Archive for December, 2011
The Marshall Lerner Condition and the J Curve
Dec 11th
1) A good web page, by http://welkerswikinomics.com:
The Marshall-Lerner Condition, the J-curve, and the US trade deficit
2) A useful video via the same author’s http://www.econclassroom.com:
3) A chance for you to play around with the Marshall Lerner condition yourself:
http://www.eco.rug.nl/~gigengack/ge/ML_Interactive/ML_Interactive.htm
Purchasing Power Parity
Dec 7th
Purchasing Power Parity by Mindbitesdotcom. This is an incomplete taster / ad for a course you have to subscribe to, but is still useful as is stands, provided you add to your understanding with other resources.
15: PURCHASING POWER PARITY by InformedTrades:
2 Useful web sites:
http://economics.about.com/cs/money/a/purchasingpower.htm
http://www.wisegeek.com/what-is-purchasing-power-parity-theory.htm
Questions:
1) What is PPP and explain how it works using a hypothetical example?
2) Evaluate the usefulness of PPP theory when applied to the real world.
