With the decline on the disposable income of every household in the economy, domestic consumption started to deteriorate creating a negative impact on various industries including the housing industry. It was identified based form the data collected by the Bureau of Labor and Statistics that the compound annual rate of the housing industry’s CPI for February 2008 was equal to 2.8 percent, with November 2007 […]

The new classical macroeconomics model was originated in the early 1970’s by the economists working in the University of Chicago and the University of Minnesota. Robert Lucas, Thomas sergeant, Edward Prescott and Neil Wallace are the economists who were behind the formulation of this macroeconomic model. New classical Macroeconomics model opposes John Maynard Keynes- Keynesian macroeconomics and it develops its analysis on a completely neoclassical […]

This article revisits the relation between current systemic risk measures and macroeconomic shock based. I construct the combined framework of Granger causality test and quantile regressions to investigate the causal effect in a specific quantile. Empirically, few of the systemic risk show strong relation with macroeconomic shock in different quantiles. In addition, the extent of the relation is also different among different quantile ranges. Introduction […]

How can GAP measures two things at once? GAP measures the total economy income and total output of goods and services. The reason why GAP measures two things at once is that the output of goods and services and total income, quantitatively, are the same. For instance, every dollar of expenditure by a buyer must become a dollar of income to a seller. 2. What […]

GAP is expected to grow by 5. 1% for both 2013 and 2014, driven by higher consumer and business spending. As the global recovery gathers speed in 2014, Malaysia’s external sector will increase its contribution to growth, offsetting the impact of tighter fiscal policies on the domestic economy. Malaysia’s recent economic performance and near term outlook owes much to the commodities sector, which includes crude […]

The principles of macroeconomics include supply and demand, unemployment, interest rates, inflation rates, exchange rates, gross domestic product and many others. The discussion of this paper will be based on these things. The paper will include examples for the readers to understand these points thoroughly. The law of supply and demand is the first principle that I will go through. There are three general laws […]

Introduction The study of economics is divided by the modern economists into two parts biz. Micro economics and Macro economics. This division is shown in the chart above. Micro economics and Macro economics, both the terms were used in 1933 by Proof. Raglan Frisks from Oslo University of Norway. Macroeconomics (from the Greek prefix macro- meaning “large” and economics) is a branch of economics dealing […]

What I took away from week two’s objectives after discussing and the topics that I feel comfortable with are the relationships between productivity and the cost of production. Productivity is being able to bring forth or produce goods and services. Understanding that there are many different types of cost that business’ incur during the production cycle. It’s important for firms, owners or managers, etc. To […]

In Progress. Abstract: In this paper, we discuss how and why institutions— broadly, the economic and political organization of societies— affect economic incentives and outcomes. After briefly surveying a number of theories of institutional differences across countries, we focus on two questions: why societies may choose institutions that are not good for economic development, and why institutions, even bad Institutions, persist. In light of the […]