Summary of the book by Blanchard, Amighini and Giavazzi (2013) Macroeconomics: A European Perspective, 2nd edition, Pearson Education Limited. Written for the macroeconomics course.
Samenvatting Macroeconomics a European perspective
Summary Macroeconomics: A European Perspective (ECB1MACR)
Summary Macroeconomics - A European Perspective
All for this textbook (4)
Written for
Universiteit Utrecht (UU)
Economics and Business Economics
Macro-economie
All documents for this subject (2)
7
reviews
By: jackriddleston • 6 year ago
By: brunocacciavillani • 7 year ago
By: tamaraa98 • 7 year ago
By: aljahabot • 7 year ago
By: bramcysouw98 • 6 year ago
By: jgaveldhuijzen • 7 year ago
By: niektakken • 8 year ago
Seller
Follow
taylorvink
Reviews received
Content preview
Macroeconomics
Chapter 1: A tour of the world
1.1 Europe and the Euro
Crisis 2008 t/m 2010: decline in the real GDP growth in all the economies, but in the
advanced economies the GDP growth rate turned negative.
When macroeconomists study an economy, they first look at three variables:
Output: level of production of the economy as a whole and its rate of growth
Unemployment rate: proportion of workers in the economy who are not
employed and are looking for a job
Inflation rate: rate at which the average price of the goods in the economy is
increasing over time
The economic performance of the European countries hasn’t been as good as it was
in the 1990s: they have had a lower average annual output growth, persistently high
unemployment and initial high inflation in central Europe (but this soon fell again).
Three main European issues in the economic debate:
High unemployment: Europe used to be the land of the unemployment
miracle, but this is gone. The unemployment rate in Europe is constantly
nearly 2 percentage points higher than the unemployment in the USA.
Growth of income per person/capita
Introduction of the common currency: the Euro. Supporters: the Euro is of
enormous symbolic importance; contributes to the creation of a huge
economic zone. Contradictors: symbolism of the Euro brought economic costs
because of the same interest rates across the euro countries; countries cannot
do what is best for themselves anymore.
Important benefit for countries that entered the euro with high public debt: sharp
reduction of interest rates. They have fallen so much because they reflect a countries
credibility to keep inflation low: European central bank has a better reputation.
Benefit: the cost of public debt is the interest rate that the state pays to holders of
public bonds cost of debt is lower.
1.2 The economic outlook in the USA
What are the reasons for the recent slowdown in the USA?
In 2007-2008, families in the USA were hit by four economic shocks which occurred
over a short period of time:
The increase in oil prices. If oil imports become more expensive, this means
that in order to import the same amount of oil, importing countries will have
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller taylorvink. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.82. You're not tied to anything after your purchase.
