[Clare1994]

(Original post by CMPUNK)
Hey guys, good luck for the exam, remember to keep cool because you have learnt everything you need to know. If all fails in the exam remember not to be afraid to bring out knowledge from all your previous units

Adiós and see you on the other side.

If we can't remember stuff we've just been going over how are we meant to remember stuff from other units haha
It's not that i don't know stuff the stuff just doesn't stick in my head haha
Good luck to you too

[farrukhkhan01]

(Original post by chunkyjooj)
Good luck all!

Let me know how it goes! I cannot wait to see this paper.

just because u dont have to sit it

[pargey:)]

So.. what did everyone think?

[uxa595]

Good paper think but the 2 4 mark ones were odd.

I put
Inflationary expectations lowered
Inflation is lower and more stable

Then other q
China hasent re valued the yuan enough
Us dollar hasent depreciated enough=


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[7Pilgrim]

(Original post by pargey:))
So.. what did everyone think?

THAT. WAS. HARD.
I had no reasons apart from standard inflation for the PPP and Nominal exchange rate differences. also, essay was OK but I have prepared more for one on sustainable development. Also, there was not really an appropriate diagram for the essay, I felt.
You?

[pargey:)]

I thought they were strange too.

For the first one I put that inflationary expectations will be lowered and the effects of inflation will be lower - e.g. administration costs/menu costs. Although, i'm not sure that the second point is very good.

I didn't do very well for the second one!

What did you think of the 20 marker?

[pargey:)]

(Original post by 7Pilgrim)
THAT. WAS. HARD.
I had no reasons apart from standard inflation for the PPP and Nominal exchange rate differences. also, essay was OK but I have prepared more for one on sustainable development. Also, there was not really an appropriate diagram for the essay, I felt.
You?

I AGREE!

Oh thank god somebody else put that too!
I was lucky with the essay as the preparation I had done for it was on quotas, so a ban was very similar.
I used a supply and demand diagram, and then showed the change in supply to become inelastic. Not sure if it's right though, any ideas anyone!?

[uxa595]

1a
Inflationary expectations
Stable and low inflation

2b
Cost push inflation diagram
Analysis plus a bit about wage price spirals

2a
China didnt revalue the yuan up enough
Us dollar hasent depriciated on forex markets as much as it should have

2b
Hot money + ER diagram
Loss of monetary control
Less confidence in any inflation target. Expectations up.




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[uxa595]

What was 1c?


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[pargey:)]

Can anyone remember what the wording for the last question was? I've already forgotten!

[uxa595]

Inflation good inchina due to
Fix unbalance
Better for world

Bad due to
Exports being chinas big thing Gdp hurt more
World suffers cost rises on imports
Depends if inflation is higher the other countries

2c
Isew define
Isew best due to...

However
Hard to calc true value
True value differs person to person
Hdi/gdp mlre quantifiable + more hdi figures avail so better comparisions


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[uxa595]

Last q talk about sustainability and chinas improvment in comparative adv

Then the usual...


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[queketth]

I think what the where after with the inflation targeting question was
1. reduces inflationary expectation preventing a wage pice spiral occurring,
2. Helps business predict future interest rate changes as when inflation is high interest rates rise etc (which gives businesses confidence and helps to encourage investment)

Again I found the Real PPP rate increasing faster relative to nominal values question hard I didn't know what to but eventually put:
1. The rate of inflation was increasing in china and therefore this is reflected in the real values (effectively with a little more detail),
2. *Jibberish*

[Clare1994]

It was looking for the causes of inflation in that one :/ I put wage rises for first thought of putting rise in food prices but didn't in the end so ended up putting worker storages which I realised is just another reason for wage inflation so just gave up in the end...
God dam why didn't I just do rise in the price of food!

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[ganster99]

what did everyone think to the last question? i thought the wording was very tricky. 'the case FOR'... did they want both sides or one?

[pargey:)]

I did both sides... :/

[cakeonmymind]

Could we have put higher inflation in the usa?

[Bwob]

for 1)a) i'm quite sure you had to put:
- Directly affects inflationary expectations
and
- Increases transparency and accountability, in terms of monetary policy and so helps to achieve economic stability.

(Those two points are in the textbook, under benefits of inflation targeting.)

[Clare1994]

They always want burg sides there's plenty to write for it just hard to write a conclusion for cause it's not specific in the question so I didn't know what to write the judgement on

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[hanlem]

For the inflation in the UK one I did a demand and supply diagram to show increased global demand instead of an aggregate supply shift - mind went completely blank! doh