Europe Economy by Nursahidah Bte Mohamed Ali https://padlet.com/SSMsSha/A01 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 21:19:11 UTC 2026-03-14 02:39:50 UTC hello@padlet.com https://padlet-assets.storage.googleapis.com/portrait/pocketwatch.jpg Pre Activity:  SSMsSha https://padlet.com/SSMsSha/A01/wish/106417311 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/A01/wish/106417311 michelle_wong_nga_hui https://padlet.com/SSMsSha/A01/wish/106417312 2016-04-15 00:48:49 UTC https://padlet.com/SSMsSha/A01/wish/106417312 Problem at hand: SSMsSha https://padlet.com/SSMsSha/A01/wish/106417313 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/A01/wish/106417313 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/A01/wish/106417314 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/A01/wish/106417314 Europe SSMsSha https://padlet.com/SSMsSha/A01/wish/106417315 Videoclip on the Eurozone Economy]]> 2016-04-04 15:59:28 UTC https://padlet.com/SSMsSha/A01/wish/106417315 Europe  SSMsSha https://padlet.com/SSMsSha/A01/wish/106417316 Video Clip on Eurozone economy: Italy]]> 2016-04-04 14:21:35 UTC https://padlet.com/SSMsSha/A01/wish/106417316 News Article on Euro SSMsSha https://padlet.com/SSMsSha/A01/wish/106417317 2016-04-04 14:30:33 UTC https://padlet.com/SSMsSha/A01/wish/106417317 SSMsSha https://padlet.com/SSMsSha/A01/wish/106417318 2016-04-04 15:46:22 UTC https://padlet.com/SSMsSha/A01/wish/106417318  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/A01/wish/106417319 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/A01/wish/106417319 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/A01/wish/106417320 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/A01/wish/106417320 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/A01/wish/106417321 Explain and evaluate the use of 3 policies]]> 2016-04-04 14:45:26 UTC https://padlet.com/SSMsSha/A01/wish/106417321 SSMsSha https://padlet.com/SSMsSha/A01/wish/106417322 2016-04-04 14:58:49 UTC https://padlet.com/SSMsSha/A01/wish/106417322 Post Activity SSMsSha https://padlet.com/SSMsSha/A01/wish/106417323 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/A01/wish/106417323 SSMsSha https://padlet.com/SSMsSha/A01/wish/106417324 2016-04-04 15:02:56 UTC https://padlet.com/SSMsSha/A01/wish/106417324 SSMsSha https://padlet.com/SSMsSha/A01/wish/106417325 2016-04-04 15:04:09 UTC https://padlet.com/SSMsSha/A01/wish/106417325 SSMsSha https://padlet.com/SSMsSha/A01/wish/106417326 2016-04-04 15:04:45 UTC https://padlet.com/SSMsSha/A01/wish/106417326 I used to think that Europe is... https://padlet.com/SSMsSha/A01/wish/107161660 Isabelle:
Evangel:
Shermaine:
Lee Wai]]> 2016-04-22 06:40:48 UTC https://padlet.com/SSMsSha/A01/wish/107161660 I used to think that Europe was one of the most powerful economies in the world.  https://padlet.com/SSMsSha/A01/wish/107356646 -Evangel Tan]]> 2016-04-23 13:54:02 UTC https://padlet.com/SSMsSha/A01/wish/107356646 Low inflation rates and deflation are becoming major problems for Europe. The inflation rate has been very far below the European Central Bank 2% target for a very long time, which makes debt consolidation much more difficult. (Wharton University Of Pennsylvania)  Deflation can lead to a vicious cycle of decreased spending and increased unemployment. Deflation also causes a reduction in investment spending becuase businesses lose confidence in the economy and invest less as prices of their good and services fall, and profit margins are reduce https://padlet.com/SSMsSha/A01/wish/107356743 2016-04-23 13:56:40 UTC https://padlet.com/SSMsSha/A01/wish/107356743 Unemployment in Europe, with the exception of UK is in the double digit, but it dropped a bit in 2016. https://padlet.com/SSMsSha/A01/wish/107356862 2016-04-23 13:59:35 UTC https://padlet.com/SSMsSha/A01/wish/107356862 Expansionary Fiscal Policies to increase AD to resolve deflation. An expansionary fiscal policy will involve increasing government expenditure and decreasing taxes to boost AD hence GPL.  An increase in development expenditure, such as public projects will immediately raise AD. Increased in transfer payments will raise consumption expenditure but not by the full extent of the increase in transfer payments. This depends on their marginal propensity to consume. The threat to deflation might be reduced through lower direct taxes to boost households disposable income which leaves people with more to spend. Consumption expenditures will rise, thereby shifting the AD rightward.  https://padlet.com/SSMsSha/A01/wish/107357146 2016-04-23 14:06:13 UTC https://padlet.com/SSMsSha/A01/wish/107357146 Expansionary monetary policy. Cuts in interest rates can stimulate the demand for money and thereby boost consumption. With lower interest rates, households are more likely to borrow money from banks, as the cost of borrowing decreases. Purchasing goods and services on credit has also become cheaper. Lower interest rates also leads to the lowering of opportunity cost of spending since savings in the bank offers low returns . With a raise in consumption, assuming ceteris paribus, as AD increases, GPL will also increase. For firms, the lowering of interest rates would also decrease the cost of borrowing for firms. This leads to more investment projects as expected rate of return is now higher with higher profits . With a rise in investment, AD also increases. Ceteris paribus. https://padlet.com/SSMsSha/A01/wish/107357374 2016-04-23 14:12:37 UTC https://padlet.com/SSMsSha/A01/wish/107357374 Exchange rate policy. A depreciation of the ER lowers the prices of domestically produced goods and services relative to foreign products. The country's exports are now relatively cheaper , if we assume our exports to be price elastic, a decrease in price would lead to a more than proportionate increase in demand. Which causes (x-m) to rise and in turn increasing AD.  https://padlet.com/SSMsSha/A01/wish/107357575 2016-04-23 14:17:53 UTC https://padlet.com/SSMsSha/A01/wish/107357575 As in other highly developed economies, the service sector has the largest share of total output, followed by the industrial sector, while the share of agriculture, fishing and forestry is relatively small. The euro area is also one of the world’s largest economies in terms of population, with almost 340 million people. Exports of goods and services are 26.5% of GDP. Imports of Goods and services is 23.3% of GDP ( European Central Bank, Eurosystem)  https://padlet.com/SSMsSha/A01/wish/107357727 2016-04-23 14:22:11 UTC https://padlet.com/SSMsSha/A01/wish/107357727 Evidence from here https://padlet.com/SSMsSha/A01/wish/107357792 2016-04-23 14:24:23 UTC https://padlet.com/SSMsSha/A01/wish/107357792 But now i think that Europe is now in serious condition, it would be quite difficult for them to go back to being the most powerful economy.  https://padlet.com/SSMsSha/A01/wish/107358034 -Evangel]]> 2016-04-23 14:28:59 UTC https://padlet.com/SSMsSha/A01/wish/107358034 I used to think that Europe had one of the greater influences in the world economy. https://padlet.com/SSMsSha/A01/wish/107361721 - Shermaine Lim ]]> 2016-04-23 16:01:25 UTC https://padlet.com/SSMsSha/A01/wish/107361721 But now, It may be difficult for Europe to regain and go back to its original power as constant efforts to help their economy have not been exactly successful hence, it shows the need of for better policies to help the economy. https://padlet.com/SSMsSha/A01/wish/107361780 - Shermaine Lim]]> 2016-04-23 16:02:55 UTC https://padlet.com/SSMsSha/A01/wish/107361780 Since the great recession of 2008-2009, growth is slow and painful, with the danger of prolonged stagnation which is a likely possibility.  https://padlet.com/SSMsSha/A01/wish/107361912 The euro had dropped to the lowest value in 2015 as compared to the past 9 years. ]]> 2016-04-23 16:06:22 UTC https://padlet.com/SSMsSha/A01/wish/107361912 Europe's central bank is considering to implement quantitative easing in order to salvage the situation, which is something they have tried to avoid in the past few years. https://padlet.com/SSMsSha/A01/wish/107361998 2016-04-23 16:08:29 UTC https://padlet.com/SSMsSha/A01/wish/107361998 Unemployment rates on the rise https://padlet.com/SSMsSha/A01/wish/107362145 2016-04-23 16:11:58 UTC https://padlet.com/SSMsSha/A01/wish/107362145 Poor economic outlook https://padlet.com/SSMsSha/A01/wish/107362172 2016-04-23 16:12:45 UTC https://padlet.com/SSMsSha/A01/wish/107362172