F2F Class Notes (Ben)
Vocabulary
Monetary policies are going to tighten = the global mass of money in the economy is going to drop, there will be lower money creation and interest rates are going to go up.
stabilize growth = keep a good balance between
1. growth rate,
2. employment rate,
3. inflation rate
4. commercial balance with other countries
twice as much as
My current rent is twice as much as when I signed the lease.
ahead of = in front of, before (in time, or in a competition)
We need to leave if we want to stay ahead of the upcoming rain.
Candidate A is ahead of Candidate B in the recent election polls.
macro- = BIG
micro- = SMALL
A microscrope, microelectronics
Macro-economy = about the economy of a country
Micro-economy = about the economy of a person or a company
Why do developing countries have higher growth rates than developed countries?
Macro-economic theories say that it’s because the country hasn’t fully industrialized yet.
Micro-economic theories say that it’s because people and companies spend more than they save.
A central bank = 中央银行 the bank that supplies other banks in monetary liquidity, the bank that creates money in an economy
A central bank usually has one or two focuses:
1. Sustain growth (eg. the Federal Reserve of America)
2. Fight inflation (eg. European Central Bank)
ample = large, flexible, generous, abundant
Last year, the Central Bank of China was pretty ample with money creation. This year, it has switched its focus and become more restrictive.
A government has two levers to influence its economy:
- Monetary policy = creating money (allowing banks to give credits)
- Budgetary policy = spending money (creating roads, railway, investing on R&D, redistributing money to poor people…)
Roosevelt’s New Deal was both monetary and budgetary.
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