Category: Economics for Business: Ch 32
Since the 1970s and 1980s we have moved away from an active exchange rate policy as part of an overall demand management strategy. Indeed, by the mid 2000s, even the role of fiscal policy in demand management had diminished. The article below looks at these changes and considers whether this new approach to demand management is proving effective.
It’s a fashionable club but can the MPC keep us out of the rough? Guardian (11/2/07)
Questions
| 1. |
Explain how the approach to management of the economy has changed over the last three decades. |
| 2. |
Assess the problems that might arise from trying to manage the economy using just one policy instrument (i.e. interest rates).. |
| 3. |
Explain what is meant by an exchange rate policy. Discuss whether the reintroduction of an exchange rate policy would help with the management of the economy. |
January 1st 2007 saw further enlargement of the EU with Romania and Bulgaria joining. This brings the total number of members to 27. So what will be the impact of this expansion on the EU and the new member countries? The links below offer a range of views and information on the enlargement.
Q&A: EU enlargement BBC News Online (1/1/07)
Romania and Bulgaria join the EU BBC News Online (1/1/07)
New EU citizens ‘will benefit the UK’ BBC News Online (1/1/07)
EU hardens tone on enlargement BBC News Online (15/12/06)
Bulgaria: Key facts and figures BBC News Online (21/12/06)
Romania: Key facts and figures BBC News Online (30/12/06)
Today’s European Union is 27 states in search of a story Guardian (4/1/07)
Clubbing together Guardian Blog (1/1/07)
Questions
| 1. |
What are the likely benefits to Bulgaria and Romania of membership of the EU? |
| 2. |
What are the likely costs to existing EU members of Bulgaria and Romania joining the EU? |
| 3. |
Assess the likely impact on the EU budget of Bulgaria and Romania joining the EU. |