dropping by

dropping by to enter a entry on the virtually dead blog
and to give you 2 a surprise.... to see new post haha
fyp meeting tmr
deadline is friday
so sianz

*work hard work hard*
trying to convince myself haha

revised fyp schedule

ok here's our revised fyp schedule...let's stick to it!

Meeting with Prof Tan 29/8/07

Section 2:

Part one of this section would be about the 3 approaches (i.e. Savings Investment approach, Absorption approach and the elasticity approach).

In part 2, we would find out what exactly are the determinants to current account balance, e.g. REER, relative wages, budget deficits, public and private savings rate. In the literature review, we would explore what others have already done, and possibly highlight those that are in-line with our research to help guild in building our model

We have to look at the current account data which would help us determine what the factors are, in other not to be confused with the net factor income flow

CA = NX + Net Factor Income Flow

By looking at the current account data, it would eliminate our concern of not factoring the second part of the equation hence would be effective in capturing both net exports and net factor income flow.

Wages: We can take relative wages of both countries to explore their cost competitiveness. (Must note to account for relative inflation)

Measuring Cost competitiveness

REER (CPI)- prices might not be a good gauge as the country might have a slack monetary policy

REER (RULC)- using labor cost to compare the exchange rate between countries

FYP schedule

FYP schedule!!

Take note of the deadlines... if not, we are going to be dead =P

Our project will be based on the effect of the real exchange rate and real wages on the trade balance. From the regression results, we will determine which is the more significant factor attributing to the trade imbalance and therefore current account.