In this short video I explain GDP, the components of GDP, and what is not included in the Gross Domestic Product. Thanks for watching, please subscribe If you need more help, check out my Ultimate Review Packet http://www.acdcecon.com/#!review-packet/czji
Views: 402500 Jacob Clifford
A high gross domestic saving rate usually indicates a country's high potential to invest in capital. State two factors that affect the gross savings rate for a country. Explain how a rise in gross savings might not necessarily lead to a rise in a country’s growth rate.
Views: 2255 tutor2u
Difference between every day and economic notions of investment and consumption Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/GDP-components-tutorial/v/income-and-expenditure-views-of-gdp?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/circular-econ-gdp-tutorial/v/more-on-final-and-intermediate-gdp-contributions?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 312118 Khan Academy
Why are some countries rich? Why are some countries poor? In the end it comes down to Productivity. This week on Crash Course Econ, Adriene and Jacob investigate just why some economies are more productive than others, and what happens when an economy is mor productive. We'll look at how things like per capita GDP translate to the lifestyle of normal people. And, there's a mystery. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Jan Schmid, Simun Niclasen, Robert Kunz, Daniel Baulig, Jason A Saslow, Eric Kitchen, Christian, Beatrice Jin, Anna-Ester Volozh, Eric Knight, Elliot Beter, Jeffrey Thompson, Ian Dundore, Stephen Lawless, Today I Found Out, James Craver, Jessica Wode, Sandra Aft, Jacob Ash, SR Foxley, Christy Huddleston, Steve Marshall, Chris Peters Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 894269 CrashCourse
The economy is expected to grow steadily. Politics, industry and trade wish for economic growth. But how can economic growth be measured and might the economy eventually fully grown sometime? Our third clip in cooperation with Deutsche Welle explains "Economic Growth". Script download: www.explainity.com/education-project/transskripte/ ------- This explainer video was produced by explainity GmbH Homepage: www.explainity.com E-Mail: [email protected] This explanatory film was produced and published for private, non-commercial use and may be used free of charge in this context for private purposes without consultation or written authorization. Please note, however, that neither the content nor the graphics of this explanatory film may be altered in any way. Please always give explainity as the source when using the film, and if you publish it on the internet, provide a reference to www.explainity.com. For commercial use or use for training purposes, such as projection of the film at training events (e.g. projection of the film as a teaching aid in school or in adult education), a licence is required. Further information on this subject will be found here: https://www.explainity.com/education-project If you are interested in an own explainity explainer video, visit our website www.explainity.com and contact us. We are looking forward to your inquiry.
Views: 116372 explainitychannel
Thinking about how different types of expenditures would be accounted for in GDP Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/GDP-components-tutorial/v/examples-of-accounting-for-gdp?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/GDP-components-tutorial/v/income-and-expenditure-views-of-gdp?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 340757 Khan Academy
Here's a quick growth conundrum, to get you thinking. Consider two countries at the close of World War II—Germany and Japan. At that point, they've both suffered heavy population losses. Both countries have had their infrastructure devastated. So logically, the losing countries should’ve been in a post-war economic quagmire. So why wasn't that the case at all? Following WWII, Germany and Japan were growing twice, sometimes three times, the rate of the winning countries, such as the United States. Similarly, think of this quandary: in past videos, we explained to you that one of the keys to economic growth is a country's institutions. With that in mind, think of China's growth rate. China’s been growing at a breakneck pace—reported at 7 to 10% per year. On the other hand, countries like the United States, Canada, and France have been growing at about 2% per year. Aside from their advantages in physical and human capital, there's no question that the institutions in these countries are better than those in China. So, just as we said about Germany and Japan—why the growth? To answer that, we turn to today's video on the Solow model of economic growth. The Solow model was named after Robert Solow, the 1987 winner of the Nobel Prize in Economics. Among other things, the Solow model helps us understand the nuances and dynamics of growth. The model also lets us distinguish between two types of growth: catching up growth and cutting edge growth. As you'll soon see, a country can grow much faster when it's catching up, as opposed to when it's already growing at the cutting edge. That said, this video will allow you to see a simplified version of the model. It'll describe growth as a function of a few specific variables: labor, education, physical capital, and ideas. So watch this new installment, get your feet wet with the Solow model, and next time, we'll drill down into one of its variables: physical capital. Helpful links: Puzzle of Growth: http://bit.ly/1T5yq18 Importance of Institutions: http://bit.ly/25kbzne Rise and Fall of the Chinese Economy: http://bit.ly/1SfRpDL Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/1RxdLDT Next video: http://bit.ly/1RxdSzo Help us caption & translate this video! http://amara.org/v/IHQj/
Views: 295747 Marginal Revolution University
Picture the economy as a giant supermarket, with billions of goods and services inside. At the checkout line, you watch as the cashier rings up the price for each finished good or service sold. What have you just observed? The cashier is computing a very important number: gross domestic product, or GDP. GDP is the market value of all finished goods and services, produced within a country in a year. But, what does "market value" mean? And what defines a "finished good"? These, and more questions, percolate inside your head. Meanwhile, the cashier starts ringing up the total, and you’re left confused. An array of things pass by you — A bottle of wine. A carton of eggs. A cake from the local bakers. A tractor, of all things. A bunch of ballpens. A bag of flour. In this video, join us as we show you how to make sense of this important economic indicator. You’ll learn how GDP is computed, and you’ll get answers to some pretty interesting questions along the way. Questions like, “Why are the eggs in my homemade omelet part of the GDP, but the eggs my baker uses are not? Why does my bottle of French wine contribute to France’s GDP, even if I bought it in the United States?” Most importantly, you’ll also learn why polar bears aren’t part of the GDP computation, even if they’re incredibly cute. So, buckle in for a bit—in the following videos we’ll dive into specifics on GDP. Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/1p4ZtxL Next video: http://bit.ly/1mY2bn0 Help us caption & translate this video! http://amara.org/v/HZv3/
Views: 557712 Marginal Revolution University
In our previous macroeconomics video, we said that the accumulation of physical capital only provides a temporary boost to economic growth. Does the same apply to human capital? To answer that, consider this: what happens to all new graduates, in the end? For a while, they’re productive members of the economy. Then age takes its toll, retirement rolls around, and eventually, the old workforce is replaced with a new infusion of people. But then, the cycle restarts. You get a new workforce, everyone’s productive for a while, and then they too retire. Does this ring a bell? It should, because this is similar to the depreciation faced by physical capital. Similarly, are there diminishing returns to education? It likely wouldn’t pay off for everyone to have a PhD, or for everyone to master Einstein’s great theories. That means the logic of diminishing returns, and the idea of a steady state, also applies to human capital. So, now we can revise our earlier statement. Now we can say that the accumulation of any kind of capital, only provides a temporary boost in economic growth. This is because all kinds of capital rust. So, one way or another, we’ll reach a point where new investments can only offset depreciation. It’s the steady state, all over again. However, what does the journey to steady state look like? The Solow model predicts that poor countries should eventually catch up to rich countries, especially since they’re growing from a lower base. And given their quicker accumulation of capital, poorer nations should also grow faster, than their more developed neighbors. And eventually, every country should reach similar steady states. In other words, we would see growth tracks that all eventually converge. So, why isn’t this always the case? Why, in some cases, are we seeing “Divergence, Big time,” as coined by economist Lant Pritchett? The answer to these questions, lies in the institutions of different countries and the incentives they create. Assuming that a certain set of countries do have similar institutions, that’s where we see the convergence predicted by the Solow model. We see that poorer countries do grow faster than their richer counterparts. And conditional on having similar institutions, eventually, even poorer countries will reach a similar steady state of output as more developed nations. We call this phenomenon conditional convergence. You can think of it as a national game of catch-up, with catch-up only happening if institutions don’t differ. What happens though, once all this catching up is done? Let’s not forget that there’s still another variable in the Solow model. This is variable A: ideas -- the subject of our next video. There, we’ll show you how ideas can keep a country moving along the cutting edge of growth. Catch up on the Solow model: Introduction to the Solow model: http://bit.ly/1SMud3G Physical Capital and Diminishing Returns: http://bit.ly/1SpLT31 The Solow Model and the Steady State: http://bit.ly/233vDGw Office Hours video on the Solow model: http://bit.ly/1VQ8XLe Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/1NwAtKJ Next video: http://bit.ly/1SHvrdp Help us caption & translate this video! http://amara.org/v/IR1M/
Views: 123563 Marginal Revolution University
This video explains how to calculate Gross Domestic Product mathematically and goes through a numerical example. It also shows how to calculate the percentage change in GDP from year to year. For more information and a complete listing of videos and online articles by topic or textbook chapter, see http://www.economistsdoitwithmodels.com/economics-classroom/ For t-shirts and other EDIWM items, see http://www.economistsdoitwithmodels.com/merch/ By Jodi Beggs - Economists Do It With Models http://www.economistsdoitwithmodels.com Facebook: http://www.facebook.com/economistsdoitwithmodels Twitter: http://www.twitter.com/jodiecongirl Tumblr: http://economistsdoitwithmodels.tumblr.com
Views: 171084 jodiecongirl
In the first video in this section on The Wealth of Nations and Economic Growth, you learned a basic fact of economic wealth—that countries can vary widely in standard of living. Specifically, you learned how variations in real GDP per capita can set countries leagues apart from one another. Today, we’ll continue on that road of differences, and ask yet another question. How can we explain wealth disparities between countries? The answer? Growth rates. And in this video, you’ll learn all about the ins-and-outs of measuring growth rates. For one, you’ll learn how to visualize growth properly—examining growth in real GDP per capita on a ratio scale. Then, here comes the fun part: you’ll also take a dive into the growth of the US economy over time. It’s a little bit like time travel. You’ll transport yourself to different periods in the country’s economic history: 1845, 1880, the Roaring Twenties, and much more. As you transport yourself to those times, you’ll also see how the economies of other countries stack up in comparison. You’ll see why the Indian economy now is like a trip back to the US of 1880. You’ll see why China today is like the America of the Jazz Age. (You’ll even see why living in Italy today is related to a time when Atari was popular in the US!) In keeping with our theme, though, we won’t just offer you a trip through ages past. Because by the end of this video, you’ll also have the answer to one vital question: if the US had grown at an even higher rate, where would we be by now? The magnitude of the answer will surprise you, we’re sure. But then, that surprise is in the video. So, go on and watch, and we’ll see you on the other side. Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/1XN4qa4 Next video: http://bit.ly/1QEOlDY Help us caption & translate this video! http://amara.org/v/Hf8E/
Views: 62186 Marginal Revolution University
Economic growth increases when more people work more productively. However, economic growth has slowed in the last decade, as increases in productivity and hours worked have fallen to fractions of their previous rates. Returning to rapid economic growth will require policies that encourage individuals to rejoin the workforce and businesses to invest in physical capital. For more information, please visit the Policyed page here: https://www.policyed.org/intellections/formula-economic-growth/video Additional resources: John Taylor argues for policy reforms to promote economic growth in “Can We Restart The Recovery All Over Again?”: http://stanford.io/2tOVoQB or http://bit.ly/2terZD3 In “Slow economic growth as a phase in a policy performance cycle,” John Taylor discusses the reasons and policies behind our poor economic performance: http://stanford.io/2rSa0SI Read “A Recovery Waiting to Be Liberated” by John Taylor to learn about the policies that can speed up our economic growth here: http://on.wsj.com/2sBwHYA Watch John Taylor’s testimony before the Financial Services Committee concerning monetary policy here: http://bit.ly/2tOSiME In an interview with Bloomberg's Kathleen Hays, John Taylor discusses the global financial instability and roles the central banks play: https://bloom.bg/2ttYiLl Read “Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis” by John B. Taylor to learn more about the 2007-2008 financial crisis here: http://hvr.co/2sUwfYf
Views: 223437 PolicyEd
Throughout this section of the course, we’ve been trying to solve a complicated economic puzzle—why are some countries rich and others poor? There are various factors at play, interacting in a dynamic, and changing environment. And the final answer to the puzzle differs depending on the perspective you're looking from. In this video, you'll examine different pieces of the wealth puzzle, and learn about how they fit. The first piece of the puzzle, is about productivity. You'll learn how physical capital, human capital, technological knowledge, and entrepreneurs all fit together to spur higher productivity in a population. From this perspective, you'll see economic growth as a function of a country's factors of production. You’ll also learn what investments can be made to improve and increase these production factors. Still, even that is too simplistic to explain everything. So we'll also introduce you to another piece of the puzzle: incentives. In previous videos, you learned about the incentives presented by different economic, cultural, and political models. In this video, we'll stay on that track, showing how different incentives produce different results. As an example, you'll learn why something as simple as agriculture isn't nearly so simple at all. We'll put you in the shoes of a hypothetical farmer, for a bit. In those shoes, you'll see how incentives can mean the difference between getting to keep a whole bag of potatoes from your farm, or just a hundredth of a bag from a collective farm. (Trust us, the potatoes explain a lot.) Potatoes aside, you're also going to see how different incentives shaped China's economic landscape during the “Great Leap Forward” of the 1950s and 60s. With incentives as a lens, you'll see why China's supposed leap forward ended in starvation for tens of millions. Hold on—incentives still aren’t the end of it. After all, incentives have to come from somewhere. That “somewhere” is institutions. As we showed you before, institutions dictate incentives. Things like property rights, cultural norms, honest governments, dependable laws, and political stability, all create incentives of different kinds. Remember our hypothetical farmer? Through that farmer, you'll learn how different institutions affect all of us. You'll see how institutions help dictate how hard a person works, and how likely he or she is to invest in the economy, beyond that work. Then, once you understand the full effect of institutions, you'll go beyond that, to the final piece of the wealth puzzle. And it's the most mysterious piece, too. Why? Because the final piece of the puzzle is the amorphous combination of a country’s history, ideas, culture, geography, and even a little luck. These things aren't as direct as the previous pieces, but they matter all the same. You'll see why the US constitution is the way it is, and you'll learn about people like Adam Smith and John Locke, whose ideas helped inform it. And if all this talk of pieces makes you think that the wealth puzzle is a complex one, you’d be right. Because the truth is, the question of “what creates wealth?” really is complex. Even the puzzle pieces you'll learn about don't constitute every variable at play. And as we mentioned earlier, not only are the factors complex, but they're also constantly changing as they bump against each other. Luckily, while the quest to finish the wealth puzzle isn’t over, at least we have some of the pieces in hand. So take the time to dive in and listen to this video and let us know if you have questions along the way. After that, we'll soon head into a new section of the course: we’ll tackle the factors of production so we can further explore what leads to economic growth. Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/1QEPrQ3 Next video: http://bit.ly/1WJe2Bw Help us caption & translate this video! http://amara.org/v/HrHZ/
Views: 137018 Marginal Revolution University
Remember our simplified Solow model? One end of it is input, and on the other end, we get output. What do we do with that output? Either we can consume it, or we can save it. This saved output can then be re-invested as physical capital, which grows the total capital stock of the economy. There's a problem with that, though: physical capital rusts. Think about it. Yes, new roads can be nice and smooth, but then they get rough, as more cars travel over them. Before you know it, there are potholes that make your car jiggle each time you pass. Another example: remember the farmer from our last video? Well, unless he's got some amazing maintenance powers, in the end, his tractors will break down. Like we said: capital rusts. More formally, it depreciates. And if it depreciates, then you have two choices. You either repair existing capital (i.e. road re-paving), or you just replace old capital with new. For example, you may buy a new tractor. You pay for these repairs and replacements with an even greater investment of capital. We call the point where investment = depreciation the steady state level of capital. At the steady state level, there is zero economic growth. There's just enough new capital to offset depreciation, meaning we get no additions to the overall capital stock. A further examination of the steady state can help explain the growth tracks of Germany and Japan at the close of World War II. In the beginning, their first few units of capital were extremely productive, creating massive output, and therefore, equally high amounts available to be saved and re-invested. As time passed, the growing capital stock created less and less output, as per the logic of diminishing returns. Now, if economic growth really were just a function of capital, then the losers of World War II ought to have stopped growing once their capital levels returned to steady state. But no, although their growth did slow, it didn't stop. Why is this the case? Remember, capital isn't the only variable that affects growth. Recall that there are still other variables to tinker with. And in the next video, we'll show two of those variables: education (e) and labor (L). Together, they make up our next topic: human capital. Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/23B5u4b Next video: http://bit.ly/1Sdlrvx Help us caption & translate this video! http://amara.org/v/IM5L/
Views: 254795 Marginal Revolution University
Using real GDP as a measure of actual productivity growth Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/real-nominal-gdp-tutorial/v/gdp-deflator?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Missed the previous lesson? https://www.khanacademy.org/economics-finance-domain/macroeconomics/gdp-topic/GDP-components-tutorial/v/examples-of-accounting-for-gdp?utm_source=YT&utm_medium=Desc&utm_campaign=macroeconomics Macroeconomics on Khan Academy: Topics covered in a traditional college level introductory macroeconomics course About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy's Macroeconomics channel: https://www.youtube.com/channel/UCBytY7pnP0GAHB3C8vDeXvg Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 515672 Khan Academy
GDP is generally understood to represent the health of a nation's economy, and most people realize that if GDP is growing, things are going well, while if it's falling things have turned sour in the economy. But what, precisely, does GDP measures? There are two primary methods for measuring GDP, which should yield the same result even though they measure completely different factors. -The income approach: measures the total incomes earned by households in a nation in a year. -The expenditure approach: measures the total amount spent on the goods produced by a country in a year. By examining the circular flow model of a nation's economy, we can demonstrate why every dollar earned by a household in a nation's resource market will ultimately be spent in the product market, or leaked through taxes, savings, and import spending, leading to injections in the form of government spending, investment and export sales. In the video lecture below, the two methods for measuring GDP are introduced, and the various components it includes are explained in detail. Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870
Views: 308366 Jason Welker
This week, Adriene and Jacob teach you about macroeconomics. This is the stuff of big picture economics, and the major movers in the economy. Like taxes and monetary policy and inflation and policy. We need this stuff, because if you don't have a big picture of the economy, crashes and panics are more likely. Of course, economics is extremely complex and unpredictable. Today we'll talk about GDP as a measure of a country's economic health, the basics of economic analysis, and even a little about full employment, unemployment Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Jan Schmid, Simun Niclasen, Robert Kunz, Daniel Baulig, Jason A Saslow, Eric Kitchen, Christian, Beatrice Jin, Anna-Ester Volozh, Eric Knight, Elliot Beter, Jeffrey Thompson, Ian Dundore, Stephen Lawless, Today I Found Out, James Craver, Jessica Wode, Sandra Aft, Jacob Ash, SR Foxley, Christy Huddleston, Steve Marshall, Chris Peters -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 1254654 CrashCourse
China has achieved extraordinary economic growth in the last several decades. Now, China’s long-term future requires an ambitious restructuring of its economy, emphasizing domestic consumption over government investment. In advance of President Xi Jinping’s September 23-26 US state visit, senior leaders from Goldman Sachs discuss why China’s economic transformation is necessary, the potential challenges to the transition, and the country’s evolving role as a global economic superpower. Learn more: http://link.gs.com/6OBo
Views: 14505 Goldman Sachs
Taught by John Smithin Assisted by Fredrick Zhou There are two alternative views about how to promote economic growth. We develop two generic growth equations, each including the trade balance, the primary budget deficit, and the domestic investment/savings balance, to explain the underlying arguments. The first illustrates a “Keynes’s-type” theory, focusing on demand growth. This validates the idea that fiscal expansion leads to growth, that investment drives saving (the “paradox of thrift”) and that a trade surplus leads to growth (“monetary mercantalism”). The second approach leads to a “classics-type” theory, stressing capital accumulation and supply. However, this yields seriously anomalous results, and does not provide a solid foundation for the classical theories of trade, saving, and public finance. There are also multiple theories of inflation, those descended from the quantity theory, from Wicksell, and also various theories of “cost push” or “conflict” inflation. If money is endogenous there is plenty of scope for the latter. Also the parameters of both the money demand and (endogenous) money supply functions must be relevant. These are literally measures of “liquidity preference” - on both sides of the money market.
Views: 1010 New Economic Thinking
How government borrowing could have negative effects on investment and economic growth by "crowding out" private borrowers/investors in the loanable funds market. AP(R) Macroeconomics on Khan Academy: Macroeconomics is all about how an entire nationÕs performance is determined and improved over time. Learn how factors like unemployment, inflation, interest rates, economic growth and recession are caused and how they affect individuals and society as a whole. We hit the traditional topics from an AP Macroeconomics course, including basic economic concepts, economic indicators, and the business cycle, national income and price determination, the financial sector, the long-run consequences of stabilization policies, and international trade and finance. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything https://www.youtube.com/subscription_center?add_user=khanacademy. View more lessons or practice this subject at http://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-long-run-consequences-of-stabilization-policies/crowding-out/v/crowding-out-ap-macroeconomics-khan-academy?utm_source=youtube&utm_medium=desc&utm_campaign=apmacroeconomics AP Macroeconomics on Khan Academy: Welcome to Economics! In this lesson we'll define Economic and introduce some of the fundamental tools and perspectives economists use to understand the world around us! Khan Academy is a nonprofit organization with the mission of providing a free, world-class education for anyone, anywhere. We offer quizzes, questions, instructional videos, and articles on a range of academic subjects, including math, biology, chemistry, physics, history, economics, finance, grammar, preschool learning, and more. We provide teachers with tools and data so they can help their students develop the skills, habits, and mindsets for success in school and beyond. Khan Academy has been translated into dozens of languages, and 15 million people around the globe learn on Khan Academy every month. As a 501(c)(3) nonprofit organization, we would love your help! Donate or volunteer today! Donate here: https://www.khanacademy.org/donate?utm_source=youtube&utm_medium=desc Volunteer here: https://www.khanacademy.org/contribute?utm_source=youtube&utm_medium=desc
Views: 19090 Khan Academy
GST, FDI reforms have created an environment of optimism, but that's not enough to suggest that we are at a turning point in India, Gita Gopinath, professor at Harvard University, tells Nikhil Inamdar. Watch more videos: http://profit.ndtv.com/videos?yt Download the NDTV news app: https://play.google.com/store/apps/details?id=com.july.ndtv&referrer=utm_source%3Dyoutubecards%26utm_medium%3Dcpc%26utm_campaign%3Dyoutube
Views: 3516 NDTV
For more information log on to http://www.channelstv.com
Views: 137 Channels Television
Foreign Direct Investment It is the long term investment by a company in a foreign country. Apex-Brasil offers free support to build relations with governments, organizations and companies in various parts of the country.
The Australian economy is undoubtedly slowing, which was evident given the number of earnings downgrades and soft results witnessed in the most recent earnings season. And while bottom-up stock pickers try to identify those growth companies poised to rerate based on a catalyst, paying close attention to what is happening in the domestic economy is still an important part of the investment process. And with the effect from falling house prices starting to take its toll, particularly on the Australian consumer, there needs to be a strong reason to own certain businesses tied to this area of the economy. Listen to how Martin Hickson from Wilson Asset Management and Ellerston Capital’s David Keelan navigate stock selection against a deteriorating economic backdrop.
Views: 2718 Livewire Markets
The gross domestic product is the ultimate yardstick of a country’s economy. An increase means companies are making profits and the economy is growing. But if there's negative economic growth for two consecutive quarters, however, it’s recession time. This is why all eyes and ears are on the business gurus and their forecasts for the GDP. More Made in Germany on: http://www.dw.de/program/made-in-germany/s-3066-9798
Views: 23465 DW News
Your IB Economics Course Companion! This is video 2 of 3 videos in “The Foreign Direct Investment Series”. Watch the entire series right here: https://www.youtube.com/playlist?list=PLNI2Up0JUWkFQEU8Vtq5gijMaI3GSazVI The List! Here is the “The List” for “The Foreign Direct Investment and Economic Development Series” For an explanation of the logic of “The Lists” click here: https://youtu.be/dE0fbsgXlFE Foreign Direct Investment (FDI) Reasons why MNCs are attracted to developing nations 1. Natural resources 2. Huge markets 3. Low cost of labor 4. Fewer regulations Possible advantages of FDI 1. Increased savings 2. Increased employment 3. Increased education and training 4. Increased research, development, technology and marketing strategies 5. Multiplier effect of increased incomes 6. Increased tax revenue 7. Increased foreign capital 8. Improved infrastructure 9. Increased choice in market place 10. Lower prices in market place 11. Increased free trade Possible disadvantages of FDI 1. MNCs Bring own management teams 2. Too much power to MNCs 3. Practice of transfer pricing 4. Increased pollution due to low regulations 5. MNCs Extract natural resources from host country 6. MNCs use capital intensive production methods 7. MNCs purchase domestic firms 8. MNCs often repatriate profits I hope you find these videos helpful to your study of Economics. Enjoy! Brad Cartwright . Follow on Twitter: IB Specific News and Analysis Daily! https://twitter.com/econ_ib . Follow on Instagram: https://www.instagram.com/econcoursecompanion/ Support Econ Course Companion: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=CQS377QG4VM4G&source=url
Views: 22649 Econ Course Companion
Transcript: 1 In macroeconomics, we study the economy of one country. 2 Then try to understand how 2 countries interact and trade. 3 And hopefully, understand the global economy. 4 So today, we are going to study the circular flow of income. 5 Let’s make things really simple. 5 Imagine we are alone on an isolated island. There’s no government, no trade, no savings. I told you, it's simple! 6 There’s only firms and households. (2-sector economy: firms + households (closed economy)) 7 Firms provide households with goods and services. 7 Out of thin air? 7 Nah.. 8 Firms gotta get factors of production from households. 8 It can be labor, land, capital or… 8 Face it. Some of us in households are going to be entrepreneurs. (For more information on factors of production: check out this video) 8 So…entrepreneurship. 9 For free? You wish! 9 We don’t get freebies from firms. 9 We don’t provide labor for free either. 10 So there’s money flowing in the opposite direction. 11 Households gotta pay firms for the goods they get. 12 Firms also gotta pay households in the form of wages, rents, interests or profits. 12 But this is a little weird. 12 We don’t spend everything we earn in real life. 13 So let’s add savings. 13 Savings is money we don’t spend. 13 So there’s money flowing out. 14 Hey, savings don’t just sit in banks… 14 Banks invest in firms by lending to them. 14 Cos firms need money to buy capital equipment or cover other costs of production. 14 So there's investments flowing into the economy. 14 Bravo! Awesome! 14 But this is a little too simplified. 15 Let’s add government. (3 sector economy: firms + households + government) 15 Government buys stuff as well. 15 So there’s money flowing in. 16 Government gets money from taxes. 16 Taxes. So there’s money flowing out. 16 Cos for the money we’re paying as taxes, we cannoyt spend it. 17 Lastly, countries interact with one another. 17 Imagine this is an American economy. 18 Let’s add trade. (4 sector economy: firms + households + government + foreign sector) 18 America imports stuff. 18 For example, America can import shoes from China. 18 Shoes flow from China into America. 19 And money spent on imports flows out of America into China. 19 America exports too. 19 America can produce software 19 and export it to foreigners, 20 Money then flows from foreign countries into America. 20 This is America's export earnings. 21 Investments, Government Spending and Export earnings are called Injections. 21 Cos money is flowing in. 22 Savings, taxes and import spending are called leakages or withdrawals. 22 Cos money leaks out of the system. And hey, injections and leakages are sort of related. Investments come from savings. Government spending comes from taxes. America makes money from foreigners by exporting. But foreigners also make money from America when America imports. Wow…no wonder it's Circular Flow of Income It tells us roughly how an economy functions. 23 How do we measure the size of an economy then? 24 By measuring Gross Domestic Product or GDP. 24 GDP is the total value of all final goods and services produced within the borders of a country during a given period. 25 Why must it be FINAL goods and services? (Hint: it's in the next video) 26 If you like this video, remember to like and subscribe. 27 Next up: Measuring GDP: Output Approach _______________________________________________ How does an economy function? Look at the Circular Flow of Income. Who are the major players in an economy? In order of increasing complexity, there are: 2-sector economy: households + firms 3-sector economy: households + firms + government 4-sector economy: households + firms + government + foreign sector There are real goods and services flowing in one direction in the circular flow of income and money flowing in the opposite direction. When money flowing to the country, it's called injections. When money flows out, it's called withdrawals or leakages. Injections consist of government spending, investments and exports. Leakages or withdrawals include imports, taxes and savings. Injections and leakages/withdrawals are related to each other. This is because government spending comes from tax revenues and investments, at least the local component, come from savings. That said, investments can flow from foreign countries in the form of foreign direct investments (FDI). Lastly, while money can flow from foreign countries when we export overseas, money also leaks out of the country because we import. Important definitions: Gross Domestic Product or GDP is the total value of all final goods and services produced within the borders of a country during a given period. Use flashcards to remember these definitions in economics: http://www.memrise.com/course/461808/economics-101/
Views: 129450 Economics Mafia
In this session the concepts of gross investment and depreciation are explained by Ms. Dipika. For more information visit www.doorsteptutor.com or email [email protected]
Views: 8226 Examrace
Ideas are a major factor in economic growth. But so are saving and investing. If you were given the choice between living in an inventive (more ideas) or a thrifty (more savings) country, which would you choose? The Solow model of economic growth, which we recently covered in Principles of Macroeconomics, can help you make the choice. In this Office Hours video, Mary Clare Peate will use our simplified version of the Solow model to show you an easy way to work out each country’s economic prospects, and then compare them to see where you’d rather be. Additional practice questions: http://bit.ly/1YcByds The Solow model playlist: http://bit.ly/1sv2Pfa Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Help us caption & translate this video! http://amara.org/v/LUdW/
Views: 21639 Marginal Revolution University
What is GDP (Gross Domestic Product) -- GDP is the total monetary value of the final goods and services produced within the geographical boundaries of a country in a given period of time. For a more detailed explanation of the terms: GROSS: The depreciation in the capital assets of the country, occurred during the year is inclusive. This means, the monetary value of loss of assets due to production activities had not been deducted. If we do deduct it, it becomes NET. DOMESTIC: Domestic implies, produced within the geographical boundaries. It does not take into account the country's earning outside its geographical boundaries, or foreign remittances. Neither does it deduct transfers outside of the country. If these remittances are added and the transfers deducted, the value becomes NATIONAL. PRODUCT: The final goods and services. Final implies that intermediate goods are not taken into account. For example, wheat sold for final consumption to consumers will be taken into account, but the amount of wheat sold to bakeries for further production of bread will not be added. The value of bread will be taken into account which will be inclusive of the value of its input: wheat. This is done to avoid double counting. Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/InvestYadnya Facebook Group - https://goo.gl/y57Qcr Twitter - https://www.twitter.com/InvestYadnya
Views: 59682 Yadnya Investment Academy
American Action Forum President Doug Holtz-Eakin and CNBC's Rick Santelli discuss the benefits of tax reform, domestic investment and productivity growth.
Views: 129 CNBC Television
Your IB Economics Course Companion! This is video 1 of 3 videos in “The Foreign Direct Investment Series”. Watch the entire series right here: https://www.youtube.com/playlist?list=PLNI2Up0JUWkFQEU8Vtq5gijMaI3GSazVI The List! Here is the “The List” for “The Foreign Direct Investment and Economic Development Series” For an explanation of the logic of “The Lists” click here: https://youtu.be/dE0fbsgXlFE Foreign Direct Investment (FDI) Reasons why MNCs are attracted to developing nations 1. Natural resources 2. Huge markets 3. Low cost of labor 4. Fewer regulations Possible advantages of FDI 1. Increased savings 2. Increased employment 3. Increased education and training 4. Increased research, development, technology and marketing strategies 5. Multiplier effect of increased incomes 6. Increased tax revenue 7. Increased foreign capital 8. Improved infrastructure 9. Increased choice in market place 10. Lower prices in market place 11. Increased free trade Possible disadvantages of FDI 1. MNCs Bring own management teams 2. Too much power to MNCs 3. Practice of transfer pricing 4. Increased pollution due to low regulations 5. MNCs Extract natural resources from host country 6. MNCs use capital intensive production methods 7. MNCs purchase domestic firms 8. MNCs often repatriate profits I hope you find these videos helpful to your study of Economics. Enjoy! Brad Cartwright . Follow on Twitter: IB Specific News and Analysis Daily! https://twitter.com/econ_ib . Follow on Instagram: https://www.instagram.com/econcoursecompanion/ Support Econ Course Companion: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=CQS377QG4VM4G&source=url
Views: 30470 Econ Course Companion
March 25 (Bloomberg) -- Ifo Institute President Hans-Werner Sinn, talks about German business confidence, which fell less than economists expected in March. He speaks with Maryam Nemazee on Bloomberg Television's "The Pulse."
Views: 233 Bloomberg
In the fourth-quarter, U.S. gross domestic product grew at an annualized rate of 2.6%, according to the latest data from the Bureau of Economic Analysis. Thursday’s report beat expectations, with consensus economists polled by Bloomberg looking for growth to slow to 2.2% during the final three months of the year. The domestic economy grew at a pace of 3.4% in the third quarter and 4.2% in the second quarter. Despite the softening in GDP in the fourth quarter, overall growth in 2018 was solid. Real GDP grew at a pace of 3.1% in 2018, measured from the fourth quarter of 2017 to the final quarter of 2018. This represented a stronger pace of annual growth than the 3% targeted by the Trump administration. “The deceleration in real GDP growth in the fourth quarter reflected decelerations in private inventory investment, PCE, and federal government spending and a downturn in state and local government spending,” the BEA wrote in a statement. “These movements were partly offset by an upturn in exports and an acceleration in nonresidential fixed investment. Imports increased less in the fourth quarter than in the third quarter.” Personal consumption grew by 2.8% in the fourth quarter, slower than the 3% expected and the 3.5% pace from the quarter prior. The PCE price index increased 1.5% in the fourth quarter, compared with an advance of 1.6% previously. The core PCE price index excluding food and energy prices rose 1.7%, versus an expected 1.6% uptick. Non-residential investment, a proxy for business spending, picked up with a 6.2% increase from 2.5% in the third quarter. This figure remained strong even as investing in structures declined 4.2%, or the largest drop since the third quarter of 2017. Fixed investment growth of 3.9% – versus 1.1% in the third quarter – was driven by spending in research and development. R&D spending totaled $425 billion in the fourth-quarter, representing a 9.9% year-over-year increase. “Private R&D spending now represents 2.3% of US GDP, an all-time record,” Neil Dutta, head of economics at Renaissance Macro Research, wrote in an email. “R&D spending is usually a good sign for future productivity growth. If secular stagnation is a thing, U.S. firms are fighting like hell to avoid it.” The BEA typically releases three prints on gross domestic product for each quarter. However, Thursday’s results take the place of the first two estimates for fourth-quarter GDP, as the first print was delayed due to the 35-day partial government shutdown. The protracted shutdown also impacted the release of key data factoring into the ultimate measure of gross domestic product. The data that has trickled in for December over the past several weeks, however, had painted a stormy picture of the U.S. economy in the fourth quarter. While the economy grew robustly at the start of 2018, a host of economic data softened at the end of the year amid factors including a tighter monetary policy environment and turmoil in financial markets. Although the stock market cannot be conflated with the broader economy as a whole, recent economic data – much of which factored into the reading on GDP – had pointed to corresponding weakening in many key economic areas at the end of 2018, particularly in housing and manufacturing. Retail spending was also a central concern after Census Bureau data pointed to the largest drop in retail sales in December since September 2009. These concerns, however, did not prove too heavy a drag on this print for GDP. “While it’s lower than what we’ve seen in the past two quarters it’s still solid compared to years past—that it tops expectations by a considerable amount could help fuel the rally we’ve enjoyed so far this year,” Mike Loewengart, vice president of investment strategy at E-Trade Financial Corporation, said in an email. “It’s also a major signal that slowing global growth has not yet come home to roost here in the U.S. That said, it’s one economic signal of many, and amid the chorus of market watchers predicting the booming economy is beginning to slow, investors should remain alert.” For more on this: https://finance.yahoo.com/news/4q18-gdp-first-and-second-estimate-130025490.html Subscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb About Yahoo Finance: At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. Connect with Yahoo Finance: Get the latest news: https://yhoo.it/2fGu5Bb Find Yahoo Finance on Facebook: http://bit.ly/2A9u5Zq Follow Yahoo Finance on Twitter: http://bit.ly/2LMgloP Follow Yahoo Finance on Instagram: http://bit.ly/2LOpNYz
Views: 392 Yahoo Finance
Taiwan''s gross domestic investment as a percentage of its national income dropped to around 20 percent this year, marking a seven-year low. It''s another ominous warning sign that the country''s economy may continue in its current slump. New data also shows that excess savings rates reached their highest levels in 29 years, suggesting a lack of major domestic investment opportunities. Multinational financial services company Barclays officially halted its operations in Taiwan this past April, while Citibank, Standard Chartered, and various other foreign banks continue to close local branch offices. Domestic firms are also encountering a difficult business climate. Even in Taipei’s east district, one of the island’s biggest shopping areas, many storefronts lay empty awaiting tenants.Numbers published by the government’s official statistics bureau show that gross domestic investment as a percentage of gross national income began a multi-year decline starting in 2010. During the same period, excess savings rates grew year after year, showing that local banks were hoarding cash in the absence of any clear investment opportunities. Wu Chung-shuCIER PresidentInvestment is one of the most important sources for driving future productivity. There are many reasons for the current investment slowdown, one of which is a broader economic sluggishness.China’s ongoing localization of its supply chain has led to a reduction in orders from Taiwan, which is heavily dependent on exports. That drop in business is the main reason behind Taiwan’s shrinking investment market, and experts are calling on the Tsai administration to act quickly to turn things around.
Views: 308 民視英語新聞 Formosa TV English News
Draw Me The Economy is a series of videos explaining the economic news, without political bias. It is a tool offered to all to aid understanding, thanks to the drawings of economic concepts that are part of our daily lives. http://www.drawmetheeconomy.com
Views: 9685 Dessine-moi l'éco
A2/IB 7) Institutional Factors and Development - Education, Healthcare and Infrastructure - A look at the institutional factors that lead to development with s specific focus on education, healthcare and infrastructure as the three major pillars to development
Views: 18544 EconplusDal
http://www.tutorialrank.com/ECO/ECO-372/product-26834-ECO-372-Assignment-Week-1-Apply-Output,-Income,-and-Economic-Growth-Homework For more course tutorials visit www.tutorialrank.com ECO 372 Week 1 Apply: Output, Income, and Economic Growth Homework – One Attempt Review the Week 1 Output, Income, and Economic Growth Quiz in preparation for this assignment. Complete the Week 1 Output, Income, and Economic Growth Assignment in McGraw-Hill Connect®. These are randomized questions. Note: You have only one attempt available to complete assignments. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. Which of the following scenarios would be included in GDP? Darius unclogs the drain in his sink using the plunger he owns. Sandra is a waitress at Morton’s Steakhouse. She receives a cash tip of $50 that she pockets and does not report. Pam buys a new 40-inch television at Walmart. Miguel won $100 in his office fantasy football league. Which of the following expenditures is an example of a consumer durable good? Marcus buys some new soccer cleats at the sporting goods store. Arti buys a new refrigerator from Sears. Latisha gets a manicure from the nail salon in the mall. Colin buys a large coffee and a donut from Dunkin’ Donuts. The equation for net investment is written as: Net Investment = Nominal GDP – Gross Investment Net Investment = Gross Investment – Depreciation Net Investment = Consumption – Gross Investment Net Investment = Depreciation – Gross Investment Which of the following ly describes GDP using the income approach? GDP = Wages + Rents + Interest + Profits and Losses + National Income GDP = Consumption + Gross Investment + Net Exports + Government Purchases
Views: 2 online crses
IMF, 한국 올해•내년 성장률 3.0%로 상향…"무역회복세 반영" The International Monetary Fund raised its GDP outlook for Korea. According to its latest World Economic Outlook the nation's projected to grow three percent for this year and next. Slightly stronger numbers for the rest of the world as well, including the United States. Kim Hyesung looks beyond the digits. Touch down to three point zero. The International Monetary Fund has upgraded its growth forecast for Korea... to three percent for 2017 and 2018. The figures are up 0.3 percentage points and 0.2 percentage points respectively,... from its previous estimates in April. In its latest World Economic Outlook report,... the IMF attributed the rosier forecast to export-driven growth,... on the back of a recovery in global trade and rising demand from China. Indeed, Korean exports have been growing steadily in recent months,... with outbound shipments in September tallied at 55-point-one billion U.S. dollars,... soaring 35 percent on-year and setting an all-time monthly high. (Korean) "The IMF growth forecast of 3 percent for Korea is the same as that of the Korean government, but higher than estimates from other Korean think tanks sitting at 2.7 and 2.8 percent. Downside risks like THAAD, North Korea's nuclear threats, and a possible drop in domestic investment, are still there. The IMF's estimates are usually higher than real growth figures, so that should be taken into consideration too." The IMF raised its global economic growth forecast for this year to 3.6 percent, and 3.7 percent for 2018, both zero-point-one percentage points higher than projections in July... citing a pickup in trade, investment, and consumer confidence. The growth outlook in the United States was slightly higher from the July report, at 2.2 percent for this year and 2.3 percent in 2018. The Eurozone, Japan, and China all saw higher growth forecasts, with China's growth forecast for this year... bumping up one percentage point to 6.8 percent. While optimism is growing, the IMF also cautioned that difficult-to-predict regulatory and fiscal policies in the U.S., Brexit negotiations, low inflation in most advanced countries, and geopolitical tensions,... could pose serious risks to the global economy. Kim Hyesung, Arirang News.
Views: 91 ARIRANG NEWS
In last week’s Principles of Macroeconomics video, you learned about the steady state level of capital and the Solow model of economic growth. Here are two of the practice questions from that video: Country A has K=10,000 and produces GDP according to the following equation: GDP=5√K. 1) If the country devotes 25% of its GDP to making investment goods, how much is the country investing? 2) If 1% of all machines become worthless every year (they depreciate, in other words) in Country A, GDP is...? These are tricky problems! If you're stumped, don’t worry. Mary Clare Peate from the Marginal Revolution University team is here to help. Are you struggling with a different practice problem or concept from an MRU video? Let us know! Head on over to our feedback forums to suggest a topic for a future "Office Hours" video: http://bit.ly/1psatWs Additional practice questions: http://bit.ly/1SvNoP8 The Solow Model and the Steady State: http://bit.ly/1YGYiA3 Help us caption & translate this video! http://amara.org/v/IP7y/
Views: 70722 Marginal Revolution University
The third macroeconomic goal is 'High & Sustained Growth,' but growth of what? This video explains what GDP is, and the expenditure approach to GDP. "(Macro) Episode 20: GDP" by Dr. Mary J. McGlasson is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.
Views: 283019 mjmfoodie
Economists at the nation''s highest research institute released their domestic economic projections today for 2016 and 2017, indicating expected growth of 1.68 percent next year. But they warned that the possibility of US trade protectionism, the Fed''s decision to raise its key interest rate, and Chinese economic sanctions could all inject uncertainty into Taiwan''s economic prospects for the year ahead. Orders for “smart” consumer electronics products like smartphones and tablets took off in the second half of the year, driving export growth, according to the Institute of Economics at Academia Sinica. The institute estimated that domestic economic growth in 2016 would come to around 1.23 percent.Ray ChouAcademia Sinica Institute of EconomicsThe semiconductor sector received a boost in the second half of the year on the back of higher-than-expected sales of the iPhone. Moreover, the predicted negative economic effects of Britain’s vote to leave the EU have yet to fully kick in.Taiwan’s economy might have turned a corner in 2016, but economists at Academia Sinica remain conservative on their forecast for 2017, saying that progress might be uneven.Ray ChouAcademia Sinica Institute of EconomicsThere’s probably no way for economic growth in 2017 to reach 2 percent, but if the Cabinet is able to put into place expanded measures to spur domestic demand, there might be a way to hit 2 percent growth over the course of the whole year.Other domestic economic forecasting outfits have made their own predictions for 2017, with the Taiwan Research Institute expecting 1.74 percent growth and the government’s own official statistics bureau forecasting 1.87 percent growth. The National Development Council, meanwhile, is projecting growth next year to break 2 percent.
Views: 82 民視英語新聞 Formosa TV English News
A prominent economic think-tank has lowered its yearly growth projection for Taiwan’s economy from 1.93% to 1.42%, citing a weak domestic economy, coupled with poor earnings reports from the parent companies of foreign banks in Taiwan. The Yuanta-Polaris Economic Research Institute lowered its forecast in the wake of an announcement that British bank Barclays Capital Securities plans to terminate its operations in Asia, including Taiwan.Barclays isn’t the only foreign bank in Taiwan suffering from a sluggish economy. Citibank closed four of its branches on March 1, and analysts now see HSBC, which has also closed four branches, as the next potential bank to call it quits. Liang Guo-yuanYuanta-Polaris Research InstituteIf parent companies are reporting sub-par profits, then of course there will be branch closures, which are going to be most visible in their [overseas operations].Liang says Yuanta’s lowered forecast is based on the anticipated withdrawal of foreign banks due to sub-par earnings, as well as an unfavorable domestic investment environment, which is resulting in reduced foreign investment.Liang Guo-yuanYuanta-Polaris Research Institute“We’ve revised our economic growth forecast in December of last year from 1.93% to 1.42%, a form of suspended growth. In other words, we have extreme instability at the foundation, which points to a serious structural problem both globally and in Taiwan.” Experts say sagging exports also contribute to the lowered growth forecast.
Views: 376 民視英語新聞 Formosa TV English News