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Seminar
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You are an accountant with a large company.
Your boss asks you to hide some bad debts
so that they do not appear on the accounts.
He tells you that if you do not do this the
company may go bankrupt.
Consider what you will do in terms of the
ethical principles of deontology,
consequentialism and virtue.
06 Macroeconomics
English for economics: Geoff Cockayne 2011
What is macroeconomics?
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economic study of a community; usually
a country
contrast with microeconomics
SRAS & LRAS
Macroeconomic concerns
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national income & expenditure
inflation
unemployment
the business cycle
economic governance
National income & expenditure
GDP & GNI
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GDP = C + G + I + X - IM
GNI = C + G + I + NIA
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per capita GDP is not average salary
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Net income from abroad (Lipsey: 346)
income distribution; GINI coefficient
PPP & the Big Mac Index
Comparisons are odious
Inflation
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change in general price levels
CPI ‘basket of goods’
devalues income and savings
cost push & demand pull
hyperinflation
CPI Basket of goods
(FT: 2010)
Unemployment
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not working but expected to work
frictional
structural
underemployment – the business cycle
overemployment – command economy
The Business Cycle
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GDP fluctuation !
bubbles and shocks
Keynes: business confidence and animal
spirits
Monetarism: government and money
supply
Economic governance
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governments & central banks
regional organisations: the EU
international organisations: The World
Bank, the IMF, the WTO
References
Lipsey,R. & Chrystal, K. (2007) Economics: Eleventh Edition. Oxford: OUP.
FT (2010) ‘Money Supply’. Financial Times. 15 March 2010.
Homework
What causes hyperinflation? What are its
possible consequences? What can be
done to prevent it? Describe a recent or
historical example.