Global economic conditions are very effective. Because competition is increasing day to day. Even countries are competing. So economy complex concept. In this manner the main issue is to focus on the goal. If you focus to target, you will be successful. Rapidly changing economic and political structures today. Nevertheless, we are working successful in our goal and we should be careful.
Even large interdependent economies. For example China and U.S.A. have got large percent economic trade. They have got strong ‘’ currency-product ‘’ relations. If these are missing one of the, it will be unbalanced. And one factor will affect the world economy. Because the world economy reacts to quickly. There are many things about the future of each country will do. Reason of the economic crisis of 2008, all countries experienced panic. The world lived effective 2 in a global crisis. First one was in 1930, second and last crisis was in 2008 on October. There was fear that the financial system will collapse.
1997-98 was the Asian crisis. Crisis in developing countries was constantly. But the last crisis was about developed country. For this reason this affect the all over the world.
The first global crisis was in 1931-32. That was disaster. The unemployment rate rose to 30%.the Totalitarian ideologies provided their interests. Nazism, communism...
1930-40 in Turkey had got strong crisis. And this time period Turkey closed economy and there was tight fiscal policy. Ismet Inonu kept out the Turkey second world war. This strategy was right and very important step for Turkey future.
U.S.A., European Countries, Japan, China and European countries and G-20 countries did many important economic policy to their home countries.
- Intervention in the financial system.
- Expanded the monetary policy. Interest rates in developed countries approached to 0. It was prevented with abundant supply of liquidity. Financial sector reform was initiated.
- Expansionary fiscal policy.
The world economy has experienced in recent years, the greatest stagnation. Developing countries were afraid the crisis will affect the themselves. The IMF' s money-making power was multiplied by 3. Developing countries left the crisis quickly. Recovery was rapidly. Crisis in South Asia and India have never been. China has 10% rising rate. Growth was 8% in India. The average growth rate in developing countries more than 3 times. This is better than developed countries.
G20 countries, April 3 , 2009 meeting was important in London. And 3 main subjects were determine:
- Cost of the expansion policy
- Liquidity in the monetary policy and continued the interest rate is 0
- Finance regulation
- Fiscal policy must be compatible with all countries.
In 2009 ; 2 quarter, the crisis stopped and the growth has began. Herewith, production has increased. Stocks improved. Negative growth of Turkey because of the psychological panic. When the panic over again continued growth. Public debt ratio increased in developed countries. Greece small country for this reason a narrow tax base. Public debt crisis occurred in Greece. Developed countries have government debt and pose a problem. There were large public deficits in developed countries. In the United States unemployment rate is currently 9.5%. And it is long-term unemployment.
There is social pressure in Europe and already high unemployment in Europe. There is also fear of the growth will decrease. Monetary policy was successful and it has stopped the panic. In real terms interest is negative rate, zero. 0 of the nominal interest rate and it does not fall under this number. The state, treasures can buy bond directly. But it has a limit. There are a lot of liquidity in the market.
Does the liquidity preference or trump?
The fiscal policy expanded. US budget deficit was 11%. The border of fiscal policy.
Developing countries continues growth. China 10 %, India 8 % , Turkey 7 %. These are rapid growth number of countries. And In addition this countries the economy of Brazil improving.
These countries constitute 65 % of the world economy:
- United States
- European Countries
- Japan
The remaining 35%: creates the developing countries.
The share of developing countries are small. For this reason they are not affect the world economy.
If US has a growth, it will affect the all over the world.
There are 3 important factors for the world economy
- First one is ‘’ Create the Coordination and Common Policies ‘’
Principally; countries should work together. Each country's shouldn't think to own interest. Collective policy is ideal for it. Everyone cannot increase the their net profits. Because our world has got limit. We are living only this planet. We can't exports the others planet or space. USA and Europe would not be different policies. Each country must be effective supervision and support.
- Second essential step is ‘’ Eliminate Uncertainty ‘’
The unemployment rate is surplus and also have increase debt. Households and companies want to know the tax rate for 4-5 years. If you do not say the tax rate, it will be uncertainty. Investment and consumption are reduced. Exchange rate policy and fiscal policy must be together. USA has got very low interest rates on government bonds.The most important issue is the health care system in USA. Because it has got the largest gaps. Market and policy are creating panic in the USA.
United States of America should reduce the money spent to defense. China and Germany should support domestic demand.
- Finally, third subject is ‘’ Income distribution ‘’
Ethical, political, social, and justice should be equal. Inequality makes unhappy society. Income distribution and macroeconomics have a direct relationship. The upper tier is very rich of an income distribution. U.S.A., China, India and Asian Countries have got this situation. European Countries has got different case.
In USA,1972, 1 % of the population have got 9 % revenue. Now, this percentage is increase the 24 %. In addition, 0.1 % of the population; they have got 11 % on the revenue.
Percentage of the households in China: 36 % and the share of the labour is 40 %. That have effective demand. Household have got many debt in the USA. China constantly trying to export. China has less demand in the domestic market but they have a lot of demand in foreign markets. This name is demand imbalance. Strong corporation do not have the problem of financing.
Productivity is increasing. But balanced household,increase in revenues and wide-growth balanced are the most important factor. We need sustainable growth.
* Causes of crisis in the USA:
- Excessive borrowing
- Liquidity
- Real Estate Sector
- Political Structure
For long-term savings, we should increase the savings rate. Financial regulation is the first step for the achievement.We must move long-term.
Even large interdependent economies. For example China and U.S.A. have got large percent economic trade. They have got strong ‘’ currency-product ‘’ relations. If these are missing one of the, it will be unbalanced. And one factor will affect the world economy. Because the world economy reacts to quickly. There are many things about the future of each country will do. Reason of the economic crisis of 2008, all countries experienced panic. The world lived effective 2 in a global crisis. First one was in 1930, second and last crisis was in 2008 on October. There was fear that the financial system will collapse.
1997-98 was the Asian crisis. Crisis in developing countries was constantly. But the last crisis was about developed country. For this reason this affect the all over the world.
The first global crisis was in 1931-32. That was disaster. The unemployment rate rose to 30%.the Totalitarian ideologies provided their interests. Nazism, communism...
1930-40 in Turkey had got strong crisis. And this time period Turkey closed economy and there was tight fiscal policy. Ismet Inonu kept out the Turkey second world war. This strategy was right and very important step for Turkey future.
U.S.A., European Countries, Japan, China and European countries and G-20 countries did many important economic policy to their home countries.
- Intervention in the financial system.
- Expanded the monetary policy. Interest rates in developed countries approached to 0. It was prevented with abundant supply of liquidity. Financial sector reform was initiated.
- Expansionary fiscal policy.
The world economy has experienced in recent years, the greatest stagnation. Developing countries were afraid the crisis will affect the themselves. The IMF' s money-making power was multiplied by 3. Developing countries left the crisis quickly. Recovery was rapidly. Crisis in South Asia and India have never been. China has 10% rising rate. Growth was 8% in India. The average growth rate in developing countries more than 3 times. This is better than developed countries.
G20 countries, April 3 , 2009 meeting was important in London. And 3 main subjects were determine:
- Cost of the expansion policy
- Liquidity in the monetary policy and continued the interest rate is 0
- Finance regulation
- Fiscal policy must be compatible with all countries.
In 2009 ; 2 quarter, the crisis stopped and the growth has began. Herewith, production has increased. Stocks improved. Negative growth of Turkey because of the psychological panic. When the panic over again continued growth. Public debt ratio increased in developed countries. Greece small country for this reason a narrow tax base. Public debt crisis occurred in Greece. Developed countries have government debt and pose a problem. There were large public deficits in developed countries. In the United States unemployment rate is currently 9.5%. And it is long-term unemployment.
There is social pressure in Europe and already high unemployment in Europe. There is also fear of the growth will decrease. Monetary policy was successful and it has stopped the panic. In real terms interest is negative rate, zero. 0 of the nominal interest rate and it does not fall under this number. The state, treasures can buy bond directly. But it has a limit. There are a lot of liquidity in the market.
Does the liquidity preference or trump?
The fiscal policy expanded. US budget deficit was 11%. The border of fiscal policy.
Developing countries continues growth. China 10 %, India 8 % , Turkey 7 %. These are rapid growth number of countries. And In addition this countries the economy of Brazil improving.
These countries constitute 65 % of the world economy:
- United States
- European Countries
- Japan
The remaining 35%: creates the developing countries.
The share of developing countries are small. For this reason they are not affect the world economy.
If US has a growth, it will affect the all over the world.
There are 3 important factors for the world economy
- First one is ‘’ Create the Coordination and Common Policies ‘’
Principally; countries should work together. Each country's shouldn't think to own interest. Collective policy is ideal for it. Everyone cannot increase the their net profits. Because our world has got limit. We are living only this planet. We can't exports the others planet or space. USA and Europe would not be different policies. Each country must be effective supervision and support.
- Second essential step is ‘’ Eliminate Uncertainty ‘’
The unemployment rate is surplus and also have increase debt. Households and companies want to know the tax rate for 4-5 years. If you do not say the tax rate, it will be uncertainty. Investment and consumption are reduced. Exchange rate policy and fiscal policy must be together. USA has got very low interest rates on government bonds.The most important issue is the health care system in USA. Because it has got the largest gaps. Market and policy are creating panic in the USA.
United States of America should reduce the money spent to defense. China and Germany should support domestic demand.
- Finally, third subject is ‘’ Income distribution ‘’
Ethical, political, social, and justice should be equal. Inequality makes unhappy society. Income distribution and macroeconomics have a direct relationship. The upper tier is very rich of an income distribution. U.S.A., China, India and Asian Countries have got this situation. European Countries has got different case.
In USA,1972, 1 % of the population have got 9 % revenue. Now, this percentage is increase the 24 %. In addition, 0.1 % of the population; they have got 11 % on the revenue.
Percentage of the households in China: 36 % and the share of the labour is 40 %. That have effective demand. Household have got many debt in the USA. China constantly trying to export. China has less demand in the domestic market but they have a lot of demand in foreign markets. This name is demand imbalance. Strong corporation do not have the problem of financing.
Productivity is increasing. But balanced household,increase in revenues and wide-growth balanced are the most important factor. We need sustainable growth.
* Causes of crisis in the USA:
- Excessive borrowing
- Liquidity
- Real Estate Sector
- Political Structure
For long-term savings, we should increase the savings rate. Financial regulation is the first step for the achievement.We must move long-term.
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