PHYSICS 102 Lecture Notes - Lecture 6: Eurozone, Capital Accumulation, Federal Funds Rate
Document Summary
Macroeconomics chapter 1: a tour of the world. Mutual mistrust in financial institutions no loans. In the third quarter of 2008 output growth turned negative and remained so in 2009. Stock prices fell, and recession started in the us, but also in emerging economies and. Euro area reasons: trade: us consumers and firms cut spending partly foreign goods, financial: us banks needed cash in the us and brought it back from overseas, making problems for those banks. In addition, some european countries had big debts accumulated leading to higher interest rates governments cut spending and increased taxes. Decrease in demand and output: average growth in advanced countries 2009: -3,4% Growth turned positive again in 2010 but not to pre-crisis levels. Usa: output: 17. 4 trillion usd (2014, 23% of the world"s output); high standard of living: 54600. Uds: 3 basic variables for the health of an economy: Output growth: rate of change of output.
