The Renminbi (RMB) is the name of the Chinese Currency. Renminbi roughly translates as ‘people’s currency’ The Yuan refers to its unit of account. So for example, we might use the following sentences The Renminbi is the 6th largest traded currency in 2006. The Chinese government issues a 100 Yuan note. In practice, they can …
Sometimes governments may wish to reduce the value of their currency. A depreciation in the value of a currency would make exports cheaper, imports more expensive and can provide a boost to domestic demand. If the economy is stuck in recession or unemployment rising, reducing the value of a currency can help increase economic growth …
Oil prices tend to be volatile for a few reasons. Demand varies with the economic cycle. Changes in the price of oil can be magnified by speculators who buy forward contracts Supply is quite inelastic in the short-term. Therefore, a small change in demand can have a significant impact on the price. Firms and consumers …
In a recession, you would usually expect a fall in the inflation rate due to lower demand and lower economic activity. The inflation rate fell in major recessions like 1929-32, 1981, 1991 and 2020.. However, it is not guaranteed inflation will fall in recession. For example, we could have a period of stagflation – rising …
Readers Question: I only have $10,000 in my bank. With this virus situation, what is going to happen to the value of my money? Serious question. Do I try to exchange my money to another foreign country currency? Help, please. I am 68 years old, no pension and no job. George Firstly, I would not …
A look at various economic policies to deal with an economic crisis, such as a fall in GDP. Economic crisis could involve Lack of economic growth/recession High Unemployment Long-term structural deficits Lack of confidence in finance and consumer sector. Rapid devaluation Solutions to economic crisis Fiscal policy – When the government influences demand through changing …
SWOT analysis is looking at a businesses – strengths, weaknesses, opportunities, threats. SWOT analysis is useful for a business looking at strategic planning for the future. How can the firm survive, grow and remain relevant. Examples of strengths Current profitable orders. Existing brand loyalty and brand recognition Loyal customer base Mailing list and details of …
A list of different types of economic policies. Monetary policy Fiscal policy Supply-side policies Microeconomic policies – tax, subsidies, price controls, housing market, regulation of monopolies Labour market policies Tariff/trade policies Demand-side policies Policies for influencing aggregate demand and expenditure in the economy. This mainly involves fiscal and monetary policy. Fiscal policy Government changes to …