Dane Cobb

[Dane Cobb @DaneCobbEcon]

#ECO2307 https://t.co/sxQAc1fyav

[Paul Krugman @paulkrugman]

And in fact our overall deficit with East Asia hasn't changed much -- but it has been redistributed so that it's now mainly with China 3/

[Dane Cobb @DaneCobbEcon]

#ECO2307 https://t.co/DnVgxojtu6

[Paul Krugman @paulkrugman]

That's because of China's role as the Great Assembler; a lot of the deficit is really with Japan. Also, fun fact: > 1/2 of US deficit with Germany offset with surpluses v Belgium and Netherlands -- prob bc our exports to Germany go via Rotterdam and Antwerp 4/

[Dane Cobb @DaneCobbEcon]

The Fed's failed to recognize that the gold standard was on the verge of collapse #M4N

[Dane Cobb @DaneCobbEcon]

People clearly don't understand what the Fed is. They are not printing money but they are but they aren't #M4N #thedailyshow #bringbackjonstewart

[Dane Cobb @DaneCobbEcon]

Congress didn't act fast enough and the Fed took ownership of the situation #M4N

[Dane Cobb @DaneCobbEcon]

The dollar is a piece of paper with #value and #respect #M4N

[Dane Cobb @DaneCobbEcon]

In the article they cite three reasons for this change. One of these factors is that the government has taken action on several ingrained issues with the economy. They have reduced demand for steel and coal by upping the price. #ECO2307 https://t.co/1AR2vB5TDy

[The Economist @TheEconomist]

The Chinese economy grew 6.8% in the first quarter, compared with the same period in 2017 https://t.co/uphAUI1MbJ

[Dane Cobb @DaneCobbEcon]

Today we looked at the case of Fed Chairman Paul Volcker during the early 1980s. He changed the fed policy to disinflation. The Volcker Fed had to be contractionary, and inflation fell, but employment rose a lot. #ECO2307

[Dane Cobb @DaneCobbEcon]

The Phillips curve shows the short-run trade-off between inflation and unemployment. It was confirmed by two American economists and they gave the founder, a British man named William Phillips. #ECO2307

[Dane Cobb @DaneCobbEcon]

When there is a stock market boon increasing household wealth, in the short run agg demand raises output above its natural rate. IN order to stabilize output the Fed would reduce MS and increase r to reduce agg demand #ECO2307

[Dane Cobb @DaneCobbEcon]

#ECO2307

[Dane Cobb @DaneCobbEcon]

The policy response was important to start the recovery from the Great Recession of 2008-2009. The Federal Reserve reduced Fed Funds rate to nearly zero. Tax cuts were instituted and many other steps were taken to increase aggregate demand which lessens the effects of recession.

[Dane Cobb @DaneCobbEcon]

#ECO2307 When analyzing Economic fluctuations using the Ad/As model, 3 of the 4 steps are just like microeconomics. The 4th, is that we use the model to demonstrate how the economy as a whole moves to a new long run equilibrium

[Dane Cobb @DaneCobbEcon]

Today we learned about the Aggregate Demand-Aggregate Supply Model. This helps us look at the effect of money on the short-term #ECO2307

[Dane Cobb @DaneCobbEcon]

#ECO2307 Capital flight is when a sudden large reduction in demand for assets in a certain country occurs. One of the most notable recent cases of capital flight was in Mexico in 1994 after a series of socialist uprisings across the sout of the country

[Dane Cobb @DaneCobbEcon]

#ECO2307 some trade policies that governments can use include tariffs which are taxes on imports, import quotas, which are limits on quantities, and finally voluntary export restrictions that are basically just fancy quotas.

[Dane Cobb @DaneCobbEcon]

#ECO2307 The budget deficit reduces NCO and the supply of dollars

[Dane Cobb @DaneCobbEcon]

@Econbro20 #bigfacts

[Dane Cobb @DaneCobbEcon]

#ECO2307 Purchasing Power Parody is the theory of exchange rates where a unit of currency should buy the same amount of goods/services anywhere in the world. Money is just another good that is susceptible to the laws of supply and demand.

[Dane Cobb @DaneCobbEcon]

Net Exports = Net Capital Outflow. Today we learned about macroeconomics in an open economy and were taught about trade surplus conditions as well as trade deficit conditions. The US has had a trade deficit for many years now. #ECO2307