OCR A2 Economics - F585 Global Economy - Case Study Thread

Why? They both create stability? :s-smilie:

Reply 181

Oschene23

14

Why have you written about the the "fiscal principles" , when it gave the examples of the "Stability & Growth Pact" and Argentina's "Zero-deficit" rule, clearly it was not refering to "legitimate, credibile, flexible".

Reply 182

Original post by mark881995

Why? They both create stability? :s-smilie:

Your are actually right. They do create stability aswell as credability. But you would have to had said how for example reduced budget defict which creates credability greater FDI economic growth therfore economic stability as greater employment and investment etc..

Reply 183

I did mention all of those, I put that it will lower bond yields for one creating stability. Hoping that I will at least pick up 3 there then

Reply 184

iggyDash

2

Original post by king101

Your are actually right. They do create stability aswell as credability. But you would have to had said how for example reduced budget defict which creates credability greater FDI economic growth therfore economic stability as greater employment and investment etc..

I said that i there were low defecit the governement not would have to change the inflation rate in order to correct it ---- leading to price stability ext

Reply 185

yeh lower bond yields would have gotten you marks...i wrote about prevents crowding out when government borrowing reduces funds available for private sector investment or raises the cost of investment by raising market interest rates hence prevents this therfore leading to economic stability..and interest rate is lower etc..

Reply 186

Simply read the question wrong I think. Ah well, think I did well on the rest of them :smile:

Reply 187

Original post by mark881995

Simply read the question wrong I think. Ah well, think I did well on the rest of them :smile:

You didn't. You got it right trust me. Markscheme is nnot specific i.e. theres levels

Reply 188

No all you guys are wrong about the fiscal rule. Firstly the definition of Economic Stability is, an environment that enchances long term macroeconomic performance that reduces uncertainty and increases potential economic growth. So one benefit of fiscal rules for economic stability will be that it will encourage a prudent approach by the government body to avoid a budget deficit, and by not having a budget deficit this will remove uncertainty and promote economic growth by avoiding volatile demand etc.

Another reason why fiscal rules provide/encourages economic stability is because it means that governments will make decisions for the long term economic performance of the economy instead of making decisions for the short term to please the electroate.

This is what the mark scheme will expect.

Sorry guys.

Fred boi

Reply 189

About the queries of the last questions, if is a slight comparison question. So they will expect you to compare to atleast one other policy that promotes development (washing consensus and the role of markets, government intervention import substitution, and filing the savings gap though internation aid). Also you would have to ananylse how FDI can and cannot promote development. They will be hot on evaulutation for instance 'fdi is not the most effect because' and they will be looking out for confusion of economic growth and development. If you mentions economic growth, i hope you mentioned that for development economic growth is essential, but economic growth does not mean there is development. So fdi can cause economic growth but not development.

Over and out

Fred boi

Reply 190

if you guys have any other questions about the questions feel free to ask.

Reply 191

What was the actual last question?

This was posted from The Student Room's iPhone/iPad App

Reply 192

Actual last question said; Discuss the whethere FDI in countries such as Africa and another place and the extent of FDI on Development .

Reply 193

rowenaks

Original post by rber

yh

I found the exam pretty challenging due to the way some of the questions were worded. The stability of fiscal rules slightly threw me. I spoke about 1 of Argentina and the zero-deficit. I linked it to the case study. Because before they had the zero deficit law they printed money and devalued their exchange rates to pay for their extra spending,causing high levels of inflation. Therefore by the zero deficit rule it would restrict them to do this and created stability within the economy.

The question was something to do with how important are they. For the second one I spoke about Greece and them signing the growth and stability pack. This was to keep the economy on track and to keep Eurozone countries in line with each other. Therefore as Greece broke the agreement they had huge consequences as they became further into recession with unemployment etc (everything became unstable) so the failure to meet the pack showed how key stability is to an economy.

Could be completely wrong but I gave it a fair shot! As its analysis your suppose to link it to the case study!

Reply 194

Original post by rowenaks

I found the exam pretty challenging due to the way some of the questions were worded. The stability of fiscal rules slightly threw me. I spoke about 1 of Argentina and the zero-deficit. I linked it to the case study. Because before they had the zero deficit law they printed money and devalued their exchange rates to pay for their extra spending,causing high levels of inflation. Therefore by the zero deficit rule it would restrict them to do this and created stability within the economy.

The question was something to do with how important are they. For the second one I spoke about Greece and them signing the growth and stability pack. This was to keep the economy on track and to keep Eurozone countries in line with each other. Therefore as Greece broke the agreement they had huge consequences as they became further into recession with unemployment etc (everything became unstable) so the failure to meet the pack showed how key stability is to an economy.

Could be completely wrong but I gave it a fair shot! As its analysis your suppose to link it to the case study!

Not realy...analysis doesnt mean link it back to case study..

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Reply 195

Yes, that is the wrong thing to do. You have fallen in to the trap of talking about the case study which is what this exam does to many people. It is like other economics exams, you just talk about the basic theory behind the question and make a reference to the case study if this shows it, but you have based your whole question about it and unfortunately won't be credited for it as that theory is not in the specification or textbook for Global Economy. This exam is about learning the theory behind Global Economy and the case studies just give you context. They don't want you to learn the case study.

Reply 196

Original post by mastereconomist

Yes, that is the wrong thing to do. You have fallen in to the trap of talking about the case study which is what this exam does to many people. It is like other economics exams, you just talk about the basic theory behind the question and make a reference to the case study if this shows it, but you have based your whole question about it and unfortunately won't be credited for it as that theory is not in the specification or textbook for Global Economy. This exam is about learning the theory behind Global Economy and the case studies just give you context. They don't want you to learn the case study.

It is also right actually. He has used the case study in addition to theory i.e. applicaction. He wont be negativley marked, infact it will gain him more marks. But mentioning about the case study is not neccasary.

Reply 197

He would receive 3 out of 6, as the first one is right but as it is an analyse question the second point is not correct as it is more of a evaluation over all comment on what could happen and is not related to the spec what so ever. If you look at the policies for economic stability the second one does not exsist.

Reply 198

Original post by mastereconomist

He would receive 3 out of 6, as the first one is right but as it is an analyse question the second point is not correct as it is more of a evaluation over all comment on what could happen and is not related to the spec what so ever. If you look at the policies for economic stability the second one does not exsist.

Yeh the second one is wrong. It should have been like actually saying prevent budget deficit hence reduce national debt thefore attract fdi greater emplyment greater investment hence economic stability

An another reason is like in time of reccesion avoid crowing out etc..

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Reply 199