In 2022, Russia’s exports decreased, and many Western countries banned exports to Russia. Young people going to the front or leaving the country to avoid the draft shrank the labor force. Uncertainty curbed business investment. Retail sales fell 6.7%. Government revenues decreased. GDP fell 2.1% and inflation was over 10%.—wsj.com
Category: MAT5
Macroeconomic Fluctuations (Aggregate Supply and Aggregate Demand)
Keywords: Aggregate demand, Aggregate supply, Output gap, Schools of thought
Parkin 14e Chapters 10, 11, 12
Bade-Parkin 9e Chapters 13, 14, 15
Parkin-Bade Canada 11e Chapters 10, 11, 12
Parkin-Bade Australia 2e Chapters 13, 14, 15
Parkin-Powell-Matthews 11e Chapters 26, 27, 28
A Third of World Forecast to be in Recession in 2023
The International Monetary Fund (IMF) has cut its outlook for global economic growth in 2023 due to the war in Ukraine as well as higher interest rates as central banks around the world attempt to rein in rising prices.—bbc.com
Tea Tourism Shows Huge Potential as Engine of Growth for South African Economy
Tea tourism is growing as foreign tea enthusiasts explore South Africa’s tea-producing regions. Once dilapidated tea planters’ bungalows are being turned into boutique hotels and lodges. Tea tourism is a new engine of growth, which can create jobs and alleviate poverty.—zawya.com
South Africa Economic Outlook: Electricity Woes Could Impact Growth
South Africa’s growth in 2022 Q2 depends on the severity of electricity outages, the effects of flood damage, and weakening consumer confidence. The price level is rising.—howwemadeitinafrica.com
Fed Officials Worried About Inflation Becoming ‘Entrenched’
Many Fed officials are raising concerns that longer-run inflation expectations could be beginning to drift up to levels inconsistent with the Fed's goals. The officials stressed that clear and effective communications, along with higher rates are essential in restoring price stability.—axios.com
Interest Rates Should be Closer to 10%
Estimates of the Taylor rule suggest a federal funds rate of around 7%, compared with 1.75% at present.—poundsterlinglive.com Some Data: In May 2022, the U.S. output gap is minus 1.8% and the inflation rate is 8.6%.
The U.S. Economy Shrank 1.6% in the First Quarter
One quarter of negative economic growth is creating recession fears and inflation is soaring.—cnn.com
UN Drops Forecast for Global Economic Growth in 2022 to 3.1%
The United Nations significantly lowered its forecast for global economic growth this year from 4% to 3.1%. Global inflation is projected to increase to 6.7% in 2022, twice the average of 2.9% during 2010-2020, with sharp rises in energy prices.—abcnews.go.com
Treasury Secretary Janet Yellen Says She Was Wrong About the Risks of Inflation
Janet Yellen said she was wrong a year ago when she anticipated inflation would not be a problem. "Large shocks to the economy have boosted energy prices," Yellen said. The Fed has begun raising interest rates aggressively.—npr.org
The Fed Has a New Plan to Avoid Recession: Party Like It’s 1994
The history of central bank rate hikes appears to support the inevitability of an economic downturn, but there have been rare instances when the Fed has raised interest rates and avoided recession: One example is 1994.—cnn.com, May 16, 2022 Some data In 1994, the Fed raised the federal funds rate from 3 percent to 5.5 … Continue reading The Fed Has a New Plan to Avoid Recession: Party Like It’s 1994