Summary International economics; theory, application and policy by Marrewijk
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  • The summary only contains the following chapters: 1, 3 - 11, 13 & 15
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Economics & Business Economics B2 - Rijksuniversiteit Groningen

Summary International economics; theory, application and policy by Marrewijk
The Economics of Banking by Kent Matthews and John Thompson

The Economics of Banking by Kent Matthews and John Thompson


Chapter 1: Trends in domestic and international banking

Introduction

In this chapter we will discuss the major changes that have taken place in the banking sector. Some key ratios that will be used in this book:

  • Return on assets (ROA) = gross profit / total assets x 100%

  • Return on equity (ROE) = gross profit / equity x 100%

  • Net interest margin (NIM) = net interest income / interest-earnings assets x 100%

  • Operating expense (OE) ratio = operating expenses / total assets x 100%

Banks had to evolve because of the increased competition from within and outside the banking sector. The banks had to change their structure. There are three trends within the developed countries that made the activity and strategy of the banks change:

  • Deregulation
  • Financial innovation
  • Globalization

Deregulation

The deregulation of financial markets and banks in particular has played a significant role in explaining the development of the financial sector. Deregulation consists of the removal of impositions by government bodies and the removal of self-imposed restrictions. The process of deregulation has come in three faces across developed economies:

  • Lifting of quantitative controls on bank assets and the ceilings on interest rates on deposits.
  • The specialization of business between banks and other financial intermediaries slowed down which allowed both parties to compete in each other’s markets.
  • The increasing competition from new entrants and from incumbents and other financial intermediaries.

Financial innovation

Financial innovation is any change in the scale, scope and delivery of financial services. It is not the extension or imitation of a financial product that already exists in another market.

In generally there are three forces that stimulated financial innovation:

  • Instability of the financial environment; unpredictable inflation, exchange rates and interest rates. This led to an increased demand to seek for instruments to reduce these risks.
  • Regulation; the regulation of the USA domestic banks led to the development of the Eurodollar market.
  • The development of technology in the financial sector; the application of computer technology and telecommunication.

Financial instability, regulation and technology put pressure on banks to innovate. Goodhart identified three principal forms of structural change due to financial innovation:

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Public Finance (Rosen en Gayer) Samenvatting - 9e druk

Public Finance (Rosen en Gayer) Samenvatting - 9e druk


Hoofdstuk 1: introductie

De politieke perspectieven die mensen hebben beïnvloeden de kijk op de rol van die de overheid volgens hen zou moeten hebben. Sommige mensen vinden het welzijn van de gemeenschap in het geheel belangrijk, terwijl anderen deze nadruk op andere aspecten leggen.

Om een intelligente mening te kunnen vormen over het publiek beleid is het vereist om kennis te hebben over de politieke sfeer en is het belangrijk dat men begrijpt wat de overheid eigenlijk doet. Wie bezit de wettelijke macht om een politiek en economische beleid uit te voeren? Waar geeft de overheid geld aan uit en hoe komt het aan haar inkomsten?

Hoofdstuk 1 behandelt hoe politieke perspectieven houdingen tegenover overheidsfinanciering beïnvloeden. Daarnaast wordt de werking van de overheid in de Verenigde Staten (VS) toegelicht.

Onder overheidsfinanciering vallen de inkomsten en uitgaven van de overheid. Een andere term die wordt gebruikt is de economische publieke sector.

Perspectief op de overheid

Het doel van de gemeenschap in haar geheel wordt door de staat opgesteld. De staat probeert de gemeenschap gezamenlijk tot haar doel te leiden. De vraag die dit echter oproept is: hoe worden deze doelen opgesteld en wie stelt deze doelen op?

Staten kunnen individueel doelen opstellen en deze doelen kunnen dus van elkaar afwijken. Bij het opstellen van doelen is het belangrijk dat rekening wordt gehouden met het natuurlijke organisme van de gemeenschap. Wetenschap heeft echter tot nu toe geen duidelijke verklaring op kunnen stellen voor wat onder natuurlijk valt.

Mechanistische kijk op de overheid

In dit perspectief is de overheid niet een organisch deel van de gemeenschap, mar een misleiding die is gecreëerd door individuen om op een betere wijze bepaalde doelen te kunnen bereiken.

‘De overheid is een trust en de officieren van de overheid zijn gemachtigden. De trust en de gemachtigden zijn gemaakt voor het bevorderen van het voordeel van de gemeenschap.’

Om een daadwerkelijke machtspositie uitvoerbaar te maken beschikt de overheid over een monopolie positie. Dit perspectief gaat ervan uit dat interventie door de overheid nodig is voor het welzijn van de gemeenschap en het bereiken van gezamenlijke doelen.

Het perspectief van

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Public Finance (Rosen en Gayer) Summary

Public Finance (Rosen en Gayer) Summary

You can find the summaries of relevant chapters from the book in the attachments. The following chapters are included:

Chapter 3: Tools of normative analysis

Chapter 4: Public goods

Chapter 5: Externalities

Chapter 6: Political economy

Chapter 8: Cost-benefit analysis

Chapter 12: Income redistribution: conceptual issues

Chapter 14: Taxation and income distribution

Chapter 15: Taxation and efficiency

Chapter 16: Efficient and equitable taxation

Chapter 18: Personal taxation and behavior

Chapter 20: Deficit finance

Chapter 22: Public finance in a federal system

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Summary with the 2nd edition of Macroeconomics, a European Perspective by Blanchard

Summary with the 2nd edition of Macroeconomics, a European Perspective by Blanchard


Chapter 1: The world economy

There are 27 European countries that form together the European Union or EU-27. The European Union has a great power; its combined output exceeds USA output. Macroeconomists look at three variables when they study an economy; output, the unemployment rate and the inflation rate.

The economic performance of the European Union since 2000 has not been as good as it was before, in the 1990s. Output growth was lower than before and this led to very high unemployment. The only positive thing to say is that inflation was at a favorable height.

There are a lot of problems in the EU as a result of the worldwide recession in 2008. Short-run problems dominate but there are three other things that have been great issues in the debate:

  1. The high unemployment. Although the unemployment has declined from its high peak, it is still very high.

  2. Income per person (or per capita).

  3. The introduction of the common currency, the euro. Economists argue whether the Euro is good for the countries using it.

When we look at the economy of the US we can say without doubt that the 1990s were the best years. The output growth rate was positive while the unemployment rate was substantially lower than it was before. Also inflation rates were lower than in previous decades. However, the inflation rate was still slightly higher than in Europe.

However, since 2000 the economy of the US has slowed down. US families were hit by four shocks between 2007 and 2008:

  • Increase in oil prices

  • A fall in house prices. This led to a decrease in the wealth of American households, since the homes of Americans account for three-quarters of their total wealth.

  • A fall of the

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