Claire Reilly The New Europe: Understanding the European Union -Evaluate the arguments for and against UK entry into the eurozone. The debate over the United Kingdom's involvement in the eurozone has been prominent ever since the British government decided to withhold UK entry until a later date. Although the euro only became a physical reality across Europe on 1 January 2002, it has been years in the making. The development of the euro dates back to the Treaty of Rome in 1957, when a common European market was declared as a European objective, aiming to increase European prosperity and develop an even closer relationship amongst the peoples of Europe. Following agreements such as The Single European Act (1986) and the Treaty on European Union (1992), the European Monetary Union, EMU, has been introduced, laying the foundations of the single currency. The European Central Bank (ECB) was established on 1 June 1998. It is based in Frankfurt am Main, Germany, and aims to maintain price stability and to conduct a single monetary policy across the euro area. This is done through its own activities and through working with the national central banks. Together, the ECB and the euro area national central banks are known as the Eurosystem. On January 1 2001, the exchange rates of the participating countries were irreversibly set. Member states implemented a common monetary
What are the Problems and Possibilities of Economic Monetary Union? European Monetary Union (EMU) was first introduced in 1969 at a summit of the European Economic Community in The Hague, the members arranged to endeavour and reduce the fluctuations in their currencies in order to coordinate national policies. 1 (McCormick). Jacques Delores, in 1989 as the president of the Commission decided to introduce a 3 stage plan designed to increase the movement towards EMU, the plan attempts to fix exchange rates and introduce a single currency, the Euro. This plan was not completed until 2002 when the Euro coins and notes began circulating. In order for members of the European Union to join the Euro they were subject to convergence criteria, which confined the levels of government debt and national debt, inflation rates, exchange rates and interest rates the member country is allowed to have. Converging to these criteria and adopting the Euro has provided many different outcomes, some of which are negative and other which will benefit the economies of the member countries. This essay shall examine the problems and possibilities of European Monetary Union in order to determine whether EMU is beneficial to all that have taken part, and to discover where Economic Monetary Union is headed. In order to be part of the Economic Monetary Union, the member countries adopted the Euro
Introductory econometrics assignment. The reasons for creating these two relative price variables is to demonstrate the impact of relative price changes of no.2 and no.3 canned tuna to the unit sales of brand no.1 canned tuna. As a result of that no.2 an
INTRODUCTORY ECONOMETRICS ASSIGNMENT PART 1 a. By using 'Genr' function from eview, to generate two new relative price variables: RPRICE 2 = APR1/APR2 and RPRICE3 = APR1 / APR3. The reasons for creating these two relative price variables is to demonstrate the impact of relative price changes of no.2 and no.3 canned tuna to the unit sales of brand no.1 canned tuna. As a result of that no.2 and no.3 canned tuna are the substitute goods of no.1 canned tuna. Dependent Variable: LOG(SAL1) Method: Least Squares Date: 10/20/11 Time: 23:05 Sample: 1 52 Included observations: 52 Variable Coefficient Std. Error t-Statistic Prob. C 0.27575 0.518528 9.81716 0.0000 RPRICE2 -1.858067 0.513899 -3.615630 0.0007 R-squared 0.207265 Mean dependent var 8.437187 Adjusted R-squared 0.191410 S.D. dependent var 0.813654 S.E. of regression 0.731651 Akaike info criterion 2.250676 Sum squared resid 26.76564 Schwarz criterion 2.325723 Log likelihood -56.51756 Hannan-Quinn criter. 2.279447 F-statistic 3.07278 Durbin-Watson stat .353070 Prob(F-statistic) 0.000696 b. The table above shows the result of estimate function: . is equalled to -1.858067, which means one unit change in RPRICE2 or the relative price change of no.1 and no.2 canned tuna will result in -1.858067 % change in SAL1 or unit sale of no.1 canned tuna. Also, the 95% confidence
ECN2005: Financial Economics Assignment 2 (replaces ECN2005PS) Anthony Silk (20079491) Factors Which Effect Interest Rates Developments Within The United Kingdom In the UK, Interest Rates are now set by the Bank of England since it was granted operational independence in May 1997, and represent the rate of interest paid on borrowed money or alternatively measure the rate of return on savings. In the following graph we can see how interest rates have fluctuated since 1997; [www.tutor2u.net/economics/topics/monetarypolicy] Such rates are determined by the MPC (Monetary Policy Committee), and have differed over the years due to many different factors, in particular the governments desire to maintain a stable economic system. The following report aims to discuss in detail the various factors that affect such Interest Rate developments. In a very simplistic sense, a key factor that affects changes in real interest rates can be viewed in the following diagram, showing the market for loanable funds. Here, we can see that the total supply of savings is at it highest when interest rates and the quantity of loanable funds are at their highest, and alternatively the demand for credit and loanable funds are at their highest when interest rates are low. By plotting these to curves, we can calculate the equilibrium rate of interest, and would be able to see it move in relation to
The point of this essay is to clarify and point up the different concepts of elasticity of demand passing through examples and diagrams.
The point of this essay is to clarify and point up the different concepts of elasticity of demand passing through examples and diagrams. In every market economy, when the price of a good rises the quantity demanded will fall and vise versa. Conversely, in most cases this is not enough. We would also like to know how much will the quantity demanded rise or fall. In other words, we will want to know how responsive demand is to a rise in price. This responsiveness of quantity demanded to a change in price is what we call price elasticity of demand. Therefore, what we want to compare is the size of the change in quantity demanded with the size in the change in price. Because of the different units that price and quantity are measured in, the only approach we can do this is to use percentage or proportionate changes. From this derives the "formula of the price elasticity of demand (PED)" for a product, which is the percentage (or proportionate) change in quantity demanded divided by the percentage (or proportionate) change in price. Putting this formula in symbols we have: PED= %?QD %?P Where E is the Greek E and is the symbol we use for elasticity and ? is the capital Greek delta and is the symbol we use for a "change in". As it was mentioned before, elasticity of demand is measured in proportionate or percentage terms. This happens for three different reasons. To begin
Transport Economics Assignment 1 a) Elasticity is the ratio of the incremental percentage change in one variable with respect to an incremental percentage change in another variable. Elasticity is usually expressed as a positive number when the sign is already clear from context. The factors that could affect elasticity of demand for public transport operations would be the rise in public transport costs. An essential service will have a relatively inelastic demand, for example London commuters travelling into the central business district to work. This means that if the fares increase on London underground it will not significantly affect the number of peak passenger's trips because there is no close alternative mode to the rail or tube travel apart from the car and the roads and car parks have inadequate facilities to cope with the additional flows this will leave the commuter spending a lot of time in traffic. For leisure trips that are not essential then demand will be relatively elastic, for example a family trip to the countryside may not take place if fares are high, while at lower fares or with a pricing policy the price per person would be reduced resulting in more unnecessary trips. In the case of a long distance business trip of more than 200 miles, then air travel is the only practical option if a return journey has to be made in one day. This leaves this
'Real GNP inevitably remains the most commonly used measure of economic activity. Although far from ideal, it is the best measure we have' Explain and discuss.
'Real GNP inevitably remains the most commonly used measure of economic activity. Although far from ideal, it is the best measure we have' Explain and discuss. Gross National Product is a basic measure of national economic health. Governments and businesses use it to make important decisions. GNP is defined to be the total value of all final goods and services produced in an economy in a year. GNP is a measure of one thing- market economic activity, however it can be interpreted in different ways and used for different purposes. GNP is a measure of production; if a can of beans is bought for £1, it enters the GNP, and it is in indication that the economy has produced an extra £1 of output. GNP is also a measure of the additional value that our efforts have produced. An example is in the production of a loaf of bread. There are many people involved such as the farmer, miller, baker etc. Each adds value to the raw material that they started with. The total for GNP also includes the total amount of value added that has been produced, at all stages of production, in the economy in a year. Finally GNP is a comprehensive measure of national income. £1 spent on a loaf of bread will be entirely spent on providing income for the farmer, miller and baker. Every pound of spending is translated into a pound of wages, rent or profits. There is nothing left over. The
"How effectively does the Cotonou Partnership Agreement address the perceived weaknesses of the EU's development policy?"
Julia Mueller PO(566): Europe and the World Jackie Gower "How effectively does the Cotonou Partnership Agreement address the perceived weaknesses of the EU's development policy?" Development and trade. These have been the two focal points of policies towards the African, Caribbean and Pacific states (ACP) as expressed in the four Lome Treaties and subsequently also in the new Cotonou Agreement of 2000. Although all these policies are fundamentally designed to reduce poverty, increase intra regional trade and enable the European Union to gain preferential access into new developing markets, the methods and conditions of achieving these aims have changed significantly over the last fifteen years. In the 1980s and 1990s, political and economic conditionality became an important imperative when negotiating eligibility for any economic or developmental EU aid programmes. Although the emphasis of the Cotonou policy remains the same, one is able to identify various structural modifications made to the paper itself. It is therefore evident that previous weaknesses of developmental policies have been addressed. However, whether or not these modifications have increased the rate of developmental progress in the region can only be discerned by comparing current economic and political actualities in these states with their historical positions under the Lome Treaties. Furthermore,
"Investment is always likely to be more volatile than other elements of "Investment is always likely
"Investment is always likely to be more volatile than other elements of "Investment is always likely The volatility of the level of investment is one of the most repeatedly observed features of most economies. Although the fluctuations of an economy over time affect all of the variables that are used by economists to show the current state of prosperity (for example national income, production, employment, prices, etc.), the level of investment has been noted for being particularly volatile. In discussing whether this will always be the case, various hypotheses and theorems regarding the behaviour of investment and its relationship to other elements of the economy will have to be considered. The first problem that has to be surmounted is the issue regarding what investment actually is. An economy's resources can either be consumed immediately (consumption), or added to the fixed capital stock in order to use at a later date. This is a basic definition of investment. It is worth noting in passing that both consumption and investment form part of aggregate demand. The level of investment in an economy is usually defined as the expenditure on fixed assets for either replacing old equipment or adding to stock. This is known as "Gross Domestic Fixed Capital Formation" (GDFCF). Unfortunately, the composition of GDFCF is somewhat arbitrary in practice as only investment in the
"IS IT TRUE THAT ANY PARETO EFFICIENT ALLOCATION COULD BE ACHIEVED BY LUMP SUM REDISTRIBUTION OF ENDOWMENT? ELABORATE YOUR ARGUMENT BY USING THE EDGEWORTH BOX."
"IS IT TRUE THAT ANY PARETO EFFICIENT ALLOCATION COULD BE ACHIEVED BY LUMP SUM REDISTRIBUTION OF ENDOWMENT? ELABORATE YOUR ARGUMENT BY USING THE EDGEWORTH BOX." - - - - - - - - - - - CATHERINE ROBINS 03008113 - - - - - - - - - - - DR ERIKA SEKI THURSDAY, 12 - 1pm Pareto optimality is a central concept in economics, especially welfare economics, as a measure of efficiency. The term is named after Vilfredo Pareto, an Italian economist who used the concept in his studies of economic efficiency and income distribution. An allocation of resources is Pareto optimal if there is no way that one individual could be made better off without making any other individual worse off following a reorganisation of production or distribution1. It is a point where there is no other feasible allocation which either consumer prefers. If not Pareto efficient, we are being wasteful, because someone could be made happier without making someone else less happy. Pareto optimality is, therefore, a situation in which economic welfare is maximised. Welfare economics is concerned with the "social desirability of alternative economic states"2. The Fundamental Theorems of Welfare Economics link the concepts of competitive equilibrium and Pareto-optimal allocation. From the First Fundamental Theorem of Welfare Economics we know that, in a market economy where producers and consumers are all