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¶ … macroeconomic themes that have been taught or covered in this course is economic policy and its role in determining or influencing economic growth and development. Economic policy is a subject that has attracted considerable attention in recent months because of the presidential elections in the United States. Actually, monetary policy was one of the major issues in recent presidential campaigns and elections. This issue has also been subject of several publications by different new sources because of its significance in the country's economic growth and development. Paula Dwyer wrote an article to examine the recent rise of the Dow Jones Industrial Average in the aftermath of Donald Trump's election as the U.S. President. This analysis was carried out on the premise of the impact of Trump's economic policies on different aspects of the economy. The U.S. market has shown indication of its approval of Trump's economic policies in different ways including the rise in the Dow Jones Industrial Average.
After reading this article, I have seen the significance and role economic policies play in a country's economic growth and development. In this case, the increase in the Dow Jones Industrial Average by approximately 9% and close to the 20,000 mark for the very first time is an indicator of the impact and approval of proposed economic policies by U.S. President-elect Donald Trump. This implies...
The rise in the Dow Jones Industrial Average is attributable to the market's approval of Trump's tax-cutting measures, deregulating and deficit spending regulations that are customized to enhance corporate profits (Dwyer par, 2). The rise in Down Jones is an indicator of enhanced corporate profits that are brought by these economic policies, which are business-friendly. The business-friendly policies are expected to lower corporate costs, which would in turn enable stock investors to get a huge share of the economic pie.
Additionally, economic policies influence economic growth and development through affecting the bond market, stock market, inflation, and interest rates. Policies are usually developed and implemented based on the existing macroeconomic conditions. In this case, they are usually implemented to deal with challenges in the macroeconomic environment and boost economic growth and development. When developing economic policies, the existing market conditions are also considered to help in ensuring that the policies would have positive impacts on markets and the overall economic status.
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Work Cited
Dwyer, Paula. "The Hidden Meaning of Dow 20,000." Online posting. Bloomberg Businessweek. Bloomberg L.P., 22 Dec. 2016. Web. 23 Dec. 2016. <https://www.bloomberg.com/view/articles/2016-12-22/the-hidden-meaning-of-dow-20000>.
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