IndyWatch Australian Economic News Feed Archiver

Go Back:30 Days | 7 Days | 2 Days | 1 Day

IndyWatch Australian Economic News Feed Today.

Go Forward:1 Day | 2 Days | 7 Days | 30 Days

IndyWatch Australian Economic News Feed was generated at Australian News IndyWatch.

Saturday, 30 January

16:00

The Weekend Quiz – January 30, 2016 – answers and discussion Bill Mitchell – billy blog

Here are the answers with discussion for the Weekend quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of Modern Monetary Theory (MMT) and its application to macroeconomic thinking. Comments as usual welcome, especially if I have made an error.

Question 1:

Workers can enjoy a stable share of national income over time if they secure wage and salary increases in line with the growth in their contribution to production (labour productivity).

The answer is False.

The share the workers get of GDP (National Income) is called the “wage share”. Their contribution to production is labour productivity.

The wage share in nominal GDP is expressed as the total wage bill as a percentage of nominal GDP. Economists differentiate between nominal GDP ($GDP), which is total output produced at market prices and real GDP (GDP), which is the actual physical equivalent of the nominal GDP. We will come back to that distinction soon.

To compute the wage share we need to consider total labour costs in production and the flow of production ($GDP) each period.

Employment (L) is a stock and is measured in persons (averaged over some period like a month or a quarter or a year.

The wage bill is a flow and is the product of total employment (L) and the average wage (w) prevailing at any point in time. Stocks (L) become flows if it is multiplied by a flow variable (W). So the wage bill is the total labour costs in production per period.

So the wage bill = W.L

The wage share is just the total labour costs expressed as a proportion of $GDP – (W.L)/$GDP in nominal terms, usually expressed as a percentage. We can actually break this do...

06:57

Why the Bank of Japan’s Negative Interest Rate Decision Matters The Diplomat » Pacific Money

Japan is experimenting with negative interest rates. Here's what that means.

00:51

What ‘Entrepreneurship’ Means to South Koreans The Diplomat » Pacific Money

Many South Koreans are starting a business simply as a means to find work.

Go Back:30 Days | 7 Days | 2 Days | 1 Day

IndyWatch Australian Economic News Feed Today.

Go Forward:1 Day | 2 Days | 7 Days | 30 Days

Thursday, 28 January

00:32

Go Back:30 Days | 7 Days | 2 Days | 1 Day

IndyWatch Australian Economic News Feed Today.

Go Forward:1 Day | 2 Days | 7 Days | 30 Days

Friday, 22 January

17:00

The Weekend Quiz – January 23, 2016 Bill Mitchell – billy blog

Welcome to The Weekend Quiz, which used to be known as the Saturday Quiz! The quiz tests whether you have been paying attention over the last seven days. See how you go with the following questions. Your results are only known to you and no records are retained.

Please go to The Weekend Quiz – January 23, 2016 to view the quiz

Thursday, 24 December

10:13

TPP take action AFTINET

The TPP text of thousands of pages was released on November 5, 2016, and it confirms our fears.See our initial assessment  hereThe TPP text will be reviewed by parliamentary committees from February 2016 before Parliament votes on the implementing legislation. AFTINET is campaigning to block the implementing legislation in the Senate.  

What you can do:

  • Download and distribute our leaflet ...

IndyWatch Australian Economic News Feed Archiver

Go Back:30 Days | 7 Days | 2 Days | 1 Day

IndyWatch Australian Economic News Feed Today.

Go Forward:1 Day | 2 Days | 7 Days | 30 Days

IndyWatch Australian Economic News Feed was generated at Australian News IndyWatch.

Resource generated at IndyWatch using aliasfeed and rawdog