Monetary Policy In The United States Essay

Monetary Policy in the United States Essay
Monetary Policy in the United States
1.Identify at least three problems facing the FED in achieving its goals of monetary policy and give your recommendations on how to deal with each
of the problems you list.
Inflation presents a problem for the FED achieving it's goal of price stability. Inflation is unavoidable as far as the natural progression of an economy is
concerned. Supply and demand also affect inflation. While the FED cannot control supply and demand of a product, I would suggest that they try to
control price stability by creating regulations of what a company can charge related to the supply and value of a product. A high unemployment rate
negatively affects the FED's goal of a high employment rate. The employment rate is ... Show more content on Helpwriting.net ...
3.Explain how changes in reserve requirements and the discount rate affect the operations of banks and other depository institutions.
Changes in reserve requirements and the discount rate affect the operations of banks and other depository institutions by changing the amount of actual
funding that they have available to them. If they are required to hold more actual money, they may have less financial instruments such as gold to back
up the value of the money. If the discount rate fluctuates, banks may have to adjust interest rates on their loans to compensate for the money they are
gaining or losing.
4.Explain why the FED cannot set intermediate targets in terms of both monetary aggregates and interest rates.
The FED can only pursue one target at any given time. For example, if they are targeting interest rates, exchange rates will fluctuate and vice versa. The
FED's influence over real interest rates is weaker than that of nominal interest rates and stabilizing the economy is more important than stabilizing
interest rates.
5.Update the case information by using at least two (2) data sources in addition to the text.
Modern monetary policy does not involve gold as much as it used to in the past. In 1968, the United States reneged on it's guarantee to pay in gold and
effectively removed itself
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The Essential Role Of Foreign Policy In The United States
Foreign Policy is the way a country goes about handling other countries in a variety of ways. This includes war efforts, foreign aid, and diplomatic
policies. Foreign policy in a sense represents a countries wants and needs and uses strategies to achieve these goals with other countries. The power of
foreign policy is split up between the Executive Branches and Congress. Although the President is the dominant force in foreign policy making
congress does play key roles into the finalizing of foreign policy tools and even can manipulate laws which can change foreign policy in return. The
process of foreign policy include first having a foreign issue arise, having policies debated and made, government deciding to adopt one policy, the
policy gets ... Show more content on Helpwriting.net ...
Although many are against military force each situation is unique in that there is no single set of fixed rules on when and when not military force
should be used however it is up to the president to decide when the action is best to take place. A professor of Standford University has his
philosophy of when military force is made , "when the stakes warrant, where and when force can be effective, where no other policies are likely to
be effective, where its application can be limited in scope and time, and where the potential benefits justify the potential costs and sacrifice"
(George 1) . When all other tools are used such as diplomacy efforts which include negotiations and foreign aid efforts the last result is to go about
it with none other than military force. Our strategy here in America is to always work hard for peace and I believe the president does his job at
that. However, the president is aware of attacks on us and it always ready for war if it be necessary. The most famous example of military force is
the American attack on Japan when two atomic bombs were dropped on the small island. The bombing of Hiroshima happened in March of 1945
where more than 10,000 citizens of Japan had died. President Harry Truman at that time had demanded the five ton atomic bomb be dropped to speed
up the ending of the war. It worked because soon after the Japanese

The United States And Foreign Policies
Durning 1913 and 1916 Woodrow Wilsons domestic and foreign policies weren 't both equally successful but both were successful. AlthoughWilson
had primarily been elected to reform national politics and initiate new progressive policies in Washington, he spent the majority of his time as President
dealing with foreign policy rather than domestic. Wilson 's predecessors, including McKinley, Theodore Roosevelt, and Taft, had viewed theUnited
States as an emerging power that needed to extend its influence throughout the world in order to serve national interests. This imperialist policy was
justified by the commonly held belief that it was America 's duty as a Christian republic to spread democracy throughout the world. These three
Presidents significantly expanded America 's influence abroad with the annexation of colonies throughout the world, such as the Philippines and Cuba.
First, Wilson however, abandoned this imperialist policy and brought to the White House a new way of looking at America 's relations with the outside
world. Even though he too believed that the United States was the most politically enlightened nation under God, he felt that all peoples throughout the
world had the right to self–determination–that the people in every country should have the right to choose their own governments. Wilson, along with
his Secretary of State Bryan, felt that it was America 's duty to protect democracy and free peoples in other countries rather than to spread it

Public Policy : The United States
The United States' government has a responsibility to ensure the safety and security of its citizens and in doing so creates what is called public
policy. The simplest way to describe public policy is an action that is taken by a government in order to address issues that they are facing. Public
policy as its name states is generated through the government process such as the legislative branch. In order to address these issues the legislative
branch enacts laws and regulations.
Law is a major aspect of public policy because it can dictate how someone is treated following a certain sequence of events. In the criminal justice
world laws can regulate how an interrogation is done and whether or not a stop is legitimate or not. The United States constitution can be seen as
public policy because it is a set of laws that must be followed or rights that must be granted. This was a major step when the United States separated
from the British. The United States Constitution is one of the most obvious ways that external forces such as the British affect public policy. The first
ten amendments clearly show what the United States wanted that they were not receiving when the British ruled. The first being freedom of speech
which is something that we take for granted almost every day. We are not scared of the government if we say that we disagree with what President
Obama is doing. There are countries where those who spoke out are killed or put in prison. This public policy was made

The Central Banking Authority Of The United States And Is...
The Federal Reserve is the central banking authority of the United States and is responsible for regulating monetary policy. The Federal Reserve's main
goal is to focus on price stability when creating monetary policies. Along with this, they must also keep in mind high employment and output stability,
economic growth, stability of financial markets, interest–rate stability and stability in foreign exchange markets. They do this with the intention to help
the economy as a whole, not one specific sector. Unfortunately, it is difficult to do all this for the entire economy with money constantly changing
hands. These results of the redistribution of money are known as redistributive consequences of monetary policy. These consequences can be seen
throughout many different parts of monetary policies, and some are even significant enough that policy makers have started taking them into account
when debating monetary policy. Makoto Nakajima talks about the redistributive consequences of monetary policy in his article in the business review
of the Federal Reserve Bank of Philadelphia. He states that redistributive consequences may have small or rather large impacts on the overall economy.
When the economy is doing well, small, conventional monetary policy is used because the economy does not need to be changed as much. This results
in less important redistributive consequences that are not big enough to be taken into account when making policy changes (Nakajima pg. 9). The
opposite

United States Immigration Policy
*The immigration policy of the United State is complex with a lot of elements to it; there is just as many as complex laws that govern the polices.
The Immigration and Nationality Act was formed in 1952 and had been amended several times over the years, however the it still is one of the basic
policy used when decisioning immigration law in the United States. The INA also places a limit on how many immigrants can come to the United States
from any one country; currently no group of permanent immigrants from a single country can exceed sever percent of the total amount of people
immigrating to the United States in a single fiscal year. (American Immigration Council,2016) The theory behind the immigration policies in the United
State is based ... Show more content on Helpwriting.net ...
In many cases individuals are label as refugees after being permitted to stay in the United States after applying for admission. Most of these
immigrants have fled due of the fear of persecution due to their race, social clique, political officially, religion, or national origin. The admission of
refugees turns on numerous factors, such as the degree of risk they face, membership in a group that is of special concern to the United States
(designated yearly by the President of the United States and Congress), and whether or not they have family members in the United States. (American
Immigration Council, 2016) After the events of September 11,2001, the number of approved admissions fell due to the increase in the complexity of
security checks. The Department of Homeland Security determined the total amount of refugees' admission permitted into the United States for 2016
was approximately 85,000. For those that individuals that reach the United Stated before applying for refugee; there is option for them to seek out
asylum within the country. The individual must declare that they are seeking asylum at any port of entry or within one year after arriving in the United
States. Currently, the immigration policies don't limit the number of individuals who are granted

The Role Of Centralized Policies On The State Capacities
This part explains the centralized policies with focus on the state capacities, which is the vital factor of developmental states model, and emphasizes on
implications of the centralization for resource–rich developmental states. The initial stage of the extractive industry demands the centralization in which
the government exerts the strong state capacities, such as abilities to autonomously have its policy ownership (e.g. design and implement industrial
policies), to efficiently mobilize resources and to rationally allocate revenues from the resources to more productive sectors in a given society
(Arellano–Yanguas and MejГa–Acosta, 2014). Such a state–led development often results from political leadership based on a strong ideology called
'developmentalism' and requires the trained and efficient bureaucracy to devise national development schemes and implement relevant legal
frameworks (Reinert, 2010).
In addition to the capacities of setting up development plans, the successful development in resource–based economy depends on their ability to save
all or part of the revenues from the extractive industries (Lewin, 2011). Since the non–renewable resources are destined to be depleted in the future, the
mineral–wealth is limited, and it means the state should save the revenues as much as possible to prepare for the future depletion (Lange and Wright,
2002). Moreover, the natural resources tend to have volatile prices, so the countries need to stabilize the income, for

Welfare Policies Of The Welfare States
The welfare state is a system through which a government provides services to its citizens. These social policies are intended to reduce poverty,
inequality, and increase economic security (King, lecture, 10/31). Welfare states are generally categorized in one of three ways: christian democratic,
liberal, or social democratic. Social democratic states are superior in that they provide the most services, and do so fairly, resulting in a more
egalitarian society.
Social democratic states provide the most services to their citizens with the goal of increasing wellbeing for all people equally (OD, 577). Policies of
social democratic states focus on universal entitlement programs, which guarantee services for all citizens. Citizens contribute to a mandatory social
insurance program, such as social security in the United States. Nordic countries (Sweden, Denmark, Norway) are known in particular for their success
with socialist democracy.
A liberal democracy (such as the U.S.) prioritizes individual autonomy over socioeconomic ... Show more content on Helpwriting.net ...
While this ensures that all voices have an equal say, it is hard to imagine in our country given how uninformed the voting population is. Socialist
democratic welfare policies also appear to succeed in countries with more homogenous populations. The theoretical model would require a cultural
shift in our country, away from competition that we are so used to, having to fight for success despite the slim chances of upward mobility. It requires
empathy and compassion for those less fortunate to be firmly embedded in our culture. However, a balance between capitalism and socialism which
provides healthcare, education, perhaps even a minimum income would go a long way towards reducing inequality, which would perhaps create a
more harmonious society. Socialist democracy is about people, not profits, and this shows in equality

The United States Foreign Policy
The United States Foreign policy in the Middle East
Since the United States became the world's sole superpower, the Middle East has been seen as the most troublesome region in the world by US
politicians. This view emanates from all the conflicts going in the Middle East that have the potential to threaten numerous strategic interests for the
united Stated such as oil, terrorist, and Israel. Yet Middle East has never seen as problematic as it is now due to the excessive flux of problems the
Middle East is struggling with. This increasingly conflicting nature of the region demands the US policymakers to reevaluate American policy in the
Middle East to secure US interests. Unfortunately, American policy in the past three decades toward the... Show more content on Helpwriting.net ...
In the Persian Gulf, Britain protected Saudi Arabia and the other small states in the Arabian Peninsula especially when they became oil producers.
British paid Jordan's bills, supplied, and ran the army during 1950s'. London backed North Yemen to combat the rising threat of Egypt in the Arabian
Peninsula to Iraq's designs on Kuwait.
British view of the region was not the favorite to Americans. The United States prevented France and Britain from overthrowing Gamal 'Abd al–Nasser
in 1956. In part for that reason, when Britain announced its withdrawal from "East of Suez" in 1971, Eisenhower Administration was reluctant to their
place.
The United States tried to invest into regional proxies primarily Israel, Iran, and Saudi Arabia to serve protecting Western interests in the region. But in
1979, Shah of Iran was overthrown and replaced Ayatollah Khomeini. The threat his revolutionary Iranian state posed to American allies across the
region led the United States to become militarily involved in the Persian Gulf for the first time, a commitment expanded when Iran's defeat (with
American assistance) in the Iran–Iraq War created the opportunity for Saddam Hussain to invade Kuwait and pose a threat to the region's vital oil
exports.
Indeed, in the aftermath of the 9/11 attacks, George Bush Administration tried to eliminate some of the region's problems perpetually by military

Global Public Policy Is Made By State And Non State Actors
Global public issues such as global climate change, international financial market, illicit international trade, cross border migration, internet
governance and cyber war, nuclear proliferation, global public drug and etc cause a need of global public policy. Basically global public policy has
been designed in order to achieve desired goals in global public challenges. Global public policy is made by state and non–state actors. In classical
political science only the states were recognized as a significant actors in public policy and international policies were made between states( Wimmer
and Schiller,2002), while in the recent decades non–state actors play important role in global governance(Whitman, 2009,87). For instance, UN,
UNDP, UNIDO are central in the global public sphere (Kaul 2003).
Global public policy activities take place among non state actors and intergovernmental counterpart in global agora (Stone, 2008, 5–8).Global public
policy needs to be made in global agora. Previously, global agora was a place for social, economical, political and cultural interaction of states and
non–states members. However, today global agora is evolving with various set of networks , global public and private partnership and multilateral
initiatives global agora is managed by business and policy elites(Stone, 2008, 10).
Global public policy aim to respond to three types of policy problems (Soroos 1991):
Firstly, transboundary problems such as money laundry,drug trafficking and

The United States And Foreign Policy
America believed that it was isolated from the rest of the world, and its foreign policy reflected these ideas and beliefs. The United States was on its
way to becoming a world power and advancing its own interest in the world, especially in the North and South America. Isolationism caused the
United States to avoid being involved in other countries politics and for the U.S. to remain neutral in foreign policy Americans in the 19th century
were more interested in domestic events than the affairs of foreign countries. Economic growth and domestic problems fueled the American
imagination. Americans felt special, that they had their own destiny. They were separated by two oceans, and America had the freedom of governing
itself with little or no interference from other world powers. The creation of legislation like the Monroe doctrine telling the European nations, that to
colonize land, or interfere with states in North or South America would be viewed as acts of aggression, requiring U.S. intervention. These policies
were a reflection of how America viewed its place in the world. America continued its expansion policies and enlarged its naval defense, and in 1883,
Congress authorized construction of four steel ships and this was the beginning of a modern navy. The victory in the Spanish–American war further
expanded America territories into the Caribbean and the Philippines and it gave Americans confidence that we did not need to be allied with foreign
powers, especially

The United States And Foreign Policy
The United States has always had an erratic view towards foreign policy. At its conception, it leaned isolationist for about a century leading up to the
First World War before opening up to the global stage. In the interwar period, the United States retreated somewhat back into isolation but continued to
support Europe and Latin America. After World War 2, America was left to assume the role as the global hegemonic power, both willingly and
unwillingly. Unique circumstances such as the destruction of most developed economies allowed the United States to exploit the situation to create a
world order with several differences from that of its predecessor, Great Britain. This new world order allowed the U.S. to focus on two specific
thoughts on their foreign policy, Wilsonianism and Jeffersonianism, as it saw fit.
In the years that followed World War 2, the United States original desire to create global institutions to lessen the burden that Washington had to bear
changed significantly. It evolved into the United States leading in most global affairs, creating a new form of liberal world order in which a leading
state creates international rules and institutions with the purpose of providing public services while at the same time adhering to said rules and
institutions. G. John Ikenberry referred to it as a liberal–constitutional order. While similarities exist between this order and the other three that
Ikenberry refers to, there are stark contrasts that make the American order

The United State 's Foreign Policy
J. Lee Utter
11/19/14
American Foreign Policy
Essay
What will be the biggest future challenge for American foreign policy and what should be done to address it?
Hypothesis: The United State's foreign policy will make a shift in the coming years to focus more intently on suppressing individual groups that use
terrorism as a political strategy, rather than focusing on specific and identifiable States as in the past. The organizations mentioned before will be using
the Internet to coordinate attacks, as well as attempt to hack US Government systems to their advantage. As a result, cyber security and antiterrorism
stand to be the biggest future challenges for American foreign policy. In order to understand the future of foreign policy for ... Show more content on
Helpwriting.net ...
After World War II the United States was busy containing the spread of Communism and the Soviet Union. In recent history foreign policy has not
been specifically defined with one mission like before. The duties of the agencies that oversee foreign policy are changing constantly to best suit
the nation's needs (USHistory). In the past hundred years human society has discovered flight, put a man on the moon, created nuclear bombs, and
developed a way for anyone to access all of human discovery using a device that fits in their pocket. Life is changing at a absurd rate. There is no
telling what the next hundred years has in store. Foreign policy needs to keep up with the changing world and the new ideas that come with change.
What will become the next big challenge for foreign policy makers? In the past 25 years the nation has experienced numerous terrorist attacks. These
attacks are designed to put fear in the average American's hearts and minds. Citizen's safety has been placed in the spotlight so much more now than
before September 11th 2001. Although these attacks are on domestic soil, they often begin with planning and recruiting in places all around the world.
Terrorism has just recently become an issue for America. Foreign policy needs to be tailored to this new type of combat. Another new trend changing
the world is the Internet. The Internet has revolutionized everyone's daily lives. From a foreign policy

Domestic Policy In The United States
In this course we have discussed several topics involving the American government. In this paper I will discuss the American domestic policy and give
some details about the goals of the domestic policy. I will explain how domestic policy affects relationships between the United States and the other
nations. In addition, I will discuss how domestic policy affects the United States strategy on internationalism and how the media influences such
decision. Finally, I will discuss why the shared power of the three branches of the government is sometimes referred to as an invitation to struggle
about policy making for foreign affairs.
Domestic policy
The domestic policy affects everyone in the United States and has been a huge debate topic in regards ... Show more content on Helpwriting.net ...
Mass media have a prominent role to play in modern society. The use of the media can bring about unexpected changes and improve the social situation
as it impact our social, civil, cultural, political,economic and aesthetic outlook. Modernization has transformed media into a crucial feature of human
activity. In today's society, media influence issues such as the impact of global warming, genetic engineering, deployment of military forces, religion,
government spending, nuclear testing and environmental legislations. The rise in the media has influenced international policy and decision within the
government. It is now more critical than ever that policy planners understand the factors that encourage negative domestic reactions. Growing
international concerns have prompted many to establish, or consider establishing postings in allied countries, and future deployments of this type are
currently being

The State 's Capacity Of Policy Making And Governance
QHas the state's capacity in policy–making and governance been reduced with the advent of different modes of governance like markets, networks or
associations? For the last forty years it has become an accepted notion that the state's capacity in policy–making and governance has changed through
the increasing use of different modes of governance, like markets, networks or associations. This essay will argue that generalised or blanket statements
are unhelpful when examining state capacity in policy–making and governance and that we must begin to examine such questions on a case by case
basis. In arguing this point, a comparative analysis of five case studies will be used to demonstrate why this approach is necessary in understanding
the process of governance in contemporary society. The first method of governance observed is hierarchy. Hierarchy focusses on a more top down
approach, where those in charge develop and implement policies from a top down perspective (Jansen 2007: p 6). It must be understood that
hierarchical forms of governance do not just exist in government, but can be found in many forms, whether in private business organisations or small
non–government organisations (NGO's) (Benz and Papadopoulos 2006: p 182). This is where most often the implementation of policy is top down with
the leaders of the organisation having final control over whether or not a policy is implemented (Morcol 2006: p 170–171). Taking this into account, it
must be shown that

United States Foreign Policy
The United States foreign or defense policy rests on the US relations with other actors outside the US. This is unlike the other areas of government
policy that greatly deal with internal issues. As described by Patterson (2013) "the cornerstone of foreign policy is the national interest" (p. 435). The
policy that defines the way in which the US interacts with foreign nations. It defines what is best for the nations with respect to protecting its ways and
its physical security. It even sets standards of interaction and dealings for its nationals, both citizens and organizations with foreign nations. One of the
identified foreign policies pursued by the United State government is the national interest to maintain a strong position in the global

The Foreign Policy Of The United States
Between 1918 and 1953 there was a major change regarding the foreign policy of the United States. At the end of the First World War, we practiced a
foreign policy that was first established by George Washington in his Farewell Address back in 1796, which set a precedent of isolationism that was
adopted until the beginning of World War II. Following Washington 's Neutrality Proclamation, the US did not engage in many global affairs such as
the French Revolution and remained neutral through all foreign affairs. At the end of World War I, we continued to practice isolationism by not
engaging in foreign affairs and limiting military spending believing that by pursuing this policy we could maintain peace and avoid war. Unfortunately,
this ... Show more content on Helpwriting.net ...
As stated by Document B, many governmental employees, such as Senator Henry Cabot Lodge Sr., believed that after World War I we should stay out
of foreign affairs such as the League of Nations. The League of Nations was an alliance system similar to the one that was present before World War
I; the prior alliance system had ultimately played a role in the commencement of the war raising concern to many citizens. This isolationist
perspective was prompted by the large amount of casualties and damages done from World War I, which led many to want to disengage from Europe
completely and work on rebuilding our own country. By engaging in the League of Nations, as Woodrow Wilson had proposed, we would have created
a second alliance system and this was contradictory of itself as a method of maintaining peace because the first alliance system was one of the key
components that led to World War I. His perspective on the foreign policy topic was popular among the citizens, expanding the influences of
isolationism. With this expanding concept, the government employed numerous strategies to maintain the peace. As displayed by Document A, one
method that they employed was to reduce military spending to an extreme minimum. As shown on the graph, the amount of military spending spiked
from 1918–1920, this was due to our participation in World War I. Right after World War I, in the

Monetary Policy Of The United States And. How It Plays Out
Monetary Policy in the United States and
How it Plays Out in Today's Society
By: Jessica Garrett
MBA FINC 5103: Financial Services
Oklahoma Christian University
Submitted to: Prof. Mel Stewart
April 28, 2016
Monetary Policy in the United States and
How it Plays Out in Today's Society
Introduction
Monetary policy focuses on keeping interest rates at a modest level, keeping prices steady, and keeping unemployment low. The Federal Open Market
Committee is responsible for making the necessary monetary policy changes. These changes influence both the markets within the United States and
the markets internationally. Currently, there is a lot of volatility within the markets, and there is a lot of speculation about if and when the Federal
Reserve will raise interest rates. There is also speculation about whether a negative interest rate would work to get the economy back on target. Also,
many worry about whether the current government debt level will continue, and with the number of people entering retirement increasing, whether
there will be enough money coming in to cover the costs of the social programs, such as Social Security and Medicare.
Monetary Policy The main goals of monetary policy are to have modest long–term interest rates, steady prices, and the lowest level of unemployment.
The Federal Open Market Committee is responsible for setting the goal amount of the federal funds rate, which is the rate at which banks can

United States Drug Policy
The United States Drug Policy evolved after the 1900s when laws dictating drug abuse became prevalent. The targeted audience for the War on Drugs
was aimed at helping the upper–class citizens and not the lower–class citizens which ultimately caused the government to become hypocrites. The
United States War onDrug Policy was supposed to help America as a whole and not select classes. The supply of drugs entering into the United States
did not seem to be affected after numerous different strategies were instilled by different presidents and government officials. Without a successful
strategy to end the spread of drug usage we as a country have lost the War on Drugs. An unintended consequence from the United States drug policies to
thwart drug ... Show more content on Helpwriting.net ...
The horrific increase of HIV/AIDS was one of many unintended consequences resulting from the United States Drug Policies to end drug use.
Clinton's decision to put the main emphasis of the policy toward law enforcement played a helping hand in the expansion of spreading HIV/AIDS.
When increasing the presence of police on the street this started to drive up the cost of illegal drugs because more individuals were being put behind
bars even though production did not increase in price. Majority of the drug abusers could not afford the price of the narcotics which lead them to
become prostitutes or enact in criminal activities. The ramification of their actions contributed to the disperse of HIV/AIDS from unprotected sexual
activities. A consequence that the United States did not intend on happening with the Drug Policy was drug producers and distributors adapting to
interdiction and other tensions against their products. The drug addicts had to learn how to adapt to the change in drugs available to them just like
their suppliers. When the United States "forces pushed hard against Afghan poppy–growers, farmers switched to marijuana." The United States needed
to realize that there are always substitutes and alternatives to drugs. Also, when the United States decided to emphasis the law enforcement presence in
Miami and the Caribbean's during the 1980s in hopes of ending the cocaine trade only caused the cocaine trade to relocate. When a drug supplier must
relocate this gives them the opportunity to gain new clients and continue to spread narcotics undetected. Both of these consequences were not intended
by the United States Drug Policy to end drug use but, occurred. Law enforcement was rushed, harsh, and unbearable which caused Americans to react
in questionable ways. The United States Drug policy was an

The United States Federal Reserve 's Quantitative Easing...
INTRODUCTION
As part of our term project for the Topics in Macroeconomics class we were assigned the topic of linking the Keynesian view with the Great
Depression of the 1930s as well as using it to explain and critically evaluate the United States Federal Reserve's Quantitative Easing policy, which was
employed in an effort to combat the downfall of the world economy in the wake of the financial crisis of 2008.
The following resources were utilized to help us carry out our project:
Quantitative Easing: A Keynesian Critique By Thomas I. Palley
The History of Macroeconomics from Keynes's General Theory to the Present By M. De Vroey and P. Malgrange
Macroeconomic Principles – Chapter 17 By Libby Rittenberg and Tim Tregarthen WHAT... Show more content on Helpwriting.net ...
Policies that made the situation worst.
CAUSES OF GREAT DEPRESSION
The effect of great depression was mostly recorded in the United Nation. So we are going to discuss the causes that affected the U.S economy with a
brief look at how the world economy was affected as a result. The main cause that is noted in history was the decline in the consumption level of the
consumer, this had a direct effect on the production output and the inventories increased as the consumption level decreased to a great level. Due to
this setback the U.S economy was brought down to the bottom, the aggregate demand decreased at a substantial level. THE MAIN CAUSES OF THE
GREAT DEPRESSION
Contrary to popular belief, the Great Depression did not originate from the stock market crash of 1929. Yes, the stock market crash did result in
numerous people (mostly wealthy investors) losing a lot of money, but despite the gravity of the stock market crash we are reluctant to blame the stock
market crash as a trigger.
The roots of the Great Depression can be traced back to the First World War, which saw a large American infantry being mobilized. This mobilization
meant that a larger number of resources were required to sustain the war efforts. Farmers across the US started to raise their production and
consequently expanded rapidly to provide

Foreign Policy, Reformed, And The United States
Stefan Danilov
Pol S 321 B
Professor Robin Datta
Response Paper 1, Prompt 1
October 18, 2015
Foreign Policy, Reformed
Looking back at the history of the United States, we find ourselves in the midst of a revelation. The country of grandiose influence and excessive
wealth, that we have come to know during our lifetimes, actually had quite humble beginnings. At a time when most of us are used to having most
countries come to the US to inquire for help and assistance, we may not be all too aware that our own country was once asking for assistance as well.
Yes, the US and our people, were once greatly dependent upon investors from the other side of the world. Our land, railroads, canals, and countless
other projects were once financed and ... Show more content on Helpwriting.net ...
The notion that we do not need foreign policy, or that it is an antiquated concept is greatly misleading. In fact, we need a strong foreign policy now
more than ever. We are living at a time when the world's geographical divides are shrinking due to ever increasing advancements in communication,
technology, trade, and a strong global economic interdependence. Even though the notion that we are somehow economically dependent upon other
countries is not something new for the US, we still see a strong indifference to foreign policy. In order to understand the problems, let us take a step
back and examine the history of US foreign policy.
For the most of the twentieth century we have defined our foreign policy in regards to our competition with the Soviet Union up until the end of the
Cold War. Even though we never directly went to war with the Soviet Union, we were still engaged in a race to the top. However, once the Soviet
Union collapsed, we saw a drastic change and a shifting away from foreign policy towards domestic policy. It was not until 9/11 that we have started
to focus our attention back again towards foreign policy.
In other instances, throughout the history of the US, we have always been dependent upon other nations. Mead and Kaufman gives us thorough history
lessons on our economic interdependence or even co–dependence with other nations during our formative years as a nation. We would not be the
nation that we are today if it was not

United States Foreign Policy Analysis
The United States must have a solid international relations and an effective domestic policy in order for the country to be well off and protected from
any sorts of extortions.
International relations and United States foreign policy are different from domestic polices and policymaking. Foreign policy is a way for the
government to deliberate interactions with other nations, but they usually work in a way to fulfill their own objective. Domestic focuses more with
policies that affects our country, such as taxes and healthcare. With domestic policies, government officials decide on its activities. On the other hand,
foreign deals with policies that allocates with how our nation interacts with the rest of the world, such as war on terror, ... Show more content on
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The scale of American military authority, as well as our country's ability to deploy and use these resources, is way beyond degree of any present or
potential enemy (Greenberg & Page, 2014). Due to our high budget spending in defense, the United States have exceeded other countries such as China,
France, Germany, Italy, and others in warfare. It is important because the military is our security against our rivals. The more money that is involved
with the military will only help strengthen our nation and protection for the citizens of the United States. The military is what protects us from hostile
actions from any type of guerilla or terrorists threats. The United States should use its positions as the major world power to influence international
relations so it could be idolized on the security of their nation, since we do exceed our budget on

United States Drug Policy
US Drug Policy Introduction Drug policy is a crucial topic in the country today. Substance abuse, as well as drug–related crime rates, are a huge
problem. This is a fact. The way to fix the problem of substance abuse, however, is widely disagreed upon. Some think that stricter laws regarding
drug possession and use would solve the problem, while others believe that loosening the restrictions would be a better option. The issue of legalizing
drugs, especially marijuana, is one that is debated all the time. In fact, in 1995, a survey was conducted on the most important policy issues and eighty
five percent of the country placed drugs at the top of the list (Falco 1996). Many states are actually beginning to decriminalize, and even... Show more
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(Boyum and Reuter 2005) Many people do not know that so much government money is going to this, and everybody should be aware of what their
government is spending their money on. Inciardi says that this issue may be so important to people because of the media. He says that the media
portraying so much drug use brings this type of behavior to the attention of people including law officials as well as civilians. It is sort of glamorized
on television, with stories of celebrities being sent to rehabilitation centers. (Inciardi 1999) Besides this, many people are concerned because of the
influx of hard drugs, especially heroin, to the mainstream rather than being hidden in the poverty–stricken inner cities. In recent years, crack, cocaine,
and heroin have been more prevelant than ever, especially among the wealthy. Drugs are no longer something that only gang members and bad guys
do, everybody is doing them. (Inciardi 1999) Because it is so prevalent in pop culture and in the news, everybody should be up to date and aware of
the current drug policy in their area. America's "War on Drugs" The term "War on Drugs" was first used by the Nixon administration in the 1970's, but
the country has been enforcing policies against drug use, possession, and distribution since 1914, with the passing of the Harrison Act. They do this
mainly through deterrence. The government makes laws and regulations against this kind of behavior and

United States Foreign Policy
Flynn 2
Introduction
In light of the previous United States presidential elections, much emphasis has been placed upon Americas global relationships with other nations
through foreign policy. With the sizeable influence that the United States has globally in regards to trade, economics and international treaties, a shift
within ideological belief about these aforementioned concepts will greatly change the current stance, and future action of the American government. In
theory, when looking into Republican ideologies on trade, tariffs and treaties, a major shift away from their previous historical beliefs are notable.
Because of the large differences in foreign policy ideology between the Republican party and Democratic party, if theory is ... Show more content on
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The small government, small business and hostile globalization economic ideology that is present throughout the ideals of the current Republican party
will lead America into an entirely new relationship with other super powers economically. Thorough reviewing both Democratic and Republican
ideology around foreign policy, trade, the economy, and relatableinternational relations, the answer to the research question can be correctly concluded.
Research has shown that "ideology is an important influence on preferences over a wide range of issues, including free trade (Kucik et al. 2016)."
"Divided Government and U.S. Trade Policy: Much Ado About Nothing? (Karol 2000)," has asserted the notion that many scholars have looked over
the impact that party affiliation has to trade policy.
Looking into historical instances of action in regards to trade within party lines will allow one to see past trends and likely future tendencies. Party
affiliation has a major effect on
the way in which governments conduct trades, as well, how various Global agreements are

The Pros And Cons Of American Foreign Policy Of The United...
Dictionary.com defines foreign policy as "a policy pursued by a nation in its dealing with other nations, designed to achieve national objectives
(Dictionary.com, 2015)." According to U.S History (2015), The United States American foreign policy is founded on interactions with foreign nations
and establish standards of collaboration for its governments, conglomerates and citizens. The objectives of the foreign policy of the United States, plus
all the Agencies and Bureaus in the United States Department of State are "to shape and endure an additional democratic, safe, and affluent domain for
the advantage of the American societies and the global community." Jurisdictional goals listed by the United States House Committee on Foreign Affairs

United States Government Policy Analysis
The role of the United States government has increased to detrimental levels over the last century. Our nation is currently over 18 trillion dollars in debt
and this number continues to grow everyday. Social programs are leading our nation's people under a constraining weight of debt and forced
dependency on the government. Our government needs to refocus on serving the people instead of enslaving them. Adam Smith, an eighteenth–century
Scottish moral philosopher said "the ideal functions of the government are few and well defined." (Lipford, Slice, 2007) Smith named three important
functions, national defense, administration of justice, and the provision of public goods. One of the largest reasons our country is in so much debt is
from government expansion to include many socialistic programs. Many of these programs were started by President Franklin D. Roosevelt between
1933 and 1938 in response to the great depression of 1929, and are still in... Show more content on Helpwriting.net ...
Going trillions of dollars in debt and having social programs, (that most americans are basically forced into applying for) that may be bankrupt by
the time individuals need to utilize them is not serving its people. It's putting the people in a limbo of not knowing what to do, the government
making it almost impossible to be independent, but having unreliable sources of federal health insurance, is making it harder for the nation to trust its
government. The government is going in a downward spiral, and it's up to the people to look at the facts, and make a decision to change the fate of
our nation. The best thing we can do for ourselves is educate us, and future generations, because the more knowledge we gain, the more power the
people have. Then we, our nation, can come together and stand up to the misuse of power in our

The Monetary Policy Of The United States Central Bank
The monetary policy is among the most crucial tools the United States central bank can put into use so as to achieve the various economic objectives.
The outlook of the US economy should underline the progress that the Fed reserve has initiated towards the mentioned dual mandate which has been
put into place by the Fed reserve towards the constant dual mandate goals of employment to the maximum in the price stability context (Steven, 2011).
Over the recent times or years, the US economy has progressed towards the outlined goals. However, in the context of the United States monetary policy
, the rate of unemployment is still at high levels while the rate of inflation is too low. Due to the uncertainty of the US monetary policy, normalization
can be determined since it is data dependent (Axilrod, 2011). Whenever there is a shift in monetary policy, it is crucial to be mindful of the most
likely occurrences since they come alongside by certain degrees of market turbulence and stress. Additionally, if the US monetary policy is
normalized, some certain challenges will be formed for the economies in the emerging markets (Steven, 2011). It is upon the Federal Reserve therefore
to address the risks that come with the US monetary policies.
There are therefore key factors that have an influence on the amount of money that people hold desirably. One of them is consumer spending which is
related directly to the demand of goods and services. During the periods whereby customers spend a

Current Economic Conditions: the Role of Fiscal and...
Current Economic Conditions: The Role of Fiscal and Monetary Policies In the United States July 25th, 2012 Over the past ten years, we have seen a
weary world with uncertain economic turns with more downswings than upswings. Some might say the worst affected economies have been the once
invincible super–powers of the western world such as Western Europe and the United States. The ongoing uncertainties of the Euro as well as numerous
bailouts have caused more speculation and fewer expectations. Critics argue that with proper policies and regulations the financial meltdown could
have been assessed more efficiently or altogether prevented. The realization of uncontrollable powers such as political environments, foreign economies,
... Show more content on Helpwriting.net ...
Governments may not be able to control foreign or internal economic shocks, but they can ease and regulate through their fiscal spending, tax
policies, and monetary policies. Fiscal stimulus such as tax cuts or spending hikes by the government are intended to close the recessionary gap
that we are experiencing and bring the economy to a full employment GDP. Keynes believed that the way to get out of a recession was obvious
and it was to get someone to spend more on goods and services (Schiller). Even if it is the apparent way to help a recession, people are not going to
go spend when their jobs are at risk. The policy constraint of expectations plays a huge role in the future of the economy. We have seen this because
the unemployment rate is still around the same percentage as it was four years ago. The process is a cycle; if unemployment is low then so are GDP,
production, and income even if interest rates are low and the government cutting taxes. No matter how much the government reassures the public, the
change will not be instantaneous and it will take time to recover. To add to all of these factors, we must also look at tax policies. We have seen in the
past tax incentives stimulate growth through saving, investment, and work; however, deciding the best approach will be debated by economists and
politicians. Two views for tax incentives are the supply–side theory and the Keynesian theory. Both of these theories end up

United States Monetary Policy
In other words, Monetary policy can be looked at as a policy that is money–based that involves banks that manage liquidity to create the growth of
money. This includes the use of checks, cash, and credit that are used in the money market as primary ways of investing money. The most
important of these is credit would be one of the most important tools used in the market because it consist of loans that are written promises to pay
money back. Within every policy that every nation has there will always be an objective at hand. The U.S. Federal Reserve, like many other banks
around the world, has clearly stated targets for their goals. They look for a certain percent of people who want to work but cannot find a job and the
find that the rate of... Show more content on Helpwriting.net ...
Monetary Policy contains six different fundamental tools. All central banks have ways of obtaining money through Monetary policy that are
common. Most have many more. All banks work together in a process of people making, selling, and buying things, by keeping track of banks'
reserves. For example, the Federal Reserve has many goals in place regarding Monetary Policy. In my perspective, I feel as though this is an
action that they take as a last option because this will consist of an overload of paperwork that would be needed and demanded. However, after
conducting research based upon the topic at hand this is an easier way for banks to manage money. ". By doing this, they can charge banks to lend
out funds. Now, with the use of discount windows this usually contains an amount of sets in a rating of discounts that maybe higher than the rate of
the Federal Reserve. This is not a coincidence, but instead preferred by the Federal Reserve in order for banks to borrow from one

United States And Foreign Policy
United States (US) interference of foreign policy is a complex and much debated issue in the United States. The major topics to be evaluated include
the benefits and costs in the areas of national security, humanitarian causes, trade, alliance, and economic impacts. Additional concerns involve the loss
of human life and the animosity generated toward the US when the country decides to provide aid to another. US interference can have positive and
negative effects if acted upon by interceding in foreign affairs. The United States should not be allowed to intercede in foreign affairs unless the US is
trying to promote and preserve peace. US interference consists of preserving national security, promoting world peace and a secure global environment,
maintaining a balance of power among nations, working with allies to solve international problems, promoting democratic values and human rights,
and furthering cooperative foreign trade and global involvement in international trade organizations (ushistory, 2013). One way the United States can
secure the national security is by protecting the borders from terrorists, instead of spending money for foreign wars. The US should invest money to
secure the border. Securing the border would require fewer troops and would utilize unmanned surveillance technology called the Predator B drone,
which costs $3,234 per hour to operate (Isacson, 2014). If the US would secure the borders, would provide a boost to the economy, employment would

United States Foreign Policy During The Cold War
All of the stands and actions that a nation takes in from its relationships with other countries is foreign policy. It involves treaties, alliances, trade,
defense budget, foreign economic and military aid, United Nations, nuclear weapon testing and negotiations. Foreign policy has great other matters to,
but the basic purpose of this policy has always been for it to protect the security of the United States as whole. From the start of Foreign Policy to 150
years later, this policy was built largely around the policy of isolationism. This policy or in other words, doctrine, isolated a country from the affairs of
other nations by declining alliance entrance, economic commitment, and international agreements. Foreign policy has provided countries ... Show more
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The war lasted longer than three years. "It pitted the United Nations Command, largely made up of American and South Korean forces, against
Soviet–trained and Soviet–equipped North Korean and communist Chinese troops" (McClenaghan 487). Even after Cease–fire negotiations beginning
in July 1951, fighting continued "until an armistice was signed on July 27th, 1953" (McClenaghan 487). Peace terms were never agreed on. This long,
bitter war with Korea put the United States in 157,530 causality debt, including 20 billion dollars in debt, and 33,629 war fighters dead. Korea on the
other hand was in much destruction in both the North and

Prioritizing Policy On A State Government Essay
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Course
Tutor
Date
Prioritizing Policy Issues in a State Government
Since the great recession, most economies the US economy has gone five years without full recovery. The labor market and incomes of low–and
middle class was severely affected, which later dented the growth of the economy. Nonetheless and somehow surprising, the recession was as a result
of a shortfall in household economies and demand for goods and services, which would be solvable to avert such a situation
Arguably the best summary measure to define today's economy is the "jobs gap"–the number of jobs necessary to restore prerecession labor market
health. Filling the jobs gap would take more than three years of annual economic growth averaging at least 5 percent–growth rates that will not
materialize without an abrupt change in fiscal policy. If the average monthly gains of 181,000 jobs throughout 2012 persist, this jobs gap would not
close until 2019. In short, five years after the onset of the Great Recession, full economic recovery still remains years and years away.
Unemployment is another symptom of the Great Recession. Here, unemployment stood at 7.8 percent in December 2012, more than three percentage
points higher than the 4.6 percent average of 2006 and 2007. That is also higher than the peak unemployment rate following the recession of 2001, and
equal to the peak rate following the recession of 1990–1991. Due this, increasing attention has been paid to those states that, despite the urban

The Influence Of Public Policy In The United States
Public Policy is the way that our Executive branch of government help maintain the order of the country as well as the needs of its citizens. Of
course, no one system can be individually perfect and solve all issues. But the public policies in the United States have been molded on off racial
prejudices in the past, and off legacy racism in the present. Discrimination that affects the racial dynamic of most urban cities in the nation. In this
course we have discussed the necessity for public policy and the ways in which it affects this nation. Public Policy –our government and the citizens that
have an impact through voting– help shape the economic and social system for the United States. To go more into depth, that means that education,
employment, housing, health(care), our communities, and the criminal justice system are all impacted by the decisions made by our government. ...
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Public policy has influenced philanthropists to do some of the beneficial deeds they have done over the years. That will not only benefit
themselves, but also select communities and groups of people. On the other hand, public policy has also helped with the creation of laws that do
not necessarily benefit "the people". Laws and bills passed such as the Bill of Rights or the Fair Housing Act of 1968. Although there are actions
being executed by the government, sometimes they are not as beneficial as they were intended to be. Regular citizens as well as executives of the
law can sometimes find ways to misuse or bypass the intentions of the law for their own personal purposes. One thing I have learned is that racism,
inequality, and inequity play a role in how the laws that were created, are

United States Security Policy
Introduction
Throughout the twenty–first century, the global balance of political, economic, and military power underwent several paradigm shifts. Each of these
transitions defined the security policy of the United States and changed the course of America's grand strategy for advancing its interests and defending
its territory. At the beginning of the century, theUnited States tried to avoid being drawn into two major European military conflicts yet found itself
emerging victorious and relatively composed and powerful. World War II effectively ended a multipolar world with several great powers and replaced
it with a bipolar international environment with only two superpowers. For more than five decades, the United States faced only one true rival, the
Soviet Union, which not only mirrored the United States in military power but also opposed it ideologically, creating a high risk of major power war.
Throughout the Cold War, United States security policy had but two key ... Show more content on Helpwriting.net ...
The American military conducted countless humanitarian missions and forceful interventions across the world. But as developing countries rise, the
international environment quickly approaches a more multipolar balance of power. Given this trend, some argue that America's broad and arguably
invasive security policy is unsustainable, and that military spending and foreign military operations need to be scaled–back. Others argue that the
United States has a unique and important place in the world and must take measures to retain its leadership position, even at the cost of developing
nations. Today, analysts of United States security policy debate an important question. Should the United States revert back to a one–dimensional
security agenda with one clear objective? Moreover, should the United States direct its attention and energy towards China, its most formidable

The Importance Of Foreign Policy In The United States
Foreign Policy is an issue that affects most, if not all, of the people in the United States of America today. Foreign policy, for us, mainly consists of
three things in our country. We work with our allies, we help those who share the same values that we hold dear to us, and we fight against terror,
tyranny, and hatred among other countries, and even internally within our own. Many people have different ideas of what foreign policy is, but many
can agree about the three listed above. Although, many can also agree that our ideology and our actions can be very separate from each other.
Sometimes we say we do one thing, and do another thing that can be the polar opposite from the 3 values listed above,
Foreign policy affects us all, as American citizens, because every action we take with a country other than ourselves can make or break our ... Show
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Americans have the right to vote on laws that pertain to any aspect of our country's well being and decisions. We as voters should be making the best
decisions we can to make our country the best it can be and pave the superior path for our children, because this issue affects them just as much, if not
more, than it affects us. Foreign policy decisions often have long–lasting consequences. Even more often, the people making those decisions won't live
long enough to experience the full effects of them. We most likely will. We will have to pay in the future for the decisions being made today.. We
are already paying through taxes for the actions of generations before us. The costs of the war in Iraq is a big factor in our national debt, and
national debt and interest payments are rapidly increasing because of this war and many others we take part in. The consequences for these decisions
are also hard to reverse, and our children will probably be suffering still from the decisions that the generation befor us has

Canadian United States Foreign Policy
Canadian–United States Foreign Policy, Consistent and Thriving I hypothesize that the current US policy with Canada makes sense and is beneficial to
both countries. Our current foreign policies with Canada include, working "in partnerships within, at, and away from our borders to achieve enhanced
security and accelerate the legitimate flow of people, goods, and services between our two countries." Our relationship with Canada, I would consider to
be strong. The fact that we have a very large, extensive border between our countries, a solid relationship is almost a necessity. Eve with outr
differences with regards to boundaries and oil reserve rights, the communications between our country are strong and I would classify the United States
relationship with Canada and strong and thriving, but ore so consistent. The relationship between the US and Canada actually thrives off of each
other, for example, "Canada, absorbs 43% of U.S. exports, and half of their energy imports come from the Western Hemisphere. (US Dept. of State
2013) With this, I would also go to say that sharing a border with shared values and beliefs in our economic structure are key to successful foreign
relations. With strong relations with our neighboring country, we can rely on each other in times of crisis and in peace. For example, "Canada is the
US 's largest foreign supplier of energy, including oil, gas, uranium, and electric power. (CIA Factbook) Without these natural resources being imported,

Directive Principles of State Policy
DIRECTIVE PRINCIPLES OF STATE POLICY
Q. 1. What are the Directive Principles of State Policy ?
Ans. The Directive Principles of State Policy are those moral principles which are fundamental in the governance of the country. They are the
instruments of instructions for the guidance of the rulers, both at the. Centre and the State levels, for the establishment of a just ond egalitarian society in
India.
Q. 2. What is the aim of Directive Principles of State Policy ?
Ans. Their aim is to establish a welfare state in our country.
Q. 3. From which country have we borrowed these Directive Principles of State Policy? Ans. We have borrowed these Directive Principles from Ireland
which itself had borrowed them from the Republican Constitution ... Show more content on Helpwriting.net ...
(ii) Article 38 says "The State shall strive to promote the welfare of the people by securing and protecting as effectively as it may, a social order in
which justice, social, economic and political, shall inform all the institutions of the national life." and strive in particular, to minimise the inequalities in
income and endeavour to "eliminate in equalities in status, facilities and opportunities". (iii) Article 39 says "The State shall, in particular, direct its
policy towards securing (a) That the citizens, men and women equally, have the right to an adequate means of livelihood. (b) That the ownership and
control of the material resources of the community are so distributed as best to sub serve the common good. (c) That the operation of the economic
system does not result in the concentration of wealth and means of production to the common detriment. (d) That there is equal pay for equal work for
both men and women. (e) That the health and strength of workers, men and women, and the tender age of children are not abused and that citizens are
not forced by economic necessity to enter avocations unsuited to their age or strength.
That childhood and youth are protected against exploitation and against moral and material abandonment. (iv) Article 40 lays down that "The

The Importance Of Nation-State Policy
Along with the twenty–first century tagged an interconnected and globalized world, consociated by instantaneous worldwide communication and the
free dissemination of information. With this new era of technology, economic policies of nation–states have become so interdependent that most
nation–state economies would be crippled without their respective international trading partners. As such, one may wonder if an introspective national
policy is appropriate, as argued for by the source. For example, one may contend that international cooperation inevitably results in unequitable
compromise, with the more powerful nation–states forcing developing countries into partisan trade–deals. This argument, however, does not take into
account the... Show more content on Helpwriting.net ...
Furthermore, by stating that individuals, in general, do not appreciate others "telling [them] how to deal with ... the seal hunt", the speaker alludes to
the fact that each nation–state understands its own eccentricities best, and that others cannot empathize because they simply do not have such
resources, such as seals. A nation–state that chooses to remain isolated from the world suffers technologically. A prominent example of the detrimental
effects of isolationism and the beneficial effects of international trade can be observed through the period and abolition of Sakoku, better known as the
isolationist foreign policy of Japan. During isolation, the Japanese were only scarcely aware of the technological advances in Westerntechnology. As
such, when U.S. Commodore Matthew Perry's "black ships" arrived, the Japanese were shocked at just how advanced the technology was, especially in
shipbuilding and weaponry. Rather than closing off its borders and potentially suffering the same fate as China, the Meiji government decided to
rapidly Westernize the nation, in terms of technology and in things like clothing and eating habits, in an attempt to convince the Western powers that
the Japanese were their equals. By the time the Meiji rule concluded, Japan had a highly educated population and an established and rapidly growing

The Federal Reserve : Inflation And Employry Policy In The...
The Federal Reserve is adjusting to what some call the "new normal." After the most recent recession the United States has experiences a slow
recovery which has a notable disconnect between inflation and unemployment. Further, banks hold high excess reserves and the Fed has a balance
sheet which includes over $1.7 trillion in mortgage backed securities (Quarterly, 2017, p.4). As such the Fed has had to rethink its past procedures in
order to maintain its dual mandate of maintaining unemployment and price levels. While it has been a decade since this recession began the economy
is just now showing signs of strength and such the Fed is beginning a process of "normalization." To do this the Fed's has changed its stance on
monetary policy in ... Show more content on Helpwriting.net ...
4). This indicates that the Fed will gradually increase the interest rate target in the coming months to sustain growth. Through normalization the Fed is
attempting to decrease its balance sheet. They will do this by not re–investing matured securities, this decline is capped at $6 billion per month for
treasuries and for private securities $4 billion. Yellen states "[b]y limiting the volume of securities that private investors will have to absorb as we
reduce our holdings, the caps should guard against outsized moves in interest rates and other potential market strains" (FOMC 5). The gradualist
aspect will allow the private sector to slowly adapt their expectations of the Fed and inflation. Part of "normalization" is the anticipated increase in the
target rate. To increase the interest rate the Fed must decrease the downward pressure their ownership and reinvestment of securities and treasuries
creates. Thus the fed will increase their capped decline in their balance sheet in the coming months to over the current $10 billion. The re–investment in
the Fed's profit from matured securities is an injection into the market. By lowering this re–investment in increments the fed will decrease the supply of
investment funds, and thus the interest rate will increase. By gradually increasing their

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