CharlotteMaria
30-05-2004, 20:25
CharlotteMaria's balance of payments jumped from a small deficit into a large surplus after a large rise in demand for exports to UN nations.
Most UN nations' domestic goods had become incompetitve and expensive after a law regarding a maximum working week of 40 hours had been passed. The law made it much more expensive for firms in UN nations to produce goods, and so they had to raise prices and cut production. Consumers in UN nations then turned to importing cheaper goods from CharlotteMaria.
CharlotteMaria economists are praising effective supply side policies and tight monetary policy for the country's economic success.
"We have no labour laws in CharlotteMaria, and markets are allowed to work freely at whatever cost", stated Thomas Dorrison, a noted classical economist.
"However, there is the problem that the rising demand for domestic goods will lead to inflation. We may have to raise interest rates to counter it.", he then stated.
Charlotte, the prime minister, said "I expect that aggregate demand will rise faster than long run aggregate supply in the next year or so. I warn the people of CharlotteMaria to cease borrowing, as I expect that interest rates could rise much higher than the present 6%."
Most UN nations' domestic goods had become incompetitve and expensive after a law regarding a maximum working week of 40 hours had been passed. The law made it much more expensive for firms in UN nations to produce goods, and so they had to raise prices and cut production. Consumers in UN nations then turned to importing cheaper goods from CharlotteMaria.
CharlotteMaria economists are praising effective supply side policies and tight monetary policy for the country's economic success.
"We have no labour laws in CharlotteMaria, and markets are allowed to work freely at whatever cost", stated Thomas Dorrison, a noted classical economist.
"However, there is the problem that the rising demand for domestic goods will lead to inflation. We may have to raise interest rates to counter it.", he then stated.
Charlotte, the prime minister, said "I expect that aggregate demand will rise faster than long run aggregate supply in the next year or so. I warn the people of CharlotteMaria to cease borrowing, as I expect that interest rates could rise much higher than the present 6%."