Europe Economy by Nursahidah Bte Mohamed Ali https://padlet.com/SSMsSha/A03_A08 E-Learning Activity: To complete these activities within a week commencing from Term 2 Week 4. Deadline to post answers is 21 April 2016. en-us 2016-04-18 21:18:18 UTC 2026-03-17 16:53:10 UTC hello@padlet.com https://padlet-assets.storage.googleapis.com/portrait/pocketwatch.jpg Pre Activity:  SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417167 Before commencing the activities (Task 1 to 4 below) spend 3 minutes to think of this question:

You may have some initial ideas about Eurozone economy. In just a few sentences, I want you to write what it is that you used to think about Eurozone economy. Take a minute to think back and then post your response in the following format:

“ I used to think that Europe is ..........................

Each of you must post your response in the space below this box.]]> 2016-04-04 14:51:44 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417167 michelle_wong_nga_hui https://padlet.com/SSMsSha/A03_A08/wish/106417168 2016-04-15 00:48:49 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417168 Problem at hand: SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417169 As an economic advisor (group leader), your role is to recommend and justify whether the use of policies have been effective in tackling recent macroeconomic problems faced by your country. Your job is to discuss with a panel of ministers (your team members) to do research and to propose solutions (policies) to solve these problems. Thereafter, you need to evaluate if the use of these policies  are effective or appropriate for your country.]]> 2016-04-04 13:39:06 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417169 Task 4: Based on the findings from Task 1,2 & 3, the group leader will evaluate and synthesize (similar to writing evaluative conclusion) whether the use of these policies will be effective in addressing these macroeconomic problems.  SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417170 You may wish to use specific judging criteria to assess the suitability of these policies.]]> 2016-04-04 14:46:56 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417170 Europe SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417171 Videoclip on the Eurozone Economy]]> 2016-04-04 15:59:28 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417171 Europe  SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417172 Video Clip on Eurozone economy: Italy]]> 2016-04-04 14:21:35 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417172 News Article on Euro SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417173 2016-04-04 14:30:33 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417173 SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417174 2016-04-04 15:46:22 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417174  Task 1: Two of your team members in your cabinet need to identify the top macroeconomic problems your country is facing. Other than the video clip and newspaper provided in this page, you will need to do research (eg news  paper articles) and thereafter post in this wall.  Explain the potential sources of these macroeconomic problems your country is facing. SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417175 Please write your response here, or you may just add new post. Use economic analysis (for example ADAS analysis) in your answers where possible.]]> 2016-04-04 14:27:05 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417175 Task 2: One of your team member will also need to find out the current nature or structure of your economy, supported with research (eg news paper articles or video) SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417176 For example, is it a small and open economy? Is it a large economy? Is the economy an export-driven economy? Is it undergoing any structural changes? Please upload the links here too.]]> 2016-04-04 14:37:37 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417176 Task 3: Based on the findings from Task 1, One of your team members will need to address the policies to solve this problem. SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417177 Explain and evaluate the use of 3 policies]]> 2016-04-04 14:45:26 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417177 SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417178 2016-04-04 14:58:49 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417178 Post Activity SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417179 Now, I want you to think about how your ideas about Europe's economy has changed as a result of what your team has been discussing whilst completing the task above. Again in just a few sentences write down what you now think about  Europe's economy. Start your sentences with, 


“But now, I think…”

Each of you must post your response in the space below this box.]]> 2016-04-04 14:59:32 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417179 SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417180 2016-04-04 15:02:56 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417180 SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417181 2016-04-04 15:04:09 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417181 SSMsSha https://padlet.com/SSMsSha/A03_A08/wish/106417182 2016-04-04 15:04:45 UTC https://padlet.com/SSMsSha/A03_A08/wish/106417182 AKINA  https://padlet.com/SSMsSha/A03_A08/wish/107138353 Firstly, Europe's Inflation rate is too low. Inflation is the increase in the general price levels. Too low of an inflation rate is unhealthy for the country's economy. Current inflation rate is -0.2% as stated by tradingeconomincs.com
Also, 'The main reason for having a higher inflation rate would be to prioritise economic growth and help to reduce unemployment. Higher inflation would also help to contain and reduce government debt to GDP ratios – without excessive austerity."

]]> 2016-04-22 01:22:56 UTC https://padlet.com/SSMsSha/A03_A08/wish/107138353 AKINA https://padlet.com/SSMsSha/A03_A08/wish/107139692 I used to think that Europe's economy focuses mainly on the production of cereal.

I used to think that Europe has major companies to support it's economy, such as Anheuser-Busch InBev, largest beer company, and L'Oreal Group.]]> 2016-04-22 01:41:57 UTC https://padlet.com/SSMsSha/A03_A08/wish/107139692 So SeoYeom https://padlet.com/SSMsSha/A03_A08/wish/107140278 I used to think that Europe is a stable and rather exclusive economy (European Union).

I also used to think that Europe benefitted greatly from the large influx of tourists due to the rich culture and history present in the area.]]> 2016-04-22 01:49:22 UTC https://padlet.com/SSMsSha/A03_A08/wish/107140278 AKINA and So SeoYeom <3 https://padlet.com/SSMsSha/A03_A08/wish/107142497 2016-04-22 02:09:09 UTC https://padlet.com/SSMsSha/A03_A08/wish/107142497 mona madhu mitta <3 https://padlet.com/SSMsSha/A03_A08/wish/107142524 2016-04-22 02:09:20 UTC https://padlet.com/SSMsSha/A03_A08/wish/107142524 So SeoYeom https://padlet.com/SSMsSha/A03_A08/wish/107142600 Recently, Europe has been experiencing a sluggish economic growth of 0.3% in 2016 

- due to :
1) the Gross domestic product in Italy — the eurozone’s third-largest economy — rising by just 0.1 per cent in the fourth quarter (not meeting expectations)
2) Greece’s economy falling back into recession

This causes:
1) investors to be concerned over their low profitability and large stock of non-performing loans (poor economic outlook by the investors)]]> 2016-04-22 02:10:00 UTC https://padlet.com/SSMsSha/A03_A08/wish/107142600 adlina https://padlet.com/SSMsSha/A03_A08/wish/107142875 2016-04-22 02:12:40 UTC https://padlet.com/SSMsSha/A03_A08/wish/107142875 Adlina https://padlet.com/SSMsSha/A03_A08/wish/107142982 I used to think that Europe only consisted countries in the EU and that they are a closed 'society'.

I used to think that Europe's economy relied very heavily on their own products and free trade between the countries in the EU only.]]> 2016-04-22 02:13:44 UTC https://padlet.com/SSMsSha/A03_A08/wish/107142982 AKINA https://padlet.com/SSMsSha/A03_A08/wish/107143400 Fresh Recession Cause Eurozone to collapse

The eurozone's 19 member states only managed to grow by 0.3% in the last three months of 2015, despite asset purchases from the European Central Bank and the collapsing price of oil.

]]> 2016-04-22 02:18:08 UTC https://padlet.com/SSMsSha/A03_A08/wish/107143400 AKINA https://padlet.com/SSMsSha/A03_A08/wish/107143698 Eurozone growth lags behind the US and the rest of the EU]]> 2016-04-22 02:21:51 UTC https://padlet.com/SSMsSha/A03_A08/wish/107143698 Adlina https://padlet.com/SSMsSha/A03_A08/wish/107144269 The Europe economy trade in various sectors and industries, with many trading partners within Europe and outside of Europe. 

Amongst the domestically produced products in Europe, their Machinery, Motor vehicles, Aircraft, Plastics, Pharmaceuticals and other chemicals, Fuels, Iron      and steel, Nonferrous metals, Wood, pulp and paper products, Textiles, Meat, Dairy products, Fish and Alcoholic beverages are the highest contributor to Europe's exports between EU countries and globally. However, European consumers too spend on imported goods from other countries like China due to its cheaper prices. 

Hence it is safe to say that the countries within the EU are open economies due to free trade and lack of trade barriers. For European countries outside the EU, there may be trade barriers imposed alongside transport costs. ]]> 2016-04-22 02:28:29 UTC https://padlet.com/SSMsSha/A03_A08/wish/107144269 KAIMIN https://padlet.com/SSMsSha/A03_A08/wish/107144380 1. Expansionary Fiscal Policy
  • increase G or decrease T to increase AD
  • to resolve recession and cyclical unemployment
  • increase in G on public projects will immediately raise AD assuming other components of AD remain unchanged
  • decrease in T will lead to a rise in C and I as consumers have more disposable income to spend on and improve the profitability of investment
  • increase in AD will lead to iPONY increase, thus increase in EG
  • however, the size of the multiplier is determined by the marginal propensity to withdraw (MPS, MPT, MPM)
  • a country with high marginal propensity to withdraw will have small multiplier, thus it will be difficult for exp FP to raise output and employment to desired level
  • hence, AD does not increase by the full extent
2. Expansionary Monetary Policy
  • lowering of interest rates
  • households: lower cost of borrowing → less expensive to purchase goods and services on credit → increase C
  • firms: lower COB → higher marginal efficiency of  investment (MEI) → increase I
  • increase C and I → increase AD
  • external economy: outflow of hot money → depreciation of local currency → increase X competitiveness → increase (X-M) → increase AD
  • however, demand for consumption and/or investment may ne interest inelastic → consumer and business sentiments are poor
  • hence, AD might not rise significantly
3.  Interventionist
  • increase G on education, training and healthcare
  • improve labour mobility 
  • more education and upgrading of skills for workers will help ensure the employability of workers
  • Singapore's continuing education and training (CET) masterplan
  • however, workers may be reluctant to undergo education and training
  • it will require a change of mindset especially for older workers and employers
]]> 2016-04-22 02:29:56 UTC https://padlet.com/SSMsSha/A03_A08/wish/107144380 AKINA https://padlet.com/SSMsSha/A03_A08/wish/107144443 Eurostat estimates that 21.651 million men and women in the EU-28, of whom 16.634 million were in the euro area (EA-19), were unemployed in February 2016. Compared with January 2016, the number of persons unemployed decreased by 59 000 in the EU-28 and by 39 000 in the euro area. Compared with February 2015, unemployment fell by 1 971 000 in the EU-28 and by 1 303 000 in the euro area.

The euro area seasonally-adjustedyou unemployment rate was 10.3 % in February 2016, down from 10.4 % in January 2016, and from 11.2 % in February 2015. The EU-28 unemployment rate was 8.9 % in February 2016, stable compared to January 2016, and from 9.7 % in February 2015. 

Among the Member States, the lowest unemployment rates in February 2016 were recorded in Germany (4.3 %) and the Czech Republic (4.5 %). The highest rates have been observed in Greece (24.0 % in December 2015) and Spain (20.4 %).

]]> 2016-04-22 02:30:27 UTC https://padlet.com/SSMsSha/A03_A08/wish/107144443 AKINA https://padlet.com/SSMsSha/A03_A08/wish/107144709 Unemployment in Europe]]> 2016-04-22 02:33:14 UTC https://padlet.com/SSMsSha/A03_A08/wish/107144709 Kaimin https://padlet.com/SSMsSha/A03_A08/wish/107145053 I used to think that Europe's economy is in good condition and has sustainable economic growth with low unemployment rate. ]]> 2016-04-22 02:37:24 UTC https://padlet.com/SSMsSha/A03_A08/wish/107145053 Adlina https://padlet.com/SSMsSha/A03_A08/wish/107146502 2016-04-22 02:53:06 UTC https://padlet.com/SSMsSha/A03_A08/wish/107146502 AKINA https://padlet.com/SSMsSha/A03_A08/wish/107146783 UN+ will cause consumers to have less purchasing power, hence consumption (C) falls. The fall in C will cause AD to fall and AD will shift from AD1 to AD2. The fall in AD results in the fall in iPONY, hence the fall in output, production and national income. General price level will fall from P1 to P2, resulting in deflation and real national income will fall from Y1 to Y2, resulting in the fall in economic growth.]]> 2016-04-22 02:56:36 UTC https://padlet.com/SSMsSha/A03_A08/wish/107146783 AKINA https://padlet.com/SSMsSha/A03_A08/wish/107147381 Unemployment rate in European Union]]> 2016-04-22 03:02:41 UTC https://padlet.com/SSMsSha/A03_A08/wish/107147381 MONA https://padlet.com/SSMsSha/A03_A08/wish/107148578 I used to think that the economy of Europe was very stable and an open economy since they were open to trade and they have many popular products like L'Oreal]]> 2016-04-22 03:20:48 UTC https://padlet.com/SSMsSha/A03_A08/wish/107148578 MONA https://padlet.com/SSMsSha/A03_A08/wish/107148976 In opinion, supply side interventionist policies is the most effective policy. 
The objectives of the supply side interventionist policy are: 
  • 1.Improve incentives to look for work and invest in people’s skills
  • 2.Increase labour and capital productivity
  • 3.Increase occupational and geographical mobility of labour to help reduce the rate of unemployment
  • 4.Increase investment and research and development spending
  • 5.Promoting more competition and stimulate a faster pace of invention and innovation to improve competitiveness
  • 6.Provide a platform for sustained non-inflationary growth
  • 7.Encourage the start-up and expansion of new businesses / enterprises especially those with export potential
  • 8.Improve the trend rate of growth of real GDP

These focuses cover the major problems Europe's economy is going through. Thus by using interventionist policy, all issues would be solved. Although this is more of for Long Run, it is okay as Europe economy will start to be stable and healthy.    
The other 2 policies may be effective in the sense that it can solve the problem in the short run. However the concern is can it solve in the long run ? Maybe not.Thus i strongly believe that interventionist policy is the best
]]> 2016-04-22 03:27:41 UTC https://padlet.com/SSMsSha/A03_A08/wish/107148976 MONA  https://padlet.com/SSMsSha/A03_A08/wish/107149371 But now, I think, Europe's economy is super bad! The policies they use are also not very helpful as Monetary policy was being used and interest rates reduced to the negative territory. Investors will not find it attractive and thus worsening the economic growth as investments decreases.]]> 2016-04-22 03:35:56 UTC https://padlet.com/SSMsSha/A03_A08/wish/107149371 AKINA https://padlet.com/SSMsSha/A03_A08/wish/107341999 But now, I think despite being a rich country, that Europe is really not doing well economically and people living in Europe are facing many macroeconomic problems, such as unemployment, recession and deflation. If the EU government does not solve the roots of these problems, the EU will face greater problems next time.]]> 2016-04-23 04:08:13 UTC https://padlet.com/SSMsSha/A03_A08/wish/107341999 Kaimin Post Activity https://padlet.com/SSMsSha/A03_A08/wish/107542088 But now, I think Europe's economy is in a bad state with recession, low inflation rate and high unemployment rate which indicates a poor performance of economy. ]]> 2016-04-25 14:22:39 UTC https://padlet.com/SSMsSha/A03_A08/wish/107542088