How to fall in love (with Economics)

You chat. It’s nothing.

(When demand increases, price increases; but when price increases, quantity demanded falls!)
Wow, that’s cool.

(The price mechanism rations the limited goods and services to those who are most willing and able to pay, based on dollar votes.)
So what that’s what you do?

(The price mechanism achieves allocative efficiency.)

(But we have to make a lot of assumptions.)
I see!

(The government sometimes likes to intervene in markets by giving out subsidies. For example, Edusave is provided to all students to correct for market failure in education.)
Nice. Yeah I like that too. Totally relatable.


Today onwards the focus of the blog will shift.

Instead of publishing economics notes and articles for students, I am going to be writing about the topics of personal development for students and pedagogy for economic teachers. I will try to do so with an economics slant, as much as possible. Whatever I have written in the past will continue to stay on the blog. I will also be uploading the Newsletters I have written in the past shortly.

To start off the change in direction, a new series — Unsent — starts today.

Thank you and till next time, dream economics.

2012 A Level H2 Economics Review: Macroeconomics Qn 5

During 2009 the Bank of England engaged in what is known as ‘quantitative easing; by pumping more than $200Billion into the economy. Record low levels of interest rates have also been maintained within the UK economy. Quantitative easing and low interest rates were also adopted by the US.

(a) Explain why exchange rates rather than interest rates are the preferred choice as the instrument of monetary policy in Singapore. [10]
(b) Discuss the likely impact on the Singapore economy of quantitative easing and low interest rates in the US and the UK. [15]