[Common Interest] Macroeconomics and Political Economy

晴儿

any example for our government security bonds in malaysia?
which examples the government mostly wil ...
mcQueen_88 发表于 2011-1-3 09:55 PM

   
I can tell you that China buys a lot of US treasury bill to balance the trade deficit between them
(it's because China exports a lot of items to US, and US imports a lot of Chinese goods, so the deficit can be significant)

However, for Malaysia security bonds, I don't quite understand about its market
i studied Economics in Singapore, so often involve in China/US/EU/Japan?SG economies, seldom involve in the Malaysia economy, except 97/98 Asia Financial Crisis

mcQueen_88

回复 21# 晴儿

Yea..i don't quite understand how it's going..
the circle is pretty complicated..
by the way,are you still studying?local or oversea?
do u study malaysian economy as your minor subject?

晴儿

回复  晴儿

Yea..i don't quite understand how it's going..
the circle is pretty complicated..
b ...
mcQueen_88 发表于 2011-1-3 11:46 PM

   
yes I am still an undergraduate
I don't study Malaysia economy as minor
however, I study East Asia economies
because East Asia economies is getting important in the world
after Global Financial Crisis 08/09, the economy growth in most of the East Asia economies bounced back to positive growth rate very quickly
China growth rate in 2008 was 8%, which some of the western developed countries suffer negative growth rate

Chinese economy is getting influential in the world
however, it faces lots of social prblem
When US was like China today (the industry/economy stage), its economies was 4 times bigger than China
Thus although China's economical growth rate is indeed impressive and exponential, it needs to work very hard to sustain its growth until it transform into a developed powerful economy

mcQueen_88

回复 23# 晴儿

Sounds like China isa big threat to USA..
But here in M'sia,our standard of living is increasing too,do you think it helps in our conomic growth?
Are they related?

晴儿

回复  晴儿

Sounds like China isa big threat to USA..
But here in M'sia,our standard of living i ...
mcQueen_88 发表于 2011-1-4 12:06 AM

Yes, China sounds like a big theat to US
that's why US keeps pressuring China to appreciate its currency, it claims that it will improve trade deficits between them
but actually this is wrong,
during 1980s, Japan was like current China, it had superlative growth rate, trade deficit between Japan and US is huge
and US asked Japan to appreciate its currency, and Japan did so, appreciate 50% at once
so japanese goods became expensive, Japan export decrease, and it economy was in a very big downturn situation
That's why Japan now only got very low GDP growth rate, around 1-2% per year.
It economic growth is like a "L" shape , the growth deteriorated very quickly, and only got very low growth rate, very fluctuating.
another issue in Japan is aging population, old people are more than young people, the social burden of government is very high (pension etc)
yet the young people are the pillars of economic growth in a nation. Thus labor productivity is very low.
Some more, Japan is a very closed economy and culture, it is not so "open-mineded" to foreigners and immigrants. (Japan visa is hard to get )
Singapore is suffering aging population too, but Singapore "imports' lots of foreign talents.

Yes, as economic growth is getting higher (GDP higher), the country is getting richer and richer
purchasing power is increasing, and thus people is rich and they are able to purchase expensive goods/better items from oversea
import will increase, and people can enjoy the high-tech products etc, standard of living is increased.

However, a problem in Malaysia that I have noticed is, the value of our currency is getting weaker, compare to Singapore, S$3 can have a proper nice meal, but in Malaysia RM3 is hard to fill your tummy. After the currency conversion is almost the same, but we cannot convert to compare the value of a currency.

In western countries, the meal is very expensive too, but because the people there are very rich, they are able to afford, they have high standard of living
but in Malaysia, our country isn't very rich,

Oops, a little bit too wordy =X

mcQueen_88

Hmm got it..what a flow huh..
Thanks LOL

Kioz

This thread seems quite interesting...
After read what you wrote, I never thought that US so bad and caused Japan had a downturn in its economy.
But why Japan trusts US in the first place? Don't they have their own economic experts to analyze the outcomes?
And since Japan's growth rate is only 1 or 2% per year and it's a well-developed country, if there is financial crisis happen again, it will absorb a lot of impacts from the crisis?

晴儿

This thread seems quite interesting...
After read what you wrote, I never thought that US so bad an ...
Kioz 发表于 2011-1-7 04:20 PM

My friend said that it's because US control the military of Japan, thus Japan had to obey US's order
but this article stated that Japan had done wrong decision towards the appreciation and depreciation of Japanese Yen.(quite complicated, lazy to explain, you can refer to the link below, easier to understand)
http://www.globalview.cn/ReadNews.asp?NewsID=21509
   
Japanese save a lot, they got lot of foreign reserve
(in fact most of the east asian countries save a lot, so they could react to the crisis quite well, for example China, India. Singapore etc and hence their economies could be bounced back very quickly after the crisis in 08/09)
so if hit by financial crisis again, they can react quite well and they are able to borrow from foreign countries to finance their deficit if the foreign reserve had been run out.

in 2010, China become second biggest economy in the world , which Japan used to be.
I read an article regarding that Japanese will not forget 2010, as their economies had been exceeded by China.
Besides, there are some conflicts between these two countries , for example fighting for the ownership of Senkaku Island, historical incidents (WWII)
meanwhile, Japan had changed for 4 Prime Minister, it also explain the weaknesses of Japanese economy as they need more capable leader to cope with the economy growth

However, most of the Japanese they respect and love their countries very much
they will obey to the policies of government (maybe of the tradition of 武士精神）
Japan is also a huge economy,because of the globalization, lot of countries' economic activities are integrated with Japan
if it is really collapsed, the Great Depression will be caused and the world would experience the Great Depression in 1929,1930

However, we have learnt from the past events
Great Depression will be caused if any of the huge economies is collapsed (US, EU, China, Japan)
in 08/09 , there were only Great Recession, China and other countries had borrowed lot of money to US to help her to escape from the crisis
Great Recession means that if one country economic activity is experience downturn, its neighborhoods will experience the downturn too. but not turn to be a world depression

晴儿

Hmm got it..what a flow huh..
Thanks LOL
mcQueen_88 发表于 2011-1-4 12:53 AM

   
yup
do visit here often

kitchan53

My friend said that it's because US control the military of Japan, thus Japan had to obey US's o ...
晴儿 发表于 2011-1-7 05:38 PM

    fascinating!!!
   thanks for the information~ i have to say tat this is a greatest posts ever in jbtalks...
   nice to meet u btw...