Ansudhsbd Flashcards
(33 cards)
What are the roles of the financial sector
1 - To facilitate savings
2 - To facilitate lending
3 - Facilities exchange of goods and services
4 - Forward markets
5 - Provides a market for equities
How much did Angolas economy grow at an annual rate from 2001-2010
Average annual rate of 11.1% (big oil exporter)
Prebisch singer EV
2000-2008 price of commodities were booming while manufactured goods were falling - good TOT (partly china large supply, flood market, demanding in oil)
Another prebisch singer ev
Countries with a comparative advantage for commodities should specialise
Eg: Botswana - diamonds, Chile - copper, UAE - oil (all successful from primary products)
Example of primary product with inelastic pes
On average it takes 5 years for a cocoa tree to mature
Marshall-Lerner condition
Depreciation will only improve the trade balance if the sum of elasticities for imports and exports is more than one
Harrod domar savings gap, capital flight
Low savings, lack of lending, low investment, low capital accumulation
Harrod domar savings gap EV
Aid to countries, people can save easier
Technology - Apple Pay, banks, easier to save
Harrod domar - foreign exchange gap
Foreign reserves important for trade
Lack of foreign reserves, makes imports harder
Currency depreciation makes real value of debt increase
Harrod domar foreign exchange gap ev
Tourism - higher stock of foreign reserves in economy
Debt relief
How much money was created in QE from 2009-2012 by the BoE
£375 billion
Common external tariff on milk from NZ
40%
How much trade is estimated to be created by the eu trade bloc in 2017
€3.1 trillion
They organise rounds of talks between its members, in which trade deals are negotiated. For example, at the Ministerial Conference in 2013, all members agreed to the Bali package which is estimated to boost world trade by about $1 trillion! Second, they settle trade disputes, which occur when one member thinks that another member is breaking or bending the rules of a trade agreement. Since 1995, over 350 rulings have been issued on disputes!
How many rulings have been issued on disputes since 1995 by the WTO
Over 350
How much is the Bali package estimated to have boosted world trade by
One trillion
How often is a ministerial conference held
Every two years
Aims of the Bali package
Streamline trade
Support developing countries
Facilitate global trade
What is one way the Bali package supported developing countries
Removed tariffs on cotton from countries like Uzbekistan and Benin
Different EU trade blocs
Mexico tariff before usmca
75% tariff on us chickens before 1994
Different EU trade blocs
EV to wealth effect
Ricardo Sousa - wealth effect in EU practically nonexistent, few people own their homes
Uk - 76% of people don’t own their homes
What does the Harrod domar model illustrate
The problem of how countries with a low gdp per capita will experience low savings ratios. Low savings mean it will be difficult to finance investment and therefore capital accumulation will be limited. This translates into low output and low gdp
