IB International Economics
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Russia raises interest rates to 10.5%

Russia raises interest rates to 10.5% | IB International Economics | Scoop.it
Adam Dean's insight:

Russia's central bank has hiked interest rates again in order to appreciate (or at least slow down depreciation) of the rouble and reduce inflationary pressures. Relatively high interest rates serve to encourage hot money inflows  - increasing the demand and value of the rouble. In addition, high rates act as an incentive for Russians to keep their money in Russian banks, reducing hot money outflows. High interest rates help to curb inflation by increasing the cost of borrowing and the reward for saving. This may lead to a decrease in consumer expenditure and investment, a reduction in aggregate demand, and reduced demand-pull inflation. However, borrowers suffer as the cost of servicing their debt increases. Furthermore, a decrease in AD can lead to a recession and cyclical unemployment.

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Adam Dean's curator insight, December 11, 2014 5:25 PM

Russia's central bank has hiked interest rates again in order to appreciate (or at least slow down depreciation) of the rouble and reduce inflationary pressures. Relatively high interest rates serve to encourage hot money inflows  - increasing the demand and value of the rouble. In addition, high rates act as an incentive for Russians to keep their money in Russian banks, reducing hot money outflows. High interest rates help to curb inflation by increasing the cost of borrowing and the reward for saving. This may lead to a decrease in consumer expenditure and investment, a reduction in aggregate demand, and reduced demand-pull inflation. However, borrowers suffer as the cost of servicing their debt increases. Furthermore, a decrease in AD can lead to a recession and cyclical unemployment.

Adam Dean's curator insight, December 11, 2014 5:26 PM

Russia's central bank has hiked interest rates again in order to appreciate (or at least slow down depreciation) of the rouble and reduce inflationary pressures. Relatively high interest rates serve to encourage hot money inflows  - increasing the demand and value of the rouble. In addition, high rates act as an incentive for Russians to keep their money in Russian banks, reducing hot money outflows. High interest rates help to curb inflation by increasing the cost of borrowing and the reward for saving. This may lead to a decrease in consumer expenditure and investment, a reduction in aggregate demand, and reduced demand-pull inflation. However, borrowers suffer as the cost of servicing their debt increases. Furthermore, a decrease in AD can lead to a recession and cyclical unemployment.

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Latvia's experience in the euro changeover - New Europe

Latvia's experience in the euro changeover - New Europe | IB International Economics | Scoop.it
New Europe Latvia's experience in the euro changeover New Europe With the euro successfully introduced in Latvia, the number of European Union countries using the single European currency has increased to 18, thereby raising the number of Europeans...
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Adam Dean's curator insight, May 14, 2014 6:33 AM

#extract 4 Analysis of Latvia's adoption of the euro.

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Falling oil price costs Russia $100bn

Falling oil price costs Russia $100bn | IB International Economics | Scoop.it
Adam Dean's insight:

Russia is facing a perfect storm. Sanctions that restrict the flow of capital, a weakening currency, and a fall in the price of it's major export. A part of the BRICs that have seen strong growth in the last decade, it could be about to enter a recession. With Putin playing hardball it looks as if there is little chance of its woes abating any time soon.

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Adam Dean's curator insight, November 24, 2014 6:16 PM

Russia is looking to prop up the price of oil by limiting supply and boost exports revenue. This suggests that Russia expects little movement in the way of demand (PED inelastic). Does Russia have sufficient market power to make a difference to the price of oil?

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Forbidden fruit: EU ban on mangoes cuts off Indian summer

Forbidden fruit: EU ban on mangoes cuts off Indian summer | IB International Economics | Scoop.it
British Asians are racing to buy the last 'king' mangoes as the EU halts imports
Adam Dean's insight:

Temporary embargo on Indian mangoes.

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India's trade: full list of exports, imports and partner countries

India's trade: full list of exports, imports and partner countries | IB International Economics | Scoop.it
Cameron has spent the week in India discussing trade relations with Britain. What are India's main exports and imports, and who are its key trading partners?
Adam Dean's insight:

Interesting data on India's import and export patterns. India's growth in trade shows an increased willingness to open up the world's second largest (by population) economy.

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Adam Dean's curator insight, March 24, 2014 7:21 AM

Interesting data on India's import and export patterns. India's growth in trade shows an increased willingness to open up the world's second largest (by population) economy.

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Greece posts first account surplus

Greece posts first account surplus | IB International Economics | Scoop.it
Adam Dean's insight:

Rising exports and falling imports means Greece posts its first current account surplus since.... well, ever(ish). 

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Adam Dean's curator insight, February 19, 2014 3:49 PM

Rising exports and falling imports means Greece posts its first current account surplus since.... well, ever(ish). 

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Nissan's Ghosn warns UK over EU exit

Nissan's Ghosn warns UK over EU exit | IB International Economics | Scoop.it
Adam Dean's insight:

3.4 Topical given today's ESRC conference at CCCU. Nissan warn UK regarding EU membership.

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Adam Dean's curator insight, November 8, 2013 2:23 AM

A warning for Euro-sceptics. Many foreign owners of UK capital enjoy the benefits of free trade with continental Europe. Leaving the EU may jeopardise that benefit and, in turn, jeopardise UK jobs.

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Yen depreciation and the j-curve

Adam Dean's insight:

F585 & IB3.3

Analysis of the ST and LT impacts of Japan's current account deficit and weakening Yen.

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Venezuela devalues currency by 32%

Venezuela devalues currency by 32% | IB International Economics | Scoop.it
In a widely expected move, Venezuela cuts the value of its currency by 32% against the US dollar, in an effort to boost its economy.
Adam Dean's insight:

F585 & IB3.2 Nice example of a managed exchange rate regime. Consider the economic impact of such a significant devaluation.

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Pound in big fall against euro

Pound in big fall against euro | IB International Economics | Scoop.it
The pound weakens further against the euro, seeing its biggest one-day falls in almost three years, on continuing signs the eurozone economy is improving.
Adam Dean's insight:

Recent fall in £ against Euro.

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Swiss act to weaken strong franc

Swiss act to weaken strong franc | IB International Economics | Scoop.it
The Swiss franc falls sharply after the central bank pegs the franc to the euro, citing a "massive overvaluation" of the Swiss currency.
Adam Dean's insight:

IB3.2 Exchange Rates

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Iranian currency hits record low

Iranian currency hits record low | IB International Economics | Scoop.it
Iran's currency, the rial, has fallen as much as 18% on Monday, bringing it to a record low against the dollar.
Adam Dean's insight:

IB Eco 3.2 Exchange Rates - the fall of the Iranian Rial.

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3.4 What a Return to the Drachma Really Looks Like

3.4 What a Return to the Drachma Really Looks Like | IB International Economics | Scoop.it
Import costs would skyrocket while borrowing would be almost impossible...
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Adam Dean's comment, January 14, 2013 11:19 AM
3.4 Economic Integration
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Oil keeps sliding on oversupply fears

Oil keeps sliding on oversupply fears | IB International Economics | Scoop.it
Adam Dean's insight:

Increases in supply causing oil prices to fall. Consider the impact on the current account of those countries that rely heavily on oil exports.

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Mad Latvia defies its own people to join the euro – Telegraph Blogs

Mad Latvia defies its own people to join the euro  – Telegraph Blogs | IB International Economics | Scoop.it
EU finance ministers have just given the go-ahead for Latvia to join the euro in January 2014. No matter that the latest SKDS poll shows that only 22pc of Latvians support this foolish step, and 53pc are opposed. This is a very odd situation. The elites are pushing ahead with a decision of profound implications, [...]
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Adam Dean's curator insight, May 14, 2014 10:52 AM

Extracts 3 & 4: Latvia's "success" ripped apart.

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EU to pay struggling peach growers

EU to pay struggling peach growers | IB International Economics | Scoop.it
Adam Dean's insight:

Peach and nectarine farmers to be subsidised by the EU following the Russian food import ban. Fruit bought by the EU to be distributed to schools, hospitals, etc for free. Are peaches and nectarines a merit good?

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Adam Dean's curator insight, August 12, 2014 8:23 AM

Peach and nectarine farmers to be subsidised by the EU following the Russian food import ban. Fruit bought by the EU to be distributed to schools, hospitals, etc for free. Are peaches and nectarines a merit good?

Adam Dean's curator insight, August 12, 2014 8:24 AM

Peach and nectarine farmers to be subsidised by the EU following the Russian food import ban. Fruit bought by the EU to be distributed to schools, hospitals, etc for free. Are peaches and nectarines a merit good?

Adam Dean's curator insight, August 12, 2014 8:24 AM

Peach and nectarine farmers to be subsidised by the EU following the Russian food import ban. Fruit bought by the EU to be distributed to schools, hospitals, etc for free. Are peaches and nectarines a merit good?

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Angola's new import tariffs putting the squeeze on the poorest residents in one of the world’s most expensive cities

Angola's new import tariffs putting the squeeze on the poorest residents in one of the world’s most expensive cities | IB International Economics | Scoop.it
In Luanda’s Jumbo supermarket, a half-litre tub of imported vanilla ice-cream used to cost $25 (£15), testament to the Angolan capital’s rank as one of the world’s most expensive cities.

Via Geoff Riley
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Ukrainian currency hits 10-year low

Ukrainian currency hits 10-year low | IB International Economics | Scoop.it
Adam Dean's insight:

Declining value of hryvnia - causes and consequences.

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Adam Dean's curator insight, February 26, 2014 9:50 AM
Declining value of hryvnia - causes and consequences.
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The Big Mac index

The Big Mac index | IB International Economics | Scoop.it
Authoritative weekly newspaper focusing on international politics and business news and opinion.
Adam Dean's insight:

3.2 Exchange Rates - The Big Mac Index and the theory of purchasing power parity (PPP).

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Adam Dean's curator insight, December 12, 2013 10:46 AM

The Big Mac Index and purchasing power parity (PPP).

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OECD literacy leagues: poverty and inequality blamed for England's results

OECD literacy leagues: poverty and inequality blamed for England's results | IB International Economics | Scoop.it
Problem may lie in lack of encouragement and opportunity for people to study once they have left school
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Adam Dean's curator insight, October 9, 2013 7:37 AM

2.6 Supply-side and international competitiveness issues facing England. Despite constant tinkering, England still performs relatively poorly in literacy and numeracy.

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The Comeback - Finance & Development, March 2013

The Comeback - Finance & Development, March 2013 | IB International Economics | Scoop.it
by Herman Kamil and Jeremy Zook - Mexico's newfound competitiveness helps it regain a share of the U.S. import market it had lost to China
Adam Dean's insight:

F585 & IB3 lots here on how Mexico is fighting back against China in the battle for the US imports market. The article makes reference to economic integration, international competitiveness, productivity and many other important international concepts.

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Egyptian currency reserves fall

Egyptian currency reserves fall | IB International Economics | Scoop.it
Egypt's dwindling foreign currency reserves fall 10% in a single month, renewing concerns over the economy.
Adam Dean's insight:

IB3.2 & F585 Falling reserves increases the likelihood of the collapse of the Egyptian currency and a worsening of its TOT.

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Yen hits record as Nikkei slides

Yen hits record as Nikkei slides | IB International Economics | Scoop.it
The Japanese yen hits a post-WWII record against the US dollar as stocks slide amid radiation and earnings concerns.
Adam Dean's insight:

IB3.2 Exchange Rates

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Egyptian pound in further slide

Egyptian pound in further slide | IB International Economics | Scoop.it
The Egyptian pound falls further against the US dollar, despite efforts by the country's financial authorities to intervene in the money markets.
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Adam Dean's comment, January 14, 2013 11:18 AM
3.2 Exchange Rates
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BBC News - Today - Iranian Rial falls to record lows

BBC News - Today - Iranian Rial falls to record lows | IB International Economics | Scoop.it
The Iranian Rial, has fallen to record lows against the US dollar, It fell 18 per cent on Monday and nine per cent more on Tuesday.
Adam Dean's insight:

IB Eco 3.2 Exchange Rates

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