JerichoHill
Bedrock of Knowledge
high real interest relative to other countries means that your country offers better returns, so rational folks put money in your country
And Mul, thanks! I really want us to get over the 50K hump soon!
Ask an Economist (Post #1005 and counting)
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high real interest relative to other countries means that your country offers better returns, so rational folks put money in your country
And Mul, thanks! I really want us to get over the 50K hump soon!
So a high interest rate implies a high return even on investments not based on interest payments?
(sorry, I thought I understood this, but apparently not
)
ravensfire
Member of the Opposition
So a high interest rate implies a high return even on investments not based on interest payments?
(sorry, I thought I understood this, but apparently not
Let's say the interest rate in your country is 5%, and my country it's 10%. You could loan money to companies in my country at a much higher rate than you'd make in your own country.
EDIT: Misread your post - way, way too tired to post beyond that.
-- Ravensfire
Godwynn
March to the Sea
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What will the effect of the "Greying of Europe" have on the European economy? Will the population continue to decline, or will it eventually level out with 2.1 children per woman?
If you could please answer in both terms of Europe and World economy that would be spectacular!
Thanks ahead of time!
If you could please answer in both terms of Europe and World economy that would be spectacular!
Thanks ahead of time!
Norseone
Emperor
Well, in France its already found its way up to 2.1 about and it is increasing in several other countries. It appears it will eventually raise.
JerichoHill
Bedrock of Knowledge
Most developed world populations are expected to decline and stabilize. The greying of Europe's primary effect on the economy is to slow it down as more workers leave the work force than enter it. This is why the EU needs to figure out its immigration policy.
As the population of the western world greys, the eastern powers, and Australia, will see their economies rise in terms of prominence. It is doubtful that the EU / US / GB economics are not part of the top picture, however, because of their large amount of industrial and human capital
Homie
Anti-Lefty
Adjusted for inflation? I didn´t think so, is that true.
JerichoHill
Bedrock of Knowledge
Nope, that's not true. It's about 7%, adjusted for inflation. Good job homie!
Godwynn
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crabapple
I am watching
After seeing on the news that Chinas one child policy will create much lower economic growth. I am asking how strong is the population - economic growth relationship? are countries with low population growth destined to get an economic slowdown?
JerichoHill
Bedrock of Knowledge
No, but the amount of dividends one gets with a traditional sp500 index is quite small. I know, I have one! I got 5 bucks last year!
Godwynn
March to the Sea
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Most of China's population isn't yet participating in the "modern" part of the economy, so they have 100s of millions of people who's productivity can still go up drastically before it would be a problem.
crabapple
I am watching
yeah alright, but what about countries like Finland or Sweden or any other that have low population growth, will that lead to low economic growth to or is that relationship ( popgrowth-economicgrowth) weak?
Low or stagnant population growth, or worse, negative growth, does in fact substantially add to the difficulty of having economic growth. But by itself does not bring it to a halt. If a nation already has high labor productivity, for example Japan, then growing productivity is more difficult, and more costly, than taking a population with lower productivity and having it catch up to the more developed nations. That is because the technology for higher productivity already exists for the less developed nation and it has to be invented for the more developed nation.
The other problem is that having a large and growing share of the population retired and "graying" places a drain on the available capital, making it more difficult and/or costly to afford the investment necessary for rising productivity.
JerichoHill
Bedrock of Knowledge
What index did you choose!?
SPY has a 2% yield. So you invested, by math, $250!
2% of your holdings, not what the index is at.
JerichoHill
Bedrock of Knowledge
No. Population growth is not the key component of economic growth and maturation
There are many components. Labor, Capital, Tech, Alpha.
In order of importance : Tech, Alpha, Labor/Capital
Homie
Anti-Lefty
JerichoHill
Bedrock of Knowledge
Alpha is supposed to represent some sort knowledge based growth outside of the standard labor definition
Stolen Rutters
Deity
Question: Can you learn this stuff without taking classes in college? As an Engineering student, I skipped econ and this stuff is turning out to be really really useful. (We had only 5 free electives out of 128 in our program, so I took second year Spanish and Astronomy.)
Spoiler :
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