Chinese Miracle
Economics
Presentation at the end of the course (5 minutes of speech + 5 min of discussion), no slides or papers (shit). Task: make and idea of the china growth in the next 10 years, and the rest of the world economy. Read china daily.
Introduction
How do trade opening and globalization affect the economic growth?
Macroeconomists think of Trade-Imbalance as a difference between Savings and Investments, and find answers to their questions by making assumptions.
Why should a country run a trade surplus according to this theory?
Running a TB surplus today means a less consumption today in order to consume more tomorrow. Why should a country run a TB surplus?
Consumption smoothing is a determinant assumption. If you expect to produce different levels of output over time, period 1 less than period 2, so if u expect economy to grow fast, and if your preference consumption smoothing, when you try to maximize welfare (over time not just today) you have to consider that your marginal utility of income is going to decrease. Now, that you are poor, you give more importance to the same sum of money rather than in the future. Thus, expecting to be richer in the future, you consume more today (consuming too little today and too much tomorrow reduces the marginal utility).
The theoretical approach to study imbalances is useless in order to find the answers. There are different explanations to current imbalances.
The questions we will try to answer are related to globalization and economic performance: how can globalization affect the economic performances and the economic growth of a country? We will analyze the Chinese experience of the past years to base our model, since China has been embraced by the effects of globalization and by a stellar growth rate. Main questions will regard: 1) why like china most countries in the world are open to international trade, instead of opting for autarchy (self sufficiently like north Korea)? What is the link between
Presentation at the end of the course (5 minutes of speech + 5 min of discussion), no slides or papers (shit). Task: make and idea of the china growth in the next 10 years, and the rest of the world economy. Read china daily.
Introduction
How do trade opening and globalization affect the economic growth?
Macroeconomists think of Trade-Imbalance as a difference between Savings and Investments, and find answers to their questions by making assumptions.
Why should a country run a trade surplus according to this theory?
Running a TB surplus today means a less consumption today in order to consume more tomorrow. Why should a country run a TB surplus?
Consumption smoothing is a determinant assumption. If you expect to produce different levels of output over time, period 1 less than period 2, so if u expect economy to grow fast, and if your preference consumption smoothing, when you try to maximize welfare (over time not just today) you have to consider that your marginal utility of income is going to decrease. Now, that you are poor, you give more importance to the same sum of money rather than in the future. Thus, expecting to be richer in the future, you consume more today (consuming too little today and too much tomorrow reduces the marginal utility).
The theoretical approach to study imbalances is useless in order to find the answers. There are different explanations to current imbalances.
The questions we will try to answer are related to globalization and economic performance: how can globalization affect the economic performances and the economic growth of a country? We will analyze the Chinese experience of the past years to base our model, since China has been embraced by the effects of globalization and by a stellar growth rate. Main questions will regard: 1) why like china most countries in the world are open to international trade, instead of opting for autarchy (self sufficiently like north Korea)? What is the link between