POLD89H3 Lecture Notes - Lecture 4: Reserve Currency, Mercantilism, Hyperinflation
6 Feb 2013
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Week 4: old governance vs. new governance: the state and global. C + i + g + (x - m) = gdp. I: investment, business confidence is viewed by economists as a valuable indicator of the health of the economy. G: government spending, governments spend on physical infrastructure, military, education and healthcare systems, social programs, and wages for their own workforce of civil servants. X: exports, goods produced for sale to another country. Exports increase economic growth because when foreign customer buys your good, his or her money comes into your pocket, adding to national economy. M: imports, goods produced in another country and purchased in your country. Imports decrease economic growth, has a negative relationship with. Contraction phase: when gdp phase, a period of recession or shrinking economic growth. Interest rates represent price of money, what banks, other lenders, charge when they lend you money.
