Europe Economy by Nursahidah Bte Mohamed Ali https://padlet.com/SSMsSha/S09_S23 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 21:14:38 UTC 2025-12-06 04:56:42 UTC hello@padlet.com https://padlet-assets.storage.googleapis.com/portrait/pocketwatch.jpg Pre Activity:  SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416398 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/S09_S23/wish/106416398 michelle_wong_nga_hui https://padlet.com/SSMsSha/S09_S23/wish/106416399 2016-04-15 00:48:49 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416399 Problem at hand: SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416400 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/S09_S23/wish/106416400 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/S09_S23/wish/106416401 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/S09_S23/wish/106416401 Europe SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416402 Videoclip on the Eurozone Economy]]> 2016-04-04 15:59:28 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416402 Europe  SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416403 Video Clip on Eurozone economy: Italy]]> 2016-04-04 14:21:35 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416403 News Article on Euro SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416404 2016-04-04 14:30:33 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416404 SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416405 2016-04-04 15:46:22 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416405  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/S09_S23/wish/106416406 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/S09_S23/wish/106416406 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/S09_S23/wish/106416407 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/S09_S23/wish/106416407 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/S09_S23/wish/106416408 Explain and evaluate the use of 3 policies]]> 2016-04-04 14:45:26 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416408 SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416409 2016-04-04 14:58:49 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416409 Post Activity SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416410 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/S09_S23/wish/106416410 SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416411 2016-04-04 15:02:56 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416411 SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416412 2016-04-04 15:04:09 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416412 SSMsSha https://padlet.com/SSMsSha/S09_S23/wish/106416413 2016-04-04 15:04:45 UTC https://padlet.com/SSMsSha/S09_S23/wish/106416413 I used to think that Europe is a large and open economy that is stable. I think that its BoP balance as well as its budget balance is in surplus. https://padlet.com/SSMsSha/S09_S23/wish/107190592 2016-04-22 10:02:26 UTC https://padlet.com/SSMsSha/S09_S23/wish/107190592 https://padlet.com/SSMsSha/S09_S23/wish/107195676 I used to think that Europe is an area with a strong and stable economy with a BoP surplus and stable currency and exchange rate.]]> 2016-04-22 10:47:23 UTC https://padlet.com/SSMsSha/S09_S23/wish/107195676 Task 2 https://padlet.com/SSMsSha/S09_S23/wish/107202842 The eurozone is one of the top 5 largest economies in the world if taken as a single country. The largest contributing industry is the service sector which makes up almost 75% of the GDP.

There has also been a large structural change following the Eurozone crisis in 2010.

http://voxeu.org/article/eurozone-crisis-and-eu-institutional-change-new-cepr-policy-insight
https://en.wikipedia.org/wiki/Economy_of_the_European_Union]]> 2016-04-22 11:47:45 UTC https://padlet.com/SSMsSha/S09_S23/wish/107202842 https://padlet.com/SSMsSha/S09_S23/wish/107346416 I used to think Europe has a high GDP and is a very strong economy when compared to other countries. JY]]> 2016-04-23 08:19:46 UTC https://padlet.com/SSMsSha/S09_S23/wish/107346416 https://padlet.com/SSMsSha/S09_S23/wish/107346619 As the government loosened fiscal policy, the Central Bank prematurely slashed its benchmark interest rate in 2011-­12. This pushed up inflation, which is now well above the bank’s self­-imposed upper limit of 6.5%, and way above its 4.5% target. The interest-rate cut has since been reversed. Since last July the Bank's monetary policy-makers have kept the rate at 14.25%, nearly two percentage points higher than before the decision to cut.  JY]]> 2016-04-23 08:25:55 UTC https://padlet.com/SSMsSha/S09_S23/wish/107346619 https://padlet.com/SSMsSha/S09_S23/wish/107347258 The fiscal policy has to be strengthened and maintained. With the interest rate not falling too low and causing AD to fall as a result of consumption and investment increasing too sharply. Other policies like supply side policies also can be implemented to increase to increase quality of workforce to pull the country out of high employment with their unemployment rate increasing from 6.0% to 8.0% from 2015 to 2016. JY

]]> 2016-04-23 08:50:31 UTC https://padlet.com/SSMsSha/S09_S23/wish/107347258 https://padlet.com/SSMsSha/S09_S23/wish/107347378 But now I think investors are losing confidence in the European economy and the future of the European economy might not be very strong.JY]]> 2016-04-23 08:54:22 UTC https://padlet.com/SSMsSha/S09_S23/wish/107347378 https://padlet.com/SSMsSha/S09_S23/wish/107348725 I used to think that the Eurozone Economy is strong and stable based on the high value of the Euro in terms of USD and SGD. I do know that once the Eurozone Economy experiences recession, it will impact a lot of the other world economies.
 ]]> 2016-04-23 09:36:24 UTC https://padlet.com/SSMsSha/S09_S23/wish/107348725 Task 1 https://padlet.com/SSMsSha/S09_S23/wish/107357362
  • Low economic growth at 0.3%
  • High unemployment rate of 10.3% as of February              2016.
  • Negative inflation of 0.2%
  • Balance of Trade surplus at 19048.4 million EUR
  • 0% interest rate

Potential causes of problems :
- Firstly, the 0% interest rate causes an outflow of hot money as financial speculators go in search of higher returns on financial assets. This causes the KA deficit.
- Demand for Euro decreases in FOREX market, which leads to an increase in (X-M), as seen in the BoT surplus.

- High unemployment rates could be due to structural unemployment, which is unemployment due to irrelevant skills due to changing nature of jobs. This can be gathered from the article which states there is "inflexible labour markets".

http://www.economicshelp.org/blog/1247/economics/european-unemployment-2/
http://www.tradingeconomics.com/euro-area/indicators
]]> 2016-04-23 14:12:15 UTC https://padlet.com/SSMsSha/S09_S23/wish/107357362 Task 1:   https://padlet.com/SSMsSha/S09_S23/wish/107357867
  • Since the Great Recession of 2008-2009, growth has been generally slow and painful, and the danger of prolonged stagnation in Europe is a very real possibility. The euro has dropped to its lowest value in nine years. With Europe accounting for 25% of global trade, its recovery is imperative to the health of the global economy. The forecast for 2015 is looking dismal, only marginally better than 2014.  As the euro currency falls, it encourages the purchase of more imports. The reduction in exports,together with an increase in imports, results in Europe having an adverse balance of trade thereafter.   
  • Unemployment rate of 10.3%.This means that there are 16504 thousand people who remain unemployed in Europe. As unemployment continues, there may be : 
    • 1) Loss of income to the factors of production.   2) Loss of national output to the economy 3) Loss of tax revenue to the government .
    ]]>     2016-04-23 14:26:56 UTC https://padlet.com/SSMsSha/S09_S23/wish/107357867