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SYNDICATE 5
Case Study
The US In 2001 :
Macroeconomic Policy and The New Economy
M.Ridwan - 29112555
Machadi Dhana – 29112...
Background History
 Technological Innovation and Organizational
Changes and public policy, drive what they
called New Eco...
Supporting factor of New Economy
New Economy is strong because it is based on business system that works :
 It drives out...
Why it happen ?
The graphic of Investment Saving and Liquidity Money Supply
Potential Risk of New Economy
 Unexpected slowdown on productivity growth
 Investment boom lead to over-invested capital...
Conclusion
 The risk of New Economy cannot be avoided
by just lowering the interest rate, but also
supported by other pol...
Thank You
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The US Condition in 2001

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The US Condition in 2001

  1. 1. SYNDICATE 5 Case Study The US In 2001 : Macroeconomic Policy and The New Economy M.Ridwan - 29112555 Machadi Dhana – 29112303 M. Khadafi – 29112324 Pedro Putu Wirya – 29112565 Seto Kusparyanti – 29112306 Yuliani Dewi – 29112321 Rahdianto Maulana - 29112554
  2. 2. Background History  Technological Innovation and Organizational Changes and public policy, drive what they called New Economic, raised the efficiency of production capacity.  But in early 2001, it show the symptom emerging weakness  Business and confidence level down, the Fed respond by lowering interest rate. This action is to encourage investment.  The result, inflation remain low and US Dollar remain strong among other currency
  3. 3. Supporting factor of New Economy New Economy is strong because it is based on business system that works :  It drives out inefficiency  Focus on intelligent  Business process re-engineering Those 3 factor also supported by :  Easy capital access  MBA graduates which become entrepreneur  Emerging Internet, which enable to achieve very efficient business  Lower interest rate to encourage investment These lead to the cost down, and impacted to the increase of inflation
  4. 4. Why it happen ? The graphic of Investment Saving and Liquidity Money Supply
  5. 5. Potential Risk of New Economy  Unexpected slowdown on productivity growth  Investment boom lead to over-invested capital stock  Capital flow from abroad may dry up  Ongoing adjustment in financial market to the perception of a riskier economic market
  6. 6. Conclusion  The risk of New Economy cannot be avoided by just lowering the interest rate, but also supported by other policies, such as lowering the tax.  The government also need to pay attention to the fiscal policy multiplier effect : Government spending, Tax, and Balance budget. This multiplier can impacted to equilibrium effect of output.
  7. 7. Thank You
  • PaulaBarlettoAndrade

    Mar. 26, 2016

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