Assignment 1 Econ1010
Diagnostics analysis
Name of Country: Singapore
Indicator Group:
Inflation measured by price index
Presentation
Price index on early establishment
The economic downturn has affected many production and services since 2008 where it can be shown the CPI has been increased significantly with as much as double in subsequent years inflation in terms of spending in demand. The effect approximately last for about one year where Singapore shows its currency has great value with the addition of development in industrial plants and investments that maintained the provisions of singapore, until facing the highest inflation in the year 2008 where markets plummet and affects heavily on daily needs such as food, transport and housing by almost 7% pricings, slowing down economic growth.
Comments and observations
(Maximum 7 lines)
(4 marks)
The above diagram displays output decline showing in the third quarter in regards to an economic slowdown in manufacturing sector demand from U.S, european trade during the global financial crisis that includes pullbacks from production networks around Asia that in-turn caused intra-regional trade to collapse. This directly impacts the employment rate to a decrease since it depended other countries to settle their industrial plants off-shore that rely on opportunities from foriegn investors. This also affected in imports slowdown from neighbouring countries.
Part B:
Policy Brief
In Part B, the overall page length cannot exceed three pages
For the best possible grade, it is necessary to follow the instruction closely. Any deviations will result in marks taken away.
Assignments are graded against marking criteria that incorporate the requirements set out in the ‘Policy Brief Instructions’. Failing to appropriately include all the requirements outlined in the instructions typically precludes the awarding of top marks.
Subject:
Analysis of inflation CPI in year 2008 financial crisis for Daniel chan UOB analyst.
Executive summary (3 marks)
Write an executive summary of the policy brief. Your core message should consist of three sentences. The first one provides a summary of the scenario and what you found in Part A. The second sentence summarizes the key rationale for your recommendation. The final sentence summarizes your policy recommendation. Maximum length of 5 lines.
This report consists of analysis in CPI for year 2008 inflation crisis that discusses on the economic downturn due to shortage of production caused from global scale that causes price fluctuations, business collapse and decrease in consumer spending. Also, less spending produce causes GDP to decrease in a 2 year recession from 2008 to 2009.
Guide: The statements in this part should stand on their own. Provide specific information and avoid generalities. The reader of your brief should be able to understand the core message without referring to the background information or the rest of the brief.
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Recommendations (3 marks)
Provide minimum 2 to maximum 4 recommendations with maximum of five lines are permitted for this section.
Guide: Each recommendation should be stated as a clear course of action for the government /organization to pursue. Be precise with your recommendation and the likely impact on the economy but be concise. Avoid generalities and ambiguous statements. Do not explain or seek to justify your recommendation in this section. Do not describe the consequence of your policy recommendation. Do not state conditions or caveats for your recommendation.
One possible way to help in the inflation fall is to have a large reserve bank to help in
Economic rationale (15 marks)
Begin this section with a short outline of the context for the brief, the summary of the problem identified in Part A, and any other issues that you think useful.
Guide: This should set the scene for the reader and should provide the reader with sufficient background information to understand the purpose of the brief.
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Use the remainder of this section to present economic justifications and the rationale behind your recommendation(s). In your discussion, you should;
· highlight any trade-offs entailed in your recommendation(s)
· raise any additional issues if implemented.
· point out the feasibility of the policy implementation (your recommendation(s) need to be realistic)
You can discuss the economics rationale for all your recommendations together or separately for each recommendation. It should be decided by the students as in what format they can present their argument effectively.
In the end, narratives should form a logical argument supporting your policy recommendation.
Guide: Incorporate all information required to support your recommendation in this section, regardless of whether or not the same information has been included elsewhere in the brief. Do not assert facts that are unsupported by either the narrative or the diagnostics conducted in section A.
NOTE: Remaining 4 marks come from the literary presentation of the report (See Rubrics for details)
Max. page is 3 pages for Part B (anything more than 3 pages will not be assessed, but you may attach a one-page of reference list after the 3-page limit)
End of Part B
https://tradingeconomics.com/singapore/inflation-cpi
https://www.straitstimes.com/business/economy/singapore-core-inflation-falls-to-over-3-year-low-in-july-forecast-for-2019-lowered
https://www.singstat.gov.sg/find-data/search-by-theme/economy/prices-and-price-indices/visualising-data
Slow down - https://www.aljazeera.com/ajimpact/singapore-economy-grew-slowest-pace-decade-2nd-quarter-190712034048298.html
Relation - https://tradingeconomics.com/singapore/gdp-growth
Life expectancy - https://www.thoughtco.com/singapores-economic-development-1434565
World bank overview - https://www.worldbank.org/en/country/singapore/overview
Singapore's GDP Growth Weakened Sharply
https://www.mas.gov.sg/annual_reports/annual20082009/13_sin.html
http://www.asiaecon.org/special_articles/read_sp/11630
Highest inflation in 26 years - http://www.asiaecon.org/special_articles/read_sp/11630
https://www.tablebuilder.singstat.gov.sg/publicfacing/createDataTable.action?refId=15638