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

Principles and Policy by Baumol and Blinder - Term Paper Example

Comments (0)
Summary
the student will look in the newspaper for approximately three articles in each topic (Financial times, BBC , PBS, London Financial Times only ) and how they relate to macroeconomics and write short essays about them. text Economics: Principles and Policy by Baumol and Blinder http://www.ft.com/home/us The Economist: President Barack Obama has been urging congress to push a $447 billion stimulus package to address the issue of the mortgage crisis that has plagued the American economy since the recession…
Download full paper
GRAB THE BEST PAPER
Principles and Policy by Baumol and Blinder
Read TextPreview

Extract of sample
Principles and Policy by Baumol and Blinder

Download file to see previous pages... The evidence is clear as penalties that imposed on high-risk borrowers of up to 2% of the mortgage amount have been diminished or eliminated. Evidently, Americans have witnessed the lowest rates in recent decades due to the fact that homeowners are in scurry to refinance. However, 25% of these homeowners cannot refinance since their mortgage exceeded the value of the home. Since the last crash, Fannie and Freddie were both under the control of the Federal government, a move that had to be conducted in order for the American economy to be stabilized. Currently, the program has not worked up to its potential as only 894,000 borrowers have conducted refinancing in their mortgages through agency. Although many factors affect the outcome, it is clear that Fannie and Freddie Mac are hindrance towards the market as they continue to enact hefty fees and conditions to their customers. It relates to macroeconomics due to the fact that housing bubble continues to grow out of hand. The housing market has been in such a turmoil that individuals can start owning homes for $50,000. This act is beneficial because it can lower the interest rates and allow people to pay their mortgages, which can increase the price of homes. Moreover, critics continue to question the effectiveness of the program as it strives to boost the economy since cash flow of borrowers will be induced by investors who possess these bad mortgages. Conducive research indicates that housing market directly impacts the American economy. Real estate economics dictate the economic strategies that are used in the market. The housing economic discusses the business and structural modifications that can potentially ruin the industry. In essence, there is no market equilibrium as the demand for houses has been high even though supply has diminished. This is mainly because of the low price that has continued to haunt the economy. BBC Newt Gingrich, Republican president, has defended the fact that he was never bribed by Fannie Mac. Gingrich was reacting to a report that he earned up to $1.8 million as the consultant from the leading mortgage lender. The former congressman continues to defend the fact that he never lobbied for Freddie Mac. Gingrich has been on the focal point since the elections have been heated up as he is the leader in the Republican polls. Since Freddie Mac is funded by the government, owns and continues to ensure half of US mortgages. This is critical to economics because Freddie Mac is already under strict scope of the government as it continues to struggle. If the accusations are indeed true, then both Freddie Mac and Gingrich can be in huge trouble considering the fact both are huge names in the industry. Gingrich insists that he was hired "strategic advice over a long period of time" to Freddie Mac, although he could not specify exactly how much he was paid. Yet, with the market on the verge of going chaotic, Gingrich is under the microscope for his actions. As mentioned above, Freddie Mac is still imposing high fees to its customers, something that Gingrich should acknowledge and address in his presidential debate. It will be interesting to see whether Gingrich’s reputation increases or decreases in polls. PBS Recently, a couple decided to buy a house which was worth only $1. ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Moral and Ethical Principles in Public Policy
The author states that public policy is to define a way of life for society, in terms of acceptable behavior and rules and norms that become codes of conduct in that particular culture. It reflects what society regards as important to uphold and preserve in its actions and codes of conduct in dealing with others as well as each other.
4 Pages(1000 words)Essay
What is the microeconomics
However, the two are interdependent in that they both examine impacts of business activities in terms of demand and supply. Microeconomics can be defined as a branch of economics which studies the behavior of individuals and the firms in making business decisions regarding resource allocation and price of goods and services.
4 Pages(1000 words)Term Paper
What Caused the Bubble and Bust in the US Mortgage Market
What Caused the Bubble and Bust in the US Mortgage Market? The objective of this paper is to study the structure and mechanism of the mortgage market and in the light of these characteristics, analyze the factors that led to its ultimate demise. Identification of the problematic areas within this subject will facilitate the process of finding adequate solutions to those problems through policy changes and other measures that will restore the economy back to its original progressive stance.
6 Pages(1500 words)Term Paper
American Airlines vs. Southwest
According to the report the success of an airlines company is also dependent upon that of its peers or rather rivals. Given a limited market base and a few numbers of significant players in it, there is always a scope of hard-core competition in the scenario. Air tickets of Southwest Airlines are far less priced compared to their peer American Airlines.
6 Pages(1500 words)Term Paper
Macroeconomics Theory
The BOP consists of two accounts; the capital account and the current account. The capital account records all the transactions between the resident of a country and the rest of the world whereas the current account records imports and exports of tangible goods and intangible services along with the unilateral transfers.
5 Pages(1250 words)Term Paper
Economic growth of Japan after 1945
As recorded in 2012, the country had a growth rate in a real gross domestic product (GDP) of about 2%. The estimated real per capita GDP of the country was about $36900 as recorded in 2012 (“The World Fact Book”). The major sector of the economy that contributes a wholesome amount in its GDP is the service sector (7.5%).
7 Pages(1750 words)Term Paper
Macroeconomic Principles and Policy
Others believe that tax cuts or tax rebates can help pull the economy out of a recession. The underlying causes are usually not singular in nature and recessions are generally the result of a few or several events that happen simultaneously (Schuh and Triest 1998).
3 Pages(750 words)Essay
Type of Markets and Their Characteristics
Evidence from the firms’ cost curves shows that the perfect competitive market is the most appropriate form of market, however market failure may occur and the paper highlights the importance of government intervention in eliminating negative externalities and the provision of public goods.
7 Pages(1750 words)Term Paper
Managerial Ethics and Social Issues
ng the playing field uneven; (2) it denies the society full benefits of the product because not all could avail it; and thus, (3) it furthers the gap between the rich and the poor. Subcontracting is legal but unethical for three reasons: (1) it aims to protect the capital
6 Pages(1500 words)Term Paper
Labor Economics
This is especially for women who are now poor in America than the men. Like the Chinese and the Indians, the economy of America has increased substantially. This has happened because of the rapid financial development that has taken
4 Pages(1000 words)Term Paper
Let us find you another Term Paper on topic Principles and Policy by Baumol and Blinder 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