Read more on the IMF blog:
https://www.imf.org/en/Publications/fandd/issues/2024/03/Picture-this-looking-beyond-GDP www.abc.net.au/listen/programs/themoney/the-concentration-of-the-beer-industry/103451412?utm_campaign=abc_listen&utm_content=link&utm_medium=content_shared&utm_source=abc_listen
"Australia has one of the most concentrated beer markets in the world, and some of the highest prices too. Two foreign owned companies have about 85 per cent of the market with two retailers dominating the retail space. So where does that leave the other six hundred independent craft brewers in Australia who employ 51 per cent of the brewing industry." From The Guardian:
"Across the world, central banks have been vowing for almost two years to return inflation to the target rate of 2%. In practice, this has meant increasing interest rates – the cost of borrowing – in order to slow down economic activity. Today, the Bank of England decided to leave interest rates in the UK at 5.25%, their highest level since 2008.There are almost 60 countries that officially have a 2% inflation target, including the US, UK, Japan and the eurozone, but where does this actually come from? It is perhaps the most important policy objective being pursued today; you would think there must be a slew of empirical support that justifies this chosen target. After all, the target matters a great deal. If it were, say 3% or 4%, we would probably no longer be so concerned with rising prices, as many countries’ inflation has fallen to those levels." Read more here: www.theguardian.com/commentisfree/2024/feb/01/the-damning-truth-about-the-uks-2-inflation-target-its-completely-made-up?CMP=Share_iOSApp_Other Customers around Western Australia have been asking why they can't seem to find tinned beetroot at their local supermarkets. It turns out, the beetroot shortage extends across Australia... listen here:
www.abc.net.au/listen/programs/perth-drive/canned-beetroot-shortage-explained/103470270?utm_campaign=abc_listen&utm_content=link&utm_medium=content_shared&utm_source=abc_listen
See also more detail here: Chocolate prices this Valentine's Day will be at a record high. What's behind the bittersweet hike?
I just rewatched this documentary... it's a fantastic real world example of the relationship between inflation and unemployment, the use (and negative consequences) of contractionary monetary policy and supply-side policies (including labour market reform and trade liberalisation). "The story of unemployment in New Zealand and In A Land of Plenty is an exploration of just that; it takes as its starting point the consensus from The Depression onwards that Godzone economic policy should focus on achieving full employment, and explores how this was radically shifted by the 1984 Labour government. Director Alister Barry’s perspective is clear, as he trains a humanist lens on ‘Rogernomics’ to argue for the policy’s negative effects on society, as a new poverty-stricken underclass developed."
Latest episode of The Indicator:
"Inflation remains stubbornly high as the Federal Open Markets Committee weighs whether they will raise interest rates again. However, new research suggests that elevated interest rates weren't the primary driver for the decline in inflation. Today, we take a look at the debate surrounding disinflation and what comes next for the Federal Reserve." From El Pais... "For New Zealand, having only five million inhabitants and being thousands of nautical miles away from the global supply chain are by no means insurmountable obstacles. The country has demonstrated that economic development can be achieved with a strategy based on cultivating competitive advantages and forging trade agreements with the rest of the world." Read more here.
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Maree SpraggonTeacher of IB Economics at the American School of Budapest Archives
February 2024
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