Essay on AFM Part 1

Submitted By Eric-Brinzenskiy
Words: 2519
Pages: 11
Open Document
1/26: Measuring Economic Strength

*Weekly summary: Economist, Newsweek
*Daily Periodical: WSJ, NY Times30 minutes a day 1. Print out interesting articles and give to Hugh 2. Ask Questions 3. Rank the news from most important downonly important stories
**Impact on US dollar -National events -Policy -Macroeconomics
**Pay attention to people in news: not CEO’s or analysts

Growth & Inflation=statistics of the strength of an economy
Urate: growth produces jobs
Healthy economy=growth + jobs
Nonfarm payroll breakeven=200,000
GDP: growth & productivity
Inflation:
Growth: output of goods and services produced by labor & property located in the domestic US
Employment: job growth
Income
Why can high growth be bad?
We want high SUSTAINABLE growth
If too high and too fast, we can strip our raw materialsoverheating
Only so much growth until it becomes INFLATIONARY
Negative growthcontractionrecession (2 consecutive quarters of reduction in GDP)
Business Cycle
National Bureau of Economic Research (NBER) states when recessions are
Depression: 10%, 3+ years of reduction of GDP
If sustainable there is nothing wrong with growth
Inflation:
Indicators:
CPI: basket of goods each month
PCE (GDP deflator)
PPI
Is inflation bad?
Excessive inflation is bad
UNEXPECTED inflation is bad; expected is ok because everything adjusts
If predictable its ok but if prices increases and not everything else adjusts it’s bad
Volatility of inflation increases inflation=less predictable
More predictable in low inflationary periods
Impacts LT growth of society
Economists desire some inflation because we wont cut your salary but it will stay the same
LT investments are more susceptible to inflation.
LT investments bring growth to economies
Typically inflation and growth are correlated
Growth rate too highvarious resources become scarce
Price of resources goes up
Scarcity of resources impede the growth rate
Prices bid up (inflation) may be a signal that the growth rate is unsustainable
Stagflation: inflation with little or no growth (oil shock); inflation not from growth
Phillips’ Curve
Target inflation rate is 2% for enough growth
Is deflation a bad thing? CONTRACTION
Negative inflationencourages people not to spend (cheaper and better)
No incentive to buy because there is holding value to cash
People get laid off & future spending decreasecontractsDeflationary spiral
Quantitative easing: pushing on string (monetary policy)helps save an economy but it doesn’t help growth
(a) Government spending: countercyclical spending
(b) Exports: work for very cheap $

2/2: ISM Index: pg.181
Institute for Supply Management-National Association Purchasing Managers (old name):
1st business day of the month @ 10 a.m.
Timing is huge
Motivation?
Author: only economic indicator not done by the government
300 purchasing managers for manufacturing facilities
Survey results are from the middle of the previous month
1st economic data that comes out each month
ISM Composite Index (average of 5 surveys): growth gauge that uses mostly manufacturing, a little mining, and equal weights for each one
Production: current GDPmost interesting for growth
New orders (future looking)future growth
Inventory of purchases, raw materials (different from GDP): ramp up and produce somethingfuture growth
Employment: another raw material; measure of current growth
VENDOR DELIVERY SPEED: sustainable growth? (Determinant)
40 slower, 50 faster=45
Durable (car) vs. nondurable (milk)manufacturing can be an engine of growth to a community and serve as a multiplier
Durable=more cyclical (critical for growth); not consumed or destroyed in use; used for 35 years
Nondurable=more stable (used for consumption)
Each category (diffusion index): only gets the direction it is going (not degree)
Increasing
Decreasing
Stayed the same
For vendor delivery speed, a “slower” vendor delivery speed is “increasing”increasing economy
Diffusion Index: measures proportion of respondents to the survey to answer
Show More

Related Documents: Essay on AFM Part 1

Mgmt Accounting Ethics Essay

Ethical Standards for Management Accountants By Tom Parnelle Instructor: Dr Earl Godfrey Course: Managerial Accounting December 11, 2011 Ethical Standards for Management Accountants Introduction In today’s economy, it is important to make informative business decisions. Profit margins are shrinking, labor and material costs are rising and global pressure on our markets continues to tighten (Sider Group 2009). To be competitive in a global or even local market, managers must understand the financial…

Words 2670 - Pages 11

Analytical Instrumentation

appointment Office: Science 1-084 Lecture/Lab: M 11:00-11:50 and F 12:00-5:00 in S-2-41 Objective: This course provides a survey of the different types of instrumentation that is in the chemist’s tool box. We will stress advantages and disadvantages and develop the insight that is necessary to choose the right tool for the right problem. We will use several of these tools in the laboratory portion of the course. The course can be broken down into several components. 1. 2. 3. 4. brief lectures…

Words 1472 - Pages 6

A Description Of Surface Chemistry

5138K- Surface Engineering Adding a Surface Layer Galvanizing Process Thermal Spray Process Physical Vapor Deposition Chemical Vapor Deposition Diff. Applications 2 1 18/01/2015 Outline Surface Preparation- Objectives Surface Preparation- Specifications Surface Preparation- Requirements Surface Preparation- Classification (1) Surface Modification (2) Cleaning Process (a) External Cleaning (b) In-situ Cleaning How Surface Preparation Methods are Selected? Surface Preparation- Evaluation & Monitoring…

Words 1943 - Pages 8

Childbirth and Screening Tools Essay examples

articles focusing on both interventions but the studies were very old and did not relate to my PICOT question enough. After careful review I decided to choose the following three articles to try and answer my PICOT question. Rapid Analysis Article 1. The first article, “Screening tools for postpartum depression: validity and cultural dimensions” is not really a systematic review but a literature review. I still decided to use the systematic review appraisal form when critiquing the study. It compared…

Words 1772 - Pages 8

Eehealth Strategic Plan

Assessment 1: Case Study Analysis EHealth Strategic Plan for New South Wales This paper is discussed based on the blueprint for eHealth in New South Wales (NSW). It is set out on the states’ government principles and directions for using the Information and Communication Technology (ICT) to bring improvements and enhancements in health and medical care in NSW over the next five years. The Minister of Health released the blueprint on 18 December 2013. The blueprint is developed as refreshment and…

Words 1899 - Pages 8

Cdc 00009 Vol 1 Essay

CDC 00009 Noncommissioned Officer Academy Volume 1. Profession of Arms 001. Professionalism and the NCO 1. When the dictionary definitions and the philosophical descriptions of the term “profession” are combined, what are the criteria for an occupation to be described as a profession? One that exhibits a body of theory and specialized knowledge, is service-oriented, and has a distinct subculture. 2. What is wrong with the position that any given broadly defined occupation is either a…

Words 6375 - Pages 26

Creating High Performance Organizations

employees from the ground up. That is, reaching out and getting ideas, recommendations, and finding out the experiences of employees that are directly in touch with customers. An article written by Kautt, Glenn G. in the Financial Planning, Vol. 42 Issue 1, further lends to the ideas expressed in the previous mentioned Teller Vision article. It speaks to the idea that a collaborative effort must happen to ensure successful business. In the Training Journal’s April 2012 issue, they discuss the factors…

Words 3301 - Pages 14

Ray Charles - Cultural Perspectives Essay

"Ray Charles is one of the most gifted and influential musicians of our century. By combining gospel, jazz, blues, and country, he helped invent what would become known as soul." Discuss Ritz, D (2003) Brother Ray: Ray Charles Own Story Ray Charles is well known for his ability to play, compose and perform music across a plethora of genres. His work has inspired generations and will continue to do so for years to come. It is thought by many that he was responsible for the creation of soul music…

Words 3747 - Pages 15

IT Governance Framework for Universities in Spain Essay

Spain Antonio Fernández1 and Faraón Llorens2 1 Dpto. Lenguajes y Computación, Universidad de Almería, Crta. Sacramento s/n La Cañada de San Urbano, 04120 Almería Spain, afm@ual.es - 2 Dpto. Ciencia de la Computación e Inteligencia Artificial, Universidad de Alicante, Apartado de correos 99, 03080 Alicante Spain, Faraon.Llorrens@ua.es Keywords IT Governance, framework, principles, objectives, ISO 38500, ITG4U, Higher Education, universities. 1. EXECUTIVE SUMMARY 1.1. Background This…

Words 5146 - Pages 21

Management and Maryland College London Essay

office is in England and Wales), given at Companies House on 1st December 2009). Registered address: 255-259 Commercial Road, 3rd Floor, London E1 2BT, UK All rights reserved. Copyright belongs to Maryland College London Limited (MCLL). Therefore, no part of this Prospectus may be copied, reproduced or transmitted in any form or by any means without written permission of Maryland College London Limited. MCLL is committed to continually develop and improve its publications, taking into account its own…

Words 9976 - Pages 40