1
Q
devaluting the pound as policy to better current account deficit
A
devaluate the currency –> IR steps –> effects of devaluation–> long run effect –> value of x > value of m –> ca improves
2
Q
evalution of devaluating
A
depends on whether the marshall-lerners conditions are met –> only if ped + ped of m = greater than one (elastic) –> however
Macroeconomics
flashcards
Decks in class (23)
# Cards
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money finance and banks5
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fiscal policy/national debt chain8
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Psychopathology6
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microeconomics1
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microeconomics: market structures1
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micro: behavioural economics10
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SSP market led policies7
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supply side policy eval10
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interventionist policies SSP5
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business objectives3
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evaluate the view that rising living standards = economic growth7
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expansionary monetary policy11
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changing corp tax effect on macroeconomic performance7
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evaluate the view that qe is damaging for uk economy7
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evaluate whether a budget surplus is desirable objective10
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evaluate globalization in the global economy1
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trade2
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Economic Growth and development30
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25 on depreciation of the pound against other currencies improves macro perfromance6
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25 assess that strict rules and regulations on financial markets create a stable economy7
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asses the view that floating exchange rates are better than fixed6
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impacts of sol and qol of rise in the pound against other currencies8
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assess the view there shoukd be tighter regulations3
