Chapter 19: Macroeconomic Policy Around the World | Principles of Macroeconomics 3e (OpenStax)

Chad Harding waits for a job in Cape Town, while more than 73 million young people worldwide wait with him. Chapter 19 asks why economies differ so much, and why the same four goals need different medicine around the world. CHAPTERS 0:00 Chad Harding waits in Cape Town 0:47 Why do economies differ so much? 1:19 Productivity explains it 1:55 South Korea caught up 2:30 One goal, many starting points 3:05 Five sections, four goals 3:50 GDP per capita 4:35 China: huge, middling 5:20 Ranking by GNI per capita 5:59 2022 lines: 1,085 to 13,206 6:46 The book disagrees with itself 7:27 Three quarters, one third 8:19 Income and people, side by side 9:01 Regions, stark differences 9:47 Regional GDP per capita, 2020 10:53 A ten-to-one map 11:36 Income is a proxy 12:22 Four more forces 13:08 Coastlines, mountains, tariffs 13:41 Old countries, young countries 14:21 What countries make 15:12 Nobody aims low 15:46 Growth has one foundation 16:31 Shift supply right 17:17 Crisis tools crowd out 18:01 Japan's slump, Abe's answer 19:05 Save today, invest tomorrow 19:40 Tigers: 5.5 percent 20:30 Save a third, school everyone 21:09 Technology plus market freedom 21:48 Controls dismantle slowly 22:34 Twelve years vs thirty-six 23:37 Where stability is missing 24:29 Ten lowest-income, 2020 25:24 Less than 100 dollars a month 26:10 239 dollars, bananas, no chairs 26:59 Does foreign aid work? 28:01 Moyo: aid does more harm 28:53 134 billion dollars a year 29:41 Meningitis, vaccines 30:19 Tanzania's wheat 31:08 Not a cure, not poison 32:06 Cyclical or natural? 32:35 Recession playbook 33:20 Extra stimulus? It depends 34:11 Why Europe runs higher 34:48 A ceiling, not a threshold 35:50 Neither employed nor jobless 36:37 One connection changes all 37:13 Surplus workers to the factory 38:02 When surplus ends, wages rise 39:08 Inflation, kept at bay 39:57 9.1 percent, political price 40:30 Double digits to millions 41:17 Too much money, too few goods 42:12 Index, or lose power 43:10 Trade as exploitation? 43:54 None got rich in isolation 44:36 Goods are not capital 45:22 The case for protection 46:16 Temporary, competitive 46:43 A deficit must be financed 47:29 Capital flows downhill 48:23 America soaks up savings 49:14 If investors unload dollars 50:11 Inflow turned to flood 51:03 Inflow to collapse, five steps 51:45 Same whiplash, three countries 52:39 Hot money out 53:36 A classroom on wheels 54:33 Four goals, four failures 55:35 Spain: no borrow, no devalue 56:20 Lower wages first 56:56 South Africa: employability 57:46 India: forty-five laws 58:38 India's deficit 59:27 Six terms to keep 60:42 Rank six regions, two ways 62:18 Four self-checks, four tools 63:29 Assignment: build the charts 64:20 Same goals, tailored policies TOPICS COVERED Measuring: PPP dollars per capita; China 9.2T, 1.4bn people, 6,900 each; Japan 38,500; US 52,800 Groups: 2022 lines 1,085 / 1,086-4,255 / 4,265-13,205 / 13,206+; low 0.5% of GDP, 8.6% of people; high 63.0 / 15.7; regions 2020: 8,254 to 1,499 Growth: 70% of income gaps from physical capital; Tigers 5.5%; China 8-10%; rule of 72: 6% in 12 years, 2% in 36; Japan ~1% since 2012, debt 230-240% of GDP Trap and aid: Burundi 239 dollars a year, 85% agrarian, 11% electrified; OECD aid ~134bn a year, ~1.3% of low-income GDP Jobs and prices: 2020 rates US 3.5, France 8.5, Italy 10, Sweden 7.1; France 49-employee rule; Lewis turning point; US 9.1% 2022; Zimbabwe millions of percent 2008; Venezuela 1,000,000% by 2018 Trade and capital: NAFTA, replaced by USMCA July 1, 2020; infant industry, temporary, competition-oriented; Asian crisis 1997-98: lending +20% a year, deficits 5-10% of GDP, currencies crashed 50%+ Flags: section thresholds differ from Key Terms (under 1,025 / 1,025-12,475 / 12,475+); Self-Check 1 says seven regions, Table 19.3 prints six; printed GDP does not equal population x per capita on several rows; book spells Bannerjee, taught as Banerjee Figures 19.2, 19.3 (bars) and 19.5 redrawn, plus rule-of-72, Tigers, Lewis, Asian-crisis, coordination diagrams; Figs 19.1, 19.4, 19.6, 19.7, 19.8 photos in words only FULL COURSE Principles of Macroeconomics 3e (OpenStax): Complete Course    • Principles of Macroeconomics 3e (OpenStax)...   PRACTICE (Self-Check and Problems) Self-Check 1: rank six regions two ways; 5: cyclical tools; 7: indexing; 10: deficit financed; 11: capital outflows. Work all eleven Self-Check questions, plus Review 12 to 22, Critical Thinking 23 to 29, Problems 30 to 35. ABOUT About 66 minutes; follows Chapter 18. Anil Kumar | Assistant Professor, Shri Ram College of Commerce, University of Delhi Based on Principles of Macroeconomics 3e by OpenStax, Rice University, CC BY-NC-SA 4.0: attribution, non-commercial, share-alike. Not endorsed by OpenStax. NEXT: Chapter 20: International Trade #Macroeconomics #OpenStax #EconomicGrowth #Unemployment #Inflation #SRCC