eco120 macroeconomics rod duncan lecture 2- some actual economics
Post on 23-Jan-2016
221 views
TRANSCRIPT
![Page 1: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/1.jpg)
ECO120 MacroeconomicsRod Duncan
Lecture 2- Some actual economics
![Page 2: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/2.jpg)
Tutorial sign-ups– The tutorial sheets will be put up outside C2-
232 on Monday in the second week and on INTERact.
![Page 3: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/3.jpg)
Global financial crisis (GFC)
• Late 2008 some financial problems started to appear in US and European banks.
• Several banks and investment firms were bankrupt (not enough assets to cover their liabilities)- and had to be rescued by taxpayers.
• This banking crisis translated into a macroeconomic crisis as banks started to cut back on their lending for new projects.
![Page 4: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/4.jpg)
Impact of the GFC
• The GFC has had a major impact on the economies of developed and developing countries in late 2008 and 2009.
• European countries and the US have been severely impact, but Australia has not been as badly affected.
• Let’s see what the impact was, and then let’s try to understand what caused the crisis in the first place.
![Page 5: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/5.jpg)
Macroeconomic variables
• The data we will look at over the next few slides are variables we typically study in macroeconomics: Gross Domestic Product (GDP), unemployment, employment, exchange rate, shareprice indices, etc.
• The following data (up to March 2009) is from the Reserve Bank of Australia website at www.rba.gov.au.
![Page 6: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/6.jpg)
![Page 7: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/7.jpg)
![Page 8: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/8.jpg)
![Page 9: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/9.jpg)
![Page 10: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/10.jpg)
![Page 11: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/11.jpg)
![Page 12: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/12.jpg)
![Page 13: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/13.jpg)
![Page 14: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/14.jpg)
![Page 15: ECO120 Macroeconomics Rod Duncan Lecture 2- Some actual economics](https://reader035.vdocuments.site/reader035/viewer/2022062305/56649d555503460f94a32a39/html5/thumbnails/15.jpg)
So what happened?
• There is a lot of misinformation about the GFC floating about. The GFC has been blamed on capitalism, greed, stupidity, poor regulatory oversight, etc.
• To a small extent, all of the above are partially correct. But the primary cause of the GFC was mortgage lending by banks to people who traditionally could not get home-loans- the poor.
• Here’s how…