T he W ORLD
Brazil
International Economy Round today!
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See who’s winning and losing in our crazy world of Economics
Brazil has dominated
the headlines due to a
variety of reasons; some
similar to India, some due
to the government. Firstly,
the government has started
raising interest rates in an
attempt to dampen aggregate
demand, ensuring it can
become sustainable in the
future. Interest rates have
risen with, rise from 9% to
9.5%.
With the recession now
affecting the countries with
growing economies, Brazil
wishes not to experience
a dramatic fall once the
productive potential of the
economy reaches a certain
point. Brazil are following
the similar objectives of
their fellow BRIC countries,
attracting criticism from
developed countries as
to who will lead world
economic growth and
Japan
Japan is a country in
mass economic turmoil. The
currency, the Yen, has fallen
25% against the US Dollar
since last December, consumer
prices were up 6% in August
using 2012 August as the
base index, economic growth
is falling and consumer
spending and investment
ensure all nations are out
of the recession. Moreover
the tax burden, especially
on companies has increased,
implementing further attacks
on the government.
BRIC is an economic
organisation consisting of the
countries with the highest
economic growth rates in the
world. The countries involved
are Brazil, Russia, India and
China. Their current objectives
are to dampen the total
demand in their economy so
their growth does not get out
of control and cause negative
effects for the people such as
rising prices.
Over the last year the
government has received its
most vicious opposition to
its decisions from the people
of Brazil. Many are outraged
by the fact they have been
awarded the right to host
is being hugely encourages
under the idea of “Abenomics.”
This theme is known as the
economy being run under
Prime Minister Abe’s economic
policies. He came to office in
December 2012. His objectives
are to ensure the components
of GDP increase. Interest rates
are being lowered to increase
Raam Jeganathan
the world’s 2 largest sporting
events, the Olympics and
FIFA World Cup, despite the
celebrations an event of such
a large magnitude brings. This
has resulted in the government
prioritising these vents over
the needs of the people.
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