Topic I Global Economy
Trade; Financial Flows, I & TNC's; Tech. transport and communication;International Division of Labour and Migration; IBC and synchronisation; Free Trade Vs Protection/trade agreements; Global organisations
8 Factors/drivers/measures of Globalisation
Untied aid; non-market transfers
NSY account
Productivity, population, participation and policy
Aggregate Supply
Stabilisation; redistribution; reallocation and external stability.
What are the aims of fiscal policy?
export price index/import price index x 100
TOT
Comparative Advantage, specialisation, EoS, allocative efficiency
Reason for free trade
Irreversible side of the BOP
Current Account
AD and AS
What are the drivers of growth?
Buying second-hand CGSs, OMO's
What action is taken to increase liquidity, to offset an increase in demand for funds in the STMM?
C+G+I+X(-M)
AD
Dumping; Infant industry protection; national interest
Reason for protection
BOGS + NPY+NSY
Current Account
skills mismatch
What is structural unemployment?
Reform of education, labour, environment, agriculture and financial markets?
What is MER of factor markets?
C=A + MPC x Y
A= Autonomous consumption
MPC=Marginal Propensity to Consume
Y=Income
What is the consumption function?
Responsible for
1. Settling trade disputes
2. Promoting free trade
3. Negotiating trade agreements
WTO
Capital Account, credit
The sale of intellectual property or tied aid received appears as what flow, in which account?
Causes of Inflation
Cost-push; demand-pull; expectations and imported
Lagged effectiveness; blunt nature; complex and uncertain transmission; liquidity trap; lower effective bound.
What are the limitations of MP?
K=1/MPS
What is the multiplier?
Responsible for global financial system stability
IMF
Minerals and commodities >60%
What are Australia's largest exports?
CA balance; foreign debt; foreign liabilities; Xrate volatility
What are the measures of external stability?
-4.3% of GDP
What was the 2020 budget outcome?
Nominal GDP/1 x 100/CPI
What is real GDP?