ECON 1002 (2 Viewers)

[xiao1985]

read previous post... a article by some dude, which u need to read as part of hw

 

[Sarah168]

its the article for tutorial 3. its abit of a practise for the presentations and media article thingo

ill bet everything i own now, you will not fail macro xiao

 

[xiao1985]

its the article for tutorial 3. its abit of a practise for the presentations and media article thingo

ill bet everything i own now, you will not fail macro xiao

hmmmmmmmmm which gives me an idea...
wait wut do u own right now any way?!

depending on the value of goods on stake, i won't mind failing macro la =p

 

[Sarah168]

believe me, you lose either way

 

[xiao1985]

believe me, you lose either way

don't be so sure dear...
u don't know wut length i'd go for a penny >=)

 

[xiao1985]

for those doing stm2,3... and also doing their presentation on wk8, xiaoie got a question for ya: =p

can we, instead of using newspaper article as said in outline, use magazine instead of newspaper?!
also, what will we be presenting on?!

 

[Sarah168]

for those doing stm2,3... and also doing their presentation on wk8, xiaoie got a question for ya: =p

can we, instead of using newspaper article as said in outline, use magazine instead of newspaper?!
also, what will we be presenting on?!

depends on the credibility of the magazine i guess. What did u have in mind?

and what do u mean "what to we present on? the topic or medium?

 

[xiao1985]

magazine i am thinkin brw...

as for wut we are presenting on, u know how we are given 2 topic right?! 1 question given 2 wk prior to notice and an other one research the newspaper etc?! are we meant to give a presentation on both pieces or just the newspaper one?!

cuz the lec outline is rather confusing...

btw taht dude deleted post... it now looks u are accusing me of puttin that over head =(

btw sarah, art thou in stm 2/3?!

 

[kow_dude]

Anyone majoring in economics??

 

[xiao1985]

* raises hand

 

[kow_dude]

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[Sarah168]

So am I actually...

 

[sarevok]

Can someone please translate what the hell the textbook means on p.612 when it says:

"Therefore, if all other things remain constant, including the expected future value of the domestic currency, a domestic currency depreciation today decreases the demand for foreign exchange arising from investors' decisions to buy foreign assets because it creates an expectation of a future capital loss."

investors buy foreign assets because it creates an expectation of a future capital loss? wtf?

 

[Sarah168]

A depreciation today leads to the expectation of an appreciation tomorrow, therefore we won't demand foreign assets as much because relatively, our dollar will be weaker and thats where we predict the capital loss


*insert major rant about the WORST economics textbook around*

I swear, I hate this freaking textbook. Only bought it cos Atta follows it and some tute questions come from it.

 

[sarevok]

A depreciation today leads to the expectation of an appreciation tomorrow, therefore we won't demand foreign assets as much because relatively, our dollar will be weaker and thats where we predict the capital loss

thanks, I think I see what you mean. so if our dollar depreciates today, we expect our dollar to appreciate tomorrow, therefore we do not buy foreign currency today?

agreed about the textbook...it usually just makes me more confused when i read it

 

[xiao1985]

@sarevok: no... me thinks that since our dollar depreciates, hence our dollar is buying say 50c of foreign dollar as oppose to 1 dollar... so if domestic investor is willing to invest 20 mil outside, they only get the 10 mil value, which is losing money...

hence less investor will invest outside,,...

hence domestic demand for foreign dollar will decrease..

OMG u guys actaully READS text books?!?!?!?!

 

[Sarah168]

hmm yeah, i think you're right xiao cos it says future expectations are constant...

stupid textbook. and yeah, i do read it, only cos i have no other text to refer too. Im not sure if Atta's notes are as sufficient as Dennis' (we'll wait til the first mid sem i guess...)

 

[sarevok]

@sarevok: no... me thinks that since our dollar depreciates, hence our dollar is buying say 50c of foreign dollar as oppose to 1 dollar... so if domestic investor is willing to invest 20 mil outside, they only get the 10 mil value, which is losing money...

hence less investor will invest outside,,...

hence domestic demand for foreign dollar will decrease..

mmm yeah, that's what i thought is the logical reason

but then i got confused because the textbook adds immediately after that "the lower the value of the dollar today, given an unchanged expected future value of the dollar, the higher is its expected rate of appreciation tomorrow." i mean, how is that relevant? the lecture notes also say that..

i will ask my tutor tomorrow

 

[xiao1985]

uhm wtf?! the text book says that?!

hm yeh it should make sense too... cuz low value of dollar will attract foreign investors (as their dollar will worth more) and then our demand will go up, hence pushing our dollar value up...

yeh atta's explanation is nice... just that... never felt as interested as dennis's explanation tho =(

 

[sarevok]

Question 1 of the assignment - doesn't Atta mean net foreign income instead of net income?