Domestic and External Factors on African Macroeconomic Formulation Domestic and External Factors on African Macroeconomic Formulation Growth, productivity and employment are the most common economic variables to reduce extreme poverty and break poverty trap. Report from World Bank in 2007 revealed that one percent in GDP growth results to 1.3% poverty decline in low-income countries. Moreover, development in the productive capacity leads to reduction in sustainable poverty. With improvement in the economic growth,

Question 2: Exports One of the few 'good' things about an economic downturn is that it tends to increase the desirability of a country's exports and thus reduces the balance of payments to nations abroad in international trade. When a nation is spending at a deficit to stimulate its economy, this tends to decrease the value of that nation's currency. The cheapened value of the dollar, for example, means that the

GDP -- the production of a pound of hamburger or the production of a pound of caviar? Why? According to the commonly used Expenditure Method of calculating GDP, the production of a pound of caviar would contribute to a nation's GDP than would the production of a pound of ground beef. The Expenditure Method calculates GDP as follows: GDP = Private Consumption + Gross Investment + Government Spending + The difference

They state that the FOREX market represents "the market in which participants are able to buy, sell, exchange and speculate on currencies. The forex markets is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The currency market is considered to be the largest financial market in the world, processing trillions of dollars worth of transactions each day" (Investopedia,

Vice versa, a relaxation of credit operations through a reduction of the interest rates generates an increased purchasing power and an increased ability for the manufacturer to contract loans and further invest in his business. 2.6 Producer price index The Producer Price Index, or the PPI, stands for "family of indexes that measures the average change in selling prices received by domestic producers of goods and services over time. PPIs measure

Eurozone Maastricht Treaty Euro zone Treaty The European Community established the convergence criteria. These criteria was established in order to allow its EU Member states to take part in the Euro Zone, and using the Euro, as an official currency. The members of the European Union formed the Maastricht Treaty in 1992. The principle goals of the treaty were to establish an economic and monetary union, strengthen the democratic legitimacy of its