Nobody downloaded yet

Economic - Essay Example

Comments (0) Cite this document
Oscar B. Valencia Economic 02 Jun 2011 Macro & Micro Economics When PRC began its economic reforms in 1978, the “Sleeping Giant” as quoted by Havely ( has now become the second largest economy worldwide according to International Monetary Fund data of 2010…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.5% of users find it useful
Read TextPreview

Extract of sample

Download file to see previous pages When the government relaxed its price control and promoted foreign investment, the United States started to invest in PRC beginning 1979 after both countries establish diplomatic relations. With Japan as their fund provider since 1978 through soft loans, PRC is now the fastest growing major economy in the world. Its success has been attributed to a formula of cheap labor, ease government policy, overall infrastructure, high productivity, and some say, an underrated exchange rate. In spite of a growing trade surplus, PRC is consciously making effort to lower its inflation rate and/or manage inflation expectations by raising bank reserve ratio of deposits through a directive from PRC’s Central Bank. This brings as to the first question as to how will this affect the balance sheets of both the banks and the PRC’s Central Bank. As regard to the banks, their assets, particularly deposits will decrease and the same amount will increase the reserve in the “Liabilities” portion in their Balance Sheet. Expectedly, the assets of the Central Bank either in receivables or deposits will increase as well as their reserves. Normally, banks hold two bank reserves, one is use for cashing checks or satisfying client’s withdrawals while the other is called “legal reserves” or sometimes called “federal reserves” or central bank reserves. ...
Asian Development Bank (ADB) said in its 2011 Asian Development Outlook that “there is very little risk of hard landing because growth momentum remains robust for the medium term”. As compared to last year the Gross Domestic Product (GDP) growth will slow to 9.3% in 2011, a dip from 10.3% annual growth in 2010 (Global Times), mainly due to stubborn inflation this year. One determinant factor of inflation is the Consumer Price Index (CPI), as the CPI rise so is the inflation. Consumer consumption is one of the major components in arriving at the total GDP, the others are government expenditures, gross investment and the net of exports versus imports. Consumer consumption may not be a factor at this time because wages will not outpace production. Government expenditures were already programmed to pay maturing foreign loans, hence will be constant, while investment will decrease minimally due to expected increase in interest rates. The one that will affect most in computing the GDP is the net difference between exports and imports. As I analyze it, imports will continue to outpace exports due primarily to higher demands for fuel consumption, which are outsourced externally. The World Bank said “strong domestic demand and relative price changes has reduced the importance of external trade for China” ( There might be an oversupply of products which will considerably affect prices and therefore have an effect on equilibrium. As regard the aggregate expenses, again this will tend to be low as the net effect of imports versus exports is high. PRC’s Central Bank raising of RRR will certainly have an effect on the money multiplier since it will ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Economic Essay Example | Topics and Well Written Essays - 1000 words - 2”, n.d.)
Retrieved from
(Economic Essay Example | Topics and Well Written Essays - 1000 Words - 2)
“Economic Essay Example | Topics and Well Written Essays - 1000 Words - 2”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
The increase and decrease of prices are not ordinary because as the movement becomes more persistent, the more it delivers significant number of negative consequences. However, the movement of prices is characterized not just to one but to all commodities.
8 Pages(2000 words)Essay
The third section is an illustration of the implication that an oligopolistic banking sector is likely to have over the residents of a nation. The fourth section depicts the situation in Australia where nationals have been immensely protesting against the oligopolistic banking sector and finally the last section summarises the contents of the entire paper.
10 Pages(2500 words)Essay
This increase assisted the producers with the capital required for investments to expand their production capacity so that they could meet the future demand. Since demand is on the rise in industry analysts are estimating long term real prices to be considerably advanced than past prices (Port Jackson Partners Limited, 2006).
5 Pages(1250 words)Essay
The governments now working under the Keynesian approach can specifically use the interest rate to influence certain factors like: increasing (decreasing) exports through the devaluation (appreciation) of the currency, increasing (decreasing) the spending in an economy through inflation and prices.
2 Pages(500 words)Essay
The basic underlying factor behind the formation and implementation of the policy is to ensure that money itself doesn't act as a tool of economic disturbance. This article highlights various key issues faced by Australia in recent times, and helps in understanding the manner in which the central bank's commitment to price stability helps in maintaining a desired a level of inflation by regulating money supply and helping the economy to grow and prosper.
6 Pages(1500 words)Essay
Many more have been questioning if China is destined to be the next superpower in the world or experience spectacular fall in the near future. China has exhibited a dwindling
2 Pages(500 words)Essay
Several other researchers observed a positive relationship between education and economic development. Although some of the LDCs are also emerging as newly industrialized nations, the differences in per capita GDP can
4 Pages(1000 words)Essay
Economic indices based on infrastructure development such as healthcare facilities, transportation, Power system, etc. along with issues of living
2 Pages(500 words)Essay
The main sign of an underdeveloped country is that the resources available are not being exploited to their maximum socio-economic potential. There is a major disparity
4 Pages(1000 words)Essay
issues, various journals and news papers such as The Economist Magazine, The New York Times and The Washington Post facilitates the individuals to acquire information regarding such economic occurrences. In this paper, the debate regarding gasoline taxes in the United States, as
5 Pages(1250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Economic for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us