Premium Essay

How Global Debt Crisis Could Affect You

In: Business and Management

Submitted By JessJiayu
Words 1253
Pages 6

Reasons for selecting the article

The reasons for choosing the article are that firstly, it stated that aggregates for economic consequences, GDP, recession and unemployment have greatly affected Singapore economy. The article also focused on the nation behaviour of the declining economy for US and Greece due to finance crisis which in turn affect other nations, in this case, Singapore.
In fact, the article briefly explained how aggregates like national income and output have affected US and Greece economy, which in turn affected Singapore. It will be further discussed whether this mentioned global crisis will affect Singapore inflation, causing a rise in unemployment rate and the slowing of GDP growth for emerging markets.

Summary of the article
The article comments on how two of Singapore’s trading partners, mainly US and Greece, are hurting themselves with their debt problems and the impact of their problems on Singapore economy. It briefly describes what US debt ceiling is and the heavy borrowing of Greek government which has greatly contributed to the global debt crisis.
It also explains on US debt problem and other aftershocks if the debt ceiling is not rise.
Moreover, it explains the debts that Greece had incurred and what will happen if Greece defaults on its debts. Lastly, it further highlighted that the Singapore economy is affected by the two countries’ debt problems.

Identify and discuss on the economics concepts and models that will be suitable for analysing the news article
Macroeconomics model is concerned either with the economy as a whole or with major aggregates such as national income and output, price inflation, total consumption, investment spending and also, the unemployment rate which make up the economy (Stonecash, Gans & King Mankiw, 2005).
From the model, each aggregate is…...

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