OCR Economics F585 June 2012

Hey,
i think the 20 marker would be on something like:
discuss to the extent to which China's method of export ban compared to EU method of market failure ( providing incentive..etc) is a solution to reasource sacrcity

Discuss the extent to which economic growth affects/improves/supports developemnt ( in the sence of China )

Discuss the extent to which ISEW is the best measure to sustainability

or something to do with inflation targeting?

i doubt inflation trageting or isew will be a 20marker b/c there is not alot to right on it may be a 4 marker or 6marker

ye true, i think the isew could be a 10 marker, and inflation targetting cuz they have evaluative points, unless they just ask for methods or specific points.

inflation targeting - pros = accountability/transparency, expectations and flexbility for china it would be the same, buh flexbility could be a con, as it previously had no target of inflation, and therefore evaluate and say now they have adopted this target which should aid in targetting and maintain flexibility.
cons= trade offs with low economic growth for low inflation also crdiblity needs to be maintained possibly the accuracy of estimating future inflation rate buh difficult and not accurate

thats all i can think off for inflation targeting

can u think of anymore pros and cons of inflation targeting for china?
and plus they have a 4% target which it says here -
not started on isew i only definition


http://www.bbc.co.uk/news/business-17655152

i think for inflation targeting the main thrust should be maintaing economics stability and growth, when inflation is high or too low. In china inflation is high relative to the uk, buh most important they only devleoped a target of inflation now, so try and link that with economic stability.

iv just found this question:
comment upon the extent to which an inflation target, such that in the uk, promotes economics stability. ( 10 marks? )

this could be converted in to china not having an target initially buh not is does... how it promotes stability!


sorry for the long essay ^

edit: chinese people tend to save more, theres a phrase such that : they have a low/high marginal propensity to save/consume? which one would it be?

yh i go for high mps - b/c it directly says savings
Thanks
also though chinas demand is external - so there is like to be low mpc b/c domestic consumption is low


what paper did u get that Q from

and how would u write how inflation targeting promotes economics stability and growth?

mmm.. i didnt get it out of a paper, its in this economics book, literally saw it now.

well economics stability is the balance of economics objectives ( i think ), so you could say :
how inflation target promotes stability: gives a levels of flexibility to work in, it maintains the purchasing power of money ( which could be eroeded by high inflation ), use the poitns we said above; i) expectations- credible target affects expectation ( if levels are expected to be low inflation would be low which maintains stability?) ii) transparency and accountability - the fact the MPC uses intrest rates to target inflation and communicate and tell households what they are doing maintains creditability and trust which should maintain stability)

how inflation targeting does not help: depends on extents of the above points^ ie, how clear is the MPC? how effective are the chnages they made, how usefull if inflation at 2.9% or 1.1% in the UK, the level in the UK may be too low or to high therefore it may resrtict growth resulting in spare capcity


this is what i think... there is no answer in the book =\
theres another question similar:
discuss the effectiveness of fiscal policy rules in promoting economics stability?

i think we should find out what economic stability is .... or i should find out =\

yh its alot of things - the avoidance of volatility in economic growth rates unemployment exchange rate and price level

wat book u using

do u do business studies?

yee thats a good point
its the dominos one - greenish
and nah i dont do business studies.. do you?

yeh i do and yes i use same textbook wat page was that on
how revision going

it was on page:232 and 234
doing business studies must help you alot with economics!
revisions okay, started thoroughly going through MACRO today, did MICRO yesterday. how about yours?

y u doing micro ?
global paper is macro

ohh our school has changed our policy to all exams in june! so iv got micro in june aswell! =(

daaam that sucks big time
do u do transport moduale

naah we do work and lesiure.. its alright.. mainly to do with labour thats it reallly! hows transport?

Comment upon the extent to which Chinas fixed exchnage rate ( agasnt the dollar) is beneficial to the economy ( 10 )
^ seems like a likely question..