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Economics - Financial Markets 15 Online
OpenStudy (anonymous):

Can anyone help me with give opinions on Economic Articles PLEASE!!! :/

OpenStudy (anonymous):

An option is to break down each article in paragraphs, and grab points, take notes and comment on each one, giving your own opinion. STILL CRUNCHING "AFTER the initial jolt of Italy’s inconclusive election last month financial markets have largely regained their poise. For now investors are putting their faith and their money in the pledge of the European Central Bank (ECB) to help countries under siege from the markets with unlimited purchases of bonds. But the risk of political shocks, not just in Italy but in other Mediterranean countries, will only increase as long as economies are stuck in recession." Points to take note of ~ RECESSION = is a long-lasting period of reduced inflation, where unemployment is high and incoming money along with output is low. ~ Italy had a recent inconclusive election. ~ After this election, financial markets largely REGAINED THEIR POISE ~ Investors are putting their faith and money in the pledge of the ECB * This is to help countries under siege from the markets with UNLIMITED PURCHASES OF BONDS* ~ A bond is a debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. ~ Political shocks will increase as long as economies are stuck in recession Opinions (I think): ~ The well-known recession is having a lot of impact on economies worldwide ~ (read up more on the Italian election to see why it was inconclusive and how people reacted to the inconclusive election to get an opinion of why, after this election, markets regained their poise) ~ Businesses (bond investors) are loaning money to governments to invest in the economy so that the recession falls or ends. They believe that if they pledge enough money to the ECB, it can improve the value and amount of money in the banks in the country, allowing for loans and money transfers so that people can invest in business, produce output and increase earnings in the country... Once the banks receive daily income of money after this transaction, they can give back the money to the bond investors and the economic cycle can continue to go round again... (Saying this, state your opinion on whether you think that this method will work or not and explain why or why not) ~ With this statement: "Political shocks will increase as long as economies are stuck in recession", state whether you agree with this statement and give back-up support on why or why not you think so. ~ This is just the first paragraph of the first article... You may want to state only one of these opinions per paragraph, as it is fully loaded with information... However, if this is worth a lot of marks, and has to be long in the first place, I suggest write all of it (although it will be very lengthy)... and hope for the best... If it has to be a short essay with a maximum word limit, follow the guide, but there are many opinions already... I am looking more into it, and will try and help you further.

OpenStudy (anonymous):

Second Paragraph: Fourth-quarter output across the euro zone fell by 0.6% compared with the third quarter. Although Germany suffered a similar decline, the economic reverse was much worse on the periphery of the euro area. GDP fell in Italy by 0.9% and in Portugal by 1.8%. Over the past year jobless rates in both countries have lurched up much more than in the euro area as a whole. Points to take note of: ~ 4rth quater output across the euro zone fell by 0.6% compared with the 3rd. (output declines ~ meaning recession is still there or is increasing) ~ Germany suffered similar decline, but was much worse on the periphery of euro area (such as Ireland, Greece, Portugal, Italy, etc.). ~ GDP fell in Italy by 0.9 % ~ GDP fell in Portugal by 1.8% ~ Over the past year, unemployment has increased much more in the euro area as a whole. GDP - Gross domestic product (Total output in a country in 1 year) Opinions: ~ Since output fell, it means jobs decreased and the GDP fell too (the worst of it in Peripheral Euro areas, such as Italy and Portugal). With GDP falling and the jobs declining, growth would decline or come to a halt in those countries, making the economy suffer (including and increase in poverty, and the general level of human welfare)... I think that if this continues to occur, and GDP falls continuously, the economy will protest and panic, causing riots, death, poverty, corruption, theft and chaos for all of Europe, perhaps resulting in a WW3... That's my opinion... state yours

OpenStudy (anonymous):

A second way to go about it, is to get the summary of the whole article (which is usually the last paragraphy), find back-up in the article to prove these points in the summary, and state whether you agree with what they're saying or not

OpenStudy (anonymous):

Eg. If the drought continues southern Europe will be hard-pressed to grow. The ECB’s council was due to meet on March 7th (after The Economist had gone to press). Easing the flow of credit—encouraging securitisation of loans to small firms, say, or providing cheap funding for banks that boost lending—ought to be a priority. Do you agree that by easing the flow of credit - encouraging securitisation of loands to small firms, say, or providing cheap funding for banks that boost lending - ought to be a priority...? In order for the drought to decrease or stop and growth to resume? Get evidence from the article and write the facts of why you think this is the case or not, and write advantages and disadvantages of this method (more advantages if you're in support, and more disadvantages if you're not in support of this method to help the growth of the economy).

OpenStudy (anonymous):

It's a lot of work, but I'm sure you'll manage! :D If you have questions, just ask!

OpenStudy (anonymous):

Thank you!!!!!!!!!!!!!!!!!:)

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