Macroeconomics-1-Ass-2-DI.docx - Group Assignment 2 ECON1192 Macroeconomics 1 Group Assignment 2[Type the document subtitle 1 Group Assignment 2 Table

Macroeconomics-1-Ass-2-DI.docx - Group Assignment 2...

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Group Assignment 21ECON1192 Macroeconomics 1Group Assignment 2[Type the document subtitle]
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Group Assignment 2Table of ContentsCASE STUDY 1: VIETNAM AND PHILIPPINES..............................................................................2Unemployment..................................................................................................................................2Compare and Contrast.......................................................................................................................4Reasons.............................................................................................................................................7CASE STUDY 2: MONEY MARKET IN VIETNAM..........................................................................8Illustrate and explain in detail how a lower reserve ratio can affect the money market in Vietnam...8Can this policy have a long-run impact on the economy of Vietnam? Explain using additional references..........................................................................................................................................................11CASE STUDY 3: VENEZUELA........................................................................................................16Problems and causes of the economy.............................................................................................16Costs of inflation.............................................................................................................................19Effect of this forecast to Bolivar’s functions....................................................................................24CASE STUDY 4: MYANMAR EXCHANGE MARKET...................................................................27REFERENCE......................................................................................................................................312
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Group Assignment 2CASE STUDY 1: VIETNAM AND PHILIPPINESUnemployment The articles mention 3 types of unemployment: Frictional unemployment, Structuralunemployment, Cyclical unemployment:First, we recall the definition of frictional unemployment that is short-termunemployment arising from the process of matching workers with jobs(Garnett, H. &O’Brien, L.2011).Evidence of frictional unemployment can be seen in the readingabout unemployment in Philippines. According to the reading, the unemploymentrate of Philippines includes people that drop themselves out of their jobs or peoplethat had just graduated from their respective schools or universities. As can beobserved from the reading, the figure of first-time jobseekers is 3.6 percent or anestimated 1.5 million adults, remains stability since September. According toinvestopedia.com, the reason that lead to frictional unemployment is the people whoare taking their time to look for jobs due to imperfect information. On the other hand,it also depends on geographical location. People may spend lots of time settlingdown in new position. To be more detailed, people find it difficulties in resigning orleaving their jobs.The second type of unemployment we can spot from the articles is cyclicalunemploymentin the same reading about Philippines. Take a look at the definition ofthe phrase. It is stated that cyclical unemployment is the “unemployment caused by abusiness cycle contraction" (Garnett, H. & O'Brien, L.2011). Not only that, cyclicalunemployment is also noticed as a sign of declination of business activities accordingto Investopia. From the reading, we can see several statistics that demonstrate thisconcept with about 3.4 million workers were fired from work. The articles also breakthis down in the next paragraph. The previous percentage of cyclical unemploymentincludes 5.2% with contracts that weren’t continued by the companies, 1.6% were3
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Group Assignment 2made redundant and 1.3% who quit from their operations. All of these evidence areproof of the downturn of the economy when all the company forcefully cut down thenumber of employees who work in their organisation, as exactly same as thestatement from Investopedia. This report will also identify the cause of this type ofunemployment. Written by Kimberly Amadeo, the writing states that cyclical
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