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May 08, 2024, 02:42:30 am
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Author Topic: What are you guys doing at the moment?  (Read 7886 times)  Share 

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chrisjb

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Re: What are you guys doing at the moment?
« Reply #15 on: October 29, 2011, 12:55:58 pm »
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Quote from: Saur11 on October 29, 2011, 11:00:34 am
Fair enough. What are your thoughts on crowding in/out, possibility on this year's exam?
What is crowding in?

Quote from: BigFunt on October 29, 2011, 12:38:50 pm
Can someone tell me what broad money and M is ???
Narrow Money= Notes + Coins
Broad Money= Narrow Money + Any other monies easily and quickly accessible (such as bank deposits).

So broad money is the total supply of money/ degree of liquidity.
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BigFunt

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Re: What are you guys doing at the moment?
« Reply #16 on: October 29, 2011, 12:58:24 pm »
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Broad money is not on the study design i just checked.
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Water

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Re: What are you guys doing at the moment?
« Reply #17 on: October 29, 2011, 01:02:09 pm »
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Quote from: BigFunt on October 29, 2011, 12:58:24 pm
Broad money is not on the study design i just checked.

"FUCK YEAH" I hate rote learning that.



Crowding in: A complicated theory somewhat, well to me. But its basically when government are not competing with the limited supply of funds with the private sector. This should lead to private sector to have access to funds, and expand their activity as the price of cash decrease.




« Last Edit: October 29, 2011, 01:10:34 pm by Water »
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About Philosophy

When I see a youth thus engaged,—the study appears to me to be in character, and becoming a man of liberal education, and him who neglects philosophy I regard as an inferior man, who will never aspire to anything great or noble. But if I see him continuing the study in later life, and not leaving off, I should like to beat him - Callicle

Hutchoo

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Re: What are you guys doing at the moment?
« Reply #18 on: October 29, 2011, 01:34:59 pm »
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Oooooh shitsticks. I forgot about crowding out/in ;/ I doubt it will be on the exam though ;/
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kamb0z

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Re: What are you guys doing at the moment?
« Reply #19 on: October 29, 2011, 01:43:32 pm »
+2
Policy mix...
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Saur11

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Re: What are you guys doing at the moment?
« Reply #20 on: October 29, 2011, 02:46:10 pm »
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I was wondering, if the RBA decreases interest rates before our exam, what do we do? Can we still call RBA's monetary policy mildly contractionary/restrictive?
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Hutchoo

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Re: What are you guys doing at the moment?
« Reply #21 on: October 29, 2011, 02:56:16 pm »
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Quote from: Saur11 on October 29, 2011, 02:46:10 pm
I was wondering, if the RBA decreases interest rates before our exam, what do we do? Can we still call RBA's monetary policy mildly contractionary/restrictive?
I don't think it would matter. Just quote from the previous cash rate (if it does change) and you'll be fine.
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Hutchoo

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Re: What are you guys doing at the moment?
« Reply #22 on: October 29, 2011, 03:00:15 pm »
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Also for crowing out and in:

Crowding out: When the government runs several budget deficits to stimulate the economy, it is forced to borrow from either overseas or within Australia. With limited savings or credit available , an upward pressure could unintentionally be exerted on domestic interest rates, meaning that there would be a 'crowding out' effect for private sector borrowers, thus making it a contradicting stance as the original stance was aiming to be more expansionary.

Crowding in:  With contrationary surplus budgets, there may tend to cause interest rates to fall or rise less quickly than otherwise (i.e  2005-08). This would cause a crowding in by borrowers and increase spending, undermining the RBA's contractionary monetary stance.
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chrisjb

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Re: What are you guys doing at the moment?
« Reply #23 on: October 29, 2011, 03:18:21 pm »
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Quote from: Hutchoo on October 29, 2011, 02:56:16 pm
Quote from: Saur11 on October 29, 2011, 02:46:10 pm
I was wondering, if the RBA decreases interest rates before our exam, what do we do? Can we still call RBA's monetary policy mildly contractionary/restrictive?
I don't think it would matter. Just quote from the previous cash rate (if it does change) and you'll be fine.
but you could impress assessors if you talk about the reasons for the recent change (if it does change)... It'll be a good idea to read over their statement on Tuesday no matter what they do I reckon. It's only ever a page long or so.
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Hutchoo

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Re: What are you guys doing at the moment?
« Reply #24 on: October 29, 2011, 03:31:37 pm »
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Do you guys think it will change?
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chrisjb

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Re: What are you guys doing at the moment?
« Reply #25 on: October 29, 2011, 03:44:44 pm »
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Quote from: Hutchoo on October 29, 2011, 03:31:37 pm
Do you guys think it will change?
I don't reckon it will. I reckon the major factor depressing AD in Australia was the solvency crisis in the EU, but that's taken a more optimistic tone over the past week, and we've seen the immediate effect in share prices jumping over the last two days. Even though inflation has subsided slightly, it doesn't matter so much what has happened over the last six months, but rather what is going to happen over the next six months, and if you ask me the global outlook is still uncertain, but with fewer pesimistic overtones than previously. Employment is still fairly low at 5.1.

BUT everyone else seems to be suggesting that a rate cut is on the cards, so I feel like the economists at the Age and the big banks have a slightly better insight into what will happen than I do with my limited year 12 knowledge of economics :P
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Water

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Re: What are you guys doing at the moment?
« Reply #26 on: October 29, 2011, 03:52:33 pm »
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Quote from: Hutchoo on October 29, 2011, 03:31:37 pm
Do you guys think it will change?


I"m doubting the cash rate rate will change. Be wary that the CPI headline rate is 3.6% and underlying rate is 2.6%, and the RBA's goal is to ensure that the inflation rate is well between the 2-3% CPI range. The RBA's has also forecast the annual GDP growth will be between 4-4.5% in the year 2012, and CPI will be looming around 3 - 3.25%. Combined with unemployment dropping from 5.3% to 5.2% just recently, if anything, we'll be having an increase in cash rate in the future
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About Philosophy

When I see a youth thus engaged,—the study appears to me to be in character, and becoming a man of liberal education, and him who neglects philosophy I regard as an inferior man, who will never aspire to anything great or noble. But if I see him continuing the study in later life, and not leaving off, I should like to beat him - Callicle

Saur11

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Re: What are you guys doing at the moment?
« Reply #27 on: October 29, 2011, 04:08:54 pm »
+3
Sportsbet has interest rates to decrease at 1.04, stay the same at 2.50 and increase at 10.00.  Personally, i think they will stay the same, would be good for the exam and i would make 25 dollars
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Hutchoo

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Re: What are you guys doing at the moment?
« Reply #28 on: October 29, 2011, 04:14:23 pm »
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Quote from: Saur11 on October 29, 2011, 04:08:54 pm
Sportsbet has interest rates to decrease at 1.04, stay the same at 2.50 and increase at 10.00.  Personally, i think they will stay the same, would be good for the exam and i would make 25 dollars
HAHAHAHHAHA. I lol'd man :P
I think they'll stay the same as well =)
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BigFunt

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Re: What are you guys doing at the moment?
« Reply #29 on: October 29, 2011, 04:55:07 pm »
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I fucking hope that the cash rate stays the same.
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