Economic Variables And Monetary Policy

Economic Variables And Monetary Policy
As was mentioned above rising in oil prices influence the increase in inflation. And it is big dilemma for monetary policy, because arise a question
what should central banks do? Should they tighten monetary policy to correct the effects of oil prices increases and prevent inflation? Or they should
take in oil prices increases with easy monetary policy to support growth of output and employment. In this situation, central banks have these two
main problems. The point is that central banks can do nothing for preventing of an increasing of world oil prices from harming oil importing
countries. The country will less other services or goods when oil import will be paid, or to understand how to leave and consume less oil, go deeper
to depth. So, monetary policy can help only what forms of damages takes. The second problem is that central banks have little control of real economic
variables, because of neutrality of money. Monetary policy can control only the growth and nominal GDP. If a country has output growth, but at the
same time inflation growth as output grow, this situation has nothing beneficial to a county citizens. So, if we put all these together, it becomes
understandable that central bank of an importing country have limiting options to deal with oil price shock. They can apply tighten policy to keep
inflation from rise, but in this case real GDP will decrease or will be behind the growth of potential GDP. As a result, a country will have negative
output gap and
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Economic, social and political policies
How successful were the economic, social and political policies of the Tsar's government from 1894–1914? In 1894, Nicholas II ascended to the throne
following the death of his father, Alexander III. Woefully unprepared for such a role, Nicholas II has been characterized as a naive and incompetent
leader. At a time of enormous social and political change in Russia, Nicholas held fast to the outdated, autocratic policies and opposed reform of any
kind. His inept handling of the military matters and insensitivity to the needs of his people helped to fuel the 1914 Russian Revolution. It can be
argued that the most successful economic policies were of those, set by Sergei Witte; however, these policies had successes and failures. Sergei... Show
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This is demonstrated through the unrest in Russia, for example, The Lena Goldfields incident, where industrial worker were shot for causing unrest.
This is a factor of little importance but shows that the people of Russia were unhappy with the government. In addition, in 1914 there was a major
increase in the number of strikes, this highlights the fact that the Russian people were unhappy so therefore wanted to cause unrest in order to get
what they wanted. Nicholas took over from his father and stuck in his father's reactionary ways and ruled Russia as an autocrat. This meant that he
had supreme power over Russia. All political parties were made illegal, this meant that the only way to challenge the Tsar's authority was to cause
disruption, such as strikes. It can be argued that this shows that Russia was politically stable as no–one could challenge the tsarist regime however it
shows a lack of political stability as many groups of people became political opposition to the Tsar. To compare, it can be said that Russia was
becoming politically stable. The most significant factor to show this is the October Manifesto. Concessions such as freedom of speech, the right to
form political parties and a formation of a national parliament were formed during the October Manifesto. As a result of the October Manifesto, the
Duma was set up. This is an equally significant factor as it shows that Russia had the possibility to become a democratic country,

Economic Policy Paper
Economic Policies
The Right Policy for the Job
Beginning in the summer of 2005 the U.S. suffered inflationary mortgage crises because low interest rates and adjustable rate mortgages (ARM) lead
lenders to entice many lower–income people into buying homes they couldn't afford. An article in the CQ Researcher stated "more than 2 million
borrowers lost their homes to foreclosure" (Mortgage). This is because they were unable to make the payments on high–interest subprime mortgages.
Further this resulted in mortgage lenders, banks and investors being left with bad loans to write off and eventually most needed a bailout and the
economy sank into a recession. This is just one example of the economic extremes a full market economy nation like the ... Show more content on
Helpwriting.net ...
Fiscal policy is something many are not aware of or do not fully understand, however it's one of the major issues that affect all of us. Federal spending
policies affect social security, disability and unemployment aid. Tax policies can change your income level and influence consumer purchase ability
and choices. Determining a fiscal policy plan is sometimes a long process, the president and the Congress have to determine a budget and then figure
out a level of spending and taxes for different categories such as national defense, transportation, health, human services and more.
In order to control economic inflation and recession problems such as the recent mortgage crisis discussed at the onset. An economic policy mix of
expansion and contraction methods is used to control aggregate supply and demand. Expansionary fiscal policy is more effective in improving the real
economy. Expansionary monetary policy is better suited for controlling the financial economy. Fiscal policy can be target, whereas monetary policy
tools are blunter, both types of policies impact consumers and businesses in different

Economic Policies, Fiscal Policy And The Monetary Policy
A recession does not just affect the lives of the people in the country that is having a downturn in there economy but also it affect the global economy.
The United States have had several economy catastrophes that almost crippled the United State and the rest of the world causing the government to act
fast to slow down the economic downward spiral. The United States' government throughout history has attempted to develop plans to slow down or
prevent the country from having a complete economic meltdown. In this paper I will explore two expansionary economic policies, fiscal policy and
the monetary policy which the federal government uses to help move the economy out of a recession and effects they have on taxes, interest rate, GDP,
and employment. The Great Depression is one of the greatest economic devastation in history and the government was unsure how to bandage or
slow down the bleeding. The Great Depression was a learning experience for the United States government and was where the Government would
prepare and come up with a plan to deter or prevent another depression. In the 1930s, the Great Depression was caused from the stock market crashing
and caused the global decline which had the value of investment steady decline. Not only did this decline affect big business and the rich but also it
affect the middle class and poor, incomes, production of product, sales of production, investment and stock value decreased. According Wikipedia, The
consensus

Municipal Economic Development Policy
When it comes municipal economic development policy, public officials pursue policies that will improve the economic position and financial stability
or prosperity of their city. Economic policy at the sub–national level is often nonpartisan because these types of governments do not take on
redistributive or allocation policy. Rather, they take on economic policies that most everyone agrees upon such as creating jobs or bringing in new tax
revenue. (Kogan, 2014) These policymakers main focus will aim to increase revenue flows as well as the creation of jobs. When it comes to economic
development, cities want to attract new businesses. With new businesses comes an increase in revenue via tax revenue. These new businesses also
bring with them new jobs. When there are new jobs, there is a reduction in unemployment and poverty. One way municipalities aim to increase their tax
revenues is by making themselves competitive amongst other municipalities. They want to be competitive to attract firms to locate or relocate within
their limits. Policymakers increase their city's appeal by offering tax credits and other incentives for the business to choose them. Policymakers believe
if they cities can attract new firms by investing money they will come out on top in the end. In HBO's The Wire, we see local policymakers deciding
whether they should invest revenue in the expansion of a shipping port to bring in increased future revenue and also to make them more competitive
with

Economic Policy Essay
The health of the United States economy has been on an unsteady road ever since 2008 when the economy collapsed, but over time it has adjusted
itself to be set in the right direction. The recession, when the housing bubble popped, caused a huge dip in the GDP, a shockingly high unemployment
rate, and a mess of a country, and it has taken years to recover itself to the place where it is today. 9 years later, GDP andinflation is back on track and
the unemployment is lower than it has been in years. First, America needs to look at the trends in real net domestic product and real GDP. Second,
unemployment rate should be analyzed and understood what patterns it has taken to get there. Lastly, Trump's new ideas should be evaluated and applied
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With Trump's plan, the GDP is set to be in a good place and the country's health could improve itself. Unemployment is a phenomenon that occurs when
a person who is actively searching for employment but is unable to find work. In recent months, there has been a debate has appeared asking if the U.S.
unemployment rate is indicating the economy has reached or nearing reaching full employment. That is a reasonable question considering the
unemployment rate has reached an all–time low of 4.4%, and it has not been that low for years (FRED),. A reason for the lower percentage is that
"employers added 211,000 jobs in April as the unemployment rate ticked down to 4.4 percent, the lowest level since May 2007" (Worstall).
Unemployment is one of the sectors of the overall economy that is still lagging with regards to other sectors. It also appears that some businesses
may been hiring more and willing to take more people in to employ. It is important to note that while the unemployment rate is still existing, it is
surely creeping down. The low unemployment will help with the GDP because more goods and services will be stimulated with all the new workers
being eager to work. The last main thing that helps drive the economy is inflation, which for the first time in years America may not need to worry
about it for the first time. "In the second half of the year, we think there's going to be some headwinds

Economic Policy and Practice
Economic Policies And Practices
ECO2072 / Professor Gordon
4/5/2013
Assignment Due Date – 4/3/2013
Economic Policies And Practices Understanding the foundation for which our economy and society as a whole is built upon, the need for a controlled
and managed monetary system to function effectively in order to facilitate trade and stabilize the flow within our economy is a must. To facilitate this
need the federal government implements tools for analyzing the economy in order to regulate and control, and decisions are made based on the inputs
and observations made to stabilize and enable the money to grow and retract as required within our economic system. Again, based on the
aforementioned, the phrase "money makes the world go ... Show more content on Helpwriting.net ...
In the case of quotas and their effect on the economy, we find that quotas are numerical limits which are imposed on imported goods and in such a
case of enactment consumers are truly harmed by the quotas while domestic and foreign producers will benefit once again by receiving higher prices
for goods and services (Investopedia, 2013).
Loss Of Confidence In Leadership In Ability To Manage And Create Jobs The Federal government is the entity that steps in when our economy incurs
unhealthy conditions within its business cycle. It is presumed that our government has tools to detect and analyze our economy to understand those
events that have the potential to alter the economy's equilibrium. With respect to the aforementioned, problems arise when the general public loses
confidence in the leadership and their ability to manage the economy to include job creation. Mankiw, 2009, Ch.33, P.741 shares, that in the scenario of
lack of confidence we find that consumers again alter their plans for the future cutting back on purchases and spending. The effect of this cutback
impacts the aggregate demand curve as well as the aggregate supply curve thus impacting either the short–run equilibrium and/or the long–run
equilibrium. The consequences result in falling incomes and

Monetary Policy For Economic Growth
It has been almost 10 years since the last time the Fed has increased interest rates, held back by a fear of an unstable economy. There is a worry that
increasing the interest rate by just a quarter of a percent could tip financial markets into another crisis. However, recent data portrays the economy as
being the exact opposite of unstable. The unemployment rate is now at a new multi–year low, wages have increased and have been increasing over the
year, and now the most recent payroll report shows an increase of 271,000 jobs (NYTimes). Under these conditions, one can surely assume that a
near–term rise in interest rates is inevitable. If the Federal Reserve were to increase interest rates, how will this affect the economy in both the... Show
Established in 1913, Congress stated the statutory objectives for monetary policy as achieving maximum employment, stable prices, and moderate
long–term interest rates in the Federal Reserve Act (FRB). How the Federal Reserve attempts to reach these objectives will be discussed throughout
the paper. The paper will be broken up into sections leading to the end result of our task. In the first section of this paper, we will discuss why
achieving the statutory objectives are important and how the Federal Reserve interprets them. We will then move to how the Fed reaches its'
objectives by discussing the tools that the Fed could use. Then, we will analyze certain economic indicators that aid the Federal Reserve in its'
decision making. Followed by, what negative impact can monetary policy have on the economy? We will conclude this paper with the theory of
long–term growth achievement without a rise in inflation.
We are going to aim our focus on two basic goals of monetary policy: to promote maximum employment as well as stable prices. What does this
mean exactly? First we need to understand that in the long run, the goods and services the economy produces, known as GDP, as well as the jobs
created, are not as influenced by monetary policy in comparison to the short term. In the short term however, the Fed can play a major role. Let's say
through lower levels of demand, a recession occurs. The Federal Reserve

Economic Policy And Monetary Policy
There are two types of economic policies to control aggregate demand in a market economy. These two types are known as fiscal policy and monetary
policy. Fiscal policy is when the government changes their taxing amounts and their spending, for the purpose of expanding or contracting aggregate
demand. Monetary policy is the changes in interests rates and money supply to expand or contract the same demand, but it is under control of our
central bank. When it comes to fiscal policy, the government does two very different things to promote economic growth, depending on what is going
on in the economy at a certain time. For example, if our economy is in a recession and is failing, this policy would involve lowering taxes and
reducing spending. ... Show more content on Helpwriting.net ...
But in a severe recession, such as in 2008–2009, the government resorted to increased spending, in order to get these times out of decrease and into
economic increase. Another type of fiscal policy is aimed to create more expansions and fewer recessions in our economy. This is knows as the
nondiscretionary fiscal policy, or automatic stabilizers. The main source of the federal money brought in is from progressive income tax, which aims
to increase demand in a recession and decrease demand in an expansion, along with the welfare system. In the 2008–2009 recession, these automatic
stabilizers made a much bigger stimulus than the changes made to taxes and spending by the government. When it comes to the monetary policy, the
promoting of the economic growth comes from the Federal Reserve System. In order to make growth during a recession, the bank lowers interest
rates and increase money supply. In an expansion, the opposite occurs, where the interest rates are increased but the money supply is decreased. This
impact though can take several months for it to change the demand. An issue with this though is the fact that the bank is not controlled by the
president or congress, but could be seen as a positive compared to the fiscal policy, which has to be overseen by both the president and congress.
http://faculty.etsu.edu/hipples/fpvsmp.htm
What caused the collapse of the first

Argentin Economic And Monetary Policies
Argentina is considered to be one of the wealthiest countries in Latin America with a Gross Domestic Product of about 540 billion in 2014, according
to the World Bank. However, it hasn't always been that way. Argentina has seen many periods of economic and political volatility ever since its
independence from the Spanish Empire in 1816. From commodity based export booms in the 19th century to high inflation and debt defaults in the 20th
century, Argentina is a country with a grim and daunting economic future. Many scholars have predicted that this is the evident fate of the Argentinean
economy and that there is no way of digging themselves out of it. Argentina's political economic history raises the concern of whether or not it is even
From this territory of the viceroyalty, the main exports of silver, livestock and crops, such as wheat, would be harvested and sent back to Spain in
exchange for manufactured goods. Although, at this time Argentina was flourishing due to its exportation of valuable goods, this small sectored
economy ultimately was the first factor that set the tone of economic depression in Argentina, as the economy revolved around the cultivation and
exportation of commodity goods. This trend was consistent until the 1800's, the latter of the colonial period, where trade saw a decline due to the
Napoleonic Wars. The decline was driven by tariff–barriers and high transpiration costs, resulting in the Consumer Price Index rising by 64 points.
(Paolera and Taylor 35) With this decline and trade, Argentina saw a major weakening of its major economic sector and there saw an increase in
social–inequality along with a decline in the well being of the lower classes. Then between 180 and 1816 Argentina broke away from the Spanish
Empire and declared independence. Upon its newly found independence, Argentina's economic struggles arose once again and would last for the next
couple of decades as a result from tension between the creole and remaining Spanish elites. The Spanish elites that remained in Argentina set up an
oligarchic republic that attempted to suppress the Unitarians by disengaging them from the political

Supply Side Economic Policies
Why are economic policy so important? To evaluate it, people have to look at the policies inside it. The supply–side, demand–side and monetary are
all within economic policies.
What is supply–side economics to you? Well, Supply–side economics are policies designed to stimulate output and lower unemployment by increasing
production rather than demand. This policy gained support in the late 70's. This policy used the Laffer Curve which was a hypothetical relationship
between federal tax rates and tax revenues. The supply –side does not focus on the money supply in things. What do you know about demand–side
policies?
Demand–side policies are federal policies designed to increase or decrease total demand in the economy.

Economic Policies And The Great Recession Of 2008
Demand–side policies and the Great recession of 2008
Recession is a term that looms over any society at some point or another but what does recession mean for the economy, in short it is an economic
decline. This essay will examine the meaning of recession and will discuss the fiscal and monetary policies that are used to pull economies out of
recessions. The great Recession of 2008 will shed light on how these policies were successful at restoring economic growth and reducing
unemployment.
The economic meaning of a recession is that the gross Domestic Product (GDP) has declined for two or more consecutive quarters. Unemployment
rises, housing falls, stocks fall and the economy is in trouble. Whenever the government sees that the economy is entering a recession it is important
for it to act. The U.S acted in two ways during the Great recession of 2008 through fiscal and monetary policies. Renaud Fillieule identifies that "
Monetary and credit expansions have been the main tools used by the U.S. government and central bank to try and recover economically from the
Great Recession of 2008" (Fillieule r, Pg. 99 2016). These Keynesian policies are debatable among economist, none the less they were implemented
and put the U.S on the road to recovery.
Fiscal policies or government spending and tax cuts were implemented. ... Show more content on Helpwriting.net ...
The U.S government implemented policies that would adhere to the Keynesian model that suggest "that it is the responsibility of the government to
help stabilize the economy" (Keynesian). Key actions the government and the fed took was quantitative easing, the stimulus and recovery act which
were approved in 2009. Though the US has not completely recovered from the recession the government did effectively stabilized our

The Economic Policies Of Supply Side Economics
Ever wondered why you have to pay those extra couple of cents at the grocery store? Or why gas prices seem to be constantly fluctuating? The answer
lies within a nation's economic policy. Economic policy is the actions taken by a government to influence its economy. Types of economic policy
actions can include setting interest rates through a federal reserve, regulating the level of government expenditures, creating private property rights,
and setting tax rates. Economic policy hopes to accomplish economic growth and a stable economy. More specifically, the federal government hopes to
accomplish stable prices, economic growth, and full employment by its economic policy. Economists debate over three economic policies: supply–side
The methods that supply–side economics uses to improve economic growth are to lower marginal taxes and less government regulation. Under
President Ronald Reagan, Congress passed a plan that would slash taxes by $749 billion over five years. As a result, Reagan was called a great
advocate for supply–side economics and was praised for his great leadership. Although supply–side economics is based on the idea of encouraging
people to work harder, it also seems to not always work. For example, Congress passed the cut in tax rates after Reagan was elected, but tax revenues
did not rise. This goes to show that other economic policies need to be examined in order for the economy to be successful.
Demand–side economics is based on the belief that the most important thing affecting economic activity and thus resulting in the most stable economy
is consumer demand for goods and services. Also called Keynesian economics, demand–side economics was developed after the Great Depression
when supply–side economics fell through. Demand–side economics was founded by John Maynard Keynes and is based on aggregate demand.
Aggregate demand is the total level of demand for desired goods and services, which is made up of the sum of consumption expenditure, investment
expenditure, government expenditure, and net exports. Demand–side economics utilizes methods such as increasing the buying power of the lower and
middle classes, which increases the demand for more goods

Bill Clinton's Impact on the Economic Policy
Bill Clinton's impact on the economic policy
As the 42nd president of the United States, Bill Clinton was in the position between 1993 and 2001. During his tenure as the president, Bill Clinton had
economic policies implemented, that have been commonly referred to as clintonomics. These economic policies include the monetary policy, the
regulatory policy, the macroeconomic policies and the fiscal policy (Godwin, 2009). However, his contribution to the economic policies of the United
States has been viewed with mixed feelings with some people contending that he contributed greatly to the economic augmentation of the US. In
addition, others have criticized his contribution to the economic escalation of the country.
According to Godwin (2009), during Bill Clinton's initial annual message, economic status of the US was a major issue that stood out. He linked the
relatively poor economic growth for the US with little productivity, budget insufficiency, low growth, sluggish increase in wages, and excessive
healthcare costs among others. Bill Clinton outlined crucial elements of his economic strategy which included shifting emphasis from expenditure to
investment, improving the tax code, making the public policy to favor families and laborers, reducing budget deficits, reducing government expenditure,
and creating jobs for the American citizens (Godwin, 2009). Bill Clinton was also in favor of the international trade and was committed to the North
America Free Trade Agreement

Reagan's Economic Policy
In 1981 President Jimmy Carter left America in an inevitable hole that the country needed to get out of. The country was left with high inflation,
unemployment and a major energy crisis. America needed a big clean up. The presidency of Reagan, Bush, and Clinton came in to change the mess
that they were left with. All three men had their own way doing things that would help America. But it would not be easy to be behind the desk in the
oval office. Apart from the annual Easter Egg Rolls and the annual correspondent's dinner their time in the office would be filled with meticulous
decisions that would affect the world, foreign and domestic policies and scandals. Ronald Reagan was the 40th president of the United States and acted
as president ... Show more content on Helpwriting.net ...
Reagan's "supply– slide" theory included two main things: a major tax cut and economic growth. The cuts on taxes would be responsible for a
decrease in taxes on the topic of national debt. The Economic Recovery Tax Act of 1981, the bill represented a significant change in the course of
federal income tax policy. The act included a 25 percent reduction in marginal tax rates for people. These tax cuts were designed to create an
increase of capital in the of the entrepreneurship economy. The rise of computer companies which include Dell, Sun Microsystem, and Intel boasted
because of this tax cuts. The tax act had a 30 percent reduction. The new approach to the economy lead posthaste into a homerun for the American
people. Reagan was set on an idea to lower taxes and that is what he did. In 1982 he convinced congress to lower the top tax rate from 70% to 50%.
Although in 1986 congress went furthermore in adding the tax reform act – this act lowered top income tax rate to 28%. Reagan had the idea that
lowered taxes would be the best way to encourage economic growth, in doing do so, supply–slide would intend high interest rates would combat
inflation accompanied with cutting taxes, especially for the wealthy, would embolden the wealthy to spend money again which would eventually lead
to the creation for many new jobs as during this time unemployment rate was very

Economic Incentive Policy
Review of North Carolina's Economic Incentive Policy North Carolina ranks its counties in three tiers starting with the most stressed at tier one to the
least at tier three. The tier system is helpful in the incentive programs that are geared towards enhancing economic activities in less developed areas.
Development initiatives by the state have evolved to be a complex mixture of programs that have diverse structures and goals. The state administers
programs that are designed to encourage business investment behaviors through tax incentives and nontax programs including business support, loans,
and other investment vehicles. This paper reviews North Carolina's Incentive Policy to determine its applicability and relevance. With state... Show
Some of the state's tax incentive programs are focused on the broad industries owned by the government. The most extensive employment industries
include education and knowledge creation and distribution and electronic commerce. The government reduces business taxes via data center and
software exemption programs. Such actions boosted the tech industry and availed credit for North Carolina Research and Development encouraging
investment in research and development. North Carolina operates a small number of programs emphasizing on nontax over tax incentives. Its
economic development expenditures per business are relatively low in comparison to other states. However, it administers a substantial number of
development tax expenditures which are industry specific and target manufacturing, transportation and agriculture. It has created a comprehensive
process that examines the outcome of the incentive programs and ensures that they meet the economic development goals. It is necessary to determine
the impact of the incentive programs to North Carolina. To establish how effective the plans are, it is desirable to evaluate the success on the quality
of job creation, benefits accrued to the distressed areas and economic competitiveness. Any incentive program should be judged by the number of new
jobs created or the retentions of existing jobs. Similarly, it is necessary

Fice Of The Assistant Secretary For Economic Policy
Final Project
Economic Policies
Economic Policy gives an account of present and planned monetary advancements and helps with the determination of fitting financial approaches. The
workplace is in charge of the audit and examination of both household and universal monetary issues and advancements in the budgetary markets. The
essential mission of the Office of the Assistant Secretary for Economic Policy is to bolster the Secretary of the Treasury as the vital financial authority in
the legislature. The Office uses monetary investigation and assesses current financial information to help with the determination of fitting financial
arrangements.
In the story of Joseph it mention that God give him a dream that Egypt was going to have a time of harvest and a time of famine. Joseph was asked
to interrupt the king dreams which he did. The king was pleased to hear what it meant then made him second in command over Egypt. He became the
administrator over the land and made sure that the economy was taking care of the way it should. He used his skills tackle all of the economic issues
at that time and season.
The Office of Financial Analysis, the antecedent to the Office of Economic Policy, was set up in late 1961 to prompt the Secretary on a wide scope
of monetary issues. Its first chief was Paul Volcker (1962–1963). Under his authority the Office embraced exploration extends and examined current
improvements in the economy. This Office framed the premise of the new Office of the

Economics: Discretionary Fiscal Policy
Automatic stabilisers are changes in tax revenue and government spending that occur automatically in response to changes in the level of real GDP.
Government use taxes (personal and corporate) and spending on public welfare to help to monitor fluctuations in economic conditions. A good example
of an automatic stabilizer is unemployment benefits. When the economy slows down and people are put out of work, these benefits work to stabilize
things without government intervention to the economy. A budget surplus slow down an expanding economy and a budget deficit mitigate a downturn
in the economy (less revenue and increase government spending). Discretionary fiscal policy is the deliberate use of changes in government spending
and/or taxes to alter

Economics: Fiscal Policy
Fiscal policy is a system used for the economy that helps the fluctuation of financial goals by the alterations of government expenditures or taxes.
There are two different fiscal policies used debating on the growth or decline of the economy. First is expansionary fiscal policy that is used to help
boost the economy when it is in a decline like the recession our nation just witnessed along with prior years. Which in this case the government can
decrease interest rates, and use tax incentives to help boost the financial system and private spending. Second is contractionary fiscal policy that is put
into effect when the economy is at an incline and possible inflation is taking place. In which instead of decreasing interest rates they could raise ... Show
With the disaster of the recession and the outcome made a drastic drop in the GDP that includes investment, government spending and net exports.
Decision making from the government has been a crucial aspect on the recovery of the United States. Through this time expansionary policies were
put into effect, interest rates were reduced; tax cuts and breaks were put into place. Individuals received earned income incentives along with an
increase in child credit; and corporate taxes that were decreased are just a few examples. Comparing to prior years expansionary policies were
higher through our recent recession then before. There is argument whether or not those fixes have made a breakthrough for the economics of the
country. Today the economy is slowly making a comeback. As jobs are opening, and housing is getting back on track. The fiscal drag is expected to
make a positive impact, federal fiscal movements of contractionary policy is anticipated to continue improving our economy over the next few years.
Some downfalls that can appear with fiscal policies are crowding out, time lags, and national debt. First, crowding out when expansionary fiscal
policy causes a decrease in planned investments or planned consumption in the private sector. This usually creates a rise in interest rates (Miller
2012). Second, lag phase when the economy is in a decline or increase economically there is information that is gathered before a policy can be
implemented. Than we cannot forget the time, it takes once the policy is put into effect to know whether it has made a difference in the economics for
the country. Thirdly, national debt when our economy is at a decrease government spending is at an increase. The United States is trillions of dollars in
debt borrowing from

Domestic Marco Economic Policy Goals
In macroeconomics we have three domestic Marco economic policy goals. The three goals are the short run, the analyzation of the business cycles,
and the analyzation of economic growth. The short run encompasses moves or shocks in the nation's output, employment, and price which cause
policy makers to respond. The short run usually has a duration from six months to a year and a half. Therefore, if a larger level of output is
produced firms deal with higher than average cost of production. In the short run an increase or decrease in output will be accompanied by an
increase or decrease in average cost. When average cost increases or decrease the output of aggregate supply increase or decrease as well. We assume
the factors of production cost... Show more content on Helpwriting.net ...
This effect the nation prices, employment and outputs. The fiscal policy instrument is a budget set by congress and the president for the federal
government. Some fiscal policies do not need government intervention because the transfer and tax policy will automatically cause the correct fiscal
policy actions. This is called the automatic fiscal stabilizers. When the economy is experiencing a recession, the decline in unemployment and income
will be automatically stabilized by our tax and transfer policy. This works by reducing households tax rates and allowing people who are unemployed to
qualify for unemployment insurance and government assistance. When there is a rapid growth in the economy the automatic stabilizer will slow the
growth by increasing the tax rate and reducing government spending on transfers. The automatic stabilizers do not always work during trouble times in
the economy in macroeconomics. To deal with these problems the government officials can use the discretionary fiscal policy instrument. The
discretionary fiscal policy has two types called the expansionary and contractionary fiscal

The Aim of Government Economic Policy Is Sustained...
The economic policy of a government needs to be supportive of a country's best interests. It may be argued that the main objective of a government is
to promote sustained economic growth to improve and increase the nation's prosperity (Nellis and Parker, 1996). This can only be achieved with
structural policies used to enhance the long term economic performance and the creation of a stable macroeconomic environment that will encourage
stable growth to take place. This requires management of both monetary and fiscal policies, which can be examined in terms of the way that they have
the aims of creating a stable economic environment which will facilitate growth and the way that the policies manage, and are seen to manage all
economic... Show more content on Helpwriting.net ...
These regular meetings take place monthly between the governor of the Bank of England and the Chancellor of the Exchequer, who is a member of the
government.
The way in which the decision–making process to manage monetary policy has been managed is a reflection of government policy and the desire to
create an economy which will facilitate growth. The decisions regarding policy, including the price stability and interest rates are not made by one
person, but by the monetary policy committee (Bank of England, 2007). The committee will meet monthly to examine the state of the economy, and
take a vote as to whether interest rates should be changed, and which way they should be changed. The committee consists of professional experts who
are qualified to make these decisions and assess the implications of their decision. The action take will be in line with a straightforward majority. The
role of the monetary policy committee may be the maintenance of price stability, but they are obliged to do this within the government inflation targets
(Bank of England, 2007). In addition to this the committee is also bound to support the government policy on employment and growth in the economy
(Bank of England, 2007). Therefore the independence is limited in terms of the goal is set for them, but at least the way that they reach that goal
appears to have a degree of discretion. In these meetings the treasury also has a right to be

Economic Policy Essay
Economic Policy in Recent U.S. History
In the highly materialistic world that we live in, success is generally measured in financial terms. The same is true in politics, where the success of a
politician, especially the President, is measured by how well the economy did during his term in office. It is specifically measured by how well they
bring down unemployment, grow the economy and fight inflation. Two basic modes of thought on the subject have pervaded public policy since World
War II: supply–side and demand–side economics.
Demand–side economics is generally known as Keynesianism, named after the English economist John Maynard Keynes. He believed that governments
should force interest rates down by printing money and lending it ... Show more content on Helpwriting.net ...
Many demand side advocates predicted that this would only increase inflation, unemployment, and lead to a general decline in the economy.
Contrary to these predictions the economy recovered at a rate even faster than the Reagan administration had predicted.
The major problem with the policy at this time was that the congress was still led by demand–side liberals. They said that these tax–cuts would
produce a budget surplus and instead of using this surplus to offset the revenue loss from taxes, they just increased their spending, which caused the
national debt to increase from one to four trillion dollars from 1981 to 1986. Another problem with this supply side ideology was that it was seen as
giving the rich more of an advantage, because they were getting more of a tax break than less wealthy peoples. However this was the whole point of
the trickle down idea. If you can increase the benefits to the people at the top then those benefits should trickle down to the lower classes, and stimulate
economic growth throughout the economy.
Throughout this period monetary policy, implemented by the independent Federal Reserve Board, commonly known as the Fed, was used to try to fine
tune the short term economic situation by manipulating the interest rate, and the money

Essay on Environmental Economics and Government Policy
Economists often talk about letting the economy work through the mechanism of the free market versus government control and regulation. Some
believe that if the market is allowed to "do its thing" unprohibited and without government interference, then resources will be allocated efficiently,
equilibrium will be found, and so on... However, this is not always possible. Of course, government control is not perfect either. Thus, it would seem
that at times the market may be more appropriate than the government; other times the government may be needed because the market is not able to
function properly; and other times a combination of the two working in unison may provide the best and most effective and efficient answers.
The ... Show more content on Helpwriting.net ...
Property rights that would lead to efficient allocations have four main characteristics: universality, exclusivity, transferability, and enforceability.
"Universality" is when all resources are privately owned and the entitlements are specified. "Exclusivity" refers to the fact that all benefits and costs
due to owning and using the resource should be directed solely at the owner. "Transferability" refers to the fact that all property rights should be
transferable from one owner to another in voluntary exchange. And finally, "enforceability" simply means that all property rights should be secure
from involuntary seizure by others. With all of these in place, one would certainly use a resource efficiently because a decline in the value of the
resource would represent a personal loss. Furthermore, individuals will only buy as much of something so that the marginal cost is equal to the
marginal benefit that they receive from purchasing it. And thus, with these defined property rights in place the market indeed would prevail.
Environmental problems are one important class of circumstances in which the market economic system is not always efficient. This occurs most
especially because of the presence of externalities, and the fact that the agents making the decisions do not bear

Monetary Policy And Its Effects On Economic Market
Generally, interest rates are positive, but they can also be negative due to the monetary policy by government. A negative interest rate is defined as "an
interest rate below zero, in which the person, bank, etc. lending the money pays interest to the one borrowing the money" in dictionary.cambridge.org.
In other words, a negative interest rate means banks must pay people or firms if they loan money from banks. Furthermore, a negative interest rate also
means people must be charged if they put their money in savings account of a bank. Thus, this policy is major to encourage everyone instead of
hoarding their cash but spending, investing, and extending more loans. Negative interest rate policy first came out in the early 1970s, when the Swiss
government ran a negative interest rate regime to counter its currency appreciation due to investors fleeing inflation in other areas of the world. Then,
in 2009 to 2010 Sweden and in 2012 Denmark used negative interest rates to stem hot money flows into their economic market. Next, in 2014 the
European Central Bank instituted a negative interest rate that only applied to bank deposits intended to prevent the Eurozone from falling into a
situation of deflation. Recently, this year on January 29th the Bank of Japan announced its benchmark interest rate below zero in an attempt to
counteract the effects of falling oil prices and China's slowdown. (BoJ joins the party [PDF document], n.d.)
Nowadays, there are five central banks that still

President Nixon's Economic Policy
"A weak currency is the sign of a weak economy, and a weak economy leads to a weak nation."– Ross Perot. The words of the 1992 Presidential
candidate still ring true today, and in fact they have since the abolition of the gold standard in 1971 by President Nixon. Ever since that warm August
day the United States has been on a death plunge into immaculate amounts of debt. However, by the establishment of the silver standard in the way I
will explain to you today, makes it clear that action on such a policy must be taken.
Executive Order 11110, issued by President Kennedy on June 4th of 1963 attempted to establish a silver backing system, though the Gold Standard
was still in place however Kennedy was assassinated and the order was revoked. ... Show more content on Helpwriting.net ...
The unemployment rate averaged 8.5% in 1975, almost 10% in 1982, and has been above 8.8% for more than two years, with little evidence of any
improvement ahead."
Not only has Nixon's revocation increased the unemployment rate but it decreased the overall function and stature of our economy as a whole. At 3%
growth, the U.S. economy is about $8 trillion smaller than it would have been had we continued to experience the average growth rate prior to Nixon
severing the link between dollar and gold. That implies that median family income today would be about $70,000, or nearly 50% higher than it is today.
To all those who believe in the American economy, to all those who want us to succeed, to all those who want the best life we can possibly provide;
you must support this policy. Gone will be the days of millions of homeless people roaming the streets, gone will be the day that a family loses their
house because a greedy bank took all their money. Gone will be the day where corporate America and Wall Street rule every citizen's life. Ladies and
Gentlemen, We must take initiative

Essay Expansionary Economic Policy
Expansionary Economic Policy
David Gors
ECO203: Principles of Macroeconomics
Nick Bergan
April 14, 2013
In economic terms, a recession is defined as a general slowdown in economic activity. In an effort to move the economy out of a recession, the
government would implement expansionary economic policies. One action the government would take would include conducting expansionary fiscal
policy. The other action taken would be conducting expansionarymonetary policy. Both of these actions would have an effect on such things as money
supply, interest rates, spending, aggregate demand, GDP, and employment. Expansionary fiscal policy consists of change in government expenditures,
or taxes, in order in influence the level of economic ... Show more content on Helpwriting.net ...
The most common tool used is the open market operations tool. This is used to buy or sell government bonds on the open market. It is used to
manipulate the short term interest rate and the supply of base money in an economy. The discount rate is the interest rate a Reserve Bank charges
eligible financial institutions to borrow funds on a short term basis (How the Fed Guides Monetary Policy, 2011). A higher discount rate can indicate
a more restrictive policy, while a lower rate can be used to signal a more expansive policy (How the Fed Guides Monetary Policy, 2011). All financial
institutions, whether or not they are members of the Federal Reserve System, must set aside a percentage of their deposits as reserves to be held either
as cash or as reserve account balances. The Federal Reserve sets these requirements for all commercial banks, savings banks, savings and loans,
credit unions, and U.S. branches and agencies of foreign banks (How the Fed Guides Monetary Policy, 2011). This tool is the least common used of
the three. There are two kinds of assets that banks can count toward meeting the required reserve. The first is valued cash such as currency and coins.
The second, and largest, consists of funds the bank has on deposit with its direct Reserve Bank (Amacher & Pate, 2012). A change in the reserve
ratio is rarely made and when a change is made it usually is in small amounts. A reduction in the ratio usually

Monetary Policy And Its Effect On Economic Growth
Economics for Business 2
Topic: Recent Monetary Policy in Australia
Monetary policy is important to the economic growth, and it involves setting the interest rate on overnight loans in the money market (RBA 2015).
This interest rate is also called the cash rate, and it influences other interest rates in economy which include the behaviour of borrowers and lenders,
economic activity and ultimately the rate of inflation (RBA 2015).
Why do you think that monetary policy is less effective in boosting economic growth than it is in restricting economic growth? How do lower interest
rates boost aggregate demand in the economy? According to the most recent monetary policy, which is released on 04 August 2015 by Glenn Stevens,
l will investigate all the possible effects in economy those are influenced by the change of monetary policy. After their recent meeting, the Board made
a wise decision and maintained the interest rate at 2.0 per cent. And refer to the earlier announcements this year; we all know that the rates have been
changed twice in 2015, because RBA decided to support the economy, and wanted to reduce the rise in unemployment. But there are possible growing
risks from lower rates. Lower interest rates effect the economy growth in varies ways, it makes cheaper and easier to borrow, which tends to encourage
investment, spending and consumption. Thus it directly boosts aggregate demand and economic growth. But at the same time, it also causes
inflationary pressures.

Economic Policies Pave The Roadway For How America Operates
Main Themes
Economic policies pave the roadway for how America operates. It determines the successfulness of the country or the downfall. When we look at today
's biggest problems such as; social security, globalization, poverty, immigration, etc. there is a common theme. That is, that the state of our economy
impacts all them.
In the book, Crunch: Why Do I Feel So Squeezed (And Other Unsolved Economic Mysteries)? Written by Jared Bernstein, he delves into exactly
how the economy can tie together so many aspects of our daily lives. He does a great job of explaining that ordinary citizens are affected by economics
just as much as, if not more than, top leaders.
The main themes that the book focuses on is why certain institutions like our healthcare system are failing. He also investigates why the middle class
was hit the hardest by the 2007 recession. He concluded that economics is about power, and the middle class did not hold any. Another main theme he
comes back to is that economics has been hijacked by the rich and powerful, and they do not have regard for the "everyday people".
Everything from tax cuts to rising educations costs was not done with the middle class in mind. However, they are the ones who are hit the hardest
with it. The middle class is expected to keep up with trends such as obtaining a higher education, taking out mortgages for new houses and seeking out
childcare. But, yet due to inflation, incomes are not being raised enough to meet these

Fiscal and Monetary Policy and Economic Fluctuations
The global economy was relatively doing fine more than five years ago before it was hit by economic downturn or recession. During this period, the
American economy was at its peak, particularly in the fourth quarter of 2007. However, this was followed by a mild recession at the beginning of
2008, which eventually turned into a severe credit crisis across the world approximately one year later. While only a few countries escaped the economic
recession, virtually no country could avoid the severe bear markets in stock (Norris, 2012). Some countries like the United States experienced changes
in gross domestic product and stock markets. Since it has the best record of the main developed countries, the United States was severely ... Show more
content on Helpwriting.net ...
The rate of inflation in the United States declined to a 4–year low in October 2013 and reached its lowest rate since October 2009. According to recent
releases, the inflation rate in the United States eased to 1 percent in October 2013, which was a 0.2 percent decline from the previous month. Interest
rates in the United States have continued to rise, particularly on 10–year Treasury bonds. In February this year, these rates had risen to 2.27 percent,
which was an indication of approximately 10 percent loss in the price of the bond. Nonetheless, the Federal Reserve has kept the interest rate on
long–term bonds to an unexpected low through its unconventional monetary policy. This implies that the main reason for the current interest rates is the
unconventional monetary policy i.e. quantitative easing regarding the purchase of huge amounts of Treasury bonds and other long–term assets.
On the contrary, the unemployment rate has remained extremely high at around 7.3 percent from its peak of 10 percent in October 2009. While there
has been a significant decline in the current rate of unemployment as compared to five years ago, it is still relatively high. The decline in the rate of
unemployment in the past five years is attributed to the addition of jobs by employers, though most of them are part–time and low–paying. This rate is
also fueled by the decline in portion

Economics And Immigration : The Economics Of U.s....
Economics and Immigration Immigration is a topic on everyone 's minds these days. With presidential candidates vying for votes in debates and
political campaigns, immigration has been talked about quite a bit. But what is truly known about immigration? Since it is such a divisive issue, it is
hard to know what is true and what isn't. Unfortunately, the information most readily available to us comes in the form of opinionated articles and
biased speeches by presidential candidates. Because the information we receive is biased, not necessarily true, and only a piece of a larger picture, it's
hard to know what to believe. With some saying immigration hurts our economy and others arguing for the benefits of immigration, no one truly
understands the actual economic impact of immigration. For this paper, I have chosen three academic journals on the topic of the economics of
immigration that agree on one important point: our immigration system is broken. The first article is entitled "The Economics of U.S. Immigration
Policy." This article was written by Pia M. Orrenius, the Assistant Vice President and Senior Economist in the research department at the Federal
Reserve Bank of Dallas, and Madeline Zavodny, a professor of economics at Agnes Scott College. This article explains that the public has become
concerned with the issue of immigration because of the fiscal impacts of immigrants on our labor markets. Orrenius and Zavodny relate a plethora of
facts about the economics of

Supply Side Economic Policy
What is economy policy. Economy policy refers to the actions that governments take in the economic field. It covers the systems for setting levels of
taxation, government budgets, the money supply and interest rates as well as the labor market, national ownership, and many other areas of
government interventions into the economy. Economic policy supports the supports the Secretary of the Treasury in his roles. Economy policy will be
successful because it's used to promote the growth of the economy. Supply–side economic means that economic growth can be most effectively created
by investing in capital and by lowering barriers on the production of goods and services. Supply–side economic argues wither or not it increases or
decreases the growth. The person that came up with supply–side economic was the "40th U.S. President... Show more content on Helpwriting.net ...
Monetary policy has become more common now then how it used to be. The Federal Reserve has what is commonly referred to as a "dual mandate", to
achieve maximum employment, in practice, around 5% unemployment, and stable prices 2–3% inflation. In this role, it lends to eligible banks at the
so–called discount rate, which in turn influences the Federal funds rate (the rate at which banks lend to each other) and interest rates on everything
from savings accounts to student loans, mortgages and corporate bonds In conclusion, Economic policies are the solutions that governments bring to
the macroeconomic problem. Yet good policies are hard to find. A bad policy may be worse than nothing at all. Supply
–side economic have been long
recognized the importance of an economy's productive capacity, it's stock of labour and capital. Demand–side economic s has supported the
government for the longest time ever, and has also increased many prices. Monetary policy has influenced the Federal

Economic Policies: What is the Fiscal Policy? Essay
Introduction
Economic policies are aimed at finding satisfactory solutions to various problems that emerge from time to time in any economic system. In most
instances, the so called problems present themselves in the form of inflation, unsatisfactory or poor economic growth and unemployment. It is not
always simple and straight forward to solve such dilemmas, especially because their impact, implications and importance changes from time to time.
(Roux, 2008).
Making use of the monetary policy and the fiscal policy, the South African government has made efforts to address growth andpoverty in the country.
The National Development Plan (NDP) and the National Growth Plan (NGP) are two strategies that have been designed by the government ... Show
The cost, efficiency and capacity of the national logistics system was also identified as an area of concern. From a market perspective barriers to entry
and limits to competition were pin pointed.
The fiscal policy component used in hopes of promoting growth was government expenditure. The Bulk of the funds made available would go to the
building of provincial and local roads, housing, schools, business centres and sport centres. Government centres in the form of police stations and
courts were part of the plans. In order to curb unemployment, education and skills development were at the fore. There was a shortage of skilled
labourers in the market. The areas where education for these skills would be funded were engineering, scientists, managers, artisans and IT technicians.
(Roux, 2008)
What is the monetary policy?
The monetary policy is a strategy that the South African Reserve Bank uses to control the demand for money as well as the supply of money in order
to achieve certain goals. The interest is one tool used to control the borrowing and lending of money. Therefore the main elements of the monetary
policy are the interest rate, the actual supply of money through the banks and credit extensions to those borrowing money. "Before the monetary policy
changes in South Africa are considered, all the role players will be consulted through the Monetary Policy Forum (MPF) (Janse van Rensburg,
McConnell, & Brue, 2011).
The South African

Monetary Policy On Economic Prosperity Essay
MONETARY POLICY CHANNELS
BY
MARTIN RIITHO MAINA
KCA 14/02073
Term Paper submitted to
Dr. G. Kosimbei in partial fulfillment
Of the requirements for the course
Monetary Economics, as credit towards
The degree of
Master of Science (Finance and Economics)
KCA UNIVERSITY
November, 2014
INTRODUCTION
Monetary policy takes central part in discussions on how to promote low inflation and sustainable growth in the economy. Monetary policy operates as
a tool to reduce prices during inflation and enhance growth in recession times. Its basic objective is improvement of price stability and achievement of
high employment levels in the economy. Thus monetary policy not only fosters economic prosperity but also safeguards people's welfare.
An understanding of those mechanisms through which monetary policy affects economy is very crucial for the successful undertaking of monetary
policy. There exist a number of crucial channels that have been identified in this context. These channels are;
1.Interest rate channel
2.Credit channels
пѓ Bank lending channel
пѓ Balance sheet channels
3.Exchange rate channel
4.Equities channels

пѓ Tobin's q theory
пѓ Wealth effects
These channels generally reinforce each other they all move aggregate expenditures in the same direction. All channels serve to increase aggregate
expenditures with expansionary monetary policy and reduce aggregate expenditures with contractionary monetary policy. This paper seeks to explain
these transmission mechanisms and

Macro-Economic Policy. Examine The Aims And Policy Objectives
Macro–Economic Policy
Examine the aims and policy objectives which UK Governments have used from the "credit crunch" of 2008 – up to the present time. How effective
have they been? And how far has the global economy restricted (or otherwise) the Government response.
In this essay I will examine the UK Government aims and policies that they used to tackle the 2008 "credit crash". I will also discuss the purpose of
economic policy making and how that effects the global economic environment.
It is useful to define Monetary and Fiscal policy. Monetary policy involves changing the interest rate and influencing the money supply. It is usually
carried out by the central bank and monetary authorities. This involves setting base interest rates ... Show more content on Helpwriting.net ...
It wasn 't long before things started to move just as the cheap money wanted them to.
This environment of easy credit and the upward spiral of home prices made investments in higher yielding subprime mortgages look like a new rush for
gold. The Fed continued slashing interest rates, emboldened, perhaps, by continued low inflation despite lower interest rates. In June 2003, the Fed
lowered interest rates to 1%, the lowest rate in 45 years. The whole financial market started resembling a candy shop where everything was selling at a
huge discount and without any down payment. "Lick your candy now and pay for it later" – the entire subprime mortgage market seemed to encourage
those with a sweet tooth for have–it–now investments. Unfortunately, no one was there to warn about the tummy aches that would follow. (For more
reading on the subprime mortgage market, see our Subprime Mortgages special feature.)
But the bankers thought that it just wasn 't enough to lend the candies lying on their shelves. They decided to repackage candy loans into collateralized
debt obligations (CDOs) and pass on the debt to another candy shop. Hurrah! Soon a big secondary market for originating and distributing subprime
loans developed. To make things merrier, in October 2004, the Securities Exchange Commission (SEC) relaxed the net capital requirement for five
investment banks – Goldman Sachs (NYSE:GS), Merrill Lynch (NYSE:MER), Lehman Brothers, Bear Stearns and

The Effect of Macro Economic Policy on Nigerian Economics...
THE EFFECT OF MACRO ECONOMIC POLICY ON NIGERIAN ECONOMICS GROWTH AND DEVELOPMENT
ABSTRACT
This research work focus on the appraisal of Macroeconomic Policy on Inflation in Nigerian Economy, also to determine how it enhances the growth of
Nigerian Economy.
The aim of this research work is to look into challenges and numbers of hypothesis were drawn. Information necessary to address the test of hypothesis
was gathered through secondary data, source from Central Bank of Nigeria (CBN).
Economic analysis was used to formulate the three (3) models that were stated in this research work. Multiple regressions were also used to test the
appraisal of Macroeconomic Policy on Inflation in Nigerian Economy.
The findings of this research show that ... Show more content on Helpwriting.net ...
Although, there two policies are independent tools of economics stabilization, they are often combined by most countries for a greater effect on the
economy.
Monetary and Fiscal policies as adopted in Nigeria have four broad objectives. The objectives include:В¬
Maintenance of relative stability in domestic price
Attainment of a high and sustainable rate of economic development
Maintenance of balance of payment equilibrium growth and stability are so closely related that the economic policy o the government should include
both of them.
Economic growth may be judges from the growth it total output of the economy as measured by annual increases in net national prod, ct in constant
price. Such a measure tells us how much bigger the total economy is becoming over a period of time, but it tells nothing about changes in the standard
of living of the people in the economy.
The more significant measures in the growth in real net national product divided by the number of people in the population. There are many targets of
economic growth and development. They include.
Income distribution Gross national product Sectoral development (such as agriculture industries etc)

The pressure to attain economic stability or our economic is so strong that measures to promote federal government

Economic Policies And Economic Policy
In every country there 's a government and economy. Each counties government helps or tries to help recover, stabilize, and grow the economy. First
thing we need to look at is economic policy. Economic policy refer to actions the government makes in the economic field. For example the taxation,
the government supply, money supply, interest rates, along with the labor market, and national ownership. Inside the economic policy you will find all
sorts of things that help make the policy stand on it 's two feet. The three main parts that tie into economic policy are supply–side economics,
demand–side economics, and monetary policy. Each of the three economic structures will also help define and show what all the economic policy is and
Now as we can see supply –side has a demand for small government and less of a tax policy. Both of which as seen in the political views of things. So
to add on to what supply–side economics is you also need to remember that politics has role. Supply–side economics has a little bit of a background
when you look into it. Based upon the three pillars and what each one deals with you can see that you can not take away the political side of it
because it would then demand a smaller role for the government and a less tax policy.
So the next "branch" of the economic policy would be demand–side. Demand–side economics relates to an economic theory that defends the use of
government spending and growth in the money supply to prompt the demand for goods and services,thus leading to the expand of economic activity.
With demand–side economics there is a theory that some believe will work. Demand side economist support government spending to the fullest. They
do so because they think it will overcome the short–term low aggregates demand. "Raising the market 's aggregate demand will reduce unemployment
and encourage economic activity, according to this theory. " By spending the government increases demand on

Health Economics And Policy Questions
Health Economics and Policy
Coursework
Question 2
SN: 13026885
a) w= ВЈ62,500
U= в€
љw
50% chance of medical problem
Costs of ВЈ4,900 We can derive this individual's expected wealth if we multiply the probability of each outcome with the associated costs.
E(w) = 0.5 * ВЈ62,500 + 0.5 * (ВЈ62,500 – ВЈ4,900)
E(w) = 0.5 * ВЈ62,500 + 0.5 * ВЈ57,600
E(w) = ВЈ60,050 To find out what level of utility will this individual's expected wealth yield, we simply have to put the value of the E(w) in the utility
equation. We know U= в€
љw, so in our case –> U(E(w)) = в€
љ(E(w)) пѓЁU(E(w)) = в€
љ60,050 пѓЁ U(E(w)) в‰€ 245.051 To compute this
individual 's expected utility, we follow the exact same procedure as in point i), but this time for utility. So, we first... Show more content on
Helpwriting.net ...
Not only will he be willing to purchase insurance, but he may also want to pay above the actuarially fair price, just to avoid additional expenses in
case of sickness. The original risky gamble (in the absence of insurance) would leave him with an expected utility of 245, as shown in point iii) – this
is the minimum utility this individual is willing to go to. That is, he will be willing to pay an amount of money that will leave him with a certain utility
equal to the expected utility of the original gamble – 245. This utility is associated with a wealth of 2452 = ВЈ60,025. So the maximum amount he is
willing to pay for insurance is ВЈ62,500 – ВЈ60,025 = ВЈ2,475 . Anything above this price would leave him with a certain utility lower than the
expected one. This is illustrated in the graph, by the red arrow.
b)
Moral Hazard: Moral hazard is one of the market failures that occurs mostly in insurance markets. When consumers purchase insurance, and therefore,
do not pay for the full price of health care – health care becomes relatively cheaper for them. Thus, consumers demand more health care than they
would do in the absence of insurance – a phenomena regarded as moral hazard. It only occurs under the assumption that the demand for some types of
health care is elastic – and therefore responsive to price changes.

To illustrate this situation better – we use the following example. An individual A faces a 20% probability that he/she will have a car accident which

Economic Policies And Economic Policy
In every country there 's a government and economy. Each counties government helps or tries to help recover, stabilize, and grow the economy. First
thing we need to look at is economic policy. Economic policy refer to actions the government makes in the economic field. For example the taxation,
the government supply, money supply, interest rates, along with the labor market, and national ownership. Inside the economic policy you will find all
sorts of things that help make the policy stand on it 's two feet. The three main parts that tie into economic policy are supply–side economics,
demand–side economics, and monetary policy. Each of the three economic structures will also help define and show what all the economic policy is
and does and how it all works.
The first "branch" of the economic policy is the supply–side economics. Supply–side economics is simply the macroeconomic theory, which deals with
the arguments of the economic growth. Economic growth can be most effectively created by investing in capital and by lowering barriers on the
production of goods and services. Now the macroeconomic theory is a branch of economics dealing with the performance, structure, behavior, and
decision–making of an economy as one big market, rather than individual markets. When Ronald Reagan was our 40th president he saw the
supply–side economics was more known as "trickle down". Meaning that Ronald Reagan had thought that if he cut the tax for entrepreneurs and

Norway and Its Economic Policies
Analytical essay on the Norwegian economic policies
Written by: JГіzsef GazsГі Module leader: PГ©ter BГЎrczy Module: Economic Policies Wordcount: 3200
Introduction
The purpose of this essay is to examine Norway from the perspective of its economic policies. I am trying to pay special attention to its recession
resolution technique in order to understand better why this country could preserve itself against the most severe financial crisis of the last few
decades. The reason why I picked Norway as a topic is because I lived half–a–year there as an exchange student. Apparently, I was there when the
crisis was the most threatening to all the European countries (in the autumn semester of 2008). However, I did not notice huge changes in the ... Show
The largest controversy regarding monetary policy in 2009 was probably the rate cut in June, and to a lesser extent in May. By then, the economy had
begun showing signs of improvement, the government's expansionary fiscal policy was just starting to have an impact, and the financial markets had
improved rapidly on the back of lower interest rates, government guarantees and ample liquidity. Along with the strong signs that the economy was
improving, there were growing concerns that the extraordinarily low interest rates could initiate a housing market bubble. House prices started to
increase in January 2009, and have continued to climb gradually back to their pre–crisis levels. Some leading indicators and the strong recovery in the
financial and asset markets suggested an earlier recovery than what Norges Bank emphasized at that time.
After the August meeting, Norges Bank communicated clearly its intention to start its exit strategy. Norges Bank wanted to withdraw the
extraordinary measures first and then hike rates. On October 28, Norges Bank hiked rates by 25 basis points to 1.5 per cent and signalled that rates
would be hiked by a further 25 basis points either in December 2009 or February 2010 as for the monetary policy reports is the following: Due to
strong economic data, recovering financial markets, rising house prices and a lack of pass–through from the previous policy rate hikes to mortgage and
corporate rates, Norges Bank hiked

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