Two Economics to Copy-2

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Prof EADELuiss Academic English CourseFaculty of Political Science3-Year Degree Programme

Module: Economics and Politics

Part One

I. The Issues: The following issues will be covered:

1) The World Economy: developed and developing countries

2) Economic Theory at work: government intervention or laissez-faire?

3) Current Economic Issues and how they shape international policy:

commanding heights, historical events and how they shaped politics

II. The questions: Here are some questions which will be raised duringthis Module. It is unlikely that many answers will be found, but we willcertainly acquire the tools to discuss them more effectively.

1) What are the major differences between the developing and developed

countries?

2) What are the most serious issues facing the globe today and how do they

effect the economy?

3) What are the key differences between Keynes and the Monetarists?

4) What role does the economy play in shaping policy and politics?

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OIKONOMIA

The term economycomes most directly from the Old French word economie, meaning"management of a household." The French adopted the term from the Latin wordoeconomia" which was in turn derived from the Greek word oikonomia. Oikonomia

came from the word oikonomos, which separates into oikos, meaning house, andnomos meaning managing.

The oldest recognized written work in the field of economics is Oeconomicus, a book onfarming and household management, written by the Greek philosopher Xenophon(430?-355? B.C.).(http://www.mhhe.com/economics/mcconnellmacro15e/student/olc/chap01origin.mhtml)

Write a brief definition for each of the words below. Mark the stressed syllable on each.

Now use the words above to complete the paragraph.

Most people today agree that we ought to be as (1)

.as possible with our use of natural resources,particularly energy, and limit pollution to a minimum. Ecologists sometimesargue that manufacturers should either clean up their production processes,i.e. limit the amount of waste and emissions they produce, or be forced toclose down. Manufacturers often reply that it is frequently

(2) .to clean up, and impossible if theircompetitors do not face the same constraints. Furthermore, if all pollutingindustries were closed down, the (3) .wouldquite simply collapse. They suggest that many ecologists are simplyignorant or nave when it comes to (4) , some (5)

.suggest applying market solutions, i.e. finding away to give financial rewards to producers who (6).in the use of energy, and who pollute less, andto penalize polluters, but without the use of taxes. Many ecologists disagree,as they see pollution as a moral issue rather than an (7).one.

Verb Noun Adjectiveeconomize: economy:

economics:

economists:

economic:

economical:

uneconomical:

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THE WORLD ECONOMY

Classifying the worlds some 200 countries is no easy task. In the past, the world was divided into two blocsaccording to politico-economic systems. Today however, the United Nations groupings are no longer referredto as "capitalist" or "communist". Instead, they are called developed market economies and developingcountries. The latter often includes sub-groups like: emerging markets and transition countries.

A country is labeled developing or developeddepending on its degree of industrialization and on a numberof other indicators, including the per capita gross national product (GNP)**, the Human DevelopmentIndex***(HDI), and the structural diversification of the economy.

The type of economy may also differ from one country to another. Market economies give relatively free playto private enterprise and market forces. On the other hand, centrally planned economies are those in whichthe State still has a dominant role in the ownership and control of the economy. China and Cuba areexamples of these, though the former is slowly evolving toward a more open market.For operational and analytical purposes, the World Banks main criterion for classifying economies is grossnational income (GNI*) per capita. (low income, middle income, or high income). But classification by incomedoes not necessarily reflect the development status of a country. Some countries with a biased incomedistribution may have a relatively high per-capita GNI while the majority of its citizens have a relatively lowlevel of income, due to concentration of wealth in the hands of a small fraction of the population.

Sources: the UNITED NATIONS, the World Bank, Economy Watch

* Gross National Income : takes into account all production in the domestic economy (i.e., GDP) plus the net flows of factor income (such as rents,

profits, and labor income) from abroad. It differs from GNP in that it also includes a terms of trade adjustment.

** Gross National Product : the sum total of all government and personal earnings, i.e. salaries, wages, net rents, interests, company profits,

etc., including foreign earnings. Gross Domestic Product : the sum total of all government and personal earnings, with the exception of foreign

earnings

*** Human Development Index is based not only on GDP but also indicators such as life expectancy, education and human rights.

PRE-READING: How much do you know about the World Economic Order? In pairs, fill in thefollowing table with as much information as possible before you read.

FEATURES DEVELOPINGCOUNTRIES

DEVELOPED COUNTRIES

% OF WORLDS POPULATION

% OF INCREASE IN GLOBALPOPULATION

BASIS OF THE ECONOMY

LEVEL OF TECHNOLOGY

% OF WORLD GDP

ANNUAL GDP/CAPITA

TYPICAL EXPORTS

TYPICAL IMPORTS

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THE WORLD ECONOMY: Part Two

Now skim through the rest of the text to find the answers and make the necessary changesin your table.

DEVELOPING COUNTRIES

All the world's poor countries, as well as the oil-exporting countries, are oftenclassified as developing. These can be divided into several geographical areas:the Arab States (GNP $ 5,685), East Asia and the Pacific (GNP: $5,100), LatinAmerica and the Caribbean (GNP $ 7,404), South Asia (GNP $ 2,897), Sub-SaharanAfrica (GNP$: 1,856), Central and Eastern Europe and the CIS (GNP $7,939)

Of the more than 6 billion people in the world today, more than 75 per cent live indeveloping countries. Because of a steep decline in death rates, global populationis increasing at a pace that will achieve a doubling in the foreseeable future.

More than 80 per cent of the population increase is occurring in developingcountries. The result is an explosive growth in demand for employment, food andthe basic necessities of life.

Most developing countries have principally agrarian economies and are dependenton the sale of a few minerals or agricultural products; their economies are not verydiversified. They generally use only low-level technologies and have modestindustries. Without a modern infrastructure, their productive capacity is limited.However the share of output coming from many of these countries has grown inrecent years, thanks particularly to emerging economies like China, India and VietNam.

LOW INCOME COUNTRIES: The United Nations has categorized the poorestcountries of the world based on three major criteria. They are annual grossdomestic product below $900 per capita and the quality of life, based on factorsincluding life expectancy at birth, per capita calorie intake, primary and secondaryschool secondary enrollment rates and adult literacy rate. The third criteria iseconomic vulnerability which mainly depends on the stability in agriculturalproduction, export and import.

The average per capita incomes of the poorest countries in the world weremeasured in the second half of the 1990s. Calculated in terms of the current pricesand the official exchange rates, the average per capita income was $0.72 a dayand the average per capita consumption was $0.57 per day. As far as literacy rateis concerned, it was 34% in the poorest countries in the world for the age group 15-24.

Despite low income and productivity, these countries play a vital role in the worldeconomy. They supply a variety of raw materials crucial to the economies of therich countries and they provide important markets for manufactured goods from

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economythose industrialized nations. Nevertheless, they lack both effective economicleverage and political clout in the decision-making process on how the worldeconomy operates.

EMERGING MARKET ECONOMIES: EMEs like China, India and the erstwhile SovietBloc countries are coming of age with increasing levels of its (GDP over the last

decade. This has happened mainly due to more investments made by foreigncompanies in these countries.

The term emerging market economy was coined in 1981 byAntoine.W.van.Agtmael of the International Finance Corporation under the aegis ofthe World Bank. The term actually refers to developing market economies whichhave embarked on a series of developmental measures until recently and areemerging in the global economy scene. An emerging market economy is said tohave per capita incomes in the lower-middle range if calculated by world incomesat the per capita level.

Emerging markets have the essential characteristic oftrade liberalization and

opening up their economies at the global stage. This leads to many foreign goodsflowing into the domestic market which now competes with locally producedarticles. This increases the standard of domestically manufactured goods andservices and raises their productivity and also helps to produce export qualityarticles. Developed economies' trade with developing countries is growing twice asfast as their trade with one another. Over half of the total exports of America, theeuro area and Japan now go to emerging economies. The EU exports twice as muchto them as it does to American and Japan combined.

DEVELOPED MARKET ECONOMIES

These countries are the richest and most technologically advanced in the world.

They are home to the majority of the giant trans-national corporations thatproduce and distribute much of the world's manufactured wealth and control itsbanking, communications and transport systems. Most of the decisions onmonetary and trade affairs that determine the overall fate of the worldeconomy are made from these countries.

While the developed market economies have only 20 percent of the globalpopulation, they account for approximately 65 per cent of the world's economicoutput. Their per capita GNP is, on average, over $15,000 per year. Developedmarket economies cooperate closely in many areas and exhibit considerablesimilarity in economic approach. Most are members of the Organization forEconomic Co-operation and Development (OECD), which coordinates policies and

oversees relations with other countries and groups.

Many countries in the developed world have been hard hit by the economiccrisis. They face challenges like unemployment and lower demand aggravatedby high public deficit and crises in the banking sector.

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http://www.economywatch.com/market-economy/emerging-market-economy.htmlhttp://www.economywatch.com/market-economy/emerging-market-economy.htmlhttp://www.economywatch.com/market-economy/emerging-market-economy.htmlhttp://www.economywatch.com/market-economy/emerging-market-economy.html


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Sentence writing: MARKET VS PLANNED ECONOMIES

I. What are the distinguishing features of a Market Economy and a PlannedEconomy?

I. Below are a series of statements describing the key features of either a market economyor a planned economy. First put the words in the right order. Then decide with economicsystem they refer to.

1.._____Resources by / are / state / owned / the

_____________________________________________________________________________.

2._____Price-fixing practiced / for / goods / is /and / services/

_____________________________________________________________________________.

3_____The production . and / services / determined / by / goods / the/ is/state / of

______________________________________________________________________________.

4 _____It is maintained that each other / will produce / a cheaper product /of businesses / competing with / of better quality/ a large number /

_____________________________________________________________________________.6._____The government decides resources / land, labor, capital / allocated/how / should be / like / and enterprise /

_____________________________________________________________________________.

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CURRENT ECONOMIC ISSUES

1. Below is a list of some of the major issues currently effecting our world. Discuss eachbriefly, explaining their meaning and the role they play in the political arena.

Political instability Ageing population

Mass unemployment The economic crisisPoverty and scarcity The crisis in the Middle EastSovereign debt Globalization

The Population explosion Climate ChangeRacial/ethnic conflicts The North-South divideCheap labour markets Poor governance

2. Which of the above do you consider to be the key global challenges for the years tocome? Write short sentences explaining why.

1) .

2) .

3) .

Are there any issues you would add to the list?

3. Look at the map below. Discuss which geographic areas you think willhave the most direct or indirect impact on the global economy over thenext five to ten years. Write a short paragraph to explain.

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http://www.mapsofworld.com/world-political-map.htm


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economyKEYNES VS FRIEDMAN

I. Pre-readingA. Important Terms: explain the following expressions.

free market economy investment

liberalism laissez-faire policysupply and demand interest rate

monetary policy recession

speculation inflation

social change borrowing

depression government intervention

unemployment interest ratesB. John Maynard Keynes or Milton Friedman are the leaders of two important economic

schools of thought. How much do you know about them. In pairs decide if the followingrefer to Keynes or Friedman. Dont be afraid to make some educated guesses.

1. valued friendship and beauty _____2. highly influenced by philosophers John Locke(1632-1704) and David Hume (1711-

1776) _____3. was born in Brooklyn _____4. his school of thought at the basis of economic policy during the Reagan and Thatcher

administrations _____5. theory: the use of money can be defined and controlled _____6. studied at Cambridge _____7. believed that if industry has more money, the economy will get better and

unemployment will go down _____8. worked for the Treasury _____9. against a totally laissez-faire policy _____10. did not like politics _____

11. theory: free market economy with some government intervention _____12. a member of the Chicago school _____13. his mother was one of the first female graduates from Cambridge _____14. wrote the General Theory of Employment _____15. advocated fiscal and monetary measure to mitigate adverse effects of recession and

depression _____16. theory: easier credit and lower interest rates stimulate industry and keep employment

high _____17. emphasized interest rates _____

18. supported libertarian policies such as decriminalization ofdrugs and prostitution. _____19. contributed to the creation of the International Monetary Fund and World Bank _____20. liked champagne _____21. did graduate work at the University of Chicago _____

II. Reading: You will be given an article about either Keynes or Friedman. Look through thearticle to check your answers, then report to your partner what you have found

III. Summing up: In a paragraph, compare the theories of Keynes and Friedman.IV. For discussion: What remedies do you think each of these economists would propose

to face the current economic downtown?

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http://en.wikipedia.org/wiki/Libertarianismhttp://en.wikipedia.org/wiki/Recreational_drughttp://en.wikipedia.org/wiki/Prostitutionhttp://en.wikipedia.org/wiki/Libertarianismhttp://en.wikipedia.org/wiki/Recreational_drughttp://en.wikipedia.org/wiki/Prostitution


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Milton Friedman (July November 16 2006 was

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LANGUAGE REVIEW: Economics

I. Verb Form Review: Complete the following passage about the Great Depression byfilling in the correct form of the verb in the simple past. Watch out for irregular forms.

The Great Depression was a severe worldwide economic depression in the decade preceding World

War II. The timing of the Great Depression __________________ (vary) across nations, but in most

countries it __________________ (start) in about 1929 and__________________ (last) until the

late 1930s or early 1940s. It was the longest, most widespread, and deepest depression of the 20th

century, and is used in the 21st century as an example of how far the world's economy can decline.

The depression __________________ (originate) in the United States, starting with thestock market

crash of October 29, 1929 (known asBlack Tuesday), but quickly__________________ (spread) to

almost every country in the world.

The Great Depression __________________ (have) devastating effects in virtually every country,

rich and poor. Personal income, tax revenue, profits and prices __________________ (drop), andinternational trade __________________ (plunge) by a half to two-thirds. Unemployment in the

United States__________________ (rise) to 25%, and in some countries __________________

(climb) as high as 33%.Cities all around the world__________________ (be) hit hard, especially

those dependent onheavy industry. Construction was virtually __________________ (halt) in

many countries.Farming and rural areas __________________ (suffer) as crop prices

__________________ (fall) by approximately 60 percent. Facing plummeting demand with few

alternate sources of jobs, areas dependent onprimary sector industriessuch as cash cropping,

mining and logging __________________ (to feel) the crisis the most.

Countries__________________ (begin) to recover by the mid-1930s, but in many countries the

negative effects of the Great Depression lasted until the start of World War II.

II. Vocabulary

Match the following words and definitions

Supply A) a state of balance, for example when supply meets demandDemand b) government or central bank measures concerning the rate of

growth of the money supply (amount of money in circulation)Market

forces

c) government measures concerning taxation, public

expenditure, and so onEquilibrium d) supply and demandFiscal policy e) the willingness and ability of consumers to purchase goods

and servicesMonetarypolicy

f) the willingness and ability to offer goods or services for sale

Opposites: Match up the words into pairs of opposites.

Rigid Supply Consuming Cut Saving

Demand Depression Flexible Recovery Increase
http://en.wikipedia.org/wiki/Depression_(economics)http://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Black_Tuesdayhttp://en.wikipedia.org/wiki/Black_Tuesdayhttp://en.wikipedia.org/wiki/Personal_incomehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Cities_in_the_Great_Depressionhttp://en.wikipedia.org/wiki/Cities_in_the_Great_Depressionhttp://en.wikipedia.org/wiki/Heavy_industryhttp://en.wikipedia.org/wiki/Heavy_industryhttp://en.wikipedia.org/wiki/Farminghttp://en.wikipedia.org/wiki/Farminghttp://en.wikipedia.org/wiki/Primary_sector_of_economic_activityhttp://en.wikipedia.org/wiki/Primary_sector_of_economic_activityhttp://en.wikipedia.org/wiki/Cash_crophttp://en.wikipedia.org/wiki/Cash_crophttp://en.wikipedia.org/wiki/Mininghttp://en.wikipedia.org/wiki/Logginghttp://en.wikipedia.org/wiki/Depression_(economics)http://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/World_War_IIhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Black_Tuesdayhttp://en.wikipedia.org/wiki/Personal_incomehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Cities_in_the_Great_Depressionhttp://en.wikipedia.org/wiki/Heavy_industryhttp://en.wikipedia.org/wiki/Farminghttp://en.wikipedia.org/wiki/Primary_sector_of_economic_activityhttp://en.wikipedia.org/wiki/Cash_crophttp://en.wikipedia.org/wiki/Mininghttp://en.wikipedia.org/wiki/Logging


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BACKGROUND: Read the short text paying special attention to the expressions underlined.

What issue does it raise regarding EU intervention in sovereign debt?

What is your opinion on this question?

As the Greek crisis raged, EU leaders in May 2010 established a rescue mechanism worth440 billion, the European Financial Stability Facility (EFSF), to protect the euro fromcollapsing under the weight of accumulated debt. Together with a 60bn injection from theEuropean Commission and 250bn from the IMF, that makes a total of 750bn.

After Greece and Ireland received EU-IMF bailouts last year to cope with their swollenpublic debts and deficits, Portugal is seen as the next candidate for a rescue despiteefforts to put its public finances in order.

On 2 May 2010, euro-zone finance ministers agreed to activate ajoint EU-IMF aidpackage worth 110 billion euros to help indebted Greece. Under the deal, Athens received80 billion euros in bilateral loans in three years spanning until 2012. 30 billion came fromthe International Monetary Fund (IMF). In November, it was the turn of Ireland. EuropeanUnion finance ministers agreed on 21 November to a request from Ireland to help it dealwith its crippling debt problem.

At a 17 December summit EU leaders agreed to create a permanent financial safety netfrom 2013 and the European Central Bank moved to increase its firepower to fight the debtcrisis that has rocked the euro zone.

http://www.euractiv.com/en/euro-finance/portugal-step-closer-requesting-eu-bailout-news-502311

Reading Strategies

The article below was published at the time when the EU was debating whether to rescueGreece.

I. Skim the article first for the general idea. What is the purpose of this article?

_______________________________________________________________________________________________

2. Now scan the text and identify which parts of the article contains the answers for each ofthe questions below. Then, fill in the column on the left with the key words and phrases whichare necessary to answer the question. (see example)

Opposition Grows in Germany to Bailout for Greece

NEW YORK TIMESBy NICHOLAS KULISHPublished: February 15, 2010

BERLIN As European finance ministers refused Monday to name specificmeasures to rescue Greece and the Continents common currency, opposition

grew among Germans to bailing out what they call spendthrifts to the southafter years of belt-tightening by workers at home.
http://www.euractiv.com/en/financial-services/eu-sealed-plan-shield-euro-speculators-news-493956http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/misc/114130.pdfhttp://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/misc/114130.pdfhttp://www.euractiv.com/euro-finance/eu-ireland-agree-bailout-package-news-499877http://www.euractiv.com/euro-finance/eu-ireland-agree-bailout-package-news-499877http://www.euractiv.com/euro-finance/eu-opts-new-bailout-system-news-500729http://topics.nytimes.com/top/reference/timestopics/people/k/nicholas_kulish/index.html?inline=nyt-perhttp://topics.nytimes.com/top/news/international/countriesandterritories/greece/index.html?inline=nyt-geohttp://www.euractiv.com/en/financial-services/eu-sealed-plan-shield-euro-speculators-news-493956http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/misc/114130.pdfhttp://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/misc/114130.pdfhttp://www.euractiv.com/euro-finance/eu-ireland-agree-bailout-package-news-499877http://www.euractiv.com/euro-finance/eu-ireland-agree-bailout-package-news-499877http://www.euractiv.com/euro-finance/eu-opts-new-bailout-system-news-500729http://topics.nytimes.com/top/reference/timestopics/people/k/nicholas_kulish/index.html?inline=nyt-perhttp://topics.nytimes.com/top/news/international/countriesandterritories/greece/index.html?inline=nyt-geo


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1) The fiscal crisis, shaking the Greek government

while driving down the value ofthe euro, is forcingtaxpayers and voters across Europe to confront the

fact that their fortunes are tied together more closely

than their politicians confessed in the late 1990s, in

the rush to create the common currency over public

objections. In the process it has revealed how deeply

national identity, rather than a common European

identity, remains the reality on the Continent.

Solidarity, at least in the eyes of most voters, still

stops at the border.

2) Despite popular opposition to helping Greece,

analysts expect big countries like France and

Germany to reach some kind of deal, since theprospect of economic chaos without an agreement

is more frightening than even the wrath of voters.

Just like Obama is not going to let a systemicbank fail, Europe is not going to kick the wayward

out of the system, saidJosef Joffe, the publisherof the weekly newspaper Die Zeit. But he added

that the reason for that could not be kept from the

voters. Europe has become a huge welfare state

for everybody, for states as well as individuals,

he said.

3) Greeces finance minister, George

Papaconstantinou, told his counterparts on

Monday that a firmer commitment to helping his

country was needed to fend off speculators. Other

ministers in the euro zone lectured Greece about

using complex financial instruments prepared by

Wall Street to hide debt and called for a tighter

clampdown on spending, rather than outlining the

specifics of an aid package that would calm

markets. European leaders want to extract

guarantees from the Greeks to put their finances in

order before offering any kind of rescue, but their

reticence also stems from the fact that any price

tag will have to be defended at home.

4) Here in Germany, opinion surveys show that

two-thirds of the people oppose financial

assistance for Greece. More ominously, a survey

released Sunday by the newspaper Bild showed

that a slight majority of Germans, 53 percent, said

they favored expelling Greece from the euro group

entirely if its mountain of debt threatened the

stability of the currency union. Every country

has its own debts, said Kristin Lautenschlger,

70, a retiree in Berlin who said she opposed

spending German money to save Greece.

Germany is no longer such a rich country

anymore, and has its own problems to deal with

before it can take care of Greeces.

5) Germans spent the past decade cutting

unemployment benefits and freezing pensions,

while grudgingly accepting stagnant wages in

order to make their economy more competitive.

After those years of sacrifice, it is more than just a

matter of money that is driving opposition to the

bailout, but also a matter of principle, after

politicians promised they would never have to

prop up their neighbours.

6) The crisis could not have come at a worse

moment for ChancellorAngela Merkel. At the

outset of thefinancial crisis, Mrs. Merkelconfidently called it an American problem, and

resisted as much as possible calls from across theAtlantic for even more government spending to

kick-start economic growth. Now with theAmerican economy in the midst of a more robust,

if still fragile, recovery, the Germany economy has

stalled, with no growth in the fourth quarter,

according to an announcement Friday by the

government statistics office.

7) In Germany, the debate over aid to the Greeks

intensified last week when the Constitutional Court in

Karlsruheruled that unpopular labor-market reforms,known as Hartz IV, may have gone too far in cuttingbenefits for the countrys unemployed. That set off a

political fight within the German government over

jobless assistance, one that was inevitably framed as

helping Germans or saving Greeks.

8) The lack of common fiscal policies for the bloc

meant built-in instability for the euro, but years

without a majorrecessioncovered it up. Now it isclear that unlike the United States, where the federal

government has the power to help individual states,

Europe lacks the mechanisms to steady its strugglingnations, and the uncertainty is causing some critics to

call the very future of the currency union into

question.

9) But voters in Germany see the decision to bail out

Greece as just the first step in what will be a long line

of countries seeking handouts. After Greece it will

just be other countries like Portugal, said Patrick

Klomfas, 28, an unemployed automotive engineer,

who on Monday was visiting the employment office in

the Berlin neighborhood of Lichtenberg. But you

know, the politicians are just going to do what they

want to do anyway, said Mr. Klomfas, who has been
http://topics.nytimes.com/top/reference/timestopics/subjects/c/currency/euro/index.html?inline=nyt-classifierhttp://topics.nytimes.com/top/reference/timestopics/subjects/c/currency/euro/index.html?inline=nyt-classifierhttp://www.nytimes.com/info/germany?inline=nyt-geohttp://www.hoover.org/bios/joffe.htmlhttp://www.hoover.org/bios/joffe.htmlhttp://topics.nytimes.com/top/reference/timestopics/people/m/angela_merkel/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_crisis/index.html?inline=nyt-classifierhttp://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_crisis/index.html?inline=nyt-classifierhttp://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/EN/press/pr/2010/02/PE10__050__811,templateId=renderPrint.psmlhttp://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/EN/press/pr/2010/02/PE10__050__811,templateId=renderPrint.psmlhttp://www.spiegel.de/international/germany/0,1518,676839,00.htmlhttp://www.spiegel.de/international/germany/0,1518,676839,00.htmlhttp://topics.nytimes.com/top/reference/timestopics/subjects/r/recession_and_depression/index.html?inline=nyt-classifierhttp://topics.nytimes.com/top/reference/timestopics/subjects/r/recession_and_depression/index.html?inline=nyt-classifierhttp://topics.nytimes.com/top/reference/timestopics/subjects/c/currency/euro/index.html?inline=nyt-classifierhttp://www.nytimes.com/info/germany?inline=nyt-geohttp://www.hoover.org/bios/joffe.htmlhttp://topics.nytimes.com/top/reference/timestopics/people/m/angela_merkel/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_crisis/index.html?inline=nyt-classifierhttp://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/EN/press/pr/2010/02/PE10__050__811,templateId=renderPrint.psmlhttp://www.spiegel.de/international/germany/0,1518,676839,00.htmlhttp://topics.nytimes.com/top/reference/timestopics/subjects/r/recession_and_depression/index.html?inline=nyt-classifier


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out of work since October, but expects to start a new

job next month. No one wanted the euro, but the euro

came anyway.


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QUESTION PARA-GRAPH

KEY WORDS

1. What effect is the currentfinancial crisis having on Europeans? 1

forcing taxpayers and voters to confront the fact that theirfortunes are tied together morenational identity, rather than a common European identity,Solidarity still stops at the border.

2. Why is it expected that a deal willbe reached regarding bailouts forGreece?

3. What demands are being made onthe part of many Europeanleaders with regard to Greece?

4. What stance do the majority ofGermans take on financialassistance for Greece?

5. What economic sacrifices hasGermany had to make in the pastdecade and why?

6. In what way might it be said thatthis crisis comes as a surprise toMerkels government?

7. Why did the recent ruling inGermany regarding labor-marketreforms start up the debate overhelping Greece?

9. What problem has this issueraised regarding the euro-zone?

10. Why do voters in Germany fearthe decision to bail out Greece?


16/16

ASSIGNMENT

Task: Research a major economic issue and take notes on your research

Procedure: Choose one of the economic issues which in your opinion has had a major impact on

politics and policies today (see class handout for list of issues). Find two reliable sites in English onthe internet which give information about these issues. Complete the table below in note form: do

NOT write in full sentences. Use key words and concepts only.

Economic Issue you have researched: ______________________________________________

Causes Consequences Future forecast

Website One:

Name:

url:

Website Two:

Name:

url:

Outcome: Bring your notes to the next class session and be ready to brief your group on your issue.

Two Economics to Copy-2

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