Answer to Question #278968 in Macroeconomics for Kingsley

Question

How does great depression and great MEDERATION PERIOD related to Nigeria economics

Answer 1

As early as December 1929, the Depression began in Northern Nigeria, with falling export prices for grains and tin, as well as declining trade earnings and revenues, as British corporations either stopped importing European manufacturing or sought tax relief. The Great Moderation was founded on the reduction of inflation and the establishment of basic price stability. However, economists have traditionally given three reasons for the deeper reasons: changes in the economy's structure, fortunate luck, and excellent policy.

The Great Moderation was founded on the reduction of inflation and the establishment of basic price stability. However, economists have traditionally given three reasons for the deeper reasons: changes in the economy's structure, fortunate luck, and excellent policy. Volatility can be reduced by changes in the economy's structure. Because manufacturing is inherently volatile, the change from manufacturing to services, for example, would likely to lessen volatility. Adoption of "just-in-time" inventory techniques, which minimizes inventory cycle instability, is another structural development. Similarly, developments in information technology and communications may have enabled enterprises to produce more efficiently and better monitor their production processes, lowering output volatility—and consequently real GDP volatility. Many industries' deregulation may have contributed to the economy's increased flexibility, allowing it to react more smoothly to diverse types of shocks, resulting in greater stability. Finally, increased foreign commerce and money flows may have aided in the stabilization of the economy.