June 17, 2008

How Floods Will Hurt the Economy

Posted in Aggregate Supply, Articles, CPI, Globalization, Inflation, International Trade at 3:10 pm by davidprudente

For all you veterans of AP Economics, this weeks floods in the mid-west made you think back to those easy days in high school when all you had to worry about was how natural disasters would affect aggregate supply.  Now you may be concerned with how they’ll affect the amount of money in your pocket. Check out the latest on the floods in the mid-west from CNN.

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April 17, 2008

Capital Flow Chart

Posted in AP Exam, International Trade, Net Capital Outflow, Test Info at 7:00 pm by davidprudente

Interest

Rate

Capital

Flows

Demand for

Currency

Value of Currency

Imports

Exports

In

Appreciates

Out

Depreciates

Remember, This chart does not work for Capital Flight or Trade Barrier Scenarios

April 5, 2008

A Couple of Articles

Posted in International Trade, Micro finance, Net Capital Outflow at 9:46 am by davidprudente

Today’s New York Times had a couple of interesting articles. First, this article deals directly with what we are discussing in chapters 29 & 30, Capital flows. I think it provides a nice overview of the topic while relating it to real world investors and the problems they face.

Second, is an article about Micro finance (lending small amounts of money to the poor to end poverty). I’ve been following this for a while now, and sooner or later you knew someone was going to try and make this into a business model to make money. The point of micro lending is to provide enough money for people to start their own business and pay back the principle and interest at reasonable rates that do not make them, in essence, tenant farmers.

March 16, 2008

Mankiw on the Trade Debate

Posted in International Trade at 6:56 pm by davidprudente

Mankiw Article Graphic

The author of our text discusses the current trade debate amongst the leading presidential candidates in an article from today’s New York Times.