We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The Fiscal and Monetary Policy and Economic Fluctuations - Essay Example

Comments (0) Cite this document
Summary
The economy of the United States is still experiencing the effects of the great recession that happened five years ago though it is slowly picking up. Findings from a study on the economy of the country showed that the economy was growing at a rate of about two percent annually…
Download full paperFile format: .doc, available for editing
Polish This Essay95.8% of users find it useful
The Fiscal and Monetary Policy and Economic Fluctuations
Read TextPreview

Extract of sample
"The Fiscal and Monetary Policy and Economic Fluctuations"

Download file to see previous pages The report further indicated that most businesses had embraced the use of machinery and computers in their operations. The outcome of this was that it affected the labor industry negatively in that people lost jobs as a result of being replaced with machines (Krugman, 2003).
In the past five years, the U.S. underwent a great recession period. This period saw a huge drawback in the economy of the country since it recorded high cases of unemployment, high interest rates and a rise in inflation. This is because during the recession period, people were dependent on loans that were being offered by the banks to conduct their business and other operations of investments (Buti, 2003). The recession caused credit markets to stop funding cheap mortgages that were being offered to the public. Home owners were then faced with difficulties of repaying the loans due to the high interests that were imposed on them. This in turn made many individuals default on payment that caused banks to collapse due to them suffering enormous losses (Gramlich and Wood, 2000). The collapsing of banks resulted in detrimental effects to the economy of the country as it was brought to a halt. This is because the growth of the economy was dependent on credit loans that were used for investment purposes that in turn helped boost the economy (Krugman, 2003).
Most Americans lost their jobs during the recession period. In fact, studies conducted indicate that about 8.8 million individuals lost their jobs as a result of the great recession. This can be equated to between $50,000 to around $120,000 in loss per household (Buti, 2003). However, the drain in the economy was stopped by the Federal and Congress bank who intervened by offering loans with low interest rates. This took place between 2008 and 2009 (Krugman, 2003). From that time to date, banks are still reluctant to lend money to potential investors. This is due to fear of them ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Fiscal and Monetary Policy and Economic Fluctuations Essay - 2”, n.d.)
The Fiscal and Monetary Policy and Economic Fluctuations Essay - 2. Retrieved from https://studentshare.org/business/1649625-the-fiscal-and-monetary-policy-and-economic-fluctuations
(The Fiscal and Monetary Policy and Economic Fluctuations Essay - 2)
The Fiscal and Monetary Policy and Economic Fluctuations Essay - 2. https://studentshare.org/business/1649625-the-fiscal-and-monetary-policy-and-economic-fluctuations.
“The Fiscal and Monetary Policy and Economic Fluctuations Essay - 2”, n.d. https://studentshare.org/business/1649625-the-fiscal-and-monetary-policy-and-economic-fluctuations.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Fiscal Policy and Economic Growth
The purpose of this assignment is to analyze macroeconomics basic concepts. This assignment is a review of an existing article titled EXCHANGE RATE REGIME TRANSITION DYNAMICS IN SOUTHEAST ASIA by Monzur Hossain. This paper has investigated the currency regime choices of six Southeast Asian Countries.
5 Pages(1250 words)Essay
Fiscal Policy
The fiscal policy indicates how the government attempts to realize revenue, spending and managing the deficit. The macroeconomic goals of a government include high levels of employment and business activity, stability in prices and distribution of wealth and promotion of economic growth.
7 Pages(1750 words)Essay
The Fiscal and Monetary Policy and Economic Fluctuations
The nominal Gross Domestic Product of the United States of America was approximated to be $16.62 trillion in the year 2012. This is almost one quarter of nominal global Gross Domestic Product. In addition, the country’s Gross Domestic Product at purchasing power parity is also the leading among any definite nation in the universe.
3 Pages(750 words)Essay
Monetary and fiscal policy
The tools have been described hereunder. Reduction in Taxes-The governments can opt for reducing the amount of taxes that are imposed on various products. This would not only help in capturing the entire business market, but will also enable effective demand stimulation at large.
5 Pages(1250 words)Essay
The Fiscal and Monetary Policy and Economic Fluctuations
The fiscal policies of the government and the monetary policies of the central bank have impacts on interest rates, inflation and unemployment in the economy. How the current economic scenario compares with the situation five years ago? There have been changes in the interest rates, inflation, and unemployment over the period.
4 Pages(1000 words)Essay
Fiscal and Monetary Policy
(Farinha & Marques 2001). The government often employs fiscal policy, monetary policy or a combination of both to sway the economy back to an equilibrium position. The manner in which the government employs both policies may result to either fiscal or monetary dominance.
10 Pages(2500 words)Essay
Assignment 2: The Fiscal and Monetary Policy and Economic Fluctuations
Monetary policy on the other side refers to actions that can be taken by the central bank to either slow or ignite the economy. Both Fiscal and monetary policies have a way of affecting the economy either positively or negatively. With reference to the
4 Pages(1000 words)Assignment
Fiscal and monetary policy theories and application
From the above discussion, it is quite clear that for any country to attain economic stability in the money supply as well as in the development of physical facilities; monetary and fiscal policies cannot be overlooked. In my opinion, governments must streamline the management of revenue collection authorities as a way of ensuring transparency and accountability in how the tax is collected and used.
5 Pages(1250 words)Essay
The Fiscal and Monetary Policy and Economic Fluctuations
The inflation rate has gradually increased from an average value of -0.2 to 1.7 for the past five years. This has resulted because of the change in value of goods’ production costs and appreciation of the currency (Jaeger, 1999). The rate of
2 Pages(500 words)Essay
Fiscal and Monetary Policy
According to the discussion, Fiscal and Monetary Policy, the object of monetary policy is the stabilization of macroeconomic fundamentals, such as those relating to stable prices, stable growth rates for the economy, and the levels of employment and unemployment, with the ideal being full employment.
5 Pages(1250 words)Essay
Let us find you another Essay on topic The Fiscal and Monetary Policy and Economic Fluctuations for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us