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Economic Policy and the National Debt
Ironically, when governments overspend they typically find ways to refund or restructure debt -- when individuals or corporations within those countries do the same, the consequences are quite different. Money means more than one thing -- usually an object that is traded for payment of goods or services, of exchange. However, when we talk about the government, there is a huge different in the way the money supply works within the economy. In modern capitalism, commodity money (gold and silver) was replaced by representative wealth in that currency is no longer tied to the stores of precious metals. Instead, monetary policy under the Federal eserve states that the goal of fiscal policy is to "promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates" (U.S. Mint, 2011).
As individuals, we typically live within a budget based on our expenses and…… [Read More]
Drugs are an especially significant problem. The high cost of prescription drugs, however, does not just derive from the expertise to develop them. Drug companies receive patent protection for drugs that allows them to charge monopoly rents. This is a distortion in the market, one that the government has determined to be socially favorable. The cost, however, has reached the point where drug costs are also socially unfavorable, particularly if they lead to an erosion of America's credit standing.
Curtailing drug costs may not be politically straightforward, but the economics of it are. The monopoly rents can be capped. Governments in many countries cap drug costs and perhaps the public option is tended to give the U.S. The same power. There may be some quid pro quo for the drug companies -- extending the life of patents, more support for orphan drugs or a streamlined FDA approval process that lowers…… [Read More]
These are the actions that the government is involved in the economic field covering systems such as setting interest rates and government budgets as well as the labor market, national ownership, and many other areas of government involvement in the fiscal conditions of the country.
Government economic policies are often influenced by international institutions such as the International Monetary Fund or World Bank as well as their particular political beliefs
There are various types of economic policies and strategies including macroeconomic stabilization policies that work towards keeping the money supply growing within the constraints of inflation; trade policy - which refers to tariffs, trade agreements, and so forth; policies designed to generate economic growth; policies for distribution of income and property; regulation policies (for monitoring large companies); anti-trust polices; industrial policies; and technology-based economic development policies. Each deal with different aspects of economic control and regulation.
The government…… [Read More]
Economic Policy for an Imperfect World" by Karen I. Vaughn published in "Southern Economic Journal," Vol. 62, Issue 4, 1996
After the collapse of the Soviet Union it has become evident that market economies are necessary for producing wealth. However, the case for "free markets" is far from settled as those looking for an alternative to central planning usually consider "regulated market economy" as the solution. Hence the debate about how much "free market" or government regulation is appropriate, still rages. The ways in which contemporary economic theory contributes to the debate about the right mix of free market and government regulation is the theme of this article.
In the 1980s, a notable economist opined that government guidance was necessary for the 'invisible hand' to succeed. Some time later, another pointed out the lack of scientific evidence about the success of free markets. Other economists have even challenged some of…… [Read More]
The country retained control over the banking system in particular, and has exerted strong control over key elements of the macroeconomic environment.
Financial reform in the 1990s restructured the banking industry. These reforms increased the role of the central bank, and divided banks into commercial banks, policy banks and cooperative banks, each with its own function in the economy. There are four major commercial banks in the Chinese system. Later reforms separated state enterprises from commercial banks. The close links between these two sets of entities had been a component of earlier market reform, but those links have become weakened (Fernandez, n.d.).
The Chinese government has also gradually ceded its role in the production and marketing of goods and services to the private sector. As a result, the Chinese economy has become increasingly entrepreneurial over the past couple of decades. The government still plays a strong role in infrastructure development…… [Read More]
UK Economic Policy
An analysis of the latest figures for key economic indicators and the factors which have affected these indicators. This should include the figures for unemployment, inflation and economic growth
Unemployment is one of the key economic indicators in the UK as well as in all modern nations. Unemployment in the UK rose for the fourth consecutive quarter in Q3 2012 with an increase of one hundred thousand people which also represents the strongest quarterly growth rate since 2007 (Office for National Statistics, 2012). Although the unemployment rate is still above seven percent overall which is still high, it has made substantial gains since the recession. Much of the employment activity though seems to be driven by the public sector which is the fastest growing sector in the economy.
Figure 1 - Unemployment Rate (Office for National Statistics, 2012)
The inflation indicator used in the UK…… [Read More]
They presume that the amount of interest made from non-renewable source of energy higher compared to the use of the Sustainable Energy. However, the only risk of using the non-renewable sources of heat is that it is risky since such a source can depreciate and become extinct at any given time.
If the government is to ensure there is sustainability of energy in the New York State, it should promote the use of renewable energy. This is because the renewable sources of energy are more significant in the long-term as compared to the non-renewable sources, which associates to extinction. The implementation of the policy could help the government in reducing the dominant fuel crisis and the environmental defects related to the use of non-renewable sources of energy. The citizens in the state should also receive education on the effects of using the non-renewable sources and the significance of ensuring…… [Read More]
Thatcherism is also a political ideology that focuses on privatization of state-owned businesses and utilities, opposition to trade unions and a higher level of free market economic growth. Keynesian economists including Nobel Prize winner Milton Friedman considered Thatcherism anachronistic and more suited for the developing economies of the world than the more complex and developed westernized economies the United Kingdom and United States represent. Keynesians believe that broader economic growth and the focus on managing exchange rates is best defined through aggregate demand indicators for goods and services over money supplies.
Booth (1984) - the Economic History eview, New Series, Vol. 37, No. 2. (May, 1984), pp. 263-267. Accessed from JStor on February 7, 2007 from location:
ollings (1985) - the Economic History eview, New Series, Vol. 38, No. 1 N. ollings. (Feb., 1985), pp. 95-100. Accessed from JStor on February 7, 2007 from location:
Porter (1990)…… [Read More]
Business Economics/Economic policy
Competitive balance is an important aspect to maintain in a league sports structure as it is a direct factor of the degree of uncertainty that could exist within a sporting event. The general belief is that higher uncertainty creates higher buzz and excitement about the end outcome. The customers prefer to have competitive balance as well as it increases fan interest in teams whereas a lack of competitive balance will overshadow all weak teams which will lead to decreased demand and interest in the sporting event. One of the popular ways to counter competitive balance in sports leagues is through the use of collusion techniques. Collusion is basically a secret, and mostly illegal, agreement between two parties to limit the overall competition within a league through penetrating false information and depriving others of their legal rights. Two examples of collusion techniques could include the restriction…… [Read More]
Public policy is government decisions and actions designed to deal with problems and issues affecting the public (Madimutsa, 2008). The U.S. government policy areas include monetary policy, immigration, intellectual property, national defense, and welfare. This paper will review the impact of monetary policy on the U.S. economy.
Monetary policy is classified as the procedure by which the Federal Reserve uses monetary policy tools to regulate the money supply, exchange rate, and interest rates (the price of money) to stabilize the economy (Labonte, 2020). The interest rate is classified as the cost of borrowing and the reward for saving. The money supply can be defined as the total sum of money that is available in the economy. The exchange rate is the cost of the domestic currency concerning other currencies. The Fed uses various monetary tools, but over the years, they have relied on open market operations and…… [Read More]
macroeconomic policy measures introduced by the UK authorities in response to the global credit crisis and associated UK recession
Macro-economic policy measures
This essay is based on two scenarios of financial crisis that occurred consecutively in the United Kingdom and other parts of the World. The recent economic recession started in 2007 up to 2010 while the credit crunch was experienced in 2002 up to 2004. In both of the financial crisis what were witnessed were reduced employment levels, collapse of major sectors of the economy mostly the financial sector, high prices of goods and services brought about by high inflation rates, low economic productivity and a deficit in the balance of payment coupled with a general decline in the country's gross domestic product.
According to Dale, Proudman and Westaway (2010) the causes of the recent economic depression and the earlier credit crunch are more or less similar to one…… [Read More]
Debates about macroeconomic policy will tend to focus on a couple of different schools of economic thought – the classical school and the Keynesian school, or derivatives thereof. One of the major debates that arises is with respect to whether or not government should increase spending in order to fight recessions. This debate also relates to things like having a balanced government budget. The latter is policy in many jurisdictions, mainly in the United States, reflecting a particular fiscal policy view of the classical school, which the Keynesian view is more often reflected in national-level policy, especially outside of the United States.
Increased Government Spending
With respect to how to best handle a recession, increased government spending is typically viewed as a yes/no decision. Keynes argued that government spending should be increased in order to help manage a recession, and this view is opposed by classical economists. Perhaps the…… [Read More]
National Economic Policies
Economic policies refer to the crucial action that the government takes to control the economic aspects that might affect the cash flows in any given nation. The government is essential in ensuring that all the economic activities in the nation maintained to secure the profitable margins of the nation. The economic policies control almost every activity in the nation, which are vital in controlling the economy. The national economic policies control the large economic fields of a given region to ensure that the nations make profits (Cohen 123). Most of the national, economical aspects are more vital in controlling the imports and exports into nations. The national economic policies generated by international institutions, established by the member state nations. In creating the management team of the international institution, each nation is required to give a leader that will assist in creating the policies to govern the economy…… [Read More]
Japan was once on a stellar track to economic prosperity. The end of the twentieth century saw promising chances for the island nation's economy. In 1991, the government spending was one of the lowest the Organization for Economic Co-operation and Development (OCED) and 31.6% of the nation's GDP (Utt 2008). That same year, Japan's national income was at 86% of the U.S. gross national per capita income, a big improvement from just 20 years ago when the nation was only making 66% of the U.S. per capita income. This was an impressive feat for the nation to embark on. Yet, this was to change in the following years dramatically. During the later decade of the 1990s, the Japanese government took on the practice of vastly increasing government spending as a way to stimulate an economy that was beginning to lag. As the growth of the economy began to go stale,…… [Read More]
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…… [Read More]
Germany has established itself as a successful country with a growing and stable economy. In terms of its economic policies, since 2014 its score has fallen by .2 placing it into rank 5 within the international top ranks. Of its many efforts to stabilize the country, the most notable is increased regulation, meaning pension-system expansions and a minimum wage (). Along with economic policies favoring regulation, Germany has remained strong in terms of employment growth and export performance, allowing for low unemployment rates and rising wages. While Germany has improved and stabilized, the rising influx of refugees has put a damper on the country's ability to create new policies for the labor-market.
Regardless, there are many positives in Germany's economic policies that has boosted tax revenue. The boost also comes in terms of reduction of debt-to-GDP ratio even with rising debt. Germany has done an amazing job of successfully addressing…… [Read More]
in the newly ormed Ministry o Finance drew rom a talented pool o
economists rom the Hebrew University in Jerusalem. Privileged positions
were illed rom within the bureaucracy and were obtained through
exceptional perormance instead o cronyism or nepotism. O great
importance to their autonomy, oicials were able to disconnect themselves
rom total reliance on local unding thanks to inancial assistance rom
the international community and reparations rom Germany. Two igureheads
within the government guaranteed a decisive and coherent economic policy:
Levi Eshkol o the Ministry o Finance, and Pinhas Sapir o the Ministry o
Commerce and Industry. They worked hand-in-hand to ormulate a uniying
agenda that bureaucrats rom both departments could pursue towards a single
The end-product o this labor in both nations was a inancial
structure in which banks, and by extension the government at large,
controlled the low o capital. On one hand, banks…… [Read More]
An analysis of the latest figures for key economic indicators and the factors which have affected these indicators. This should include the figures for unemployment, inflation and economic growth.
The unemployment rate is a very important indicator of the overall health of the economy. Currently the unemployment rate is at 7.8% (Office for National Statistics, 2012). However, this figure does not affect the population equally. Different segments of the population have different employment rates. Furthermore, the unemployment rate does not include people that are not actively seeking employment. In the chart these people are considered to be "inactive." Another interesting item listed in the report is that the unemployment rate for the youth demographic was falling due to a record number of 16 to 24-year-olds being enrolled in some type of educational program.
Employment in the UK has suffered from recession. In 2008 there was a…… [Read More]
Thus, a region or nation experiencing economic depression will be unable to use the interest rate lever to boost the economy. Similarly a country with high inflation will be unable to independently raise interest rates to contain inflation. Moreover, Islamic countries, which form a large part of the geography, do not believe in interest rates.
Political barriers -- Political differences between nations make it extremely difficult for them to adopt a common currency. It can lead to a loss in political sovereignty as monetary interests would need to surpass political interests. This is unlikely to be acceptable to most of the nations and the idea of a single currency may be difficult to implement (Gimp, 2008).
Will Pros and Cons change Over Time? Depending On the Country?
The economic conditions to determine a monetary union depend on: the openness and size of the economy involved to trade; the free movements…… [Read More]
The economic policy tools that were employed just after the war subsequently underwent some changes. From 1947 to 1950 direct controls on wages and distribution were eliminated followed by removal of trade controls in 1958. However, the government continued to maintain its hold over prices and credit distribution which made it different from many of its neighboring states in the postwar period. The French Ministry of Finance exerted greater control over the economy than the Bank of France. This led to a greater predilection to resort to devaluation when external equilibrium resulted due to the state failure to control incomes. In France, the period between 1945 and 1975 was known as the "thirty glorious years" because of the phenomenal economic performance. During this period, the average growth rate of GDP was around 6.8% which was quite remarkable considering that Britain's average GDP growth rate was 2.4% and Germany's…… [Read More]
The downward spiral of deflation, the collapse of countless banks and other financial institutions, and the unprecedented levels of unemployment all demanded that something be done.
The programs that constituted President Franklin Delano Roosevelt's New Deal were not entirely unknown in the pre-Depression world. Various European countries already possessed social welfare schemes to some extent, but in the United States this was largely new thinking. The changes wrought by the New Deal reflected as much the uniqueness of conditions during the Great Depression as they did the undercurrent of new attitudes and ideas that had gradually been taking hold among America's intellectuals.
FDR's planners acted in the context of changing values, an evolving set of institutions, shifting political and economic circumstances, and the ebb and flow of planning opportunities to create a distinctly national, American form of planning.... They were part of a wide-ranging national debate over how to create…… [Read More]
"The explosive growth of the global economy threatens the natural systems that sustain life on Earth. Despite some significant successes in reducing industrial pollution and increasing efficiency, globalization is devastating natural habitats, speeding global warming, and increasing air and water pollution" (Anonymous). It is in the nature of such an economic globalization to cause negative effects. Globalization has its benefits as well which hold substantial weight.
Advocates for economic globalization state that it is aimed at removing poverty and increasing wealth among the poor. This has been seen not to be entirely true and the gain of wealth is seen only in the upper or elite classes. The rich are getting richer while the poor are getting poorer. Although food has increased, hunger rates have also increased. It is seen that the top class is becoming multibillionaires and today there are more billionaires than yesterday. However the lower class is…… [Read More]
Energy costs increased substantially and the yen's exchange rate was shifted to a floating rate. The eventual recession reduced expectations of future growth and reduced private investment. Economic growth went down from 10% to 3.6% during the period 1974-79 and to 4.4% in the decade of the 80s. ut despite the oil crisis and its consequences, Japan's major export industries stayed competitive through its cost-cutting policy and increasing efficiency. It reduced industrial energy demands and allowed the automobile industry, along with other industries, to improve. y the late 70s, the computer, semiconductor and other technology and information-intensive industries entered a period of rapid growth. During this high-growth era, exports continued to support Japan's robust economic growth in the 70s and in the 80s. However, the problems encountered on account of its growing balance of payments surplus urged for the opening of domestic markets and a stronger focus on domestic demands…… [Read More]
Economics impacts on many areas of life subsequently it will impact on many areas of professional life. eflecting on the lessons learned, including the knowledge and skills gained, the real value is in the way that economics concepts can be applied to the real world; not only to explain event that are seen in the macro-environment, but to guide the way personal decisions will be made with that knowledge.
The first indicator of the lessons and concepts taught in the class being absorbed and developing into transferable knowledge has emerged with an increased understanding of the way that the economy operates and the influences which are present in the economy that are driving up prices.
There are many examples of the economic concepts; one example is the way that supply and demand has impacted on oil prices which has had a knock on effect in the economy as…… [Read More]
Looking at the economy from a macroeconomic viewpoint means looking at a more broad approach to individual economic factors, weighing those factors, and making a determination as to whether the economy is stable and improving for the populace. Sustainable growth is one of the goals of economic development, and while there are peaks and valleys, the overall level and growth filters down to many factors. A booming economy, for instance, will create money and produce goods and services while affecting GDP, unemployment, inflation, interest rates, and prices. Policy can change these factors, increase or decrease confidence and spending, and the movement of money. However, in the 21st century, economic health is tied not only to countries, but to global issues of import and export, health of other economies, and the combination of factors that has become even more complex (Alesenai, 2003).
In the U.S. economy, most scholars see…… [Read More]
Unfortunately most growth oriented economic policies such as "supply-side" economic policies tend to exacerbate inequality. A greater role of the government in the economy such as increased taxation on the rich can reduce inequality. Inflation and unemployment are usually inversely proportional in most economies, i.e., increase of money supply through deficit financing reduces unemployment but increases inflation while tight monetary policies reduce inflation but increase unemployment. According to a number of analysts, a major cause of terrorism in the world is an acute sense of deprivation among a large section of the population. Economic measures can, arguably prove more effective in rooting out terrorism than military action.
What, How and for Whom to Produce:
In 'free market economies' decentralized decision making by individuals and firms based on consumers' desires (which determine the price of goods) and the profit motive determine what goods are produced and in what quantities.…… [Read More]
Economic indicators are used to measure the financial health of the economy. There are many methods and tools for measuring the economy and every economist has his favorite method. The health of the economy is measured by tracking certain indicators. Different economists use these indicators in various combinations. Some economists place more or less weight on different ones in making their predictions about which direction the economy will go. It is important to note the differences in measurement when assessing the opinions of popular economists of today.
This paper will be primarily concerned with the indicators, which would indicate whether we are currently in an inflationary economy or a deflationary economy. A recession occurs when real GDP declines for two successive quarters. However, the National Bureau of Economic Research (NBER) officially defines a recession as a "significant decline in activity spread across the economy, lasting more than a few months."…… [Read More]
John Keynes is one of the most influential economists largely due to his theory of Keynesian economics, which dealt with his modern macro-economic policies (Skorburg, 2009). His work is linked to the Great Depression, partly because he advocated public and governmental spending to base national economies on. His most celebrated piece of literature is General Theory.
Adam Smith is the quintessential Age of Enlightenment economist who published Wealth of Nations in 1776, which posited the viewpoint that free enterprise and laissez faire policies would benefit the free market system.
People wouldn't ordinarily link Karl Marx to a free market system since he advocated the exact opposite of that, a form of communism that results in socialism, but his Communist Manifesto -- which presaged the ussian evolution -- inspired many free market communists to oppose his ideas.
Friedrich Von Hayek's theories, which are included in oad to Serfdom, his…… [Read More]
The recession of 2008-2009 and the subsequent government responses provides a good test for economic theories. There are no controlled experiments in economics, so we can only work with case studies in order to understand how economies work. A good starting point is to consider the issue through multiple different lenses, so that we can understand how the crisis occurred and what prescriptions might be best suited for response either to address the root problems or to engage in prevention. This paper will consider the works of Marx, Schumpeter and Keynes in analyzing the financial crisis. All three of these men would have been able to understand its causes, but likely would have taken very different approaches to solving the problem.
The second issue at hand is the question of the future of capitalism. We have a pretty good sense at this point of what the response of…… [Read More]
Economics of Alchohol Abuse
Alcohol for consumption is not a necessary food item, but for some has become a standard part of adult culture. Increasing the level of alcohol consumption, however, moves from an economic paradigm to a social issue due to the ancillary health and behavioral effects from alcohol abuse. In turn, this becomes part of economics in that it requires fiscal resources to treat societal issues caused by alcoholism: domestic abuse, crime, traffic or driving issues, etc. The economic effects of alcohol are undebatable, and are pervasive in the overt and covert areas of the economy (short- and long-term) (Fogarty, 2006).
In the economic sphere of political and social policy, alcohol, like tobacco and gambling, are considered a "sin" tax that is ostensibly designed to reduce transactions for issues society considers dangerous or undesirable. However, when it comes to alcohol, many see that this type of a sumptuary…… [Read More]
Economics - Country Analysis
Country Overview and Current Events (News)
Ethiopia, traditionally known as Abyssinia, is a landlocked Sub-Saharan country located at the Horn of Africa in East Africa, bordering Somalia, Kenya, Eritrea, Djibouti, Sudan, and the newly-created South Sudan. It covers approximately 1,126,829km2 of land; about the size of the state of Texas, and was, until the split of Sudan, the second-largest country in Africa. Being landlocked, Ethiopia largely relies on the port of Djibouti, to which it is connected by both rail and road. Economic elements such as this, together with the country's history, population, geography and economic performance have been explored in the subsequent sections of this text.
Population: the U.S. Census Bureau, in June 2013, estimated Ethiopia's population to be 93,877,025; a figure that makes the country the second-most populous in Africa, after Nigeria (orld Bank, Index Mundi). Ethiopia's population has been on a steady increase…… [Read More]
For the period of the late 1960s and early 1970s, West Germany strived to assist the dollar. The United States and many other nations pushed West Germany to reassess so as to make up for the dollar excess. (Germany in the World Economy)
At last, after escalating waves of conjectures, the retton Woods system had a collapse in August 1971. All through the post-retton Woods period, the deutsche mark stayed under pressure. In order to relieve strain within Europe, West Germany and other European states assented to peg their currencies to a special system of comparatively narrow exchange rate bands officially named the 'European narrow-margins agreement' but unofficially identified as the 'snake'. The United States and West Germany performed main roles in attempting to organize a new global monetary system. but, in spite of its willingness to make small exchange-rate alterations for the benefit of new currency arrangements, West Germany…… [Read More]
Many businesses could no longer operate in this fashion and likely closed their doors leading to a rise in unemployment. This is an example of the rule that Hitler had on the Pre-World War II German economy. The people of the nation were completely subject to his policies and because the economy was in such a vulnerable position as a result of the First World War, that Hitler's policies were looked upon as providing assistance to the nation. The research indicates that Hitler's rule over Germany managed to counter the rise in unemployment with institution of the German Labor Service and other workforce and labor programs.
Pre-World War II Unemployment in Germany
etween January 1933 and July 1935 the number of employed Germans rose by a half, from 11.7 million to 16.9 million.
. Under the rule of Hitler, more than 5 million new jobs paying living wages were created.…… [Read More]
Shift from Central Planning to Market Economy
The Turkish economy is in what might be termed semi-precarious health. It could certainly be worse, but also certainly be better. Since its birth as a nation-state into its current shape in 1923 in the wake of World War I, Turkey has operated a mixed economy, in which both state and private enterprise have contributed to economic development. (Indeed, it is arguable that all country's in the world today have a mixed economy; the United States may be a bastion for private enterprise but many workers also benefit from government money, such as the money awarded by the federal government to private companies in the form of defense industry contracts.) Since the end of World War II, the economy has been transformed from a predominantly agricultural one to one in which industry and services are the most productive and rapidly expanding sectors even…… [Read More]
We don't look at their psychological well-being. it's almost as though, psychologically, they're a blank. And we know very little about the differences among black women. Some cope better than others. We don't know who they are, why they cope better, what resources they have access to. If we can understand that, then we can understand the needs of those who cope less well. What I am finding so far is that almost all the mothers in my study, when asked whether they would prefer employment to public assistance, say they would rather have a job. However, having a job is very difficult for this group of mothers because it is difficult for them to find and keep jobs that support them and provide adequate benefits. And there's another consideration: When we say we're going to put these women to work, what is it going to mean in terms of…… [Read More]
Growth The retailer sector was lately affected by the back-to-school shopping season, which did not start so well, as midprice department stores, discounters and specialty-apparel retailers announced disappointing sales results during August, which reinforced the already much debated concerns that consumers are not comfortable with the current state of the economy and are reluctant to consume, considering the shaky and uneven economic recovery.
However, luxury department-store chains managed to post significant earnings, as they benefited from the help of an important number of upscale shoppers. Still, the effects of higher gas prices and the rising value of grocery bills, combined with lackluster job growth were severely felt by moderate- and lower-income shoppers.
Michael Niemira, chief economist and director of research at the International Council of Shopping Centers feels that "There's weaker-than-expected performance," due to the fact that "there was a slowdown in spending, but some results are exaggerated by…… [Read More]
One can therefore expect that Israel will benefit from an increase in knowledge-based industry that will continue to power employment and GDP growth.
Investment is a triple indicator: relative attractiveness of the country, the type of investment being attracted, and political stability or instability. In comparison to the U.S., all countries save Saudi Arabia are attracting more investment. One would expect that the U.S., as a relatively mature first-world economy, would be at a relatively lower level. The surprise in this analysis exists in both extremes: Saudi Arabia on the low side, and Qatar, Kuwait and Dubai on the high side. Israel's relatively low investment can be explained by the type of knowledge-intensive industrial development it is experiencing now.
Qatar and Kuwait are experiencing resource-extraction investment at record levels. The primary driver is natural gas expansion. Unlike oil, natural gas must be processed extensively by capital-intensive facilities before it…… [Read More]
In fact, Brierly and Costello bring into the argument the three variables commonly associated with industry growth -- labor, Capital, and Technology. Brierly and Costello used time series regression to test each of these variables in order to determine which made the largest impact on state economic growth, while holding the caveat that states should be careful when considering these variables as they do not have much control over them. Brierly and Costello's results suggested that increasing labor had larger impacts on state economic development than increases in the other two variables. This conclusion is correct only for the short-term, however. In fact, Brierly and Costello's reasoning for their findings that neither increases in labor or technology result in economic growth for states because their investments are typically more "long-term" (Brierly and Costello).
Instead of simply relying on capital, however, ichard C. Feiock argues that non-traditional methods can be beneficial…… [Read More]
Soure Kodakanhi et al. (2006) iting Shreyer (1999), Table, page 19
Further reported by Kodakanhi et. al, is the fat that one of the Afrian ountries, and there are many, that faes poverty and inequality disaster is the ountry of Ghana. Advanes in tehnology in Ghana are stated to be "meager sine its independene in 1957." (2006) the eonomi development model based on it for developing ountries takes into aount the major onerns to it advent into these ountries whih are those of the: (1) Inability to invest in the it field due to poor finanial infrastruture; and (2) inadequate human power with the knowledge of it." (Ibid) the eonomi model, whih has been proposed, is one that has larger foreign investment and government poliies in support of it development as well as an awareness on the…… [Read More]
To increase effective demand, Keynesians believe the government must balance the economy with deficit and increase expenditure. However, the constant alternation between booms and recession is causing the booms to get shorter while the recessions become longer. This phenomenon is the result of empirical evidence that indicates that in the end, the interest rates decrease.
However, this situation creates a problem of capitalism as the rich increase their wealth while financial deficit worsens. Minsky adopted the perspective of Keynesians, hypothesized financial instability, as the finance and money that connects the present with the future, but the future is uncertain. Minsky finds the problem of financial stability is in financing. However, financial instability increases under contemporary capitalism, which increases economic crisis. This leads to the conclusion that to solve economic crisis, there is a need to reduce financing and take up investments in real economy.
This is in contrast to the…… [Read More]
disrupting America's economic system is a fundamental objective of terrorists
Even as the world continues to struggle with the terrible shock from the September 11 attacks in New York and Washington, one principle lesson has already become clear: disrupting our economic system is a fundamental objective of terrorists.
Prior to September 11, our economic environment was certainly not immune to terror, in comparison to many other nations; we lived relatively terror-free. Now, however, the aftermath of the terrorist attacks serves as a grim reminder that international relations and security developments can dramatically affect economic performance.
US History is replete with countless examples when macro fundamentals are overtaken by what economists refer to as, exogenous shocks -- surprise events that can profoundly and often unpredictably shift political and economic resources, and send even the most accurate forecasts astray. Commodity shocks, such as the two OPEC jolts in the 1970s, are classic…… [Read More]
Economic forecasting refers to the process of trying to predict the future state of the economy through a series of different indicators. This process helps to understand the probable future of a nation’s economy and for policymaking to help promote economic growth. When developing an economic forecast, various macroeconomic factors/conditions are taken into consideration. This paper provides an economic forecast of the U.S. economy based on recent economic indicators in 2017 and 2018.
Based on seasonally adjusted annual rates in the fourth quarter of 2017, the gross domestic product growth rate is expected to increase moderately in the first quarter of 2018. As shown in these indicators and based on recent macroeconomic conditions, GDP growth rate in the first quarter of this year is expected to be approximately 2.8%. Additionally, GDP growth rate will continue to increase moderately in the second half of the year to exceed 3.0%.
In…… [Read More]
North American Free Trade Agreement (NAFTA). Specifically, it will present the pros and cons of NAFTA, and how it will affect the apparel industry, especially in the California and/or Los Angeles market. It will consider such factors as how it affects the job market, manufacturers, contractors, etc.
THE EFFECTS OF NAFTA
The NAFTA agreement has been controversial since it first began in 1992. Many experts felt that the United States would lose a large amount of jobs to Mexico, because of lower wages and fewer trade union restrictions. It created Free Trade between Mexico, Canada, and the United States, and eliminated a large number of tariffs on a sliding scale over the next fifteen years. "On 12 August 1992, the United States, Canada, and Mexico agreed on a plan for free trade that would gradually eliminate tariffs over fifteen years and stimulate trade and investment. hile protecting the 1988 free…… [Read More]
Islamic Bonds: Sukuk and the World of Finance
Stocks and bonds are among some of the most common ways of investing and raising capital in the financial markets today. Investors in the international arena are presented with a myriad of choices in terms of bond types. One of these is a relatively recent bond market that has emerged from the Islamic community, known as "Sukuk." This term is used to describe Islamic bonds. This type of bond distinguishes itself from its Western counterpart by its adherence to Shari'ah principles, one of which is the prohibition on charging or paying interest (Islamic Development Bank, 2010). This is accomplished by granting the investor a share of the investment asset, with its cash flows and risk. The growth and success of the Sukuk market has been remarkable, in that it caters to an investor market that seeks to diversify its holdings beyond the…… [Read More]
(Ward; Mohapatra; Mitchell, 2008)
The Great Lakes also contain large amounts of 'polychlorinated dibenzo-furans - PCDFs' and 'polychlorinated dibenzo-dioxins -PCDDs' which are a result of the chlorine bleaching process of paper and pulp mills. In a nation wide study conducted for a period of 4 years on samples of fish and shellfish from various freshwater and marine water bodies in Canada, it was found that the fish from the Great Lakes were among the most contaminated samples. (Steinhart; Doyle; Food esearch Institute, Cochrane, 1995) the paper and pulp industry has also grown with the growth of the economy. However, contaminant discharge from this industry still continues despite the various environmental measures taken by the paper and pulp industry of Canada. This industry has also caused disturbance to the huge boreal landscape of Canada. Approximately 50% of Canada's fresh water is located in these boreal forests. Developmental activities have affected these…… [Read More]
Boom times on the gold coast of China" by Mike Edwards and Michael Yamashita (1997) discusses the industrial boom in the Pearl iver Delta. This area of southern China, adjacent to Hong Kong, was experiencing a boom in the 1990s in manufacturing. The authors of the article were writing about it like it was a new things, which I guess back then it probably was. The explored the nature of this boom, touching upon the political and economic system of the PC, as well as some light economic discussion about talent and capital inflows. Hong Kong was seen as the source for a lot of the influx of talent and capital. This is a big reason why the Pearl iver Delta became such a significant manufacturing hub, because Hong Kong served as a gateway for Western money to flow into the region. The article was written around the time of…… [Read More]
Intenational Tade Between Bahain and Saudi Aabia
This is a pape on Tade between Bahain and Saudi Aabia, focusing on how it affects thei intenational tade elations with special attention to OPEC, GCC and the Qata dispute. It uses 22 souces in MLA fomat.
Both Saudi Aabia and Bahain ae membes of the Gulf Coopeation Council along with Qata, UAE, Kuwait and Oman. Unde the GCC Ageement, pefeential taiffs apply among the membe states. Since independence in 1971, Bahain has essentially pusued a libeal tade and investment policy, and has integated its economy closely with those of othe counties in the egion, though the Unified Economic Ageement of the Gulf Coopeation Council (GCC).
Tade and economic gowth in Bahain is stongly affected by vaiations in intenational enegy pices. Real GDP gowth, as a esult, was slowe duing the 1990s compaed with the pevious decade, aveaging aound 3.6% annually since 1994.…… [Read More]
Import-Substitution and Industrialization is an economic policy that aims to promote the replacement of imports with locally produced goods, mainly industrialized goods. The main concept behind this policy is that a nation should try to minimize its reliance on foreign goods by domestically manufacturing industrialized goods. Usually, countries that tend to depend on importation of goods should start focusing on their production of goods that they previously imported. The goal is to not only make these nations less dependent on external goods but also to build their economy via industrialization.
The concept of import substitution and industrialization emerged in the Latin American region courtesy of the Second World War. Countries in this area sought to protect, grow and strengthen their domestic industries through various tactics such as subsidizing government loans, import quotas, and trade tariffs. Today, a great number of Latin American states have adopted import substitution and industrialization policy…… [Read More]
Economic Integration of GCC Countries: Developments Since
Economic Integration of GCC Countries: Latest Developments Since 2010
It is important to examine the Gulf Cooperation Council (GCC) Key Economic Indicators. Primarily, 2014 Key economic indicators will present statistical information, which will seek to foster economic determination and engineer the determination of current and future performances. A collective economic indicator examines aggregate earning reports, list of economic summaries relating to this region and as well as, reflecting on various macroeconomic indices. This report will prove that the GCC (2014) economic indicators are collective in answering aggregate macroeconomic challenges. This study is a collective possible research leading to the construction of key economic indicators (2014) analysis as adopted by GCC partners. GCC economies have been growing tremendously in the past ten years. This study focuses solely on some of the serious economic developments and polices evident in the region in the past four…… [Read More]
Economic Crisis Policies
US current economic crisis is considered to be started from real estate sector. The real sector started to decline in 2006 and it accelerated in 2007 and 2008. Housing prices have fallen from the peak from about 25% so far. The decline in prices left homeowners with no option and they were unable to refinance their mortgages and causes default of mortgages. This default of mortgages and loans swallowed the banks and financial markets such as falling of Lehman's brothers and other anks and blow to rest of economy happened as the whole economy was relying on banks and ultimately it slows down investment in the country and capital flows to other parts of the world like China and India. ank losses cause reduction of bank capital which in turn requires capital reduction thus saving bank from lending. It is estimated that every $100 loss and reduction…… [Read More]
The revelation of the financial crisis that unfolded in United States in 2008 is considered to be the worst economic crisis since the Great Depression, 1929. The distinctive causative factors that have contributed to the U.S. economic crisis 2008- 2009 are differentiated by aggravated financial control, higher risks in capital investment, the housing bubble phenomena in relation to the brisk credit expansion. The aggregation of these factors in the U.S. economy directed the economy towards the de- leverage and credit crunches as the bubble burst. The following paper shall be discussing about the degree of correlation between the tax implications policies with respect to the financial crisis in U.S.. The precise review of strong linkages between the taxation and economic crises is the explicit explanation of the crisis that shook America. The paper also highlights the key factors that demonstrated their abilities and rescued U.S. In the economic…… [Read More]
The nation will enforce law and order to protect its public property, regulate monetary frameworks and correct market failures. The government will be responsible for protecting private life of its citizens and property (Grant & Vidler, 2000).
Market and Competition Forces: the country's economy should be designed in such a way that it will promote competition. This is because competition means a fair deal in obtaining results. The government should increase sellers and buyers in the market because this would promote competition thus increasing the quality and efficiency. With competition, the country will be able to control and manage different functions of its economy (Grant & Vidler, 2000). Demand and supply are the prime market forces determining the production of a country produces and the suitable ways to do so.
Market equilibrium, price and output, are determined by market forces. Therefore, I would recommend that any least developed nation to…… [Read More]
In terms of output and growth, Canada's real GDP was 2.96% higher than it was a year ago, but the growth trend is slowing down from a growth rate high of 3.81% in Q3 2010. Japan's economy has contracted in Q2 2011 by 0.76%. It's rate has been volatile, growing rapidly over the past year only to contract again. The UK's growth rate is 1.63%, and that country has had fairly stable, if sluggish, real GDP growth. The current GDP growth rate in the United States is 2.33%. Real GDP growth is on a downward trend in the U.S. But has maintained healthy levels since Q4 2009.
All four countries were affected by the recession. Each experienced real GDP declines during the 2008-2009 period. Japan was the hardest hit. Yet each nation recovered in 2010, only to see the rate of economic growth slow again in 2011.
Canada…… [Read More]
This economic indicator can be used to determine inequality within a given region or area. It can also be view the capacity for individuals within a particular nation to consume
b. ate of Value- $41,560
c. Source of Information- "Per Capita Personal Income U.S. And All States." Per Capita Personal Income U.S. And All States. Bureau of Business & Economic esearch, 12 Oct. 12. Web. 02 Feb. 2013.
d. Date of information- September 2012
6) Housing Starts-
a. Economic Indicator- Housing starts are usually indicated by the number of privately owned, new houses, under construction within a given period. This data is usually comprised of three, very distinct components of single family houses, condos, and apartment buildings. Housing starts are very important economic indicators as housing is a substantial component of the middle class family's net worth. Home ownership is also a means by which are other industries are successful.…… [Read More]
Economic Final Report
Types of economic systems
Economic systems vary from one nation to another. Traditional economic systems refer to an economic system founded by tradition. The services and goods that people provide through the work they do, how people exchange and use the resources are trends that follow permanent patterns. These are not dynamic economic systems because there are minimal changes. In this economic system, people live on static standards. They do not enjoy much occupational mobility and financial mobility (Gregory and Robert 19). However, it is possible to predict economic relationships and behaviors. People are aware of what they are expected to do, why they trade, they know what others should give to them. In traditional economic systems, the interests of the community are of great priority than individual interests. People collaborate at work and labor proceeds are shared equally. However, in some traditional economic systems, individuals respect…… [Read More]
Economic Impacts of egulation
egulation is a written instrument that contains rules with the force of law (Ogus, 2004). egulation as a process involves monitoring and enforcing rules, established through primary or delegated legislation. egulation usually creates, constrains or limits a right. In addition, regulation creates and limits a duty besides allocating responsibilities (Ogus, 2004). egulation may take several forms depending on its application. These includes legal restrictions made by the government, contractual obligations, which binds several parties together, self-regulations by industries, third party regulation, co-regulation, market regulation, certification and accreditation
egulation made by a state tries to produce outcomes that might not occur (Ogus, 2004). In addition, it attempts to prevent or produce outcomes in various places to what might occur. Through this, regulation becomes an implementation object of policy statements. Examples of regulation include controls on prices, market entries, wages, pollution effects, employment of particular people within certain…… [Read More]
If there is a risk that one of the family members will lose his or her job, that will add risk to the purchase decision. The riskier the purchase decision, the lower the price will need to be in order to compensate for that. Another factor here is the expected change in housing prices or interest rates. Buyers are inclined to enter the market if they believe that the cost of home ownership will be higher next year, but they may delay purchases if they believe that costs will be lower next year.
ith new home sales last summer, the dip could be in part due to worries about a double-dip recession. The summer was characterized by an inane fight over the debt ceiling, something that shattered confidence of many in the political system, and some of the key actors within that system. A fractured political system is one that…… [Read More]
Improving consumer protection is a less vital factor in the reform package. It focuses on ancillary issues such as predatory lending and credit card interest. Improving protections may help to reduce the incidence of consumer bankruptcy, but has two negative consequences. The first is that the illusion of protection can encourage increased risk-taking behavior among consumers. The second is that increasing consumer protection fails to address the underlying issue, which is the atrocious level of financial literacy among the general population. These reforms, therefore, may not be effective.
The fourth set of reforms addresses the ability of government to respond to the crisis. The Federal Reserve's involvement in stabilizing the financial industry may have been needed at the time, but is inappropriate in the context of the Fed's tradition role. Furthermore, the FDIC has been forced into desperate action as its reserves have run low in the face of 100+…… [Read More]
Ergo, the role of the EU seems to be that of implementing protectionist policies. These would be developed onto three simultaneous directions.
A first set of policies would revolve around the creation of a new market architecture at the EU level. This would strengthen the EU's position in the face of future challenges by:
ensuring a sustained and strong support from central banks allowing banks to rapidly implement the rescue plans, and allowing the Union to rapidly implement decisive methods that would prevent the expansion of the crisis to other countries (Commission of the European Communities, 2008).
A second set of strategies revolves around the necessity to really analyze the impacts the crisis has had upon the real economy and find ways in which to improve the real economy. These policies would combine short-term solutions to issues in need of rapid response as well as long-term projects. The short-term solutions…… [Read More]
Governments influence the economy in many ways, but the two most often discussed in economics are fiscal policy and monetary policy (another might a trade policy, for example). Fiscal policy reflects the use of government spending and taxation to influence the economy (eil, 2008). Thus, the level of spending, the amount of revenue collected, and how the money is spent are all things that must be taken into consideration in fiscal policy. Fiscal policy also frequently has an effect on the decisions that businesses and individuals make. Consider the debate about taxes and the "Buffet Rule" -- the tax polices we have now are designed to encourage specific behaviors. This is why capital gains are taxed at a different rate than dividends, and why dividends are taxed at a different rate than interest income. So fiscal policy does affect the way some people behave, as they attempt to maximize…… [Read More]