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The Pros And Disadvantages Of The European Monetary Union
The European Monetary Union is distinguished by a general monetary policy and in the same time,
also by twelve national fiscal policies from the member states. The European Monetary Union is
unique and different in term of operating mechanism as it lacks a central fiscal authority. The
intention of the absence of a central fiscal authority is to establish a similar construction of the
organisation, with a fiscal decentralization (Furceri, 2004). Analysts contend that the carefully
management of the European Monetary Union will boost a positive relationship between the free
trade of the member states and the monetary system itself, since, the monetary system will be able to
reduce the cost of transportation transaction, stabilizing the society ... Show more content on
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The division of fiscal transfer mechanism instead of having a single mechanism has been criticized
for two main reasons (Furceri, 2004). Firstly, the ordinary monetary policy of European Monetary
Union has been commonly known to cause asymmetric effects among the member states. The
asymmetric effect of the monetary policy will be unable to ensure the status of economy of the
whole European Union. Next, it is possible that the single fiscal policy of the countries involving in
European Union will be ineffective in smoothing cyclical fluctuations of the Gross Domestic
Product (GDP) around the potential level. GDP, which is one of the principal indicator to determine
the size of the economy of a country, should be maintained around the potential level to ensure a
healthy growth of economy. However, the implement of single fiscal policy in European Union is
inefficient to reduce the impacts of continual change of GDP. If the problem of asymmetric shocks
continued, the imbalance contribution of economy among the member states will become more
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Fiscal Policy And Monetary Policy
We the government have to find a better way to spend the economic money better to improve our
situation. Looking at the two expansionary which is fiscal and monetary policy to find out a way to
find the economic. It is macroeconomic policy that pursues to enlarge the money supply to boost
economic growth or combat inflation. One of the form is fiscal policy of expansionary policy, which
comes in the method of tax cuts, discounts and increased government spending. Expansionary
policies do come from central banks, which focus on cumulative the money supply in the economy.
Now let look at the break down of expansionary policy which deal with the fiscal policy and
monetary policy. The U.S. Federal Reserve pays expansionary policies whenever it ... Show more
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In the book it say: Discretionary fiscal policy is the intentional use of taxing or government
spending to affect the level of output, employment, and prices. Even if governments change their
levels of spending or taxes for other reasons, policy makers are very conscious of the effects these
actions will have on output, employment, and the price level. Most economists in the classical
tradition consider fiscal policy to be of limited benefit, sometimes even harmful (Amacher, 2012).
Fiscal policy can be used in direction to both stimulate an inactive economy or to slow down an
economy that is developing at a rate that is getting out of control, which have a potential to lead to
inflation or advantage. Fiscal policy openly touches the aggregate demand of an economy.
Reminiscence that aggregate demand is the entire number of final goods and services in an
economy, which contain consumption, investment, government spending, and net exports. For
example: Aggregate Demand = Consumption + Investment + Government Spending + Net Exports.
Fiscal policy has a result on each of these groups. There are two types of fiscal policy which are
expansionary and contractionary.
When our economy is in a recession, expansionary fiscal policy is in effect. Normally this kind of
fiscal policy consequences in enlarged government spending and/or inferior taxes. A recession
consequences in a recessionary hole which mean that aggregate
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Fiscal Policy In Alberta's Economy
4.0 Solutions
4.1 Fiscal Policy
Fiscal policy is how government changes its spending and tax rates to influence a country's
economy. Prior to the Great Depression the 1930s, the government's approach to the economy was
laissez–faire, meaning they had minimal involvement. Because this method was ineffective during
the Depression, the government turned to Keynesian economics, which increased government
intervention in the economy. Since then, the government has assumed a proactive role in regulating
business cycles, inflation, unemployment, and other economic factors.
4.1.1 Current fiscal policy. Modern fiscal policy is based on the theories of economist John Maynard
Keynes, who invented Keynesian economics. This theory states governments can ... Show more
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This can be done through purchases of government bonds. When the bank purchases such securities,
money originally held by the bank must be used in these purchases and thus increase money supply.
With more possible funds for financial institutions to loan, interest rates would decrease, with
similar effects as lowering the prime rate. The corresponding stimulation of aggregate demand will
once again increase output.
4.2.2 Recommended monetary policy.
As the Canadian economy is currently in the recovery/expansion phase, the Bank of Canada can use
monetary policy to decrease or maintain interest rates. By decreasing interest rates, interest–
sensitive spending will increase as the cost associated with loaning funds would be lower. With
greater expenditures, aggregate demand would be higher, accompanied by increased output as
measured by real GDP. By maintaining interest rates, the government can keep inflation stable. Thus
maintaining or lowering rates would be a suggested policy given the current state of the economy.
5.0 Implementation of Policy Recommendations
5.1 How to Achieve Policy
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2007-2009 Recession
An economy is concerned with product, goods, and service. These three economic are affected by
factors on the availability of any materials, labor, tech, etc. This period includes withdrawals
considered a recession. Recession experienced in America and other countries in institutions that go
away for a while.
How were GDP, inflation, and unemployment affected during the 2007–2009 recession, and how
does the model show this?
2007–2009 recession lead to an impact on the economy. Inflation, during 2007 to 2009 the recession
to place and purchasing goods and other items went down. The businesses products started
becoming less available meaning costs went up on everything and started the inflation.The recession
resulted in unemployment making jobs more valuable. Additionally, business started to close leading
to more unemployment. The GDP was affected when everything started going downhill. During the
recession, the consumption of goods went down forcing the goods to be produced less. Thanks to
the goods being produced less the cost of producing the product was more than selling them
lowering the profits for business making them go out of business resulting in reduced of GDP.
What monetary policies and fiscal policies were implemented during the recession? ... Show more
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The government gave financially to businesses and other institutions. Thanks to the government and
president companies were able to recover and produce results starting profit for businesses that were
under inflation. The president and governments cut taxes for everyone and this helped to lower
production cost. The tax cut can lower production costs; bringing profits up and motivating
companies to higher'. Thus, boosting the economy and recovering from the recession resulting in the
economic
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Advantages And Disadvantages Of French Connection
FCUK FRENCH CONNECTION
French connection (also branded as FCUK) is a UK– based global retailer and wholesaler of fashion
clothing, accessories and home ware. It was founded in the early 1970s by Stephen a mark, who
remains the chief executive; it is based in London and its parent French Connection PLC is listed on
the London stock exchange.
French Connection distributes its clothing and accessories through its own stores in the UK, US and
Canada and through franchise and wholesale arrangements globally. The company became notorious
for the use of the "FCUK" initialise in its advertising campaigns in the early 2000s.
Marks introduced the French connection label in 1972 and four years later showed its first
menswear collection
Source:'FCUK', ... Show more content on Helpwriting.net ...
The advantages and disadvantages of a government company is stated below
The advantages are
 It provides a strong competition for the private sector companies
 Most of the governments companies run on sound business as they as they have their surpluses to
their projects.
 The formation of government companies is very easy because it is formed like other joint stock
companies
And the disadvantages are:–
 Government companies are independence in theory, but in practice it is not independence because
political groups obstruct in the day–to–day operation of the companies. Since these are dependent
on the government for taking important policy decisions
 As many of the government companies take the support of civil servants, they cannot exercise
better for the efficiency of the organization because they are not technical persons.
 Nearly every one of the government companies experience softness in management under the
take hold of public services. These are not treated as efficient as private units because of this state of
relationships found.
Government departments
 Departments are under control of any politician in charge or by any higher
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What Is The Most Effective Fiscal Policy
The most effective policy is the fiscal policy. Before I explain why the fiscal policy is more
effective, I need to explain the differences between the two policies. First, I will be explaining the
monetary policy. According to the website "The Economic Times," it clearly explains that the
monetary policy is made up of actions of a central bank, regulatory committee, and a currency
board. They are involved in determining the size and the interest rate of money supply. The policy
maintained actions such as buying or selling government bonds and change the amount of money
banks are required to keep in the bank. The federal reserves are in charge of the monetary policy.
There are two types of monetary policy, which are called contractionary and
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The Great Recession Of 2008
The Great Recession of 2008 Debra Turner ECON 102 Professor, Shahrokh American Public
University September 26, 2015 The Great Recession of 2008 Recession is a significant decline in
real GDP, real income, employment, industrial production, and wholesale/retail sales, which last
more than a few months. (Economic recession, n.d.) Further, a recession typically begins after a
peak in the economy and ends at the trough, however, "the start and end dates are determined by the
Business Cycle Dating Committee of the National Bureau of Economic Research (NBER)."
(Economic recession, n.d.) The Great Recession–which officially lasted from December 2007 to
June 2009–began with the bursting of an 8 trillion dollar housing bubble. The resulting loss of
wealth led to sharp cutbacks in consumer spending. This loss of consumption, combined with the
financial market chaos triggered by the bursting of the bubble, also led to a collapse in business
investment. As consumer spending and business investment dried up, massive job loss followed. In
2008 and 2009, the U.S. labor market lost 8.4 million jobs, or 6.1% of all payroll employment. (The
Great Recession, n.d.) Fiscal policy is the use of government revenue (taxes) and expenditure
(spending) to influence the economy. (Weil, 2008) Fiscal policy is "used to stabilize the economy
over the course of the business cycle." (Fiscal policy, n.d.) Examples of both of these according to
National fiscal policy response to the Great
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Fiscal And Monetary Policy In The UK
The UK government uses both Fiscal and Monetary
Policy in its control of the economy:
Analysis and Discussion.
'The Business Environment Report' submitted to
The College of Technology London.
Submitted By : Max Pereira Enrolment No : 083799–84 Section : MEP 2 Email :
max.pereira@stu.ctlondon.ac.uk Word Count : 3000 words
Under the Guidance of
Lecturer: George Olusoji
1. Abstract
We are all aware of the present world crisis and the recession period in which United Kingdom is
progressing. Any individual may be inquisitive about what the government of UK is doing in this
case and how the government ... Show more content on Helpwriting.net ...
In order to maintain the economic stability and growth the government uses two common strategic
approaches towards management of the economy which are:
1: Fiscal policy: concentrating on stimulating the economy through changes in the government
income and expenditure.
2: Monetary Policy, which influences the circular flow of income by changes in the supply of money
and interest rates (Palmer and Hartley, 2006).
4. Methodology
The methodology used to discuss and analyze the given topic would be Case study, which will act as
a primary source of data. Yin (2003) recommended the use of case–study protocol as part of a
carefully designed research project. He also added that case studies can be either single or multiple–
case designs. Single cases are used to confirm or challenge a theory, or to represent a unique or
extreme case. Uma Sekaran (2003) supports the justification for this methodology according to
whom, case studies involve in–depth and background analyses of relatively similar situations within
one environment and compare that of other. She also commented that case studies provide more of
qualitative data rather than quantitative data.
As the topic suggested, the environmental subject of the case study would be UK. It may be noted
that UK was one of the few member nations which was invited to the G–20 meet held on 14–15 of
November 2008. And since the G–20 is a forum that brings together important industrial
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Relationship between Real GDP Growth and Transfer Payments...
Transfer payments are government outlays, for programs such as Social Security and welfare, for
which the government does not receive any goods or services in return. Transfer payments were
designed as a way to provide a safety net to citizens in need of assistance. In the last fifty years we
have seen a consistent increase in transfer payments, regardless of the economic conditions faced by
the nation. Some of this continual increase in transfer payments can be explained by demographics
(Baby Boomers collecting Social Security), changes in the political climate (immigration amnesty in
the 1980s) as well as the economic climate of the last decade (extended unemployment
compensation). In this paper, we attempt to analyze the effect, if any, ... Show more content on
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Finally and more importantly the results show that, statistically speaking, there is not enough
evidence to infer that transfer payments during times of recession contribute to GDP growth. One of
the surprising results from this model is the negative relationship between non transfer payments
and GDP growth. The model shows that during times of economic recession, a $1 billion investment
in non transfer payments actually decreases per capita GDP by $12.88. The negative relationship
still holds during times of economic expansion: a $1 billion investment in non transfer payments
leads to a decrease in per capita GDP of $10.17. If we combine these results and the fact that we
found that transfer payments have no statistical significance, we can infer that an expansionary
fiscal policy in times of economic recession has a negligible impact on GDP growth. During times
of economic expansion, we found that non transfer payments have a negative impact on GDP
growth; on the other hand, transfer payments do have an impact, albeit extremely small, on GDP
growth. We can thus reject the proposition that an increase in government spending helps fuel
economic growth (recession or no). In terms of monetary policies, the model shows that
expansionary monetary policy during recession is not statistically significant; the implication of this
result is that during a recession, there is no
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Demand Side Policies And The Great Recession
DEMAND–SIDE POLICIES AND THE GREAT RECESSION OF 2008 TIMOTHY W. AUSTIN
AMU/APUS ECON102 MACROECONOMICS DR. FREDERIC BOUCHET MARCH 25, 2016
INTRODUCTION According to Investopedia, "a recession is a significant decline in activity across
the economy, lasting longer than a few months." Technically a recession is viewed and measured by
evaluating and verifying negative growth in a nations' Gross Domestic Product (GDP) for two
successive quarters. A recession can be seen when there is a decline in "industrial production,
employment, real income, and wholesale–retail trade (INVESTOPEDIA, 2016)". Recessions are a
typical part of the business cycle however, the Great Recession of 2008 wreaked havoc on the global
economy mainly due to unusual and high risk investment tactics. The Great Recession brought
negative impacts which saw the burst of a highly booming housing market, the failure of thousands
of businesses, unprecedented unemployment rates which reached historical highs of more than 9.5
percent, which all ultimately crushed consumer spending during this recessionary period
(WelshGibbs, 2015). During a recession like the one experienced in 2008; governments enact fiscal
and monetary policies in an attempt to right the economy and combat the negative impacts a
recession has on a nation's economy. FISCAL POLICIES Fiscal policy is simply government
spending to effect macroeconomic conditions. Implementing fiscal policy in a nation is a
government's effort to positively
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Explain How Fiscal and Monetary Policy Decisions Have...
The uk government sets monetary policy by adjusting the funds rate. This affects other short–term
and long–term rates, including credit–card rates and mortgages. Governments define fiscal policy by
setting taxation levels and writing legislation and regulation for everything from health care to the
environment. Fiscal and monetary policy changes can affect businesses directly and indirectly,
although competitive factors and management execution are also important factors.
Businesses
go through cycles of expansion, recession and recovery. Monetary and fiscal policies can affect the
timing and length of these cycles. In the expansion phase, the economy grows, businesses add jobs
and consumer spending increases. At some point, known as ... Show more content on
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Direct taxation includes income tax, national insurance and corporation tax. Income tax and
National Insurance (NI) are similarly affecting the consumer and operate exactly the same giving the
same economic effects. Income tax and NI are the two biggest source of tax revenue for the govt,
changes to either of these directly relate to disposable income, which in effect changes consumer
demand. Consumer demand is a major factor for Tesco as a business as and an increase would mean
more sales and a higher income, a decrease would lead to lower sales and lower income for Tesco's.
A lesser income would mean smaller profits which in turn might mean lower investment and
employment levels.
Corporation tax is a tax on company profits which means it directly affects TESCO. A cut in tax
means Tesco will have more disposable profits which they could use in many ways. They could add
to their reserves saving it for an emergency, or use the profits to finance investment, which will
directly increase economic growth. Another use is reduce corporate debt, which will increase Tesco's
future profits. They could also give their shareholders bigger dividends, which could lead to bigger
investments if shareholders invest their extra income back into Tesco.
Indirect Taxes relates to VAT and Excise duties. VAT is sales tax which is collected by the business
(Tesco) and given to the government. Essentially if increased it would increase the price of Tesco's
products, this subsequently
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The Role Of The State Aroused Little Interest On The World...
There was a time when the welfare of the state aroused little interest in the world's Treasuries and
Central Bank. (Bosanquet, 1). In the study of economic growth, a country's institutional framework
plays a critical role, which involves the growth of social expenditure such as heath, unemployment,
the relationship between economic developments, and welfare delivery, where the spending have
rapidly grown over the years. Gross Domestic Product (GDP), is where the total market value of
final goods and services are produced yearly by factors of production located within a nation's
borders, nations measure their income by assessing the performance of an economy. We have the
Income approach, where nations adds up the components of their ... Show more content on
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We have the government who do more spending on the military by providing them with uniforms,
food and many more. The government's spending usually does not include social security, welfare
etc. We have the net export in GDP, these are spending done by the importation and exportation of
good in and out of the country (J Ward). Gross Domestic Product can be measured by (Miller pp.
191) adding up the dollar value of intermediate goods at each stage of production. We have various
approaches which include, the expenditure approach; GDP is measured by adding up the dollar
value at current market prices of all final goods and services. In the middle of the twentieth century,
some countries had shown that catching up in their gross domestic product was possible. Japan's
economic growth took off in the 1960s and 1970s, with a growth rate of real GDP per capital
averaging 11% per year during. Certain countries in Latin America experienced a boom in economic
growth in the 1960s. In Brazil, the GDP per capita was expanded by an average annual rate of 11.1%
from 1968 to 1973. In the 1970s, South Korea, Thailand, and Taiwan, saw rapid growth. In these
countries, growth rates of 11% to 12% per year in GDP per capital were not uncommon. More
recently, China, with its population of 1.3 billion people, grew at a per capital rate 9% per year from
1984 into the 2000s. India, with a population of 1.1 billion, has shown promising signs of economic
growth, with
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What Is Economic System
Table of Content
Table of Content 1
TASK 1 2
a) Explanation on economics system attempt to allocate resources effectively. 2
b) Assessment on the impact of fiscal and monetary policy on business organisation and their
activities. 9
c) Explain Malaysian competition policy and other regulation that may impact company. 15
TASK 2 17
a) Explanation on how market structures determine pricing and output decision of business. 17
b) Illustration on the way in which market forces shape organisational responses. 20
c) Judgement on how business and cultural environments shape the behaviour of your organisation.
21
Conclusion 22
REFERENCES 23
TASK 1
a) Explanation on economics system attempt to allocate resources effectively.
What is economic ... Show more content on Helpwriting.net ...
(Economy Watch)
Every economy has their own characteristic. For free market is there are many economic freedoms,
there is competition among businesses, competition determines price which increase the quality of
the product, economic decisions are made by the basic principles of supply and demand, and profit
is the motive for increasing work rather than quotas.
Mixed economy
Mixed economy is combination from planned and free market economy. This economy system
allows the private company use their capital. This economy system allows the government to
interfere to the market. The resources are allocated from both the government and the private sector.
In this system the freedom in the economic activities are influenced by the Government 's regulation
and licensing policies.
The example of the country that implemented this economy system is Iceland, Sweden, France, and
United Kingdom.
There are several advantages and disadvantages of the mixed economy system. The advantages are
most business and industry can be left to private firms. This is because private firms tend to be more
efficient than government controlled firms because they have a profit incentive to cut costs and be
innovative. Second is government can pursue policies to provide macro–economic stability.
The
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Essay Monetary and Fiscal Policies
Assignment 2: Monetary and Fiscal Policies
P3: Outline how both fiscal and monetary policy decisions have affected a selected business.
M2: Analyse the effects of fiscal and monetary policies for a selected business in terms of the
market in which it operates
Tesco like every business will be affected by Monetary and Fiscal policies, whether this be directly
or indirectly. Tesco PLC will be affected more indirectly by these policies and in this report I will
explain how.
Fiscal Policy involves the Government changing the levels of Taxation and Government Spending in
order to influence AD (Aggregate Demand) and therefore the level of economic activity.
Monetary Policy involves using interest rates or changes to money supply to ... Show more content
on Helpwriting.net ...
Income tax and NI are the two biggest source of tax revenue for the govt, changes to either of these
directly relate to disposable income, which in effect changes consumer demand. Consumer demand
is a major factor for Tesco as a business as and an increase would mean more sales and a higher
income, a decrease would lead to lower sales and lower income for Tesco's. A lesser income would
mean smaller profits which in turn might mean lower investment and employment levels.
Corporation tax is a tax on company profits which means it directly affects TESCO. A cut in tax
means Tesco will have more disposable profits which they could use in many ways. They could add
to their reserves saving it for an emergency, or use the profits to finance investment, which will
directly increase economic growth. Another use is reduce corporate debt, which will increase Tesco's
future profits. They could also give their shareholders bigger dividends, which could lead to bigger
investments if shareholders invest their extra income back into Tesco.
Indirect Taxes relates to VAT and Excise duties. VAT is sales tax which is collected by the business
(Tesco) and given to the government. Essentially if increased it would increase the price of Tesco's
products, this subsequently will more often than not lose consumer interest.
Monetary policy
The interest rates instance of the monetary policy
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Do Fiscal and Monetary Policy Stimulate the Economy? Essays
Constant changes in market economies make it nearly impossible to maintain a constant level of
economic activity. Fluctuations are the heart of market economies; market economies cannot exist
without them. These fluctuations can be described as the business cycle, and like every cycle there
are a series of events that construct these phases. The business cycle consists of three phases,
expansion (until peak point is reached), a decreasing point into recession, and a rebound from
recession to recovery. These events must be examined closely because it is possible for the economy
to hit extreme highs and extreme lows which can abruptly change the flow of the cycle. For
example, if overlooked and the economy hits an extreme low, considered a ... Show more content on
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The government can use the fiscal policy to lower taxes and increase the level of government
expenditure to boost the economy when facing a recession. Lowering taxes and increasing the level
of government expenditure encourages individuals to spend more. When the government lowers
indirect taxes, goods will become cheaper because their taxes will be lower resulting in a higher
demand for these goods. Similarly, if direct taxes are lowered, disposable income increases which
encourages spending. In both cases, lowering either direct or indirect taxes during a recession,
increases demand which will eventually help the economy out of recession due to encouraged
economic growth. In contrast, if the economy is already at full employment, an increase in fiscal
expansion will affect prices more than it will impact total output. When the economy is not in a
recession and is facing a "boom" in the economy, inflation becomes the problem. If the economy is
facing inflation, the fiscal policy can be used to produce a budget surplus and help slow down the
economy. Despite the fact that the fiscal policy can be applied at times of recession or at times of
inflation, the fiscal policy has some flaws. Law–making time lag, shrinking area of lawmaker
discretion, estimation of potential GDP, and economic forecasting are all factors that interfere with
the effectiveness of the fiscal policy. First, the law–making time lag, this flaw can
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Explain How Australian Economy Will Remain
Australian Economy Will Remain Sluggish for Several Years It is said that we are living in turbulent
times. The Australia's once–in–a–century commodity boom has reversed, leading many miners to
cut back on investments and consolidate; which is expected to generate great social and economic
hardship throughout these years. While more hope is casted into the construction sector, a cooling
change blows in the housing market. Unemployment is tipped to rise and when it reaches a record
high; consumption will continue to grow at a below–average pace, so business sentiment will
remain fragile. Rather than fuelling the economy, the fiscal policy keeps straining it whilst the
monetary policy will struggle to have an impact – indicating that the Australian economy is slipping
downwards. Nevertheless, some economists still maintain bullish opinions in regards to Australian
economic growth. It is argued that there are still plenty of reasons to be optimistic since opportunity
always comes with change – the economic opportunities for Australia have been rich and will
continue to be. Some people say the benefits of the mining boom have been greatly exaggerated; so
the unwinding of the boom will have less ... Show more content on Helpwriting.net ...
Those who argue that the ending of mining is not the ending of the economy and that the
construction investment could offset the mining sector slump may be misled. They, together with
those who assert that the ongoing fiscal and monetary stimulus have ample powers to lift the
economy should clearly realise the following: the plunge in mining investment, the down turn in
construction industry, the restriction in fiscal and monetary actions all signal that the Australian
economy is sliding to sluggish. This low growth condition will continue for several years to come; it
seems there is no room for
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Fiscal and Monetary Policy
Introduction
As an assistant manager for Skanska I have been asked by my manager to explain how fiscal and
monetary policy decisions affect the business in which I work. To undertake this task I will provide
explanation of the fiscal and monetary policies. I will also explain what interest rate is and what
could be possible changes on it. Additionally, I will explain how both policies could make changes
in employment level. Fiscal policy
Economic climate is essential to be controlled within every single county because this helps control
important activities within the particular country. All countries where economy is developed created
and follow polices which ensure that money spent by government are used in an appropriate way. ...
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(Ref.http://lexicon.ft.com/Term?term=corporation–tax)
Indirect Taxation
Indirect taxes are charged by government on producers or suppliers. The main aim of these taxes is
to reduce pollution and improve the environment. The examples of indirect taxes are value added
tax (VAT), excise duty, air passenger duty, insurance taxes such as car, home or pet insurance, TV
licence or driving licence.
(Ref.http://tutor2u.net/economics/revision–notes/as–marketfailure–indirect–taxation.html)
Value Added Tax (VAT)
This type of tax is charged almost on all products or services provided by organisations. For instance
businesses pay VAT for all products which are needed to manufacture the products and then VAT is
paid by customers if they want to buy manufactured products. VAT could be charged into three
different rates which are standard rate 20%, reduced rate 5% and zero rated 0%. Standard rate is
most common form of VAT and this is paid on almost all products or services unless they have been
specified to reduce or zero rate. Reduced rate is depend on products it's self and the circumstances of
the sale. The most common example of reduced rate VAT are domestic fuel and power, installation
of energy saving materials, sanitary hygiene goods or children's car seats. Zero rated VAT is similar
to the reduced rated VAT as is depend on
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Are We A Double Dip Recession?
Are we in a double dip recession? Or is the recession finally over? Is economic recovery finally
happening? Since the Great Depression breakdown that occurred in late 2007, that brought
everything from job loss, to jobs shortage, busting of an 8 trillion dollars housing bubble, falling
income and rising poverty; we still asking these questions to economists, the government and
ourselves. But technically we are not in recession anymore. Economist would said that we are in
recessions if for two consecutive quarters the Gross Domestic Product (GDP) decline. The GDP is
basically the complete market value of all final products produced by a country's residents in a
particular year (Gross product originating: Definition and relationship to gross domestic product).
GDP is a great economic tool to use as an indicator of output and suitable for using in estimates of
productivity. While we might not be in recession, we sure are in a slow economic recovery. Since
the government role is to create appropriate rules, provide the country with security, infrastructure
and safety measurements to protect their people's property; ever since 2007 they had engage in
expansionary economic policies in an effort to move the economy out of a recession. There were the
most forceful and prevailing fiscal and monetary policies in the history. Nevertheless to say that
practically every single one of these policies initiatives remains debatable until this day, with
opponents calling them injudicious,
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Monetary Policy
Monetary Policy at the Local and Federal Level & Impact in a Recession
Monetary policy, in the short run, has an impact toward the demand for goods and services. That is,
monetary policy has a distinct influence over inflation and other economic factors, not only at the
federal level, but at the state and citywide levels. Monetary policy will influence the financial
conditions facing firms and households in the environment, even at the micro level. Thus,
employees who produce goods and services are impacted, as is the demand for those goods and
services. When monetary policy imposes changes, the financial conditions that affect the economic
activity in specific sectors are influenced as well. The federal government, through fiscal policies ...
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Of course, this is felt throughout the entire economy, at the state and local levels, and in
macroeconomics at the federal level. Individuals are dramatically impacted when stocks rise or fall.
The focus is on when stocks fall and there is a crippling impact on the individuals and their financial
worth. During a recession, the stock market has likely fallen, where one may notice the impact
throughout the local environment as individuals struggle to compensate for their losses. Therefore,
one is likely to see monetary policy in order to make adjustments and fix what is out of alignment in
the economic
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Advantages And Disadvantages Of Fuk French Connection
FCUK FRENCH CONNECTION
French connection (also branded as FCUK) is a UK– based global retailer and wholesaler of fashion
clothing, accessories and home ware. It was founded in the early 1970s by Stephen a mark, who
remains the chief executive; it is based in London and its parent French Connection PLC is listed on
the London stock exchange.
French Connection distributes its clothing and accessories through its own stores in the UK, US and
Canada and through franchise and wholesale arrangements globally. The company became notorious
for the use of the "FCUK" initialise in its advertising campaigns in the early 2000s.
Marks introduced the French connection label in 1972 and four years later showed its first
menswear collection.
Source:'FCUK', ... Show more content on Helpwriting.net ...
Fiscal policy is divided into 2 types and they are taxing and spending. And monetary is divided into
three types and those three are bonds, reserves and interest rates.
Fiscal policy
Fiscal policy is "The changes in government spending and taxes are at the option of the federal
government." Source: ICBT HANDOUTS
Each year governments raise and spend huge amounts of money. The UK government's estimates
for 2008 for an example suggest that the government spending will be about £618 billon and is to be
allocated in a manner, this spending will be funded mainly from taxations( direct and indirect) and
national insurance contributions. Fiscal policy involves the use of changes in government spending
and taxations to influence the level and composition of aggregate demand in the economy.
Fiscal Policy involves the use of changes in government spending and taxations to influence the
level and composition and aggregate demand in the economic and giving the amount involve is
clearly as important implications for business
Fiscal policy involves
1. taxation and other sources of income
2. government spending
3. borrowing whenever spending exceeds
... Get more on HelpWriting.net ...
Different Types Of Economic Systems
Define Different Types of Economic Systems Traditional economies are steered through historical
practise, often in which communities use original tools and methods to harvest and hunt for food,
resulting in very little economic growth. Traditional economies have a tendency to operate in rural
Third World countries and appear to live in poverty even if their needs are being met. When
traditional economies interact with market or command economies, money plays an important role,
it enables those in the traditional economy to purchase better equipment to make their farming,
hunting or fishing more profitable. The United States had many features of a traditional economy
before the Great Depression. In the beginning of the 20th century, 60% of the United Stated lived in
farming communities, whilst 41% of the workforce were employed by farms. Over–farming
occurred in response to high demand from Europe after World War I. In addition two–thirds of Haiti
's population relies on subsistence farming for their livelihood. Their reliance on wood as a primary
source of fuel has stripped the forests of trees. This makes them vulnerable to natural disasters, such
as the earthquake that struck Haiti in 2010 Source: CIA World Factbook, Haiti 's Economy;
Marginal Revolution, Why Is Haiti so Poor?) Market economies are based on consumers and their
buying decisions rather than under government control. Trends and popularity generate what
businesses produce. The producers choose how to make
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unit 38 Accounting
Unit 38 Business and the Economic EnvironmentLearner name Assessor nameSameeha
Hussain/Antonio ZarroDate unit issuedUnit DeadlineDate unit submitted by
student27/01/1419/04/14 Criteria referenceTo achieve the criteria the evidence must show that the
learner is able toAsst Task no. Assessor initial date when metPASS CRITERIAP1 Explain the
effects of changes in the economic environment on a selected business P2 Identify how government
policies impact on a selected business P3 Identify the impact of government spending on a selected
businessP4 Explain how both fiscal and monetary policy decisions have affected a selected
businessP5 Describe the impact of international factors on a selected business M1 Analyse the
implications of ... Show more content on Helpwriting.net ...
The carmaker, which employs 15,000 people, including 3,500 engineers at two product development
centres in the Midlands, is part of the EU ETS scheme and has signed up to a Climate Change
Agreement. Head of sustainability Frances Leedham says One of my objectives is to make
environment and sustainability part of doing business. It was unheard of a few years ago, but there is
a clear incentive to decarbonise our economy and focus on renewable energy. Across our UK
facilities we have set ambitious targets, and by 2012 we aim to reduce operating carbon emissions
by 25 per cent, waste to landfill by 25 per cent and water consumption by 10 per cent. So crucial is
the companys sustainability agenda to long–term business growth that a 9m fund has been set aside
for investment in efficiency measures across the business, targeting areas where the biggest savings
can be made. Jaguar Land Rovers paint shops, for example, have been identified as the largest
consumer of energy in the whole manufacturing process. By sharing best practice between
production sites, the company has implemented more than 50 initiatives–from optimising use of air
compressors to closing parts of the paint shops when they are not being used. These measures have
saved 13,200 tonnes of carbon emissions and more than 1.5m in energy costs over the past two
years. But Leedham insists smaller schemes have a significant effect, too Things such as lighting,
heating
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Fiscal Policy, Monetary Policy, and a Healthy Gross...
Economic Health/Fiscal Policies and Federal Reserve/Monetary Policies Paper Understanding Gross
Domestic product is central for understanding the business cycle and the progression of long–run
economic growth (Hubbard & O'Brien, 2011, p. 631). The GDP is defined as the value–added of all
goods and services produced in a given period of time within the United States (2008). The GDP is
widely used as an gauge economic wellness and health of the country. What the GDP represents has
a hefty impact on nearly everyone within our economy. As an example, when the economy is
healthy, you will usually see wage increases and low unemployment as businesses demand labor to
meet the increasing economy. The government has two types of economic ... Show more content on
Helpwriting.net ...
Non–economic reasons can include factors such as drought, war, man–made and natural disasters.
When the economy expands: unemployment decreases, inflation begins to increase and the real
GDP rises. In contrast, when the economy contracts: unemployment increases, inflation decreases
and the GDP falls.
Role of Government Bodies in Determining National Fiscal Policies Fiscal policy is the use of a
government's taxing, debt, and spending authority for the purpose of influencing economic growth.
Congress and the president share responsibility for economic policy with the Federal Reserve
(Hubbard & O'Brien, 2011, p. 929). The government can influence macroeconomic productivity
levels by increasing or decreasing tax levels and public spending (Hubbard & O'Brien, 2011). The
government uses fiscal policy to make changes in government purchases and taxes, to achieve
policy goals. The price level and the levels Gross Domestic Product and total employment in the
economy rely on the collective demand and short term aggregate supply. The government can both
aggregate demand and collective supply through fiscal policy (Hubbard & O'Brien, 2011, p. 900).
Fiscal policies can influence the economy's production and employment. For example, since the
government controls the central bank, it may be tempted right before an election to increase the
money supply and drive down interest rates to increase production and
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The Conflict Between Inflation And Unemployment
Now the conflict between inflation and unemployment is a little different. During a period of strong
GDP growth, falling unemployment will create a demand–­
‐pull and cost–­
‐push inflation leading to a
decline in the real purchasing power of money. There are policies designed to control demand–­
‐pull
or cost–­
‐push inflation for example by reducing aggregated demand but may lead to a contraction of
output and a rise in unemployment. Similar to how inflation can conflict with unemployment,
deflation may also lead to a rise in unemployment.
There are some policies in place to help if this was to happen. The fiscal and monetary policies are
used as tools to keep the economy stable. Monetary policy is primarily concerned with the ... Show
more content on Helpwriting.net ...
The Federal Reserve has frequently used three different policy tools to influence the economy:
opening market operations, changing reserve requirements for banks and setting the "discount rate."
Open market operations are carried out on a daily basis where the Federal Reserve's buys and sells
U.S. government bonds to either inject money into the economy or pull money out of circulation. By
setting the reserve ratio, or the percentage of deposits that banks are required to hold and not lend
back out, the Federal Reserve's directly influences the amount of money created when banks make
loans. They can also target changes in the discount rate, or the interest rate charged by the Federal
Reserve's when making loans to financial institutions, which is intended to impact short–term
interest rates across the entire economy. This is how the monetary policy works to aid the economy.
Now let's look at how fiscal policy works. Fiscal policy is the means by which a government adjusts
its spending levels and tax rates to monitor and influence a nation 's economy. It is the sister strategy
to monetary policy through which a central bank influences a nation 's money supply. The two most
widely used means of affecting fiscal policy are changes in the role of government spending or in
tax policy. If the government believes there is not enough spending and business activity in the
economy, it can increase the amount of money it
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The Business World Is More Challenging
To say the truth the business world is more challenging. To assess the purpose the business it should
be noted that we can say that the profit must come in the first array and in some special cases the
benefit to the society also has come as a major why the business is doing in the current world. If we
wish to make analysis the environment of the business then the industry in which the business is
operating must be given preference as well as the risk the business is having in the current time
being.
1 Task–2
1.1 How the different economic system affects the effective allocation of the resources
Command economy: At first we will discuss regarding the command economy. Actually command
economy refers to any such type of economic system where the government holds the authority of
the major decisions such as how much to be produced, the price quotation for the produced goods
and the quality of the produced goods in some extent also. So it is necessary to discuss how it will
affect the Trio and other business organization. To say we can illustrate that here the company will
not have the option to produce as its best wish rather than the government has (Piveronus, 2006). On
the other hand the company has not the right to fix the price quotation rather it may be lower due to
the government intervention on the company. The company cannot have the optimum quality
production as the price charge may not come up with the said price. Market competition may be
high. There is a little
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Fiscal and Monetary Policy Behavior over the Business Cycle
Introduction: According to Kenya's geopolitical and economics situation, applying monetary–fiscal
policy mix is mutually reinforcing and therefore more effective. Failure to coordinate these policies
is potentially dangerous as it may lead to slow growth of the economy and cause surges in inflation.
Our research seeks to address the following specific questions:
How does the fiscal policy behave over the business cycle? How does the monetary policy behave
over the business cycle?
1 MONETARY POLICY:
– The key monetary policy objective is to maintain price stability – In 2011, the country faced
substantial inflationary pressure that was exacerbated by high international oil prices, drought
conditions and exchange rate depreciation. – As a result, the rate of inflation increased to a peak of
19.72% in November 2011, prompting the Central Bank (CB) of Kenya to adopt a tight monetary
stance. At that time, Central Bank Rate (CBR) was about 6.25%, therefore, to reduce the inflation
rate, the CB of Kenya should increase the CBR up to 16–18% in December 2011. – From then, to
balance out the economic outlook, the CBR should be slightly decreased till August 2012 the CBR
should be about 13%. – The easing of the monetary policy is being in response to improve the
inflation outlook. – If we increase the CBR, M2 will be increased but M1 will be decreased so that
the price will drop and the inflation rate will decline. – But when we raise the interest rate too
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Fcuk Connection: Pros And Cons Of The French Connection
FCUK FRENCH CONNECTION
French connection (also branded as FCUK) is a UK– based global retailer and wholesaler of fashion
clothing, accessories and home ware. It was founded in the early 1970s by Stephen a mark, who
remains the chief executive; it is based in London and its parent French Connection PLC is listed on
the London stock exchange.
French Connection distributes its clothing and accessories through its own stores in the UK, US and
Canada and through franchise and wholesale arrangements globally. The company became notorious
for the use of the "FCUK" initialise in its advertising campaigns in the early 2000s.
Marks introduced the French connection label in 1972 and four years later showed its first
menswear collection.
Source:'FCUK', ... Show more content on Helpwriting.net ...
Fiscal policy is divided into 2 types and they are taxing and spending. And monetary is divided into
three types and those three are bonds, reserves and interest rates.
Fiscal policy
Fiscal policy is "The changes in government spending and taxes are at the option of the federal
government." Source: ICBT HANDOUTS
Each year governments raise and spend huge amounts of money. The UK government's estimates
for 2008 for an example suggest that the government spending will be about £618 billon and is to be
allocated in a manner, this spending will be funded mainly from taxations( direct and indirect) and
national insurance contributions. Fiscal policy involves the use of changes in government spending
and taxations to influence the level and composition of aggregate demand in the economy.
Fiscal Policy involves the use of changes in government spending and taxations to influence the
level and composition and aggregate demand in the economic and giving the amount involve is
clearly as important implications for business
Fiscal policy involves
1. taxation and other sources of income
2. government spending
3. borrowing whenever spending exceeds
... Get more on HelpWriting.net ...
Economic Impact Of The Great Recession
This paper will be defining the 2008 great recession and the economic impact which the United
States wasn't aware of. The great recession affected various businesses and others forced to increase
prices or close doors immediately. Fiscal and monetary policies will also be discussed briefly in
detail knowing the differences and determining the best course of action. Lastly will be
implementing possible solutions to fix the economic problem and prevent any future recessions that
could pose a devastating impact to economy. 2008 Great Recession Involvement The Great
Recession was best known during the late President Bush into Obama era. Great Recession defined
as; the economic slump began when the U.S. housing market went from boom to bust and large
amounts of mortgage–backed securities and derivatives lost significant value (Investopedia.com). As
the housing market was crashing, houses and business buildings have become vacant which the per
capita rate for many cities dropped. The issue forced gas prices and goods to increase to make up for
the loss per capita rate percentage. The economy doesn't see the big picture when prices rise and
interest decreases, hurting, value and profits within businesses throughout country continue bringing
down markets. Take Johnstown Pennsylvania for example; the city was known for the leading steel
manufacturing companies. With the market declining with facts from 2000–2010 census data,
Johnstown Pennsylvania has lost over 5 % of
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Aims And Objectives Of Barclays And Hbc
The research paper is based on three different tasks that intend to assess organisational purposes,
monetary and fiscal policies in respects of two distinct organisations related with banking division.
The main errand means to assess hierarchical purposes in respects of Barclays and HSBC banks
based in the UK. Besides, the other portion of the task depends on the business environment in
which organisations operates. Task 1 Purpose of organisations Aims and Objectives Related with
Banking and financial sector, Barclays and HSBC have shared approach that intends to prepare and
help their employees to improve their work performance in regards to keep up positive environment
in the organisation that help the companies to increase their performance. The primary goals of the
banks ... Show more content on Helpwriting.net ...
The working pattern in banking sector is much similar like business working environment that
particularly manages the highs and lows of the economy. Some of the stakeholders of Barclays and
HSBC incorporate, Employees The internal working employees are seen as the partners of the
organisation as their expert and individual activities are connected with the development and
progress of the organisation. Barclays and HSBC empower and motivate their employee to give
their compatible and skilled services for the development of the organisations. Investors The most
important partner of Barclays and HSBC further incorporate their investors that directly invest their
capital in the business of banks. Both of the banks keep the attraction of their investors towards the
organisation so is to proceed with their speculations.
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The Impact Of Fiscal And Monetary Policy On Business...
Introduction
The environment is defined as the sum total of all surroundings of a living organism, including
natural forces and other living things, which provide conditions for development and growth as well
as of danger and damage.(Business dictionary,2014) This means that every business always meets
dangers and damage in a different environment, especially, in an unstable environment. For
example, Malaysian Airlines have endured financial problems by an aircraft crash, which result in
Malaysian Airplane losing 10 million dollars for paying compensation to victim families.This
incident demonstrates the environment has always changed , sometimes it could be a good
opportunities to develop the businesses or great disasters to damage it. This essay will discusses the
changing factors of business environments in detail , following by the sections:how economic
systems attempt to allocate resources effectively,the impact of fiscal and monetary policy on
business organisations and their activities,the impact of fiscal and monetary policy on business
organisations and their activities.
2.1 Explain how economic systems attempt to allocate resources effectively
The principles of economy indicates the essential of economic problems:
'Economic is the study of how society manages its scare resources.In most society,resource are
allocated not by a single central planner but through the combined actions of millions of households
and firms.(Mankiw,1998:4). However,who
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The State Of The Federal Bank Reserve
Growing up as a child, people have been told the economic is dead; none of us should be wasting
time to understand it. Most us have been lived poor, which is related to the economic. Most of us
know the meaning of the economic. Economic describe us by our social status and human behavior.
Most girls would not date guys if he is not making enough to pay his bills or her bills. Money is the
root of all evil; we even call it marketing, currency, trade, traffic, and industry. Money was here
before my parents were born, Money raised my brother and I. the fact that money is so powerful, we
spend our life battling for it, and worrying about it. I have family member that would kill for money
because they loved money so much. Where did ... Show more content on Helpwriting.net ...
Fiscal policy did not happen until the great depression. When the great depression happened, the
role of government changed. People were looking for someone to help pulled us out of the
recessionary period and Fiscal policy was introduced. The use of either policy has consequence for
the United States economy and financial systems nationwide. Taxation, the amount of money we
pay every year and of course the government is a big spender has a lot of assets at its disposal to
influence the economy. The government is a very large entity and controls a lot of money. Fiscal
policy is more effective when trying to stimulate the economic growth rather than trying to slow
down an economy that is overheating. The goal of fiscal policy is too accomplished by decreasing
aggregate expenditures and aggregate demand through a decrease in government spending. Fiscal
policy pros are; it can build up the operation electronic stabilizers. Well–timed fiscal stabilization
together with automatic stabilizers can have an impact on the level of aggregate expenditure and
activity in the economy. Fiscal policy can be picky by attempting specific category of the economy.
For example, the government can be focused to concentrate education, housing, health or any
specific industry area. Fiscal policy controls a spending tap. Fiscal policy can have a forceful effect
if used in bankruptcy, because the government can open a spending tap to increase the level of
aggregate
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The Unemployment Rate Is A Good Start
The unemployment rate has worried the Federal government since the collapse of 2008. The biggest
task of any Federal Reserve chairman has been to fix these crises. Over the last seven years the
Federal Reserve tried to get the job market on track. Many have said, when the unemployment rate
fell to 5.5 percent that this translated to a mission accomplished. I am sorry, but this isn't a mission
accomplished. The unemployment rate right now is a good start, but this is still a great worry for
most. Janet Yellen, my advice for you is think outside the box with the unemployment rate. Yes, 5.5
is a perception, but think of all the people that aren't in the job market. This number will increase
greatly because of all the new students coming out of school. Also, try taking into the account about
the monetary and fiscal policy and how it will affect the tradeoff between unemployment and
inflation. This is a work in progress to help this country grow, we should all stand together as one
and help the job market.
As I begin to write what will help create jobs for the unemployed I must write about the monetary
policy. The monetary policy is an very unique policy that impacts inflation and can create a
worldwide demand for goods and services, which would create jobs. As a result, employees who
produce goods and services primarily through its influence on the financial demands face
troublesome include households and firms. The Federal Reserve also can affect financial conditions
by
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The Need for Stimulative Monetary and Fiscal Policies
Part 1: In a situation where the country is in a period of high unemployment, interest rate sare at
almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year the Federal
Reserve System would have to focus on monetary policy and the government would have to
concentrate on fiscal policy. The Fed would thus need to install a stimulative monetary policy in that
would better the economy's Gross Domestic Product in the future. Monetary policy would, however,
have to be regulated in order to keep inflation in its current position. By cutting taxes, introducing
stimulative fiscal policies, and increasing spending, economic growth is likely to occur in the short
run. As a president, I would propose a fiscal tax that would encourage the appearance of more jobs
by directing more funds toward fields like production. I would decrease taxes and I would
encourage government expenditure in order for unemployment to reach a level where it can be
controlled. I would be careful about balancing fiscal policies so as for the economy to benefit as a
result of this enterprise. When considering Franklin D. Roosevelt's strategy of using fiscal policy
with the purpose of ameliorating the effects that the Great Depression had on the American public, it
is only safe to say that creating jobs as a result of implementing government programs on a local
level is likely to reflect positively on the economy. As a president, I would also provide loans and
grants to individuals
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The Conflict Between Inflation And Unemployment
Inflation in particular is likely to occur when growth is above the long run trend rate and the
aggregated demand increases faster than aggregated supply. China and India are two countries
where this combination of strong economic growth and rising inflation has been seen in recent
years. In 2010, China grew by 9.8% but her inflation rate was 4.9% and rising. India grew by 8.6%
but her inflation rate was 8.3%. Persistently higher rates of inflation can then have negative effects
on international trade performance, business profits and jobs and ultimately economic growth. When
you attempt to control inflation by raising interest rates it may cause the exchange rate to appreciate
and this can have a damaging effect on demand in the export industries. Now the conflict between
inflation and unemployment is a little different. During a period of strong GDP growth, falling
unemployment will create a demand–­
‐pull and cost–­
‐push inflation leading to a decline in the real
purchasing power of money. There are policies designed to control demand–­
‐pull or cost–­
‐push
inflation for example by reducing aggregated demand but may lead to a contraction of output and a
rise in unemployment. Similar to how inflation can conflict with unemployment, deflation may also
lead to a rise in unemployment.
There are some policies in place to help if this was to happen. The fiscal and monetary policies are
used as tools to keep the economy stable. Monetary policy is primarily concerned
... Get more on HelpWriting.net ...
Evaluate the Effectiveness of Australian Government...
Evaluate the effectiveness of Australian Government economic policies in achieving their
objectives.
The government implements an economic policy mix involving macroeconomic and microeconomic
policy in order to achieve their objectives. The three main objectives include:
Internal stability – low inflation (price stability) and full employment
External stability – stable exchange rate, a sustainable level of foreign debt and the current account
deficit (CAD) 
Economic growth
Other government objectives include equal distribution of income and environmental management.
Though, it is evident that not all of these objectives can be achieved simultaneously as some are
conflicting. Thus the government must trade–off some of ... Show more content on Helpwriting.net
...
Another form of macroeconomic policy is fiscal policy, which involves the use of the
Commonwealth Government's budget in order to achieve the Government economic objectives. By
varying the amount of government spending and revenue, the government can effectively alter the
level of economic activity, which in turn will influence economic growth, inflation, unemployment
and the external indicators of the economy.
The fiscal instrument is the budget, an annual statement from the government dealing with its
income and expenditure plan for the next financial year. Fiscal Policy is an effective tool which can
target specific sectors of the economy such as individual industries, unlike monetary policy which
affects the economy as a whole; this is why the government implements a policy mix.
An indication of the overall impact of fiscal policy (FP) on the state of the economy is the fiscal
outcome. The three possible outcomes include a fiscal surplus (positive balance where government
expenditure exceeds revenue), fiscal deficit (a negative balance where government revenue exceeds
expenditure), and fiscal balance (a zero balance where total government revenue equals
expenditure). The main aim of fiscal policy is to achieve fiscal balance, on average, over the course
of the economic cycle. The Howard Government targeted a fiscal surplus of 1% of GDP, whereas
the current Rudd Government has raised this target to 1.5% of GDP,
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Role Of Politics In Macroeconomics
Introduction or This might be considered a conclusion
There is ongoing political divide regarding efforts of agencies and government to mitigate economic
issues through intervention on monetary, fiscal policies and increased government spending during
recessions. Some of these political divisions are based on political alliances and belief structures
rather than an impartial macroeconomic analysis. The graphs and formulas are confusing for
politicians and lay people with many preferring simple yes or no answers. Thus some argue for less
active policy towards the economy while another side argues for more active policies and measures.
Perhaps it would be wise to consider the expertise at the Federal Reserve, and staff in the Congress
... Show more content on Helpwriting.net ...
Further monetary policy can make a positive contribution to assist in the management of short–run
business cycles as in a recession or a boom
Fiscal policy can also be used to sustain aggregate demand enabling a recovery during a recession or
slowing inflation during boom period by moderating rapid activity. A couple of ways of fiscal policy
is applied is through government spending and taxes. By reducing taxes and increasing government
spending this policy can mitigate a recession and promoted an economic recovery or the government
can increase taxes and reduce government spending to economic activity during inflationary
business cycles. There is a certain advantage that monetary has over fiscal policies when it comes
reaction to an extreme economic event which is since monetary policy is relatively free from the
political process it can react to events much faster if and when required
During the depression era John Maynard Keynes wrote a book called the General Theory of
Employment, Interest and Money which promoted fiscal stimulus as actions that taken to mitigate
economic downturns. His ideas began a movement towards a more active role for government to
uses measures within our economic systems. Thus, ideas of fiscal stimulus lead to decades of debate
regarding the effectiveness of fiscal stimulus and the
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Monetary Policy And Fiscal Policy
The United States is best described as a mixed economy. A mixed economy is when the government
is not in charge of the economy, but is still majorly involved in economic decisions. The government
plays a critical role in providing economic conditions where the marketplace can function
effectively. Any decisions made are in order to either maintain the market or stabilize the economy
during a financial crisis. Monetary policy and fiscal policy are two tools by which government uses
to guide the economy. Sometimes the economy is challenged with both inflation and unemployment
at high rates. Macroeconomics breaks down the entire economy and the issues affecting it, including
inflation, unemployment, economic growth, and monetary and fiscal ... Show more content on
Helpwriting.net ...
Expansionary fiscal policy is when taxes are cut and government spending is increased. Lower taxes
will increase disposable income for consumers. The increase in disposable income will lead to a
higher level of consumer spending. In theory the more money that consumers spend, the higher the
possibility for economic growth. Tax cuts will also lead to an increase in aggregate demand, which
is the total demand for goods and services in the economy. Expansionary fiscal policy involves the
government attempts to increase aggregate demand. This would involve higher government
spending and/or lower taxes. In theory, higher government spending will increase aggregate demand
and will lead to higher economic growth. Lower taxes should increase the income of consumers,
which would lead to consumer spending to rise. The expansionary fiscal policy will also lead to an
increase in the amount in the government's budget deficit. This would be a potential problem of
expansionary fiscal policy since higher borrowing could push up interest rates on government debt
and cause markets to fear default. The impact that the expansionary fiscal policy would have
depends on many factors. In theory, this lower tax should boost the spending, but that is not always
the case. One of the major issues for this policy is the state of the
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Business Environment & Economic Systems, Fiscal & Monetary...
Task 1:
a) Explain how different economic systems attempt to allocate scarce resources. Outline the
economic system of the UK.
The allocation of resources is an economic theory concerned with the discovery of how nations,
companies or individuals distribute economic resources or inputs in the economic marketplace.
Traditional business inputs are land, labour and capital.
There are three major systems that can be distinguished in many parts of the world economy within
these basic models there will be a range of variations and differences.
Planned (Command) Economy
An economy where supply and price are regulated by the government rather than market forces.
Government planners decide which goods and services are produced and how they are ... Show
more content on Helpwriting.net ...
Democracy and Freedom
Disadvantages
Wasting resources through duplication of goods and services
Inflation and unemployment are more likely
Aggressive competition strategy can result in powerful producers wiping out local competition and
local jobs. They are then able to exploit the market.
Firms control prices and therefore resources are not used in the most efficient way
Possibility of large inequalities amongst consumers resulting in certain goods and services only
available to those who can pay
Profit maximisation might be achieved through lack of concern for society and the global
environment
Mixed Economy
A Mixed economy employs features of both government/planned economy and a free market
enterprise, where some important production is undertaken by the state, directly or through its
nationalised industries and some is left for private enterprise. It is a type of economy in which
private and public sectors co–exist and try to retain the advantages of capitalism and socialism while
trying to eliminate the downsides of both the systems. The allocation of resources is created through
the self–interest, competition and supply and demand of individuals and companies in the economic
marketplace. Individuals and companies distribute resources through self–regulation by using only
the inputs they need and selling or giving away their leftover
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Economic Integration and Global Markets to Uk Business...
Table of contents
Introduction–––––––––––––––––––––––––––––––––––––––––––––––––––––2
Main body–––––––––––––––––––––––––––––––––––––––––––––––––––––––––3
The definition of International trade––––––––––––––––––––––––3
The reason of International trade––––––––––––––––––––––––––––3
The importance of international trade–––––––––––––––––––––3
Economic integration and global markets to UK business
organizations–––––––––––––––––––––––––––––––––––––––––4
The impact of two policies of the European Union on UK business
organizations––––––––––––––––––––––––––––––––––––5
The impact of fiscal policies on the UK business––––––––––––5
The impact of monetary policy on the UK business–––––––––6
The economic implications for the UK of entry into ... Show more content on Helpwriting.net ...
Even the richest countries buy raw materials for their industries from the poorest countries. If every
country produces only for its own needs, then production and consumption of goods would be
limited. Clearly, such situation hampers economic progress. Furthermore, the standard of living of
the people all over the world would have no chance to improve. Because of international trade,
people with money can acquire goods and services which are not available in their own countries.
Hence, satisfaction of consumers can be maximized.(hubpages, 2011)
Economic integration and global markets to UK business organizations
Globalization gives companies access to wider markets and consumers access to a greater variety of
goods and services. But the benefits of globalization are not always shared by all of the parties
involved in trade. Unfortunately, developing countries–which need the potential benefits of
globalization the most–are often the losers. "The downside of global capitalism is the disruption of
whole societies, from financial meltdowns to practices by multinationals that would never be
tolerated in the West," the Business Week article noted. "Industrialized countries have enacted all
sorts of worker, consumer, and environmental safeguards since the turn of the century, and civil
rights have a strong tradition. But the global economy is pretty much still in the robber–baron age."
UK belongs to
... Get more on HelpWriting.net ...

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Pros And Disadvantages Of The European Monetary Union

  • 1. The Pros And Disadvantages Of The European Monetary Union The European Monetary Union is distinguished by a general monetary policy and in the same time, also by twelve national fiscal policies from the member states. The European Monetary Union is unique and different in term of operating mechanism as it lacks a central fiscal authority. The intention of the absence of a central fiscal authority is to establish a similar construction of the organisation, with a fiscal decentralization (Furceri, 2004). Analysts contend that the carefully management of the European Monetary Union will boost a positive relationship between the free trade of the member states and the monetary system itself, since, the monetary system will be able to reduce the cost of transportation transaction, stabilizing the society ... Show more content on Helpwriting.net ... The division of fiscal transfer mechanism instead of having a single mechanism has been criticized for two main reasons (Furceri, 2004). Firstly, the ordinary monetary policy of European Monetary Union has been commonly known to cause asymmetric effects among the member states. The asymmetric effect of the monetary policy will be unable to ensure the status of economy of the whole European Union. Next, it is possible that the single fiscal policy of the countries involving in European Union will be ineffective in smoothing cyclical fluctuations of the Gross Domestic Product (GDP) around the potential level. GDP, which is one of the principal indicator to determine the size of the economy of a country, should be maintained around the potential level to ensure a healthy growth of economy. However, the implement of single fiscal policy in European Union is inefficient to reduce the impacts of continual change of GDP. If the problem of asymmetric shocks continued, the imbalance contribution of economy among the member states will become more ... Get more on HelpWriting.net ...
  • 2.
  • 3. Fiscal Policy And Monetary Policy We the government have to find a better way to spend the economic money better to improve our situation. Looking at the two expansionary which is fiscal and monetary policy to find out a way to find the economic. It is macroeconomic policy that pursues to enlarge the money supply to boost economic growth or combat inflation. One of the form is fiscal policy of expansionary policy, which comes in the method of tax cuts, discounts and increased government spending. Expansionary policies do come from central banks, which focus on cumulative the money supply in the economy. Now let look at the break down of expansionary policy which deal with the fiscal policy and monetary policy. The U.S. Federal Reserve pays expansionary policies whenever it ... Show more content on Helpwriting.net ... In the book it say: Discretionary fiscal policy is the intentional use of taxing or government spending to affect the level of output, employment, and prices. Even if governments change their levels of spending or taxes for other reasons, policy makers are very conscious of the effects these actions will have on output, employment, and the price level. Most economists in the classical tradition consider fiscal policy to be of limited benefit, sometimes even harmful (Amacher, 2012). Fiscal policy can be used in direction to both stimulate an inactive economy or to slow down an economy that is developing at a rate that is getting out of control, which have a potential to lead to inflation or advantage. Fiscal policy openly touches the aggregate demand of an economy. Reminiscence that aggregate demand is the entire number of final goods and services in an economy, which contain consumption, investment, government spending, and net exports. For example: Aggregate Demand = Consumption + Investment + Government Spending + Net Exports. Fiscal policy has a result on each of these groups. There are two types of fiscal policy which are expansionary and contractionary. When our economy is in a recession, expansionary fiscal policy is in effect. Normally this kind of fiscal policy consequences in enlarged government spending and/or inferior taxes. A recession consequences in a recessionary hole which mean that aggregate ... Get more on HelpWriting.net ...
  • 4.
  • 5. Fiscal Policy In Alberta's Economy 4.0 Solutions 4.1 Fiscal Policy Fiscal policy is how government changes its spending and tax rates to influence a country's economy. Prior to the Great Depression the 1930s, the government's approach to the economy was laissez–faire, meaning they had minimal involvement. Because this method was ineffective during the Depression, the government turned to Keynesian economics, which increased government intervention in the economy. Since then, the government has assumed a proactive role in regulating business cycles, inflation, unemployment, and other economic factors. 4.1.1 Current fiscal policy. Modern fiscal policy is based on the theories of economist John Maynard Keynes, who invented Keynesian economics. This theory states governments can ... Show more content on Helpwriting.net ... This can be done through purchases of government bonds. When the bank purchases such securities, money originally held by the bank must be used in these purchases and thus increase money supply. With more possible funds for financial institutions to loan, interest rates would decrease, with similar effects as lowering the prime rate. The corresponding stimulation of aggregate demand will once again increase output. 4.2.2 Recommended monetary policy. As the Canadian economy is currently in the recovery/expansion phase, the Bank of Canada can use monetary policy to decrease or maintain interest rates. By decreasing interest rates, interest– sensitive spending will increase as the cost associated with loaning funds would be lower. With greater expenditures, aggregate demand would be higher, accompanied by increased output as measured by real GDP. By maintaining interest rates, the government can keep inflation stable. Thus maintaining or lowering rates would be a suggested policy given the current state of the economy. 5.0 Implementation of Policy Recommendations 5.1 How to Achieve Policy ... Get more on HelpWriting.net ...
  • 6.
  • 7. 2007-2009 Recession An economy is concerned with product, goods, and service. These three economic are affected by factors on the availability of any materials, labor, tech, etc. This period includes withdrawals considered a recession. Recession experienced in America and other countries in institutions that go away for a while. How were GDP, inflation, and unemployment affected during the 2007–2009 recession, and how does the model show this? 2007–2009 recession lead to an impact on the economy. Inflation, during 2007 to 2009 the recession to place and purchasing goods and other items went down. The businesses products started becoming less available meaning costs went up on everything and started the inflation.The recession resulted in unemployment making jobs more valuable. Additionally, business started to close leading to more unemployment. The GDP was affected when everything started going downhill. During the recession, the consumption of goods went down forcing the goods to be produced less. Thanks to the goods being produced less the cost of producing the product was more than selling them lowering the profits for business making them go out of business resulting in reduced of GDP. What monetary policies and fiscal policies were implemented during the recession? ... Show more content on Helpwriting.net ... The government gave financially to businesses and other institutions. Thanks to the government and president companies were able to recover and produce results starting profit for businesses that were under inflation. The president and governments cut taxes for everyone and this helped to lower production cost. The tax cut can lower production costs; bringing profits up and motivating companies to higher'. Thus, boosting the economy and recovering from the recession resulting in the economic ... Get more on HelpWriting.net ...
  • 8.
  • 9. Advantages And Disadvantages Of French Connection FCUK FRENCH CONNECTION French connection (also branded as FCUK) is a UK– based global retailer and wholesaler of fashion clothing, accessories and home ware. It was founded in the early 1970s by Stephen a mark, who remains the chief executive; it is based in London and its parent French Connection PLC is listed on the London stock exchange. French Connection distributes its clothing and accessories through its own stores in the UK, US and Canada and through franchise and wholesale arrangements globally. The company became notorious for the use of the "FCUK" initialise in its advertising campaigns in the early 2000s. Marks introduced the French connection label in 1972 and four years later showed its first menswear collection Source:'FCUK', ... Show more content on Helpwriting.net ... The advantages and disadvantages of a government company is stated below The advantages are  It provides a strong competition for the private sector companies  Most of the governments companies run on sound business as they as they have their surpluses to their projects.  The formation of government companies is very easy because it is formed like other joint stock companies And the disadvantages are:–  Government companies are independence in theory, but in practice it is not independence because political groups obstruct in the day–to–day operation of the companies. Since these are dependent on the government for taking important policy decisions  As many of the government companies take the support of civil servants, they cannot exercise better for the efficiency of the organization because they are not technical persons.  Nearly every one of the government companies experience softness in management under the take hold of public services. These are not treated as efficient as private units because of this state of relationships found. Government departments  Departments are under control of any politician in charge or by any higher ... Get more on HelpWriting.net ...
  • 10.
  • 11. What Is The Most Effective Fiscal Policy The most effective policy is the fiscal policy. Before I explain why the fiscal policy is more effective, I need to explain the differences between the two policies. First, I will be explaining the monetary policy. According to the website "The Economic Times," it clearly explains that the monetary policy is made up of actions of a central bank, regulatory committee, and a currency board. They are involved in determining the size and the interest rate of money supply. The policy maintained actions such as buying or selling government bonds and change the amount of money banks are required to keep in the bank. The federal reserves are in charge of the monetary policy. There are two types of monetary policy, which are called contractionary and ... Get more on HelpWriting.net ...
  • 12.
  • 13. The Great Recession Of 2008 The Great Recession of 2008 Debra Turner ECON 102 Professor, Shahrokh American Public University September 26, 2015 The Great Recession of 2008 Recession is a significant decline in real GDP, real income, employment, industrial production, and wholesale/retail sales, which last more than a few months. (Economic recession, n.d.) Further, a recession typically begins after a peak in the economy and ends at the trough, however, "the start and end dates are determined by the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER)." (Economic recession, n.d.) The Great Recession–which officially lasted from December 2007 to June 2009–began with the bursting of an 8 trillion dollar housing bubble. The resulting loss of wealth led to sharp cutbacks in consumer spending. This loss of consumption, combined with the financial market chaos triggered by the bursting of the bubble, also led to a collapse in business investment. As consumer spending and business investment dried up, massive job loss followed. In 2008 and 2009, the U.S. labor market lost 8.4 million jobs, or 6.1% of all payroll employment. (The Great Recession, n.d.) Fiscal policy is the use of government revenue (taxes) and expenditure (spending) to influence the economy. (Weil, 2008) Fiscal policy is "used to stabilize the economy over the course of the business cycle." (Fiscal policy, n.d.) Examples of both of these according to National fiscal policy response to the Great ... Get more on HelpWriting.net ...
  • 14.
  • 15. Fiscal And Monetary Policy In The UK The UK government uses both Fiscal and Monetary Policy in its control of the economy: Analysis and Discussion. 'The Business Environment Report' submitted to The College of Technology London. Submitted By : Max Pereira Enrolment No : 083799–84 Section : MEP 2 Email : max.pereira@stu.ctlondon.ac.uk Word Count : 3000 words Under the Guidance of Lecturer: George Olusoji 1. Abstract We are all aware of the present world crisis and the recession period in which United Kingdom is progressing. Any individual may be inquisitive about what the government of UK is doing in this case and how the government ... Show more content on Helpwriting.net ... In order to maintain the economic stability and growth the government uses two common strategic approaches towards management of the economy which are: 1: Fiscal policy: concentrating on stimulating the economy through changes in the government income and expenditure. 2: Monetary Policy, which influences the circular flow of income by changes in the supply of money and interest rates (Palmer and Hartley, 2006). 4. Methodology The methodology used to discuss and analyze the given topic would be Case study, which will act as a primary source of data. Yin (2003) recommended the use of case–study protocol as part of a carefully designed research project. He also added that case studies can be either single or multiple– case designs. Single cases are used to confirm or challenge a theory, or to represent a unique or extreme case. Uma Sekaran (2003) supports the justification for this methodology according to whom, case studies involve in–depth and background analyses of relatively similar situations within
  • 16. one environment and compare that of other. She also commented that case studies provide more of qualitative data rather than quantitative data. As the topic suggested, the environmental subject of the case study would be UK. It may be noted that UK was one of the few member nations which was invited to the G–20 meet held on 14–15 of November 2008. And since the G–20 is a forum that brings together important industrial ... Get more on HelpWriting.net ...
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  • 18. Relationship between Real GDP Growth and Transfer Payments... Transfer payments are government outlays, for programs such as Social Security and welfare, for which the government does not receive any goods or services in return. Transfer payments were designed as a way to provide a safety net to citizens in need of assistance. In the last fifty years we have seen a consistent increase in transfer payments, regardless of the economic conditions faced by the nation. Some of this continual increase in transfer payments can be explained by demographics (Baby Boomers collecting Social Security), changes in the political climate (immigration amnesty in the 1980s) as well as the economic climate of the last decade (extended unemployment compensation). In this paper, we attempt to analyze the effect, if any, ... Show more content on Helpwriting.net ... Finally and more importantly the results show that, statistically speaking, there is not enough evidence to infer that transfer payments during times of recession contribute to GDP growth. One of the surprising results from this model is the negative relationship between non transfer payments and GDP growth. The model shows that during times of economic recession, a $1 billion investment in non transfer payments actually decreases per capita GDP by $12.88. The negative relationship still holds during times of economic expansion: a $1 billion investment in non transfer payments leads to a decrease in per capita GDP of $10.17. If we combine these results and the fact that we found that transfer payments have no statistical significance, we can infer that an expansionary fiscal policy in times of economic recession has a negligible impact on GDP growth. During times of economic expansion, we found that non transfer payments have a negative impact on GDP growth; on the other hand, transfer payments do have an impact, albeit extremely small, on GDP growth. We can thus reject the proposition that an increase in government spending helps fuel economic growth (recession or no). In terms of monetary policies, the model shows that expansionary monetary policy during recession is not statistically significant; the implication of this result is that during a recession, there is no ... Get more on HelpWriting.net ...
  • 19.
  • 20. Demand Side Policies And The Great Recession DEMAND–SIDE POLICIES AND THE GREAT RECESSION OF 2008 TIMOTHY W. AUSTIN AMU/APUS ECON102 MACROECONOMICS DR. FREDERIC BOUCHET MARCH 25, 2016 INTRODUCTION According to Investopedia, "a recession is a significant decline in activity across the economy, lasting longer than a few months." Technically a recession is viewed and measured by evaluating and verifying negative growth in a nations' Gross Domestic Product (GDP) for two successive quarters. A recession can be seen when there is a decline in "industrial production, employment, real income, and wholesale–retail trade (INVESTOPEDIA, 2016)". Recessions are a typical part of the business cycle however, the Great Recession of 2008 wreaked havoc on the global economy mainly due to unusual and high risk investment tactics. The Great Recession brought negative impacts which saw the burst of a highly booming housing market, the failure of thousands of businesses, unprecedented unemployment rates which reached historical highs of more than 9.5 percent, which all ultimately crushed consumer spending during this recessionary period (WelshGibbs, 2015). During a recession like the one experienced in 2008; governments enact fiscal and monetary policies in an attempt to right the economy and combat the negative impacts a recession has on a nation's economy. FISCAL POLICIES Fiscal policy is simply government spending to effect macroeconomic conditions. Implementing fiscal policy in a nation is a government's effort to positively ... Get more on HelpWriting.net ...
  • 21.
  • 22. Explain How Fiscal and Monetary Policy Decisions Have... The uk government sets monetary policy by adjusting the funds rate. This affects other short–term and long–term rates, including credit–card rates and mortgages. Governments define fiscal policy by setting taxation levels and writing legislation and regulation for everything from health care to the environment. Fiscal and monetary policy changes can affect businesses directly and indirectly, although competitive factors and management execution are also important factors. Businesses go through cycles of expansion, recession and recovery. Monetary and fiscal policies can affect the timing and length of these cycles. In the expansion phase, the economy grows, businesses add jobs and consumer spending increases. At some point, known as ... Show more content on Helpwriting.net ... Direct taxation includes income tax, national insurance and corporation tax. Income tax and National Insurance (NI) are similarly affecting the consumer and operate exactly the same giving the same economic effects. Income tax and NI are the two biggest source of tax revenue for the govt, changes to either of these directly relate to disposable income, which in effect changes consumer demand. Consumer demand is a major factor for Tesco as a business as and an increase would mean more sales and a higher income, a decrease would lead to lower sales and lower income for Tesco's. A lesser income would mean smaller profits which in turn might mean lower investment and employment levels. Corporation tax is a tax on company profits which means it directly affects TESCO. A cut in tax means Tesco will have more disposable profits which they could use in many ways. They could add to their reserves saving it for an emergency, or use the profits to finance investment, which will directly increase economic growth. Another use is reduce corporate debt, which will increase Tesco's future profits. They could also give their shareholders bigger dividends, which could lead to bigger investments if shareholders invest their extra income back into Tesco. Indirect Taxes relates to VAT and Excise duties. VAT is sales tax which is collected by the business (Tesco) and given to the government. Essentially if increased it would increase the price of Tesco's products, this subsequently ... Get more on HelpWriting.net ...
  • 23.
  • 24. The Role Of The State Aroused Little Interest On The World... There was a time when the welfare of the state aroused little interest in the world's Treasuries and Central Bank. (Bosanquet, 1). In the study of economic growth, a country's institutional framework plays a critical role, which involves the growth of social expenditure such as heath, unemployment, the relationship between economic developments, and welfare delivery, where the spending have rapidly grown over the years. Gross Domestic Product (GDP), is where the total market value of final goods and services are produced yearly by factors of production located within a nation's borders, nations measure their income by assessing the performance of an economy. We have the Income approach, where nations adds up the components of their ... Show more content on Helpwriting.net ... We have the government who do more spending on the military by providing them with uniforms, food and many more. The government's spending usually does not include social security, welfare etc. We have the net export in GDP, these are spending done by the importation and exportation of good in and out of the country (J Ward). Gross Domestic Product can be measured by (Miller pp. 191) adding up the dollar value of intermediate goods at each stage of production. We have various approaches which include, the expenditure approach; GDP is measured by adding up the dollar value at current market prices of all final goods and services. In the middle of the twentieth century, some countries had shown that catching up in their gross domestic product was possible. Japan's economic growth took off in the 1960s and 1970s, with a growth rate of real GDP per capital averaging 11% per year during. Certain countries in Latin America experienced a boom in economic growth in the 1960s. In Brazil, the GDP per capita was expanded by an average annual rate of 11.1% from 1968 to 1973. In the 1970s, South Korea, Thailand, and Taiwan, saw rapid growth. In these countries, growth rates of 11% to 12% per year in GDP per capital were not uncommon. More recently, China, with its population of 1.3 billion people, grew at a per capital rate 9% per year from 1984 into the 2000s. India, with a population of 1.1 billion, has shown promising signs of economic growth, with ... Get more on HelpWriting.net ...
  • 25.
  • 26. What Is Economic System Table of Content Table of Content 1 TASK 1 2 a) Explanation on economics system attempt to allocate resources effectively. 2 b) Assessment on the impact of fiscal and monetary policy on business organisation and their activities. 9 c) Explain Malaysian competition policy and other regulation that may impact company. 15 TASK 2 17 a) Explanation on how market structures determine pricing and output decision of business. 17 b) Illustration on the way in which market forces shape organisational responses. 20 c) Judgement on how business and cultural environments shape the behaviour of your organisation. 21 Conclusion 22 REFERENCES 23 TASK 1 a) Explanation on economics system attempt to allocate resources effectively. What is economic ... Show more content on Helpwriting.net ... (Economy Watch) Every economy has their own characteristic. For free market is there are many economic freedoms, there is competition among businesses, competition determines price which increase the quality of the product, economic decisions are made by the basic principles of supply and demand, and profit is the motive for increasing work rather than quotas. Mixed economy Mixed economy is combination from planned and free market economy. This economy system allows the private company use their capital. This economy system allows the government to interfere to the market. The resources are allocated from both the government and the private sector. In this system the freedom in the economic activities are influenced by the Government 's regulation and licensing policies. The example of the country that implemented this economy system is Iceland, Sweden, France, and United Kingdom. There are several advantages and disadvantages of the mixed economy system. The advantages are most business and industry can be left to private firms. This is because private firms tend to be more
  • 27. efficient than government controlled firms because they have a profit incentive to cut costs and be innovative. Second is government can pursue policies to provide macro–economic stability. The ... Get more on HelpWriting.net ...
  • 28.
  • 29. Essay Monetary and Fiscal Policies Assignment 2: Monetary and Fiscal Policies P3: Outline how both fiscal and monetary policy decisions have affected a selected business. M2: Analyse the effects of fiscal and monetary policies for a selected business in terms of the market in which it operates Tesco like every business will be affected by Monetary and Fiscal policies, whether this be directly or indirectly. Tesco PLC will be affected more indirectly by these policies and in this report I will explain how. Fiscal Policy involves the Government changing the levels of Taxation and Government Spending in order to influence AD (Aggregate Demand) and therefore the level of economic activity. Monetary Policy involves using interest rates or changes to money supply to ... Show more content on Helpwriting.net ... Income tax and NI are the two biggest source of tax revenue for the govt, changes to either of these directly relate to disposable income, which in effect changes consumer demand. Consumer demand is a major factor for Tesco as a business as and an increase would mean more sales and a higher income, a decrease would lead to lower sales and lower income for Tesco's. A lesser income would mean smaller profits which in turn might mean lower investment and employment levels. Corporation tax is a tax on company profits which means it directly affects TESCO. A cut in tax means Tesco will have more disposable profits which they could use in many ways. They could add to their reserves saving it for an emergency, or use the profits to finance investment, which will directly increase economic growth. Another use is reduce corporate debt, which will increase Tesco's future profits. They could also give their shareholders bigger dividends, which could lead to bigger investments if shareholders invest their extra income back into Tesco. Indirect Taxes relates to VAT and Excise duties. VAT is sales tax which is collected by the business (Tesco) and given to the government. Essentially if increased it would increase the price of Tesco's products, this subsequently will more often than not lose consumer interest. Monetary policy The interest rates instance of the monetary policy ... Get more on HelpWriting.net ...
  • 30.
  • 31. Do Fiscal and Monetary Policy Stimulate the Economy? Essays Constant changes in market economies make it nearly impossible to maintain a constant level of economic activity. Fluctuations are the heart of market economies; market economies cannot exist without them. These fluctuations can be described as the business cycle, and like every cycle there are a series of events that construct these phases. The business cycle consists of three phases, expansion (until peak point is reached), a decreasing point into recession, and a rebound from recession to recovery. These events must be examined closely because it is possible for the economy to hit extreme highs and extreme lows which can abruptly change the flow of the cycle. For example, if overlooked and the economy hits an extreme low, considered a ... Show more content on Helpwriting.net ... The government can use the fiscal policy to lower taxes and increase the level of government expenditure to boost the economy when facing a recession. Lowering taxes and increasing the level of government expenditure encourages individuals to spend more. When the government lowers indirect taxes, goods will become cheaper because their taxes will be lower resulting in a higher demand for these goods. Similarly, if direct taxes are lowered, disposable income increases which encourages spending. In both cases, lowering either direct or indirect taxes during a recession, increases demand which will eventually help the economy out of recession due to encouraged economic growth. In contrast, if the economy is already at full employment, an increase in fiscal expansion will affect prices more than it will impact total output. When the economy is not in a recession and is facing a "boom" in the economy, inflation becomes the problem. If the economy is facing inflation, the fiscal policy can be used to produce a budget surplus and help slow down the economy. Despite the fact that the fiscal policy can be applied at times of recession or at times of inflation, the fiscal policy has some flaws. Law–making time lag, shrinking area of lawmaker discretion, estimation of potential GDP, and economic forecasting are all factors that interfere with the effectiveness of the fiscal policy. First, the law–making time lag, this flaw can ... Get more on HelpWriting.net ...
  • 32.
  • 33. Explain How Australian Economy Will Remain Australian Economy Will Remain Sluggish for Several Years It is said that we are living in turbulent times. The Australia's once–in–a–century commodity boom has reversed, leading many miners to cut back on investments and consolidate; which is expected to generate great social and economic hardship throughout these years. While more hope is casted into the construction sector, a cooling change blows in the housing market. Unemployment is tipped to rise and when it reaches a record high; consumption will continue to grow at a below–average pace, so business sentiment will remain fragile. Rather than fuelling the economy, the fiscal policy keeps straining it whilst the monetary policy will struggle to have an impact – indicating that the Australian economy is slipping downwards. Nevertheless, some economists still maintain bullish opinions in regards to Australian economic growth. It is argued that there are still plenty of reasons to be optimistic since opportunity always comes with change – the economic opportunities for Australia have been rich and will continue to be. Some people say the benefits of the mining boom have been greatly exaggerated; so the unwinding of the boom will have less ... Show more content on Helpwriting.net ... Those who argue that the ending of mining is not the ending of the economy and that the construction investment could offset the mining sector slump may be misled. They, together with those who assert that the ongoing fiscal and monetary stimulus have ample powers to lift the economy should clearly realise the following: the plunge in mining investment, the down turn in construction industry, the restriction in fiscal and monetary actions all signal that the Australian economy is sliding to sluggish. This low growth condition will continue for several years to come; it seems there is no room for ... Get more on HelpWriting.net ...
  • 34.
  • 35. Fiscal and Monetary Policy Introduction As an assistant manager for Skanska I have been asked by my manager to explain how fiscal and monetary policy decisions affect the business in which I work. To undertake this task I will provide explanation of the fiscal and monetary policies. I will also explain what interest rate is and what could be possible changes on it. Additionally, I will explain how both policies could make changes in employment level. Fiscal policy Economic climate is essential to be controlled within every single county because this helps control important activities within the particular country. All countries where economy is developed created and follow polices which ensure that money spent by government are used in an appropriate way. ... Show more content on Helpwriting.net ... (Ref.http://lexicon.ft.com/Term?term=corporation–tax) Indirect Taxation Indirect taxes are charged by government on producers or suppliers. The main aim of these taxes is to reduce pollution and improve the environment. The examples of indirect taxes are value added tax (VAT), excise duty, air passenger duty, insurance taxes such as car, home or pet insurance, TV licence or driving licence. (Ref.http://tutor2u.net/economics/revision–notes/as–marketfailure–indirect–taxation.html) Value Added Tax (VAT) This type of tax is charged almost on all products or services provided by organisations. For instance businesses pay VAT for all products which are needed to manufacture the products and then VAT is paid by customers if they want to buy manufactured products. VAT could be charged into three different rates which are standard rate 20%, reduced rate 5% and zero rated 0%. Standard rate is most common form of VAT and this is paid on almost all products or services unless they have been specified to reduce or zero rate. Reduced rate is depend on products it's self and the circumstances of the sale. The most common example of reduced rate VAT are domestic fuel and power, installation of energy saving materials, sanitary hygiene goods or children's car seats. Zero rated VAT is similar to the reduced rated VAT as is depend on
  • 36. ... Get more on HelpWriting.net ...
  • 37.
  • 38. Are We A Double Dip Recession? Are we in a double dip recession? Or is the recession finally over? Is economic recovery finally happening? Since the Great Depression breakdown that occurred in late 2007, that brought everything from job loss, to jobs shortage, busting of an 8 trillion dollars housing bubble, falling income and rising poverty; we still asking these questions to economists, the government and ourselves. But technically we are not in recession anymore. Economist would said that we are in recessions if for two consecutive quarters the Gross Domestic Product (GDP) decline. The GDP is basically the complete market value of all final products produced by a country's residents in a particular year (Gross product originating: Definition and relationship to gross domestic product). GDP is a great economic tool to use as an indicator of output and suitable for using in estimates of productivity. While we might not be in recession, we sure are in a slow economic recovery. Since the government role is to create appropriate rules, provide the country with security, infrastructure and safety measurements to protect their people's property; ever since 2007 they had engage in expansionary economic policies in an effort to move the economy out of a recession. There were the most forceful and prevailing fiscal and monetary policies in the history. Nevertheless to say that practically every single one of these policies initiatives remains debatable until this day, with opponents calling them injudicious, ... Get more on HelpWriting.net ...
  • 39.
  • 40. Monetary Policy Monetary Policy at the Local and Federal Level & Impact in a Recession Monetary policy, in the short run, has an impact toward the demand for goods and services. That is, monetary policy has a distinct influence over inflation and other economic factors, not only at the federal level, but at the state and citywide levels. Monetary policy will influence the financial conditions facing firms and households in the environment, even at the micro level. Thus, employees who produce goods and services are impacted, as is the demand for those goods and services. When monetary policy imposes changes, the financial conditions that affect the economic activity in specific sectors are influenced as well. The federal government, through fiscal policies ... Show more content on Helpwriting.net ... Of course, this is felt throughout the entire economy, at the state and local levels, and in macroeconomics at the federal level. Individuals are dramatically impacted when stocks rise or fall. The focus is on when stocks fall and there is a crippling impact on the individuals and their financial worth. During a recession, the stock market has likely fallen, where one may notice the impact throughout the local environment as individuals struggle to compensate for their losses. Therefore, one is likely to see monetary policy in order to make adjustments and fix what is out of alignment in the economic ... Get more on HelpWriting.net ...
  • 41.
  • 42. Advantages And Disadvantages Of Fuk French Connection FCUK FRENCH CONNECTION French connection (also branded as FCUK) is a UK– based global retailer and wholesaler of fashion clothing, accessories and home ware. It was founded in the early 1970s by Stephen a mark, who remains the chief executive; it is based in London and its parent French Connection PLC is listed on the London stock exchange. French Connection distributes its clothing and accessories through its own stores in the UK, US and Canada and through franchise and wholesale arrangements globally. The company became notorious for the use of the "FCUK" initialise in its advertising campaigns in the early 2000s. Marks introduced the French connection label in 1972 and four years later showed its first menswear collection. Source:'FCUK', ... Show more content on Helpwriting.net ... Fiscal policy is divided into 2 types and they are taxing and spending. And monetary is divided into three types and those three are bonds, reserves and interest rates. Fiscal policy Fiscal policy is "The changes in government spending and taxes are at the option of the federal government." Source: ICBT HANDOUTS Each year governments raise and spend huge amounts of money. The UK government's estimates for 2008 for an example suggest that the government spending will be about £618 billon and is to be allocated in a manner, this spending will be funded mainly from taxations( direct and indirect) and national insurance contributions. Fiscal policy involves the use of changes in government spending and taxations to influence the level and composition of aggregate demand in the economy. Fiscal Policy involves the use of changes in government spending and taxations to influence the level and composition and aggregate demand in the economic and giving the amount involve is clearly as important implications for business Fiscal policy involves 1. taxation and other sources of income 2. government spending 3. borrowing whenever spending exceeds
  • 43. ... Get more on HelpWriting.net ...
  • 44.
  • 45. Different Types Of Economic Systems Define Different Types of Economic Systems Traditional economies are steered through historical practise, often in which communities use original tools and methods to harvest and hunt for food, resulting in very little economic growth. Traditional economies have a tendency to operate in rural Third World countries and appear to live in poverty even if their needs are being met. When traditional economies interact with market or command economies, money plays an important role, it enables those in the traditional economy to purchase better equipment to make their farming, hunting or fishing more profitable. The United States had many features of a traditional economy before the Great Depression. In the beginning of the 20th century, 60% of the United Stated lived in farming communities, whilst 41% of the workforce were employed by farms. Over–farming occurred in response to high demand from Europe after World War I. In addition two–thirds of Haiti 's population relies on subsistence farming for their livelihood. Their reliance on wood as a primary source of fuel has stripped the forests of trees. This makes them vulnerable to natural disasters, such as the earthquake that struck Haiti in 2010 Source: CIA World Factbook, Haiti 's Economy; Marginal Revolution, Why Is Haiti so Poor?) Market economies are based on consumers and their buying decisions rather than under government control. Trends and popularity generate what businesses produce. The producers choose how to make ... Get more on HelpWriting.net ...
  • 46.
  • 47. unit 38 Accounting Unit 38 Business and the Economic EnvironmentLearner name Assessor nameSameeha Hussain/Antonio ZarroDate unit issuedUnit DeadlineDate unit submitted by student27/01/1419/04/14 Criteria referenceTo achieve the criteria the evidence must show that the learner is able toAsst Task no. Assessor initial date when metPASS CRITERIAP1 Explain the effects of changes in the economic environment on a selected business P2 Identify how government policies impact on a selected business P3 Identify the impact of government spending on a selected businessP4 Explain how both fiscal and monetary policy decisions have affected a selected businessP5 Describe the impact of international factors on a selected business M1 Analyse the implications of ... Show more content on Helpwriting.net ... The carmaker, which employs 15,000 people, including 3,500 engineers at two product development centres in the Midlands, is part of the EU ETS scheme and has signed up to a Climate Change Agreement. Head of sustainability Frances Leedham says One of my objectives is to make environment and sustainability part of doing business. It was unheard of a few years ago, but there is a clear incentive to decarbonise our economy and focus on renewable energy. Across our UK facilities we have set ambitious targets, and by 2012 we aim to reduce operating carbon emissions by 25 per cent, waste to landfill by 25 per cent and water consumption by 10 per cent. So crucial is the companys sustainability agenda to long–term business growth that a 9m fund has been set aside for investment in efficiency measures across the business, targeting areas where the biggest savings can be made. Jaguar Land Rovers paint shops, for example, have been identified as the largest consumer of energy in the whole manufacturing process. By sharing best practice between production sites, the company has implemented more than 50 initiatives–from optimising use of air compressors to closing parts of the paint shops when they are not being used. These measures have saved 13,200 tonnes of carbon emissions and more than 1.5m in energy costs over the past two years. But Leedham insists smaller schemes have a significant effect, too Things such as lighting, heating ... Get more on HelpWriting.net ...
  • 48.
  • 49. Fiscal Policy, Monetary Policy, and a Healthy Gross... Economic Health/Fiscal Policies and Federal Reserve/Monetary Policies Paper Understanding Gross Domestic product is central for understanding the business cycle and the progression of long–run economic growth (Hubbard & O'Brien, 2011, p. 631). The GDP is defined as the value–added of all goods and services produced in a given period of time within the United States (2008). The GDP is widely used as an gauge economic wellness and health of the country. What the GDP represents has a hefty impact on nearly everyone within our economy. As an example, when the economy is healthy, you will usually see wage increases and low unemployment as businesses demand labor to meet the increasing economy. The government has two types of economic ... Show more content on Helpwriting.net ... Non–economic reasons can include factors such as drought, war, man–made and natural disasters. When the economy expands: unemployment decreases, inflation begins to increase and the real GDP rises. In contrast, when the economy contracts: unemployment increases, inflation decreases and the GDP falls. Role of Government Bodies in Determining National Fiscal Policies Fiscal policy is the use of a government's taxing, debt, and spending authority for the purpose of influencing economic growth. Congress and the president share responsibility for economic policy with the Federal Reserve (Hubbard & O'Brien, 2011, p. 929). The government can influence macroeconomic productivity levels by increasing or decreasing tax levels and public spending (Hubbard & O'Brien, 2011). The government uses fiscal policy to make changes in government purchases and taxes, to achieve policy goals. The price level and the levels Gross Domestic Product and total employment in the economy rely on the collective demand and short term aggregate supply. The government can both aggregate demand and collective supply through fiscal policy (Hubbard & O'Brien, 2011, p. 900). Fiscal policies can influence the economy's production and employment. For example, since the government controls the central bank, it may be tempted right before an election to increase the money supply and drive down interest rates to increase production and ... Get more on HelpWriting.net ...
  • 50.
  • 51. The Conflict Between Inflation And Unemployment Now the conflict between inflation and unemployment is a little different. During a period of strong GDP growth, falling unemployment will create a demand–­ ‐pull and cost–­ ‐push inflation leading to a decline in the real purchasing power of money. There are policies designed to control demand–­ ‐pull or cost–­ ‐push inflation for example by reducing aggregated demand but may lead to a contraction of output and a rise in unemployment. Similar to how inflation can conflict with unemployment, deflation may also lead to a rise in unemployment. There are some policies in place to help if this was to happen. The fiscal and monetary policies are used as tools to keep the economy stable. Monetary policy is primarily concerned with the ... Show more content on Helpwriting.net ... The Federal Reserve has frequently used three different policy tools to influence the economy: opening market operations, changing reserve requirements for banks and setting the "discount rate." Open market operations are carried out on a daily basis where the Federal Reserve's buys and sells U.S. government bonds to either inject money into the economy or pull money out of circulation. By setting the reserve ratio, or the percentage of deposits that banks are required to hold and not lend back out, the Federal Reserve's directly influences the amount of money created when banks make loans. They can also target changes in the discount rate, or the interest rate charged by the Federal Reserve's when making loans to financial institutions, which is intended to impact short–term interest rates across the entire economy. This is how the monetary policy works to aid the economy. Now let's look at how fiscal policy works. Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation 's economy. It is the sister strategy to monetary policy through which a central bank influences a nation 's money supply. The two most widely used means of affecting fiscal policy are changes in the role of government spending or in tax policy. If the government believes there is not enough spending and business activity in the economy, it can increase the amount of money it ... Get more on HelpWriting.net ...
  • 52.
  • 53. The Business World Is More Challenging To say the truth the business world is more challenging. To assess the purpose the business it should be noted that we can say that the profit must come in the first array and in some special cases the benefit to the society also has come as a major why the business is doing in the current world. If we wish to make analysis the environment of the business then the industry in which the business is operating must be given preference as well as the risk the business is having in the current time being. 1 Task–2 1.1 How the different economic system affects the effective allocation of the resources Command economy: At first we will discuss regarding the command economy. Actually command economy refers to any such type of economic system where the government holds the authority of the major decisions such as how much to be produced, the price quotation for the produced goods and the quality of the produced goods in some extent also. So it is necessary to discuss how it will affect the Trio and other business organization. To say we can illustrate that here the company will not have the option to produce as its best wish rather than the government has (Piveronus, 2006). On the other hand the company has not the right to fix the price quotation rather it may be lower due to the government intervention on the company. The company cannot have the optimum quality production as the price charge may not come up with the said price. Market competition may be high. There is a little ... Get more on HelpWriting.net ...
  • 54.
  • 55. Fiscal and Monetary Policy Behavior over the Business Cycle Introduction: According to Kenya's geopolitical and economics situation, applying monetary–fiscal policy mix is mutually reinforcing and therefore more effective. Failure to coordinate these policies is potentially dangerous as it may lead to slow growth of the economy and cause surges in inflation. Our research seeks to address the following specific questions: How does the fiscal policy behave over the business cycle? How does the monetary policy behave over the business cycle? 1 MONETARY POLICY: – The key monetary policy objective is to maintain price stability – In 2011, the country faced substantial inflationary pressure that was exacerbated by high international oil prices, drought conditions and exchange rate depreciation. – As a result, the rate of inflation increased to a peak of 19.72% in November 2011, prompting the Central Bank (CB) of Kenya to adopt a tight monetary stance. At that time, Central Bank Rate (CBR) was about 6.25%, therefore, to reduce the inflation rate, the CB of Kenya should increase the CBR up to 16–18% in December 2011. – From then, to balance out the economic outlook, the CBR should be slightly decreased till August 2012 the CBR should be about 13%. – The easing of the monetary policy is being in response to improve the inflation outlook. – If we increase the CBR, M2 will be increased but M1 will be decreased so that the price will drop and the inflation rate will decline. – But when we raise the interest rate too ... Get more on HelpWriting.net ...
  • 56.
  • 57. Fcuk Connection: Pros And Cons Of The French Connection FCUK FRENCH CONNECTION French connection (also branded as FCUK) is a UK– based global retailer and wholesaler of fashion clothing, accessories and home ware. It was founded in the early 1970s by Stephen a mark, who remains the chief executive; it is based in London and its parent French Connection PLC is listed on the London stock exchange. French Connection distributes its clothing and accessories through its own stores in the UK, US and Canada and through franchise and wholesale arrangements globally. The company became notorious for the use of the "FCUK" initialise in its advertising campaigns in the early 2000s. Marks introduced the French connection label in 1972 and four years later showed its first menswear collection. Source:'FCUK', ... Show more content on Helpwriting.net ... Fiscal policy is divided into 2 types and they are taxing and spending. And monetary is divided into three types and those three are bonds, reserves and interest rates. Fiscal policy Fiscal policy is "The changes in government spending and taxes are at the option of the federal government." Source: ICBT HANDOUTS Each year governments raise and spend huge amounts of money. The UK government's estimates for 2008 for an example suggest that the government spending will be about £618 billon and is to be allocated in a manner, this spending will be funded mainly from taxations( direct and indirect) and national insurance contributions. Fiscal policy involves the use of changes in government spending and taxations to influence the level and composition of aggregate demand in the economy. Fiscal Policy involves the use of changes in government spending and taxations to influence the level and composition and aggregate demand in the economic and giving the amount involve is clearly as important implications for business Fiscal policy involves 1. taxation and other sources of income 2. government spending 3. borrowing whenever spending exceeds
  • 58. ... Get more on HelpWriting.net ...
  • 59.
  • 60. Economic Impact Of The Great Recession This paper will be defining the 2008 great recession and the economic impact which the United States wasn't aware of. The great recession affected various businesses and others forced to increase prices or close doors immediately. Fiscal and monetary policies will also be discussed briefly in detail knowing the differences and determining the best course of action. Lastly will be implementing possible solutions to fix the economic problem and prevent any future recessions that could pose a devastating impact to economy. 2008 Great Recession Involvement The Great Recession was best known during the late President Bush into Obama era. Great Recession defined as; the economic slump began when the U.S. housing market went from boom to bust and large amounts of mortgage–backed securities and derivatives lost significant value (Investopedia.com). As the housing market was crashing, houses and business buildings have become vacant which the per capita rate for many cities dropped. The issue forced gas prices and goods to increase to make up for the loss per capita rate percentage. The economy doesn't see the big picture when prices rise and interest decreases, hurting, value and profits within businesses throughout country continue bringing down markets. Take Johnstown Pennsylvania for example; the city was known for the leading steel manufacturing companies. With the market declining with facts from 2000–2010 census data, Johnstown Pennsylvania has lost over 5 % of ... Get more on HelpWriting.net ...
  • 61.
  • 62. Aims And Objectives Of Barclays And Hbc The research paper is based on three different tasks that intend to assess organisational purposes, monetary and fiscal policies in respects of two distinct organisations related with banking division. The main errand means to assess hierarchical purposes in respects of Barclays and HSBC banks based in the UK. Besides, the other portion of the task depends on the business environment in which organisations operates. Task 1 Purpose of organisations Aims and Objectives Related with Banking and financial sector, Barclays and HSBC have shared approach that intends to prepare and help their employees to improve their work performance in regards to keep up positive environment in the organisation that help the companies to increase their performance. The primary goals of the banks ... Show more content on Helpwriting.net ... The working pattern in banking sector is much similar like business working environment that particularly manages the highs and lows of the economy. Some of the stakeholders of Barclays and HSBC incorporate, Employees The internal working employees are seen as the partners of the organisation as their expert and individual activities are connected with the development and progress of the organisation. Barclays and HSBC empower and motivate their employee to give their compatible and skilled services for the development of the organisations. Investors The most important partner of Barclays and HSBC further incorporate their investors that directly invest their capital in the business of banks. Both of the banks keep the attraction of their investors towards the organisation so is to proceed with their speculations. ... Get more on HelpWriting.net ...
  • 63.
  • 64. The Impact Of Fiscal And Monetary Policy On Business... Introduction The environment is defined as the sum total of all surroundings of a living organism, including natural forces and other living things, which provide conditions for development and growth as well as of danger and damage.(Business dictionary,2014) This means that every business always meets dangers and damage in a different environment, especially, in an unstable environment. For example, Malaysian Airlines have endured financial problems by an aircraft crash, which result in Malaysian Airplane losing 10 million dollars for paying compensation to victim families.This incident demonstrates the environment has always changed , sometimes it could be a good opportunities to develop the businesses or great disasters to damage it. This essay will discusses the changing factors of business environments in detail , following by the sections:how economic systems attempt to allocate resources effectively,the impact of fiscal and monetary policy on business organisations and their activities,the impact of fiscal and monetary policy on business organisations and their activities. 2.1 Explain how economic systems attempt to allocate resources effectively The principles of economy indicates the essential of economic problems: 'Economic is the study of how society manages its scare resources.In most society,resource are allocated not by a single central planner but through the combined actions of millions of households and firms.(Mankiw,1998:4). However,who ... Get more on HelpWriting.net ...
  • 65.
  • 66. The State Of The Federal Bank Reserve Growing up as a child, people have been told the economic is dead; none of us should be wasting time to understand it. Most us have been lived poor, which is related to the economic. Most of us know the meaning of the economic. Economic describe us by our social status and human behavior. Most girls would not date guys if he is not making enough to pay his bills or her bills. Money is the root of all evil; we even call it marketing, currency, trade, traffic, and industry. Money was here before my parents were born, Money raised my brother and I. the fact that money is so powerful, we spend our life battling for it, and worrying about it. I have family member that would kill for money because they loved money so much. Where did ... Show more content on Helpwriting.net ... Fiscal policy did not happen until the great depression. When the great depression happened, the role of government changed. People were looking for someone to help pulled us out of the recessionary period and Fiscal policy was introduced. The use of either policy has consequence for the United States economy and financial systems nationwide. Taxation, the amount of money we pay every year and of course the government is a big spender has a lot of assets at its disposal to influence the economy. The government is a very large entity and controls a lot of money. Fiscal policy is more effective when trying to stimulate the economic growth rather than trying to slow down an economy that is overheating. The goal of fiscal policy is too accomplished by decreasing aggregate expenditures and aggregate demand through a decrease in government spending. Fiscal policy pros are; it can build up the operation electronic stabilizers. Well–timed fiscal stabilization together with automatic stabilizers can have an impact on the level of aggregate expenditure and activity in the economy. Fiscal policy can be picky by attempting specific category of the economy. For example, the government can be focused to concentrate education, housing, health or any specific industry area. Fiscal policy controls a spending tap. Fiscal policy can have a forceful effect if used in bankruptcy, because the government can open a spending tap to increase the level of aggregate ... Get more on HelpWriting.net ...
  • 67.
  • 68. The Unemployment Rate Is A Good Start The unemployment rate has worried the Federal government since the collapse of 2008. The biggest task of any Federal Reserve chairman has been to fix these crises. Over the last seven years the Federal Reserve tried to get the job market on track. Many have said, when the unemployment rate fell to 5.5 percent that this translated to a mission accomplished. I am sorry, but this isn't a mission accomplished. The unemployment rate right now is a good start, but this is still a great worry for most. Janet Yellen, my advice for you is think outside the box with the unemployment rate. Yes, 5.5 is a perception, but think of all the people that aren't in the job market. This number will increase greatly because of all the new students coming out of school. Also, try taking into the account about the monetary and fiscal policy and how it will affect the tradeoff between unemployment and inflation. This is a work in progress to help this country grow, we should all stand together as one and help the job market. As I begin to write what will help create jobs for the unemployed I must write about the monetary policy. The monetary policy is an very unique policy that impacts inflation and can create a worldwide demand for goods and services, which would create jobs. As a result, employees who produce goods and services primarily through its influence on the financial demands face troublesome include households and firms. The Federal Reserve also can affect financial conditions by ... Get more on HelpWriting.net ...
  • 69.
  • 70. The Need for Stimulative Monetary and Fiscal Policies Part 1: In a situation where the country is in a period of high unemployment, interest rate sare at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year the Federal Reserve System would have to focus on monetary policy and the government would have to concentrate on fiscal policy. The Fed would thus need to install a stimulative monetary policy in that would better the economy's Gross Domestic Product in the future. Monetary policy would, however, have to be regulated in order to keep inflation in its current position. By cutting taxes, introducing stimulative fiscal policies, and increasing spending, economic growth is likely to occur in the short run. As a president, I would propose a fiscal tax that would encourage the appearance of more jobs by directing more funds toward fields like production. I would decrease taxes and I would encourage government expenditure in order for unemployment to reach a level where it can be controlled. I would be careful about balancing fiscal policies so as for the economy to benefit as a result of this enterprise. When considering Franklin D. Roosevelt's strategy of using fiscal policy with the purpose of ameliorating the effects that the Great Depression had on the American public, it is only safe to say that creating jobs as a result of implementing government programs on a local level is likely to reflect positively on the economy. As a president, I would also provide loans and grants to individuals ... Get more on HelpWriting.net ...
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  • 72. The Conflict Between Inflation And Unemployment Inflation in particular is likely to occur when growth is above the long run trend rate and the aggregated demand increases faster than aggregated supply. China and India are two countries where this combination of strong economic growth and rising inflation has been seen in recent years. In 2010, China grew by 9.8% but her inflation rate was 4.9% and rising. India grew by 8.6% but her inflation rate was 8.3%. Persistently higher rates of inflation can then have negative effects on international trade performance, business profits and jobs and ultimately economic growth. When you attempt to control inflation by raising interest rates it may cause the exchange rate to appreciate and this can have a damaging effect on demand in the export industries. Now the conflict between inflation and unemployment is a little different. During a period of strong GDP growth, falling unemployment will create a demand–­ ‐pull and cost–­ ‐push inflation leading to a decline in the real purchasing power of money. There are policies designed to control demand–­ ‐pull or cost–­ ‐push inflation for example by reducing aggregated demand but may lead to a contraction of output and a rise in unemployment. Similar to how inflation can conflict with unemployment, deflation may also lead to a rise in unemployment. There are some policies in place to help if this was to happen. The fiscal and monetary policies are used as tools to keep the economy stable. Monetary policy is primarily concerned ... Get more on HelpWriting.net ...
  • 73.
  • 74. Evaluate the Effectiveness of Australian Government... Evaluate the effectiveness of Australian Government economic policies in achieving their objectives. The government implements an economic policy mix involving macroeconomic and microeconomic policy in order to achieve their objectives. The three main objectives include: Internal stability – low inflation (price stability) and full employment External stability – stable exchange rate, a sustainable level of foreign debt and the current account deficit (CAD)  Economic growth Other government objectives include equal distribution of income and environmental management. Though, it is evident that not all of these objectives can be achieved simultaneously as some are conflicting. Thus the government must trade–off some of ... Show more content on Helpwriting.net ... Another form of macroeconomic policy is fiscal policy, which involves the use of the Commonwealth Government's budget in order to achieve the Government economic objectives. By varying the amount of government spending and revenue, the government can effectively alter the level of economic activity, which in turn will influence economic growth, inflation, unemployment and the external indicators of the economy. The fiscal instrument is the budget, an annual statement from the government dealing with its income and expenditure plan for the next financial year. Fiscal Policy is an effective tool which can target specific sectors of the economy such as individual industries, unlike monetary policy which affects the economy as a whole; this is why the government implements a policy mix. An indication of the overall impact of fiscal policy (FP) on the state of the economy is the fiscal outcome. The three possible outcomes include a fiscal surplus (positive balance where government expenditure exceeds revenue), fiscal deficit (a negative balance where government revenue exceeds expenditure), and fiscal balance (a zero balance where total government revenue equals expenditure). The main aim of fiscal policy is to achieve fiscal balance, on average, over the course of the economic cycle. The Howard Government targeted a fiscal surplus of 1% of GDP, whereas the current Rudd Government has raised this target to 1.5% of GDP, ... Get more on HelpWriting.net ...
  • 75.
  • 76. Role Of Politics In Macroeconomics Introduction or This might be considered a conclusion There is ongoing political divide regarding efforts of agencies and government to mitigate economic issues through intervention on monetary, fiscal policies and increased government spending during recessions. Some of these political divisions are based on political alliances and belief structures rather than an impartial macroeconomic analysis. The graphs and formulas are confusing for politicians and lay people with many preferring simple yes or no answers. Thus some argue for less active policy towards the economy while another side argues for more active policies and measures. Perhaps it would be wise to consider the expertise at the Federal Reserve, and staff in the Congress ... Show more content on Helpwriting.net ... Further monetary policy can make a positive contribution to assist in the management of short–run business cycles as in a recession or a boom Fiscal policy can also be used to sustain aggregate demand enabling a recovery during a recession or slowing inflation during boom period by moderating rapid activity. A couple of ways of fiscal policy is applied is through government spending and taxes. By reducing taxes and increasing government spending this policy can mitigate a recession and promoted an economic recovery or the government can increase taxes and reduce government spending to economic activity during inflationary business cycles. There is a certain advantage that monetary has over fiscal policies when it comes reaction to an extreme economic event which is since monetary policy is relatively free from the political process it can react to events much faster if and when required During the depression era John Maynard Keynes wrote a book called the General Theory of Employment, Interest and Money which promoted fiscal stimulus as actions that taken to mitigate economic downturns. His ideas began a movement towards a more active role for government to uses measures within our economic systems. Thus, ideas of fiscal stimulus lead to decades of debate regarding the effectiveness of fiscal stimulus and the ... Get more on HelpWriting.net ...
  • 77.
  • 78. Monetary Policy And Fiscal Policy The United States is best described as a mixed economy. A mixed economy is when the government is not in charge of the economy, but is still majorly involved in economic decisions. The government plays a critical role in providing economic conditions where the marketplace can function effectively. Any decisions made are in order to either maintain the market or stabilize the economy during a financial crisis. Monetary policy and fiscal policy are two tools by which government uses to guide the economy. Sometimes the economy is challenged with both inflation and unemployment at high rates. Macroeconomics breaks down the entire economy and the issues affecting it, including inflation, unemployment, economic growth, and monetary and fiscal ... Show more content on Helpwriting.net ... Expansionary fiscal policy is when taxes are cut and government spending is increased. Lower taxes will increase disposable income for consumers. The increase in disposable income will lead to a higher level of consumer spending. In theory the more money that consumers spend, the higher the possibility for economic growth. Tax cuts will also lead to an increase in aggregate demand, which is the total demand for goods and services in the economy. Expansionary fiscal policy involves the government attempts to increase aggregate demand. This would involve higher government spending and/or lower taxes. In theory, higher government spending will increase aggregate demand and will lead to higher economic growth. Lower taxes should increase the income of consumers, which would lead to consumer spending to rise. The expansionary fiscal policy will also lead to an increase in the amount in the government's budget deficit. This would be a potential problem of expansionary fiscal policy since higher borrowing could push up interest rates on government debt and cause markets to fear default. The impact that the expansionary fiscal policy would have depends on many factors. In theory, this lower tax should boost the spending, but that is not always the case. One of the major issues for this policy is the state of the ... Get more on HelpWriting.net ...
  • 79.
  • 80. Business Environment & Economic Systems, Fiscal & Monetary... Task 1: a) Explain how different economic systems attempt to allocate scarce resources. Outline the economic system of the UK. The allocation of resources is an economic theory concerned with the discovery of how nations, companies or individuals distribute economic resources or inputs in the economic marketplace. Traditional business inputs are land, labour and capital. There are three major systems that can be distinguished in many parts of the world economy within these basic models there will be a range of variations and differences. Planned (Command) Economy An economy where supply and price are regulated by the government rather than market forces. Government planners decide which goods and services are produced and how they are ... Show more content on Helpwriting.net ... Democracy and Freedom Disadvantages Wasting resources through duplication of goods and services Inflation and unemployment are more likely Aggressive competition strategy can result in powerful producers wiping out local competition and local jobs. They are then able to exploit the market. Firms control prices and therefore resources are not used in the most efficient way Possibility of large inequalities amongst consumers resulting in certain goods and services only available to those who can pay Profit maximisation might be achieved through lack of concern for society and the global environment Mixed Economy A Mixed economy employs features of both government/planned economy and a free market enterprise, where some important production is undertaken by the state, directly or through its nationalised industries and some is left for private enterprise. It is a type of economy in which private and public sectors co–exist and try to retain the advantages of capitalism and socialism while trying to eliminate the downsides of both the systems. The allocation of resources is created through the self–interest, competition and supply and demand of individuals and companies in the economic
  • 81. marketplace. Individuals and companies distribute resources through self–regulation by using only the inputs they need and selling or giving away their leftover ... Get more on HelpWriting.net ...
  • 82.
  • 83. Economic Integration and Global Markets to Uk Business... Table of contents Introduction–––––––––––––––––––––––––––––––––––––––––––––––––––––2 Main body–––––––––––––––––––––––––––––––––––––––––––––––––––––––––3 The definition of International trade––––––––––––––––––––––––3 The reason of International trade––––––––––––––––––––––––––––3 The importance of international trade–––––––––––––––––––––3 Economic integration and global markets to UK business organizations–––––––––––––––––––––––––––––––––––––––––4 The impact of two policies of the European Union on UK business organizations––––––––––––––––––––––––––––––––––––5 The impact of fiscal policies on the UK business––––––––––––5 The impact of monetary policy on the UK business–––––––––6 The economic implications for the UK of entry into ... Show more content on Helpwriting.net ... Even the richest countries buy raw materials for their industries from the poorest countries. If every country produces only for its own needs, then production and consumption of goods would be limited. Clearly, such situation hampers economic progress. Furthermore, the standard of living of the people all over the world would have no chance to improve. Because of international trade, people with money can acquire goods and services which are not available in their own countries. Hence, satisfaction of consumers can be maximized.(hubpages, 2011) Economic integration and global markets to UK business organizations Globalization gives companies access to wider markets and consumers access to a greater variety of goods and services. But the benefits of globalization are not always shared by all of the parties involved in trade. Unfortunately, developing countries–which need the potential benefits of globalization the most–are often the losers. "The downside of global capitalism is the disruption of whole societies, from financial meltdowns to practices by multinationals that would never be tolerated in the West," the Business Week article noted. "Industrialized countries have enacted all sorts of worker, consumer, and environmental safeguards since the turn of the century, and civil rights have a strong tradition. But the global economy is pretty much still in the robber–baron age." UK belongs to ... Get more on HelpWriting.net ...