MAEC Project TT21 Group 1 by Hong Teng https://padlet.com/leehongteng1999/esrilx875v6l Team members - Sheng Chao, Gabriel, Zhe Tao, Aloysius, Hong Teng en-us 2017-01-02 14:03:50 UTC 2017-02-07 07:06:58 UTC hello@padlet.com Economic Concepts gabrielloh99 https://padlet.com/leehongteng1999/esrilx875v6l/wish/144972079 Value Added - overstating of GDP. This occurs due to the incomplete reporting of the use of forward contracts to hide its selling of dollars, a trick Chinese technocrats used after learning it from Brazil. 

Keynesian Theory - The economy is a state dominated economy, this means that the government adjusts prices, wages and interest rate to prevent the economy from failing. 

Recession - Decline in read GDP. This is due to the country creating debt 5 times faster than the incremental GDP.

]]> 2017-01-02 14:06:47 UTC https://padlet.com/leehongteng1999/esrilx875v6l/wish/144972079 Economic Concepts aloysius69 https://padlet.com/leehongteng1999/esrilx875v6l/wish/144972105 GDP - Coporate debt in China increased from 68% of GDP to 145% of GDP today. This causes the GDP to decrease and slow down China's economic growth. This is due to aging demographics and slowing productivity

Keynesian Theory - China has acheived progress in rebalancing the economy through reforms like the Fiscal reform where the government decreases expenditure and increases tax revenues. 

Cost of unemployment - Some provinces are in recession, so there would be a lot of cyclical unemployment, which results in problems such as political unrest. 


Inflation - unbalance income distribution may cause the CPI to be inaccurate ]]> 2017-01-02 14:07:07 UTC https://padlet.com/leehongteng1999/esrilx875v6l/wish/144972105 Economic Concepts leehongteng1999 https://padlet.com/leehongteng1999/esrilx875v6l/wish/144972216 GDP - China's economy is slowing down but that just means that is is growing at a slower rate which means their GDP is still increasing.(Deflation) But it is possible that this growth is overstated due to the huge amount of debt China has accumulated, which causes private companies to pull back on their investments.

Keynesian Theory-  China has made interventions by spending more which has help keep the growth rates on target.

Inflation- By spending more also caused the housing bubble to inflate even further.

Unemployment - private companies are pulling out investments resulting in the company facing decreasing levels of sustaining growth hence facing the problem of cyclical unemployment]]> 2017-01-02 14:08:34 UTC https://padlet.com/leehongteng1999/esrilx875v6l/wish/144972216 Overall comments for padlet I_M_WANG https://padlet.com/leehongteng1999/esrilx875v6l/wish/145208948 Thanks for sharing your work with me. I appreciate the effort made to interpret the three articles and also the attempts to apply economic concepts learn in class to explain the happenings as mentioned in these articles. However, for the first 2 articles, they are both not news articles but rather, commentaries which is akin to country reports. They are detailed and would serve more as references for your country report rather than news articles where you see more issues about the economy being highlighted briefly. 

For the first article, much focus is on financing debt and less economic perspective. I'm not sure if this would restrict your team's ability to talk more about the economic issues happening in China. 

I would suggest replacing the first two articles with two new ones. 

The third article is appropriate. 
Suggestions: 
1. Why is China undergoing economic restructuring? 
2. Expand your point about overstated GDP. This is a pretty big issue in China so good point. 
3. China government has made interventions by spending more, as you have rightfully put it. Find out more about spending in what? Since you want to use Keynesian model, don't forget to bring in description of the multiplier effect. 

If you would still like to work on your padlet before submitting to me next Monday, send me an email (latest Fri 12PM) to let me have time to check on your two new articles and new points. ]]> 2017-01-04 08:52:07 UTC https://padlet.com/leehongteng1999/esrilx875v6l/wish/145208948 Economic concepts(new) ownagersg https://padlet.com/leehongteng1999/esrilx875v6l/wish/146157755 unemployment - due to the increasing inflation, there are higher standards of living which led to people protesting for more wages. This could inevitably cause  structural unemployment because of workers'  existing skill sets does not tally with required job scope for amount of money they are asking for.

cyclical unemployment - because of the fact that decrease in output because of increasing costs of productions hence to save cost, employers have to fire some of the existing employees
costs of inflation - food prices are increasing crazily with a basket of 18 staple vegetables that costs 62% more during the first ten days of November than in the same period last year

purchasing power of the locals have also decreased which resulted in many labor disputes 

GDP - due to increasing inflation rates, the interest rates increase as well. Hence investors will not want to invest as much as before due to the high interest rates and low output. As such , the overall GDP will decrease because decrease in investments. 

Solution for inflation:
Government has decided to subsidize businesses to reduce their costs of production and hence they will lower their prices.

another way would be to appreciate the country's currency. This is done so by using its foreign currency reserves to buy its own currency and this will increase its demand for currency


]]> 2017-01-10 04:18:47 UTC https://padlet.com/leehongteng1999/esrilx875v6l/wish/146157755 Economic concepts s10171432 https://padlet.com/leehongteng1999/esrilx875v6l/wish/146168194 GDP
As the prices of goods increase, nominal GDP of China will increase. This may cause consumers to decrease their spending on other goods and services, firms will then decrease their productions in order to meet the demand of the consumers. This will cause the real GDP of China to decrease and the country will experience inflation. However, the real GDP maybe overstated as the productions of goods and services may cause negative externalities that cannot be measures in the calculation of real GDP. 

Unemployment Rate
The country is currently at the recovery stage in the business cycle where real GDP increases gradually and unemployment rate falls. Business profit improve and production capacity is more utilised. Price level goods will then increase due to the inflationary pressure.
Since the government of China spends more money on infrastructure projects, it will create more job opportunities for the people and that will help to decrease the rate the unemployment. However, not every employee has the right skill for the job, hence there it will be important for employees to upgrade their skills to remain employable. 

Inflation
Since the current CPI of China is higher than the previous CPI, this will result in a fall in the inflation rate in the current year. This will cause the price of exports to decrease slightly, which may still stop other countries from purchasing goods from China. Other countries may then purchase goods from countries with lower inflation rate. Hence, the increase of inflation rate in China will cause the country’s exports to be less price competitive in the global market. The increase in inflation rate will also cause the price of imports to fall. When comparing with the goods produced locally with similar goods that is produced from another country, consumers will purchase the goods that is produced by another country as the price is cheaper. Hence, inflation causes the country’s residents to switch to foreign goods which are relatively cheaper.
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