macro case studies Flashcards
(60 cards)
what is the current uk base rate?
0.75% (check if up to date it will change)
what is an example of a very high interest rate?
argentina = around 45% (check)
why is argentina’s interest rates so high?
because their cpi inflation is expected to be almost 50% by the end of 2022 while economic growth is only forecasted to be 2%
what country has the highest savings ration?
Qatar = 58%
what is the UKs savings ratio
the savings ration surged from 5% to 25% during the first lockdown
who has one of the highest national debts?
Japan = 257% of GDP Sudan = 210% of GDP Greece = 207% of GDP
who has one of the highest trade deficits? and surpluses?
the USA had a trade deficit of almost a trillion dollars in 2020 while China had surplus of over $500bn in 2020
who has the highest per capita disposable income?
USA with about $55,000 per capita
who has one of the highest income taxes?
Japan with around 56% income tax
who has one of the highest corperation taxes?
Venezuela with it being around 34%
what was the USs fiscal deficit in 2021
around $2.8 trillion
what was the the UK’s forecasted growth looking like in 2022
the highest out of all the g7 countries
explain the link between the canadian dollar and the price of oil
canada is the worlds 4th largest producer of oil so when oil dropped around 60% from mid 2014 to 2015, so did the canadian dollar
how have oil prices increased since 2020?
they have increase 5x that of the low in 2020
give an example of austerity measures in the UK
the uk government cut £30bn worth of spending towards social services, housing subsidies and welfare payments from 2010 to 2019
what did japan experience in the 90s
they experienced a “lost decade” where there was stagnation and deflation
give an example of hysterisis and explain what is it
hysterisis is where the effect of something keeps happening even after the cause has gone. in 1981, unemployment rose to 3 million people due to the recession, a form of cyclical unemployment. But, unemployment kept on rising all the way until 1986, suggesting that this cyclical unemployment turned into structural unemployment
how has USAs gini coefficient changed over time
their gini coefficient has continued to rise since the 1990s
how much has the UK quantitative eased?
they have bought almost £900bn worth of bonds using QE
what have been the effects of trump’s tariffs?
Trump enforced tariffs which, as of 2020, were on almost 17% of all imported goods to the US. according to forbes, the total stock market return of these tariff announcements was -10%. it also led to a large increase in consumer costs of around $50bn. many countries also imposed retaliatory tariffs including China, who imposed $34bn worth of retaliatory tariffs
how has vietnam’s economic growth been in the 21st century
they have recorded more than 5% growth annually for every year this century until the pandemic
how has vietnams trade balance changed?
they have only started to run a trade surplus since 2010
what is vietnams gini coefficient
it has stayed around the mid 30s since the 90s
how has vietnams unemployment trended?
it has not gone above 3% in this century
