Monday, October 3, 2011

Euro Zone, CPI, and other economics crap.

Just a few updates on the trip!


We're going to be in Greece from the 28th of December to the 1st or 2nd of January. We will fly from Athens to Rome, staying there until the 5th or the 6th. From Rome, we'll fly to London until the 8th, but we plan on taking a day/possible overnight trip to Wales! The plan is that we will be in Edinburgh by the 9th, starting Morgan's three day birthday celebration (IF YOU'RE READING THIS, YOU'RE PROBABLY INVITED! Just send luk  a message for all the details. =] On the 12th or 13th, we're heading out to Ireland. We'll leave Dublin on the 30th, doing an overnight at the airport in Madrid and then back to America the 31st. And then Spring Term classes start February 1st. =D


If you're interested in housing us or meeting up at a time during our trips for discussions, debate and/or drinking, comment or send us a message!! (Or comment anyway. Everyone loooooves feedback.)




The Effect of Greece on the World Markets.


While Greece is continuing to spiral closer to default at a time when the EU is in a bit of disarray, the Consumer Price Index of Greece is going up (this means that the amount people who are buying, or consuming, goods and services has increased). However, the manufacturing activity contracted. If looking at this on a supply/demand diagram, one would see a right shift in demand (increase in quantity demanded, or how much is needed/wanted by the consumer) as well as a left shift in the supply curve (a decrease in quantity produced, leading to a decrease in price per unit). I could be wrong though... =] 


This could be a good thing for the economy because it will bring the country closer to it's market equilibrium- where the production and price are at a social optimum. However, if this economic crisis is anything like the one budding in America, it's possible that the Greeks might start saving more money than they're spending, so the demand will drop and the supply will be higher than it needs to be. But if demand drops down the zero.... the economy has totally collapsed (and things will probably be on fire).


And in case you were wondering, I did a pretty good on my first economics test! =]





No comments:

Post a Comment