Contemporary economic problems

CONTEMPORARY ECONOMIC PROBLEMS

TABLE DES MATIERES

Overview 1

Plan 2

References 2

Lecture 1: Fundamentals in Economics 3

Introduction 3

Main Important Accounts 6

About the real sector 8

Introduction 9

3.Measure Units 11

4.Examples 12

5.Economic Growth Sources 12

6.Some Development Visions 13

Lecture 3: Inflation and Monetary Policy 14

Lecture 4 : Economic and Social Inequalities 19

Lecture 5: The Globalization and its Challenge 23

Introduction 23

OVERVIEW

• Pre-requisites: Notions in Economic Theory, Macroeconomics.

• Course description: This course discusses the main impt economic and social problems: Inflation, unemployment, economic growth, social and environmental, equilibrium, poverty, Covid-19, etc.

Inflation: What does inflation mean? Include the price. Price high. Fight against inflation, stop inflation.

Unemployment: people lose their job. High unemployment = high problem social. Inflation related unemployment.

Unemployment allocations. =

• Course outcomes: 1) Can improve the comprehension of the economy, 2) can help the understanding of the conduct of economic policy, 3) can help the analysis of actual reforms and the society.

Philips curve: inflation with unemployment. Negative relationship between inflation and unemployment. No incitation to push people to go to catch job.

Economic growth: two times of the group = ECB (Seven impt country, developed countries like France, Canada, …) China: G7 country; BRICS, China growth 7%/year

Indicator poverty: many cities very poor. This wealth(richesse) is not distributing.

• Learning and Teaching Methods: 1) Lectures, 2) Press Papers (economics).

• Assessment Method: the principle is to check whether students have achieved the intended learning outcomes of the course.

• Assessment: final Exam (100%). Form: Article/text + questions.

PLAN

• Lecture 1. Fundamentals in Economics

• Lecture 2. The Economic Growth versus Development

France: retirement by solidarity; US: no retirement system. Retirement is an option. You safe your money every month.

France: social security; US: not.

• Lecture 3. The Inflation and Monetary Policy

• Lecture 4. Economic and Social Inequalities

Economic well-being: amount maximum money; Social well-being

• Lecture 5. The Globalization and its Challenge

Time axis =

_ 1929: Great Depression

_between 1929 and 1939 = Keynes “Cambridge university development new theory of money to limit collapse.

_1944: WWII

_ between 1944 and 1973: The glorious Thirty; very much job

_ 1973: Worth was the first oil shock. South Arabia multiply per 8 prices.

_ 1979: second oil shock. During this period, need solution

_1990: push people market; the world

_1991: collapse of the soviet bloc  G7 and BRICS created. The rules of the globalizations. Only one market. Boost maximum capitalism.

 Standard of international economics: don’t produce something that you risk losing out on. Look for comparative advantage.

REFERENCES

• DSCG6, Economie, Suup’ Foucher, 3ème Edition, 2009

• Bladwim, R. and Di Mauro, W. (2020), Economics in the time of Covid-19, CEPR Press

• Ester Duflo, Abhijit V. Banerjee (2019), Good Economics for Hard Times : Better Answers to Our Biggest Problems

• The Economist.

LECTURE 1: FUNDAMENTALS IN ECONOMICS

INTRODUCTION

Aims of the lecture:

• To introduce some concepts and functions in economics.

• To analyze some stylized facts.

• To present the main impt sectors of an economy and their interactions. Who are the actors of Economy?

To bargain: négocier

Information asymmetry

Fair value: valeur comptable

• To provide an overview on the conduct of economic policies and rules.

SOME STYLIZED FACTS

• Share of Total Income going to the Top 1% since 1900

The evolution of inequality in English speaking countries followed a U-shape

1920 – 1980: the economy is healthy. Quality decreased.

1980: starter to globalization.

2014: US States are the best student.

The Evolution of inequality in continental Europe and Japan followed an L-shape

Netherland is the best. And France is the Best.

• Women earn less than men at every wage level

10th: 9.36$ per hour for man and 8,61$ per hour for woman.

50th: 18.94$ man and 15.67$ woman.

95th: 65.06$ / 48.03$

In the

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