of  yearly auctio on calendars and their pe eriodical revis sion, adheren nce to  volume ba ased auctions s and the dec cision of cut‐o off yields for p primary aucti ions by the M Ministry of Fin nance.  Going  forward,  such  measures  c can  be  the  building  blo ocks  of  a  w well‐integrated and  articu d  ulated  macroeco onomic policy y covering fisc cal, monetary y and debt sec ctors of the e economy.   8.2‐1(ii)   F Floating Debt t  The stock k of floating d debt experien nced the highest growth o of 20.8 percen nt in 2009‐10 0 (July 2009‐M March  2010)  am mong  the  major  categories of  domestic debt  and  ended  at  Rs.  2 s  c  2,299.7  billion  as  of  Marc 31,  ch  2010.  Bul of  this  increase  is  attri lk  ibuted  to  hefty  net  proce eeds  from  M Market  Treasu Bills  (MTB of  ury  Bs)  about Rs. 311 billion fa alling under the ambit of floating debt. The market p preference of f government t debt  instrumen owing  to risk  aversio and  absen of  private sector  cred demand,  g nts,  o  on  nce  e  dit  greatly  assist in  ted ......

Words: 5745 - Pages: 23