https://padlet.com/SSMsSha/A02 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 21:19:08 UTC 2025-11-12 22:33:19 UTC hello@padlet.com https://padlet-assets.storage.googleapis.com/portrait/pocketwatch.jpg SSMsSha https://padlet.com/SSMsSha/A02/wish/106417287 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/A02/wish/106417287 michelle_wong_nga_hui https://padlet.com/SSMsSha/A02/wish/106417288 2016-04-15 00:48:49 UTC https://padlet.com/SSMsSha/A02/wish/106417288 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417289 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/A02/wish/106417289 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417290 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/A02/wish/106417290 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417291 Videoclip on the Eurozone Economy]]> 2016-04-04 15:59:28 UTC https://padlet.com/SSMsSha/A02/wish/106417291 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417292 Video Clip on Eurozone economy: Italy]]> 2016-04-04 14:21:35 UTC https://padlet.com/SSMsSha/A02/wish/106417292 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417293 2016-04-04 14:30:33 UTC https://padlet.com/SSMsSha/A02/wish/106417293 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417294 2016-04-04 15:46:22 UTC https://padlet.com/SSMsSha/A02/wish/106417294 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417295 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/A02/wish/106417295 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417296 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/A02/wish/106417296 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417297 Explain and evaluate the use of 3 policies]]> 2016-04-04 14:45:26 UTC https://padlet.com/SSMsSha/A02/wish/106417297 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417298 2016-04-04 14:58:49 UTC https://padlet.com/SSMsSha/A02/wish/106417298 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417299 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/A02/wish/106417299 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417300 2016-04-04 15:02:56 UTC https://padlet.com/SSMsSha/A02/wish/106417300 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417301 2016-04-04 15:04:09 UTC https://padlet.com/SSMsSha/A02/wish/106417301 SSMsSha https://padlet.com/SSMsSha/A02/wish/106417302 2016-04-04 15:04:45 UTC https://padlet.com/SSMsSha/A02/wish/106417302 siti_nur_raudhah_bte_zakariah_2015 https://padlet.com/SSMsSha/A02/wish/107208558 2016-04-22 12:22:48 UTC https://padlet.com/SSMsSha/A02/wish/107208558 siti_nur_raudhah_bte_zakariah_2015 https://padlet.com/SSMsSha/A02/wish/107211958 Europe is facing a deflation. Headline inflation, the key indicator watched by ECB, fell to -0.2 percent from 0.3 percent a month earlier.

Deflation is a situation where there is a sustained decrease in the general (average) price level.  Weak demand, driven by austerity, debt and a lack of economic growth is dragging down prices. The falling oil price is making things cheaper, too


]]> 2016-04-22 12:38:43 UTC https://padlet.com/SSMsSha/A02/wish/107211958 https://padlet.com/SSMsSha/A02/wish/107229797 I used to think that Europe economy has been suffering over the years due to the single euro currency that every country in the Eurozone shares. Countries such as Italy and Portugal are both facing negative economic growth as their GDP has decreased over the years. Moreover the situation is worsened since the Greece Debt crisis in 2015 leading to the recent Grexit which could further damage Europe's economy.]]> 2016-04-22 13:49:19 UTC https://padlet.com/SSMsSha/A02/wish/107229797 https://padlet.com/SSMsSha/A02/wish/107232998 2016-04-22 13:59:50 UTC https://padlet.com/SSMsSha/A02/wish/107232998 https://padlet.com/SSMsSha/A02/wish/107233051 2016-04-22 14:00:00 UTC https://padlet.com/SSMsSha/A02/wish/107233051 https://padlet.com/SSMsSha/A02/wish/107233211 2016-04-22 14:00:26 UTC https://padlet.com/SSMsSha/A02/wish/107233211 https://padlet.com/SSMsSha/A02/wish/107233894 The Europe economy is a large economy and is one of the largest economies in term of population with around 340 million people.  The service sector accounts for the largest share of total output followed by industrial sector while that of fishing, agricultural and forestry is relatively small.

Many countries are also reliant on Euro for trade. Products such as Machinery, Motor vehicles, Pharmaceuticals, Fuels, Iron, steel, paper products, Meat, Dairy products, Fish and Alcoholic beverages are the highest contributor to Europe's exports between the  EU countries and the world. 

Trade barriers are imposed on countries outside the EU while for countries in the EU they are able to experience free trade due to the absence of trade barriers. Hence Euro economy largely a Large and closed economy
https://www.ecb.europa.eu/mopo/eaec/html/index.en.html

]]> 2016-04-22 14:02:33 UTC https://padlet.com/SSMsSha/A02/wish/107233894 siti_nur_raudhah_bte_zakariah_2015 https://padlet.com/SSMsSha/A02/wish/107355420 I used to think that Europe was facing a recession because of their debt crisis. Greece, Portugal, and Ireland failed to bring their public debt under control after receiving billions of euros in bailout aid from various financial institutions. As a result they were crowding out effect and the other economy in the Eurozone was affect also.]]> 2016-04-23 13:15:44 UTC https://padlet.com/SSMsSha/A02/wish/107355420 https://padlet.com/SSMsSha/A02/wish/107356399 I used to think that the Europe economy was faced with a recession due to the negative economic growth faced by countries such as Germany and Greece. Furthermore, prices have been falling in 8 European countries, with the constant decline of inflation rates and increasing debt amounts. This is a similar prospect to the Great Depression of the 1930s, hence showing the extent of damage of the European economy.]]> 2016-04-23 13:46:57 UTC https://padlet.com/SSMsSha/A02/wish/107356399 https://padlet.com/SSMsSha/A02/wish/107357863 To counter deflation, the government could reduce interests rates by implementing the monetary policy. By reducing interests rates, consumers are more likely to spend due to an increase in disposable income, hence boosting aggregate demand levels. However, this could result in a liquidity trap, where the low interest rates may not be efficient in encouraging enough consumer spending to boost economic growth. People may also use money to pay off debts or save the money which may not contribute to the economic growth of a country.

Another policy the government can implement is the supply side interventionist policy, whereby governments can invest in the quantity and quality of development to improve productivity, hence improving aggregate supply. However, a limitation of this policy is that it takes time and requires large sums of money to enforce such actions, which may deplete the economy even further.

]]> 2016-04-23 14:26:52 UTC https://padlet.com/SSMsSha/A02/wish/107357863 https://padlet.com/SSMsSha/A02/wish/107360202 I used to think that the Europe experienced the sovereign debt crisis. The European debt crisis (Eurozone crisis or the Sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since the end of 2009. It is mainly due to the accumulation of massive and unsustainable deficits and also public debt in a number of peripheral economies. ]]> 2016-04-23 15:24:54 UTC https://padlet.com/SSMsSha/A02/wish/107360202 https://padlet.com/SSMsSha/A02/wish/107385951 A good policy mix is necessary to tackle the problems that the Euro economy is facing. To maintain price stability, bring the country out of recession and achieve economic growth in the long run. 
A combination of demand management policies and Supply side policies is crucial .Demand Management policies such as Monetary Policy is effective in curbing the problem of negative economic growth and deflation in the short run. Supply side policies on the other hand, are useful in ensuring a sustain economic growth in the long run. By maintaining or building more world class infrastructure and investing in Research and Development, it can attract new investment and thus solve the problems of unemployment and also helps to ensure a sustained economic growth in the long run. 
However, the effectiveness of both demand and supply side measures would also depends strongly on the improvement of business and consumer confidence in the Euro economy, all of which depends on the degree and success of the policies that the central bank have adopted to deal with the deflation and negative economic growth.
All in all, the European Central Bank has to carefully weigh the benefits and cost of the policies before implementing it.]]> 2016-04-24 08:08:47 UTC https://padlet.com/SSMsSha/A02/wish/107385951 https://padlet.com/SSMsSha/A02/wish/107387159 But now I think that Europe Economy is actually improving in 2016 due to the effective policies implemented by the European Central Bank after facing a financial crisis in 2014 and 2015.]]> 2016-04-24 08:46:02 UTC https://padlet.com/SSMsSha/A02/wish/107387159 https://padlet.com/SSMsSha/A02/wish/107392436 Europe is facing a high unemployment level. Throughout Europe, people are hurting in Italy and Spain as youth unemployment is above 40%. From the "The world's biggest economic problem"- The Economist article.

Unemployment level refers to the number of people who are actively looking for work i.e those who are willing and able to work at the current wage rate but are without a job. This high unemployment level has resulted from the prolonged recession from 2008-2013. Europe has struggled with persistent structural unemployment for the past two decades. High natural rates of unemployment have been blamed o inflexible labour market, generous unemployment benefits which encourage frictional unemployment, geographical immobilities, strong labour market regulations which discourages firms from investing and taking on new workers.

]]> 2016-04-24 11:12:31 UTC https://padlet.com/SSMsSha/A02/wish/107392436 https://padlet.com/SSMsSha/A02/wish/107393143 But now I think that the combination of policies implemented by the European Central Bank, Europe's economy is able to improve. This is because both demand-management and supply side policies are able to solve the macroeconomic problems that Europe faced such as unemployment.]]> 2016-04-24 11:29:52 UTC https://padlet.com/SSMsSha/A02/wish/107393143 https://padlet.com/SSMsSha/A02/wish/107393675 Due to the high unemployment level, there will be lesser disposable income and this reduces purchasing power. This will decrease consumption (C) and since C is a component of AD, AD will fall, ceteris paribus. Firms will experience a rise in inventories. This will signal firms to step down production, firms employ less workers leading to falling output. This results in rising unemployment and falling income. As income falls, spending by consumers fall. As one's spending becomes another's income, the fall in spending will lead to a fall in income of another group of people because of the falling demand for the goods and services they produce. The multiplier effect is triggered off leading to a multiple fall in production, output and national income. Contractionary effects on the economy.]]> 2016-04-24 11:44:01 UTC https://padlet.com/SSMsSha/A02/wish/107393675 https://padlet.com/SSMsSha/A02/wish/107404565 But now i think that with a good mixture of different policies such as monetary policies and supply side policies, the recession and deflation can be reduced, helping to improve Europe's economy overall.]]> 2016-04-24 15:46:09 UTC https://padlet.com/SSMsSha/A02/wish/107404565