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Mexico
Mexico

... • Because of an upcoming presidential election on August 21, 1994, political developments caused an increase in Mexico’s risk premium () due to increases in default risk and exchange rate risk: These events put downward pressure on the value of the peso, Mexico’s central bank had promised to mainta ...
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... But even this pool of fringe workers appears to be decreasing. A broader measure of labor force slack that includes these workers, known as the U-6 rate, has declined almost as steeply as the narrower official rate – from a 17.2 percent peak in 2010 to 9.4 percent in May. That’s still about one perc ...
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... important cities country wide. This means that economy is not only bearing a high number of people unemployed, but also facing an increase in poor quality occupation where informal workers do not have social benefits. The cities with the highest unemployment rate over the revolving quarter September ...
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... particular targeted rate of inflation. Examples: New Zealand (first one, 20 years ago), Australia, Canada, UK, EU, Brazil, Mexico, among others.  Defined by IMF as ‘…the public announcement of medium-term numerical targets for inflation with an institutional commitment by the monetary authority to ...
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... greater than in (b). The reason is that the marginal propensity to consume is less than 1. Lower taxes increase individuals’ disposable income. They spend only some of that additional income, while saving the rest. An increase in government spending on the other hand, is entirely translated into an ...
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Midterm2001key - UCSB Economics

... 12. High levels of inflation are often caused by a. excessive money creation used to pay for a government budget surplus. b. excessive borrowing from the public used to pay for a government budget surplus. c. excessive borrowing from the public used to pay for a government budget deficit. x. excessi ...
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Pensions crisis

The pensions crisis is a predicted difficulty in paying for corporate, state, and federal pensions in the United States and Europe, due to a difference between pension obligations and the resources set aside to fund them. Shifting demographics are causing a lower ratio of workers per retiree; contributing factors include retirees living longer (increasing the relative number of retirees), and lower birth rates (decreasing the relative number of workers, especially relative to the Post-WW2 Baby Boom). There is significant debate regarding the magnitude and importance of the problem, as well as the solutions.For example, as of 2008, the estimates for the underfunding of U.S. states' pension programs range from $1 trillion using the discount rate of 8% to $3.23 trillion using U.S. Treasury bond yields as the discount rate. The present value of unfunded obligations under Social Security as of August 2010 was approximately $5.4 trillion. In other words, this amount would have to be set aside today such that the principal and interest would cover the program's shortfall between tax revenues and payouts over the next 75 years.Some economists question the concept of funding, and, therefore underfunding. Storing funds by governments, in the form of fiat currencies, is the functional equivalent of storing a collection of their own IOUs. They will be equally inflationary to newly written ones when they do come to be used.Reform ideas are in three primary categories: a) Addressing the worker-retiree ratio, via raising the retirement age, employment policy and immigration policy; b) Reducing obligations via shifting from defined benefit to defined contribution pension types and reducing future payment amounts (by, for example, adjusting the formula that determines the level of benefits); and c) Increasing resources to fund pensions via increasing contribution rates and raising taxes.
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