Macro Economics

Some of Law and Economics’ basic claims have come to be criticized as a result of empirical findings that question their viability. Particularly, the premise that agents consistently act rationally and with their self-interest in mind seems problematic. What the consequences of the criticism mean for Law and Economics’ tenability depends largely on the questions whether (1) some elements are unassailable to the alternative’s objections and (2) the alternative is a systematic whole. It is argued that Law and Economics may be salvaged, if it is minimized and its ambitions are tempered. This means focusing on the stable, a priori, elements inherent to it.

12th Annual Green Economics Institute Conference  10-12th June 2017
3 Days St Hugh's College, University of Oxford, Keeping Social and Environmental Justice Alive in an age of Tyranny..
Reforming Economics.
Green Finance, Green Investment & Green Economics
Reclaiming The Economy from Privatisers, Fossil Fuellers, Xenophobes and Divide and Rulers.
Keeping social and environmental justice alive in this new age of Barbarism- Post Truth and Post Science

This is a republish of the NASSCOM Emerge blog: A Macro economy view point by Shrikrishna Prakash, Saravu prior to September 2008 market collapse & USD 700B bailout. It has played out.

Scenario
Around 80% of foreign exchange/trade transactions is denominated in US dollars(USD) and a majority of these in crude oil import export. Crude being a lever to control USD flow (back to US), its rise impacts balance of payment for net crude oil importers, inflation and increase in cost of capital for business. Hence stocks discovering its prices to the re-adjusted EPS. In December 2007 realized time was not far off for business to chase funds and Private Equity (PE) and not the other way round.

Wall Street Outcomes
The heady day’s perceived profits in instruments, are now ill-liquid assets. To improve liquidity, earlier banks sought petro USD’s, some consolidated within Wall Street and others are filing for bankruptcy. About USD 450 billion of illiquid assets from various banks crept into Freddie Mac & Fannie Mae. Freddie & Fannie had to be bailed out by the US Federal Reserve(Fed). Fed released more than USD 250 billion in emergency funding. Fed has to clean up its balance sheet. New laws are being enacted giving treasury powers to create market for ill-liquid assets, buy and sell assets to tune of USD 700 billion.

OTC USD derivatives as an enabler ?
Most of USD’s are derivative positions and are traded on secretive OTC. As one of the steps to arrest the USD decline, central banks led by Fed in a synchronized manner went long on USD to the point of triggering short covering and shoring up USD. Central banks long positions were/are in the money. Globally, institutional investors who went long USD post the short squeeze upsurge, will feel the long squeeze when the intervention impact reduces and USD starts depreciating. This will make them square off and take on losses. (Read from central banks, as the coordinated entities would have booked profits at USD highs and positioned to buy at lower levels).

USA’s borrowings are denominated in home currency and the above process will assist in shoring up current assets in Fed’s balance sheet helping even out the ill-liquid assets. The reduction in OTC leveraged USD and a better Fed balance sheet enables printing USD in large quantity, controlling inflationary pressures- strategic in the world order. The consumption story will continue.

Possibilities
As the effect of coordinated intervention reduces, the USD is expected to weaken. If countries consume more USD’s, it will help ease the equation, else crude will continue to remain as a lever.

If Fed’s balance sheet gets cleaned up with no great inflationary effect, USD could get stronger. However to reach that state, the implementation of new monetary framework will have the affect of a “Manthan”, a sanskrit word for churning of the ocean to obtain nectar, when consumed attains immortality.

India over the next 18–24 months is expected to reduce crude import to an extent of 40%, a result of increasing production from KG-D6 block. On this materializing, equivalent USD’s will find its way back, assuming India’s orders for importing nuclear reactors & ancillaries will not off-set the reduction. Industrialist Mr. Godrej believes India has the potential to be a net exporter aswell. All these means the RBI may build USD reserves helping maintain USD 80–20 balance. The rupee’s (INR) movement depends on above equation, ECB, FII money flows and the existing flow dynamics.

Closing Comments
USA on its part will manoeuvre back to maintain world order and invent new “alpha seeking opportunities”. “Manthan’s” impact on India, its domestic story in healthcare, materials, industrial’s, infrastructure, financial services and software product space will be keenly watched.

Disclaimer: Views expressed here are personal.

This manuscript is contextual event analysis of  Ethiopian popular riot which lead " State administration change" . In November 2015, the protests began in a small city called Sululta which is found at outskirt of the capital city - Addis Ababa. The protests were against the expansionist `master-plan` of the capital city while it's evolved to diversified political problems that is resulted over three million IDP(Internally displaced people ). This paper imployed event analysis to describe facts ontologically for future use.

A good government spending plan is essential and critical for an economy. A good understanding of it is essential so as to have an efficient and evidence based planification which is fundamental to prevent that government expenditures leads not to deficits or even inflation due to different issues that can be associated to it as described further in the study. To understand the effect of government expenditures on inflation in Rwanda we have used the autoregressive distributed lag (ADRL) model to investigate the relationship between them. In that framework we found the evidence that the two are related and that the increase in government spending in Rwanda lead to a decrease in inflation both in the short and the long-run However, referring to the theoretical and empirical literatures used in this study, it is seen that in different cases the government expenditures have an opposite effect on inflation as to the case of Rwanda. Thus efforts should be made by policy makers to diversify the ways through which they finance the government expenditures, so that they do not rely on the traditional ways to finance the government spending including taxation and external borrowing.

A partir d’une lecture critique de l’œuvre magistrale d’Ibn Khaldûn, Al Muqaddima, nous essayons de réévaluer l’apport véritable de sa pensée à la science économique. Nous portons d’abord notre attention sur  sa méthode structuraliste et systémique, la place qu’il accorde à l’économique dans le champ social, sa vision de l’objet de l’économique proprement dit et en fin de compte nous montrons que ce grand penseur méditerranéen a été un précurseur d’une approche institutionnaliste de l’économie. Dans un second temps nous nous efforçons de mettre en évidence à partir d’une lecture transversale , ce qui aurait pu constituer une théorie implicite de la valeur et des prix, de la monnaie et de la croissance. Dans aucun de ces trois domaines la pensée d’IK n’est véritablement élaborée, achevée et novatrice par rapport à la pensée économique classique, physiocrate, ricardo-marxienne, mercantiliste ou keynésienne. Nous concluons que pour autant le génie proprement dit de l’auteur de Al Muqaddima a été de proposer une analyse pluridisciplinaire de grande ampleur et quasi encyclopédique de l’évolution des sociétés de son époque qui reste d’une grande actualité pour comprendre les crises que traversent aujourd’hui les sociétés et les économies méditerranéennes.
Based on a critical reading of Ibn Khaldûn's masterful work, Al Muqaddima, we try to reassess the true contribution of his thought to economics. We first focus our attention on his structuralist and systemic method, the place he gives to the economic in the social field, his vision of the object of the economic itself and finally we show that this great Mediterranean thinker was a precursor of an institutionalist approach in economics. In a second step, we try to highlight from a transversal reading, what could have constituted an implicit theory of value and prices, of money and growth. In none of these three areas is IK's thinking truly elaborate, complete and innovative compared to classical, physiocratic, ricardo-marxian, mercantilist or Keynesian economic thinking. We conclude that for all that, the genius of the author of Al Muqaddima was to propose a multidisciplinary analysis of the evolution of societies of his time, which remains of great relevance to understand the crises that Mediterranean societies and economies are going through today.

Conventionally, the economic growth of a country is appraised in form of gross domestic product (GDP). In Bihar, the per capita net state domestic product (NSDP) is the lowest among the major states in Inida, and it is only one-third of the national level of per capita GDP. The services, industry, and agricultural sectors contributed 52 per cent, 28 per cent, and 20 per cent to India’s overall GDP respectively, in 2006. However, the contribution of these major sectors to GDP at state level is not uniform. For Bihar at state level, the share of primary sector is continuously decreasing over the stated time period. For the
secondary sector, the share had decreased after bifurcation of Bihar, however, that share increased a little bit in 2009-2010. And similar to the India average, the share for Tertiary sector is continuously increasing at 60% of NDDP. The dictrics like Patna, Begusarai, Munger and Bhagalpur which are higher per capita NDDP, are very less share in primary sector. The most important part here is the very low share of industrial sector. However, the share of industrial sector has started increased during the period 2005-2010. Structure of Bihar’s economy is changing not only at state level, but at district level also. And these changes need to be more casious planning and good initiatives from Govt. And the change is already in its way.

Penelitian ini bertujuan untuk  a) mengukur tingkat penggunaan faktor produksi yang optimal dalam menghasilkan produksi dan keuntungan maksimum, b) mengukur  tingkat skala usaha pada usaha budidaya tambak ikan bandeng.  Data dianalisis menggunakan fungsi produksi dan fungsi keuntungan Cobb Douglas, melalui model ekonometrika dengan metode kuadrat terkecil (ordinary least square).  Penelitian dilaksanakan di Desa Labangka Kabupaten Penajam Paser Utara, pada bulan Agustus 2007 sampai Januari 2008.  Hasil penelitian menunjukkan bahwa :  Faktor-faktor produksi luas lahan, pupuk dan pestisida secara simultan dan parsial berpengaruh nyata terhadap tingkat produksi ikan Bandeng.  Penggunaan input produksi lahan pada kondisi aktual telah melewati batas optimal.  Keuntungan maksimum (profit optimum) dicapai melalui penggunaan kombinasi faktor-faktor produki pada tingkat optimal, yaitu :  Luas lahan 2,92 ha  pupuk 1.680 kg,  pestisida  10 L.  Keuntungan  (profit) pada kondisi aktual Rp. 9.565.139,- per musim tebar dan keuntungan (profit) pada kondisi optimal sebesar Rp. 6.860.400,- per musim tebar.  Keuntungan maksimum per unit produksi  dipengaruhi oleh harga tenaga kerja, nener, pupuk dan pestisida, dengan sifat korelasi kuat dan positif.  Usaha budidaya Tambak Ikan Bandeng berada pada kondisi Increasing return to scale sehingga masih memungkinkan penambahan faktor-faktor produksi ketingkat optimal agar diperoleh jumlah produksi maksimal.

Kata Kunci : Ikan Bandeng, Pertambakan, Faktor-faktor produksi

Chapter 1: The Solow Growth Model (Translate)
1.1 Some Basic Facts about Economic Growth
1.2 Assumptions
1.3 The Dynamics of the Model
1.4 The Impact of a Change in the Saving Rate
1.5 Quantitative Implications
1.6 The Solow Model and the Central Questions of Growth Theory
1.7 Empirical Applications
1.8 The Environment and Economic Growth

The need for savings and its role in an economy necessitated this study on inflation and savings mobilization nexus in Nigeria. The study employed econometric analysis with Ordinary Least Square (OLS) method of data estimation and analysis. The result shows a positive but non-statistically significant effect of inflation on savings mobilization in Nigeria. The unexpected result could be attributable to the fact that when monetary authority adopts high interest rate to curb inflation, people find it profitable to save rather than to invest. Therefore, it has a positive multiplier effect and can provide incentives for more savings to be mobilized. The study therefore, recommended that government in its quest to curb inflation should adopt other measures outside high interest rate so that investments, which has a more positive multiplier effect and capacity to provide incentives for savings to be mobilized is not crowded out in the economy.

1. Background and Introduction It is interesting to try to understand human beings' ways of economic thinking in modern societies. However, it is possible to realize this aim only if the approach of economic theory is based on the individual's or household perspective. Thus, the development of a microeconomic theory based on individual choices and preferences is essential for understanding of household saving behaviour. Although, the individual is the focus of the analysis, it is also necessary to acknowledge the fact that the household is the most important aspect of life for many individuals. Economic theory such as the Absolute Income Hypothesis by Keynes (1936), postulates that households' saving is the difference between households' income and consumption of goods and services. From the classical times, development economics has long recognized the importance of mobilization of household savings as a key component of domestic savings in developed and developing countries in order to achieve economic growth and development. It is purported that household savings, by facilitating the process of capital accumulation, ensures that economic growth and development are realized (Rostow, 1960). For instance, in the Harrod-Domar model, household savings and incremental capital –output ration jointly determine the economic growth of the economy (Afronia, 2011). However, this does not mean that raising household and domestic savings is enough to achieve economic growth and development. There was still need to investigate the determinants of household savings which provides the background motivation for this study with emphasis on Uganda. According to the World Bank (2010), a higher household savings as a component of gross domestic savings was an engine to growth in many countries in the past decades, since they financed higher rates of investment as well. Thus, policies to promote household savings have a central role to play in driving growth via investment in Sub-Saharan Africa. The question which arises is that " what determines household savings " ? This question was answered by this study with evidence from Uganda. Also, the fact that The Sub-Saharan African countries (Uganda inclusive) have for a long time been characterized by a worrisome problem of low savings rate motivated the study with specific focus on Uganda using a nationally representative UNHS (2009/2010) data set. 2. Objective of the Study The objective of the study was to investigate the determinants of household savings in Uganda. Abstract: The study examined the micro level determinants of household saving in Uganda using household level cross sectional data obtained from Uganda National Household Survey (2009/2010) conducted by Uganda Bureau of Statistics. Prior to the Ordinary Least Squares estimation, the study conducted preliminary analysis involving descriptive statistics and a correlation matrix. The results from the OLS estimation reveal that, Income was the main determinant explaining the cross-sectional variation of household savings in Uganda. The results show that household income, education of household head, spouse education, gender, age, and household location (living in urban areas) are factors positively and significantly influencing household saving. On the other hand, household size, marital status age square of household head and regional differences negatively and significantly influence household saving. Considering the income factor, one way to improve the saving level is by implementing policies that improve productivity and income of households. The government should also increase its funding of the education sector not only to primary (UPE) and secondary (USE) but also tertiary institutions but also to the adult education program that has been running for decades.

“The social system that will come into being, keeping parallelism and harmony with time, space and person, will be called progressive socialism, according to Prabhat Rainjan Sarkar, the founder of PROUT. “Our PROUT is that very progressive socialism.” “Marxism believes in an equality between human beings which is only theoretical and not possible in practice because no two individuals are alike, hence they cannot be equal.” “Intelligent people will not cling to old, outdated ideas. Rather they will wholeheartedly embrace that theory which adjusts with time, space and person and will continue to exist forever.” “Human beings are not merely destined to fill their bellies. There is much more to human life than that. Human beings are veritable children of God having a thirst for unlimited happiness.” In this article, which is a collection of excerpts from various discourses about PROUT by P.R. Sarkar, the five fundamental principles of PROUT are clearly explained and elaborated. P.R. Sarkar (1921-1990) was a spiritual guru in the tradition of Shiva and Krishna. He introduced the empowered universal spiritual mantra “Baba Nam Kevalam”, composed a collection of 5018 spiritual songs called Prabháta Saḿgiita, and founded the socio-spiritual movement Ananda Marga (“the Path of Bliss”). – Richard Gauthier, St. George, Utah, USA, January 5, 2022.

Money is an important phenomenon that affects the lives of everyone. However, money is one thing that we desire the most, but know the least about. The academic literature on money theory is relatively rich on works about " monetary policy " rather than the nature and types of money. In this work, we have tried to establish a conceptual framework on the nature, features, functions and types of money in order to present an introductory knowledge on the philosophy of money.

The music world has witnessed something strange in this month, May 2017. On the first week of the month, the billboard world music chart, a medium that tabulates the relative weekly popularity of singles or albums in the world, listed atop a single from unusual country. With no other Ethiopian name has appeared on billboard chart so far, Tewodros Kassahun a.k.a Teddy-Afro- became the first Ethiopian singer to a twin-record, for his work ‘Ethiopia’ achieved to achieve in a billboard list and ranked first. The record breaking song was the title of his 5th music album of the artist released three weeks before, with a message depicting the greatness of Ethiopia-calling all Ethiopians to unite and be loyal to one flag. The album has secured more than 600,000 copies of sale so far with the name ‘Teddy-Afro’ grabbing major global news and entertainment giants like BBC, Associated Press (AP), Washington Post, Yahoo News, among others.
A singer who combined artistic talent with great cause and personality, Tewodros Kassahun is controversial singer as his songs speak louder going beyond private affairs carrying messages often interpreted political. The life of such public figure is always far from beings still, swinging back and forth (like a pendulum) to touch the smooth and rough. Giving a brief look into the life and works of Tewodros Kassahun, this peace tries to take out inferences in line with the current political vibe in Ethiopia.

The labour market, the economically active population, the labour force and unemployment, the movements in unemployment, the production function, the determination of the wage and price of labour, the natural or structural level of unemployment, the wage-setting relation, the price-setting relation, the effects of unemployment benefits and the mark-up on the level can best be understood in the circular flow of goods and services, as described in this presentation for the 8th unit of the UNISA ECS2602 Macroeconomics course. [animated slides]

An attempt has been made in this study to review the industrial development of North West
Frontier Province in particular and Pakistan in general. Obviously, the process of economic
development can be promoted with the encouragement of industrial sector. For analysis secondary
data, obtained from Govt. of NWFP various reports, Directorate of Industries, Commerce & Labour,
NWFP, Peshawar (various issues) and Economic Survey of Pakistan (various issues) have been
utilized. It has been observed that industrialization promote agriculture sector, generates
employment opportunities, brought efficiency in production due to advanced technology, increase
national income, increase per capita income, reduce poverty, improve living standard, reduce
deficit in balance of payments, encourage trade and increase government revenues. During
2007-08, total numbers of industrial unites were 2254, while in these 1552 were operating and
702 were closed in study area. The findings of the study suggest that supply of electricity may be
regularize, fiscal incentives, provision of credit, stoppage of inflow of foreign goods are imperative
measures for the promotion of industrial development in the province. Domestic and foreign
investors should be encouraged in order to promote industrial development and to accelerate
the process of economic development of the country.

Organised and unorganised sector Employment in India in this paper main focus on unorganised women workers in India in this connection Unorganised labour is not formerly cohesive in any recognized association and union with defined ideology, goals and areas of specialization. The unorganised sector of the economy in India is the largest sector in term of employment of the workforce. It consists of agriculture and such related activities as forestry, livestock and fishing as well as non – agriculture. The bill if National Commission for Enterprises in the unorganised sector, 2006 presented by the government of India Women are still far behind in the actual distribution of social status, economic value and political authority. Women contributes almost half (49.7 per cent) of the global total population. The actual participation of women in all spheres of human interactions has been extremely poor. Similarly one of the two main tasks entrusted to our Commission is to propose umbrella legislation for workers in the unorganized sector. We have also been asked to see that the legislation, and the system that will be built around it, will assure at least a minimum protection and welfare to workers in the unorganized sector.

Ekonomi makro atau difokuskan pada pergerakan dan kecenderungan dalam ekonomi sebagai suatu keseluruhan. Ini adalah merupakan sebuah bidang ekonomi yang mempelajari keseluruhan perilaku perekonomian.

Dengan demikian kita dapat mengatakan bahwa ekonomi makro adalah bagian dari teori ekonomi yang mempelajari ekonomi dalam totalitasnya atau secara keseluruhan.

In a short period of time, Covid-19 has become much bigger than just a health problem. Among other things, it has disrupted the global economy and world trade, with the biggest negative impact of the pandemic outbreak in the international services sector. During the Covid-19 crisis, in order to preserve the national economy, states started introducing trade-related measures. These measures had the potential to disrupt trade flows, supply chains, and eventually even the whole system of world trade. The paper examines the compliance of trade restriction measures taken in response to Covid-19 with the WTO rules and what the policy of the WTO was during this crisis. Since the elimination of trade restrictions is one of the WTO basic principles, this introduction of a number of restrictions had to meet certain preconditions prescribed by the WTO agreements, such as transparency, temporality, and not being discriminatory towards different countries, etc. Since the Covid-19 crisis is still ongoing, we concluded that most countries have introduced some form of trade policy measures, most of them in the form of technical barriers to trade and sanitary and phytosanitary measures, and that the introduced measures will not all be removed as long as there is an existing threat and insecurity.

In a short period of time, Covid-19 has become much bigger than just a health problem. Among other things, it has disrupted the global economy and world trade, with the biggest negative impact of the pandemic outbreak in the international services sector. During the Covid-19 crisis, in order to preserve the national economy, states started introducing trade-related measures. These measures had the potential to disrupt trade flows, supply chains, and eventually even the whole system of world trade. The paper examines the compliance of trade restriction measures taken in response to Covid-19 with the WTO rules and what the policy of the WTO was during this crisis. Since the elimination of trade restrictions is one of the WTO basic principles, this introduction of a number of restrictions had to meet certain preconditions prescribed by the WTO agreements, such as transparency, temporality, and not being discriminatory towards different countries, etc. Since the Covid-19 crisis is still ongoing, we concluded that most countries have introduced some form of trade policy measures, most of them in the form of technical barriers to trade and sanitary and phytosanitary measures, and that the introduced measures will not all be removed as long as there is an existing threat and insecurity.

The present study aims to verify whether the balance-of-payments constrained growth approach is suitable for explaining the West African Economic and Monetary Union (WAEMU) countries’ growth performance in the theoretical perspective originally developed by Thirlwall (1979). According to the model of Thirlwall (1979), on the long run, the growth rate of the domestic economy consistent with the équilibrium of the current account cannot exceed the ratio of the rate of growth of exports and the income elasticity of the national imports. For that, the income elasticities of imports are first estimated; the growth rates predicted by the model are then calculated and finally compared to the growth rates achieved by these economies. The results show that the growth rates achieved are below those predicted by the law. In addition, with the exception of Senegal, one cannot establish a significant link between the two series. This result implies that the accumulation of production capacities in terms of capital and labor in these countries is not constrained by the evolution of external demand. It suggests that policy makers should focus on policies that strengthen or build well-structured economies which can meet domestic and foreign demand.