Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
¶ … Macroeconomic Situation
A discussion given by the Federal Reserve Bank of Chicago, on June 8, 2010, analyzed America's macroeconomic fiscal situation by opining that the economy is recovering from the recession and that national GDP would increase by, at least, a moderate 3.5% that year. Open market operations and business spending has also increased on capital equipment, particularly on high-tech production, and consumers have also increased spending.
Recovery will be slow given that climbing out takes time and that, given the severity of the recession, a great deal of growth needs to be accomplished for employment and economic situation to return to the level that it was in 2007. The moderate 3.5% expected by Chicago's Federal Reserve Bank a year ago and the very similar climb in percentage expected in the subsequent years following this recession can be compared to the 8% economic growth that followed the deep recession of 1981-1982.
Although GDP's discount rate fell sharply during 2008 and 2009 (approximately 3.7%), it picked up towards the end of 2009 and in 2010 due partially to the government stimulus package (expansionary fiscal policy tools) promoted in 2009 that raised economic activity and that encouraged spending through 2010.
Housing, however, continues to face difficulties with flux in the open market, but with sales far below historical norms. Foreclosures have added to the overhang of unsold property, but Chicago's Federal Reserve Bank predicts that the improving economy will boost housing market conditions.
As regards the labor market, the Bank notes that patterns of recession often show improvement in economic activity before it indicates improvement in the job market, and the same seems to be the case here: Even as the economy picks up, hiring remains low and job destruction continues. However, with the economy's consistent recovery, hiring levels should return to a more consistent and stable basis.…
Reference
Federal Reserve Bank of Chicago (06/08/2010). Some thoughts on the current economic situation. Retrieved on 4/10/2011 from:
http://www.chicagofed.org/webpages/publications/speeches/2010/06_08_UCC_speech.cfm
U.S. Current Macroeconomic Situation: Similar to the rest of the world, the macroeconomic conditions in the United States are currently fragile. This is mainly because the rate of unemployment is high though is slowly declining, the currency valuation is fluctuating up and down, and the European financial unrest has continued to have significant impacts on the nation's economy. These conditions are coupled by a slow increase in manufacturing and upward trend
S. government uses are the tax rolls. To further define this further, any analysis should consider present tax rolls as compared to their classical 1930's Great Depression era equivalents. What gives the issue an even more ominous pessimism is that we now have a garrison effect to our economy that Franklin Delano Roosevelt did not have to deal with, that is concurrent land wars in Asia and Africa. Tax Rolls-It looks
With Iraq opened up, companies from the U.S. could benefit from an expanding market, with natural resources and qualified, cheap labor. The result is, however, that the current security environment is unstable, which means that the U.S. companies are only benefiting in a limited manner from the potential advantages of the market. As a conclusion and result of the cost-benefit analysis, it seems that the war in Iraq had, in
Americans receive two to three weeks of paid vacation per year, while Europeans receive between 5 and 7 weeks. In addition, the U.S. has generally 8 paid holidays per year; the comparable figure for Europe is 12 to 18 days (holidays such as Easter and Christmas, plus national days and even the Queen's Birthday in the Netherlands). As a result, Americans average only 10.2 vacation days per year (Zuckerman).
equations for a macroeconomic model including private, public, and international sectors. Derive the aggregate demand function. List the forces (i.e., factors) which are held constant for each behavioral equation. Select four of these and, for each, explain how a change in the exogenous factor will affect the aggregate demand function. Explain the effect of each change on real income and output, employment, the price level, the interest rate, the
Origins, History of the IMF The International Monetary Fund was first conceived between July 1-22, 1944, at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire. The conference was attended by representatives of 45 nations, which were called together in order to plan and lay the groundwork for a cooperative economic framework to solve global financial crises before they occur. One key reason for the conference was to