Macroeconomics individual assignment by nurul ashikin binti samsuddin https://padlet.com/shikinsams/il6psrgza2ezy72a Nurul Ashikin Bt Samsuddin (82062) en-us 2022-06-05 12:57:53 UTC 2022-06-06 03:38:35 UTC hello@padlet.com https://padlet.net/icons/png/1f31e.png Macroeconomics is a discipline of economics that investigates how an entire economy-the market or other large-scale systems-functions. Inflations, price levels, the pace of economic growth, national income, gross domestic product (GDP), and variations in unemployment are all studied in macroeconomics. Macroeconomics addresses several important problems, including What causes unemployment? What causes price increases? What causes or promotes economic development? Macroeconomics tries to figure out how well an economy is doing, what forces are driving it, and how performance might be improved. shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211324863 2022-06-05 12:59:03 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211324863 Following a period of recovery following the 2014 Gaza conflict, growth in the Palestinian territories fell to 0.7 percent in the first quarter of 2017, as restoration efforts halted and private consumption declined. Unemployment is stubbornly high at 29 percent. Given the persistent challenges to economic competitiveness, medium-term growth is expected to be about 3%. Growth and employment are in danger due to lower-than-expected aid and the likelihood of prolonged violence. The most recent battle in Gaza had devastating social and economic implications, leading to a recession in the Palestinian economy in 2014. From 2015 until 2016, reconstruction efforts enabled growth to return to an annual average of 3.4%. However, aid for reconstruction has decreased dramatically in 2017, resulting in a severe slowdown in reconstruction work. This, combined with a drop in private consumption in the West Bank as a result of political tensions, lowered real GDP growth to 0.7 percent in the first quarter of this year. The unemployment rate in the Palestinian territory remains stubbornly high at 29%. Unemployment in Gaza is more than twice as high as in the West Bank, at 44% more than 60% of Gazans aged 15 to 29 are unemployed. Below are the statistics on the unemployment in Palestine: shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211325963 2022-06-05 13:02:12 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211325963 Employability will fluctuate depending on economic conditions, with certain exceptions in occupations that are less affected by economic swings, such as healthcare, education, and defense. It applies to nearly everyone in the labor force, as the ability to find, keep, and switch jobs throughout time is critical to one's survival and success. A lack of employability lowers labor force productivity and contributes to frictional and structural unemployment. As a result, a country's standard of living, as measured by GDP per capita, and economic growth potential, as measured by aggregate demand and GDP, are affected. Consumer spending is the factor that has the most influence on GDP and economic growth. Businesses do not invest in capital and personnel, nor do they endeavor to expand to fulfill customer demand, if consumers are not spending on goods and services. This leads to a slowing economy and rising unemployment, which are the precursors of a recession. Below are the statistic between economic growth and unemployment: shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211326998 Recommendation]]> 2022-06-05 13:05:09 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211326998 In 2018, Italy was the currency bloc’s third-largest economy. The European Union (EU), as well as global markets, were concerned as Italy fell into a major political and economic crisis. Italy accounted for 11% of the EU’s gross domestic output at the time (GDP). The planned spending plan aimed for a deficit of 2.4% of GDP. Meanwhile, Italy’s total government debt was 131% of GDP (more than double the eurozone limit), and the eurozone contingent had been urging Italy to reduce its debt. As a result, Italy’s eurozone partners were irritated. The challenges in Italy were caused by political chaos and an inability to build a stable coalition administration. A deal between the EU-skeptic populist group M5S and the pro-EU establishment legislators did not materialize after several weeks of lengthy discussions and negotiations. The country was thrown into a political and economic crisis as a result of this. Many of Italy’s economic issues were long-lasting, including a large number of bad loans on the balance sheets of its central banks, as well as decades of weak development. It is one of the countries with the highest government debt approximately 2.8 trillion euros in 2018. Below are statistics on the GDP of Italy: shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211329450 2022-06-05 13:11:36 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211329450 As mentioned, Italy has a severe economic crisis in 2018. Italy is not only experiencing an economic crisis but also political problems and an inability to build a stable coalition administration. This made it difficult for the Italian economy to be repaired due to too many political problems at that time. A government can try to influence the rate of economic growth through demand-side and supply-side policies. Cutting taxes to raise disposable income and encourage spending is known as expansionary fiscal policy. Lower taxes, on the other hand, will increase the budget deficit and lead to further borrowing When there is a drop in consumer expenditure, an expansionary fiscal policy is most appropriate. Next, cutting interest rates can boost domestic demand. Expansionary monetary policy. The government’s primary responsibility is to maintain economic and political stability so that normal economic activity can continue. Uncertainty and political polarization can deter investment and growth. shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211329860 Recommendations]]> 2022-06-05 13:12:43 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211329860 Capital inflows and access to inexpensive credit are essential for Turkey’s economic growth. Turkey was one of the emerging markets that suffered the most as global financial conditions tightened in 2018. Turkey was one of the most noteworthy victims of the global financial tightening in 2018, as it had a currency crisis followed by a recession. The Turkish Lira (TL) lost 31% of its value versus the US Dollar (USD) in 2018, dropping even more in the first eight months before rebounding after the September interest rate hike. Since then, hundreds of businesses have filed for bankruptcy, and the official unemployment rate has risen to levels not seen since the 2008 financial crisis. Turkey’s financialization, like that of many other peripheral countries, was shaped by the accumulation of fictitious capital issued by the government, with the banking system serving as a conduit between international financial markets and the Turkish Treasury, allowing the banking system to profit from interest rate arbitrage between international and domestic markets. In the 1990s, the issue of rolling over public debt created enormous earnings for Turkish capital groups while simultaneously making the Turkish economy more vulnerable to crises. Below is the data for economic problems in turkey in 2018: shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211330538 2022-06-05 13:14:28 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211330538 Gross domestic product (GDP), which is defined as the total value of all goods and services generated inside a country in a year, is used to quantify economic growth. Economic growth is aided by many factors. However, no single element continuously promotes the perfect or ideal level of economic growth. Recessions are unavoidable, and they can be triggered by exogenous sources such as geopolitical and financial events. Tax cuts and rebates are intended to put more money back into customers’ pockets. In an ideal world, these customers spend a part of their money at numerous enterprises, boosting sales, cash flow, and profits. Companies with more cash have the resources to raise finance, upgrade technology, and expand and grow. All of these behaviors boost productivity, which boosts economic growth. Proponents claim that tax cuts and refunds allow customers to stimulate the economy by injecting more money into it. Cutting productive public investments that encourage growth, such as education, research, and infrastructure, to fund tax cuts for the wealthy is also detrimental. Finally, a growing body of evidence suggests that investments in low-income children can have long-term positive benefits on their health, education, and incomes as adults, in addition to reducing poverty and suffering in the short term. The Tax Cuts and Jobs Act was proposed by President Trump in 2017 and passed by Congress. The bill reduced corporate taxes to 20% from 30%. Different tax brackets for individuals were also reduced. The $1.5 trillion bill aims to boost economic growth over the next ten years. It’s difficult to tell how much of the growth was caused by other variables and market forces, as it is with any stimulus used to boost economic growth. shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211330816 Recommendation]]> 2022-06-05 13:15:13 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211330816 Pakistan’s freshly elected government is already coping with a balance of payments deficit, a common theme among the country’s newly elected authorities. Pakistan’s structural issues are self-inflicted, but this time there’s a Chinese debt component. Pakistan is the largest Belt and Road Initiative (BRI) partner, adding to the country’s already difficult financial circumstances. Prime Minister Khan inherited the third balance of payments problem in ten years. Pakistan’s current account deficit was $18 at the end of June 2018, up roughly 45 percent from $12.4 Billion in 2017 Excessive imports (including those related to the China-Pakistan Economic Corridor (CPEC) and lower-than-expected inflows (export revenues and remittances) have resulted in a widening current account deficit, with foreign currency reserves covering less than two months of imports-pushing Pakistan into a difficult economic situation.The fact that 2018 was a bad year for developing markets is contributing to Pakistan’s financial woes. The country’s already poor economic situation has been exacerbated by global monetary tightening, rising oil costs, and dwindling investor confidence. However, the economy has been vulnerable to a variety of debt vulnerabilities due to the country’s fundamental structural difficulties and weak macroeconomic policies. Below is data for import, export, and deficit issues in Pakistan: shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211332018 2022-06-05 13:18:25 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211332018 As mentioned, Pakistan facing severe import, export, and deficit problems. To avoid the significant consequences of steep and frequent variations in the number of imports, a country must be in a position where maintaining the short-term balance of payments stability is less of a worry. A country with a reasonably easy reserve position can afford to implement steep aims at stabilizing revenue in the face of large export swings, as well as to avoid recurrent short-term balance of payments imbalances and monetary reserve volatility. These perturbations, however, are likely to be countered in some way.Domestic income in both the private and governmental sectors tends to fall during periods of falling export receipts. Imports, on the other hand, could not be maintained without the implementation of proper fiscal and monetary policies to compensate for the general drop in income. The expansionary effects of fiscal and monetary measures could counteract the deflationary effects of a balance of export expansion, monetary and fiscal policies may have an opposite effect, keeping imports at a more or less stable level. Credit demand would be kept under control, and higher revenue would bolster the government’s financial condition. shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211332410 Recommendation]]> 2022-06-05 13:19:31 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211332410 The global economy is slowing in lockstep, with growth forecasts for 2019 falling to 3% the lowest level since the global financial crisis. With increased trade barriers and geopolitical tensions, growth has slowed further and trade tensions between the United States and China will lower global GDP by 0.8 percent by 2020. In some emerging market countries, growth is also hampered by country-specific constraints, as well as structural forces such as low productivity growth and aging demographics in advanced economies. Another revision dropped 0.2 percent from the April prediction in the October World Economic Survey, which projected a minor increase in global growth to 3.4 percent in 2020. This recovery, unlike synchronous wetness, is not broad-based and remains unstable. Below is the statistic on the global economy in 2018: shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211333190 2022-06-05 13:21:24 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211333190 A steep drop in global manufacturing and trade activity slowed growth, with rising tariffs and protracted trade policy uncertainty harming investment and demand for capital goods. Furthermore, the declining vehicle sector was caused by several issues, including the long-term effects of increased emissions requirements in the eurozone and China. Overall, trade volume growth has slowed to 1% in the first half of 2019.In 2017, the International Monetary Fund estimated that around 10 percent of income in advanced economies went to just 1 percent of the population. Rising inequalities not only disrupt social cohesion but also threaten long-term growth and hamper progress on the SDGs. To sustain economic expansion and move forward on the Global Goals, countries will have to urgently raise the living standards of the most deprived and address the inequality of opportunities in the long term. These investments will not only improve the quality of growth but increase its longer-term potential. Meanwhile, the US ended 2017 by adopting a sweeping tax reform, which is expected to slightly increase GDP growth in 2018 but also contribute to a further rise in after-tax wage inequality. shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211333453 recommendation]]> 2022-06-05 13:22:06 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211333453 Shobhit, S (2020, November 24). All about the Italian Economic Crisis of 2018. https://www.investopedia.com/news/all-about-italian-economic-crisis-2018/ shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211334424 2022-06-05 13:24:49 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211334424 Akcay, U (2019). The making of Turkey’s 2018-2019 economic crisis. .https://www.econstor.eu/handle/10419/200182 shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211334943 2022-06-05 13:26:14 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211334943 Daniel, F.R (2018, October 31) An Economic crisis in Pakistan again: What different this time? https://www.csis.org/analysis/economic-crisis-pakistan-again-whats-different-time shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211335651 2022-06-05 13:27:57 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211335651 Polina, T (2017, July 22) Pakistan economy in crisis: enormous cad in the financial year 2017.https://www.valuewalk.com/2017/07/pakistan-economy-crisis/ shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211336044 2022-06-05 13:29:05 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211336044 (2017, October 11) Palestine’s economic outlook. https://www.worldbank.org/en/country/westbankandgaza/publication/palestine-s-economic-outlook--october-2017 shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211336313 2022-06-05 13:29:48 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211336313 Gita, G (2019, October 15) The world economy: synchronized slowdown, precarious outlook https://blogs.imf.org/2019/10/15/the-world-economy-synchronized-slowdown-precarious-outlook/ shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211336691 2022-06-05 13:30:49 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211336691 https://www.mckinsey.com/industries/public-and-social-sector/our-insights/how-governments-in-emerging-economies-can-help-boost-and-sustain-growth shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211337097 2022-06-05 13:31:55 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211337097 https://www.khanacademy.org/economics-finance-domain/macroeconomics shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211337355 2022-06-05 13:32:39 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211337355 Name: Nurul Ashikin Bt Samsuddin (82062) shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211734194 2022-06-06 03:34:39 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211734194 Group 3 shikinsams https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211734330 2022-06-06 03:34:54 UTC https://padlet.com/shikinsams/il6psrgza2ezy72a/wish/2211734330