StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Forecasting the Future of the US Economy Over the Next Year - Research Paper Example

Comments (0) Cite this document
Summary
Micro and Macro Given the great worsening of balance sheets in US households as well as businesses, the probable decrease of the volume of potential output of the US economy predictions of the economy of the country in next years’ path carries a great degree of uncertainty…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
Forecasting the Future of the US Economy Over the Next Year
Read TextPreview

Extract of sample "Forecasting the Future of the US Economy Over the Next Year"

Download file to see previous pages However, the recovery of the U.S. has been expected to carry on, albeit at the sluggish pace (Elwell, 21). This paper is aimed at providing forecasts on the future of the US economic variables. Effects on economic variables: The level of inflation has been very high since 2007. This high level of inflation is now considered as the biggest problem in the country by the Fed. Due to this high level of inflation, consumers are not getting capable of purchasing costliest goods and services and hence business organisations which are engaged in production of these goods and services are leaving the industry. Again this is reducing the level of income in the country and hence the level of demand for necessary goods and service. The Fed is expecting to have a subdued in the next few years because of weaker level of real economic activities prevailing in the country. But the Fed is expecting to have a lower level of inflation rate in 2013 which is expected to increase the volume of economic activities in the country. The Fed is expecting that the current rate of change in overall prices is expected to fall to 1% to 2% from its current level of 3% within five years. But the Fed is expecting that the rate of inflation will remain unresponsive in newt few years due to the fact the American economy is still under the curse of financial and economic crises situations (Minutes of the Federal Open Market Committee, 1). The Federal Reserve or Fed, in short, holds a very positive view regarding the current economic activities and the current condition of the financial market of the country. The chairman of the Fed, Dr. Ben S. Bernanke, has argued that after the global financial crisis of 2007-08, the American economy is experiencing greater volume of economic activities (Bernanke, 1). The IMF predicts the value of real GDP in the US to rise at 1.5% in 2011 (which is lower by1.0 percentage points than that of in June 2011 prediction) and at 1.8% in 2012 (which is lower by 1.1% than the June 2011 prediction) (Elwell, 21). The Open Market Committee of the Federal Reserve predicts the real GDP in the year 2012 to exist in the range of between 2.3% and 3.5% (the growth prediction for the year 2012 almost about 0.5 percentage points lower than that has been made in the June 2011). Also according to the Fed predictions the rate of unemployment is estimated to be in the range between 8.1% and 8.9% in the year 2013 (Fiscal Year 2013: Analytical Perspective: Budget of the U.S. Government, 19). Global Insight, which is a renowned economic forecasting private company, has recently predicted that the real GDP in the US will advance 1.4% by the end of 2012 (lower by 1.3 percentage points compared to its June 2011 estimation). The rate of unemployment in the country has been estimated to be around 9.3% in the year 2012 and 2013 (Elwell, 21). The level of FDI in the country is not expected to grow at much rapid speed compared to the past. In the global increasing in the amount of FDI inflow to $1.4–$1.6 trillion in the year 2013, the US inflow of FDI is predicted to move in the range of $245 to $255 billion in 2013 (GLOBAL INVESTMENT TRENDS, 17). Again, it is expected by the researchers that the rate of interest will remain comparatively low as well as stable in the next year following the rapid growth of developing countries. This increasing growth of countries such as India and China will increase the volume of trade in favor of USA. Also the corporate bonds and ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Forecasting the Future of the US Economy Over the Next Year Research Paper”, n.d.)
Forecasting the Future of the US Economy Over the Next Year Research Paper. Retrieved from https://studentshare.org/macro-microeconomics/1450893-research-paper-forecasting-the-future-of-the-us
(Forecasting the Future of the US Economy Over the Next Year Research Paper)
Forecasting the Future of the US Economy Over the Next Year Research Paper. https://studentshare.org/macro-microeconomics/1450893-research-paper-forecasting-the-future-of-the-us.
“Forecasting the Future of the US Economy Over the Next Year Research Paper”, n.d. https://studentshare.org/macro-microeconomics/1450893-research-paper-forecasting-the-future-of-the-us.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Forecasting the Future of the US Economy Over the Next Year

Women in American Politics: Past and Future Challenges

The official political role of women in the colonial period was not definite at all. Political rights were founded profoundly on ascribed status such as birthrights and on achieved status such as property. Religion also contributed in determining who could and could not play a part in politics. There was no steady and widespread difficulty in the participation of women in political life, yet only a small number of women voted in England and North American colonies, and hardly any women participated in politics to the degree of putting into effect political influence (ibid). In reality, the minority had any public office at all in England, and no women can be recognized as holding elective political office in the colonies.
It...
19 Pages(4750 words)Research Proposal

The Next Target

The relatively recent demarcations of the Iranian nation’s borders reflect primarily a correlation with rivers and watersheds, or else areas of low human occupancy like swamplands, inhospitable deserts, or marsh. Iran contains some areas of low-land in the western plains, as well as on the coasts of the Persian Gulf and the Caspian Sea. The physical geography of Iran has been compared to a bowl: a high outer rim enclosing a lower, albeit not low-lying, interior. The “rim” as such consists of mountain ranges that extend from Asia Minor and the Caucasus as far as the plains of Punjab. Taking all of these features into account, however, the average elevation of the entire country is roughly about three thousand feet...
8 Pages(2000 words)Assignment

Future Digital Design Process

As we shape up the interface between the designer and the virtual environment we are naturally going to produce a greater and far better outcome.
It will enable the end-user to be more creative and experimental and explore possibilities that were previously tedious or impossible. The design possibilities of virtuality will enhance the outlook of environments.
Now we can also term it according to the duration it can last. For any new thing, the duration is 10-30 years. If it lasts for 10 it would be popular as a tool another 10 and it would very well be a theory and if it survives all 30 years it will soon be defined as a revolution.
It was the end of the 20th century and the beginning of the 21st century that saw th...
21 Pages(5250 words)Assignment

Death Penalty: Does it Serve as a Deterrent to Future Crime

Animal instincts are directed towards self-preservation and it is the law of nature that a stronger and healthier individual has more chances of living than his weaker counterpart. The survival of the fittest has now been established as a ground reality according to Darwinian philosophy. If we eliminate our civilized thought process, it emerges as a stark reality that we would not desist from attacking another living person or animal when we are overcome by the basic needs of food, shelter, and clothing. In times of natural disasters like earthquakes, wars and floods, and manmade disasters like war, it is not uncommon to witness ravaged populations shedding the façade of civilization and resorting to violence in order to fu...
9 Pages(2250 words)Case Study

Transatlantic Dispute over GMO Regulations

There has in the past been a row over the regulations of Genetically Modified Organisms (GMO) or Genetically Engineered Organisms (GEO), where different factors have been quoted by different stakeholders. The most notable of the stakeholders have been United States, Canada, and Argentina, which have brought about consultations aimed at straightening the disputes, with the European Community (EU), under the auspices of the World Trade Organization (WTO), and in respect to the “Moratorium for Regulations and Approval of Biotech Products” (Pipe SW 2008, pg 11). Based on the fact that the whole issue of GMOs rotates around a process where an organism has its genetic material altered using genetic techniques is in itself a...
6 Pages(1500 words)Coursework

Effect of Corporations Moving Jobs Overseas on the Economy

The issue comes into focus, whenever there are political, economic debates or talks about H1B visa limits. The economic slowdown has further led to the intensification of these debates. But, despite apprehensions from different quarters, neither the companies nor the government has said a final word on the trend. Increasing levels of competition amongst the corporate houses have been one of the key highlights of the globalization era. Be it the retail sector, the banking, the automobile, the IT-enabled services, the white goods space, etc. the companies have always been on the lookout for reaching out to more number of customers while doing everything possible to please the existing lot. Leveraging the economies of scale has prove...
8 Pages(2000 words)Coursework

Ruby: A Fourteen Year Old Girl

 As per Kantian ethical theory the purpose of morality is not to make others happy, but to do the right thing just for the sake of doing. 
The given case study explains the case of Ruby, a 14-year-old girl, who has had asthma since she was a young child and regularly uses beclomethasone and salbutamol inhalers. She was brought to the hospital because of suspected flu. She was worried about whether her asthma may become worse or not because of the flue she was suffering from. She was keen on taking an important examination coming up, but her condition was not so good to participate in the examination. The doctor has advised her few days of bed rest after watching her critical condition. The doctor gives her a choice...
9 Pages(2250 words)Case Study

Freuds The Future of an Illusion

There is a need, however, to prove or disprove Freud’s contention against religion because to perpetuate that ‘illusion’ blindly without ascertaining its truth or falsity is living in hope under a lie. Fortunately, psychologists and historians, contemporary to and subsequent to Freud, had offered proofs and arguments against Freud’s sweeping generalization of religion pointing to its unsoundness and perhaps, falsity.
In his book The Future of an Illusion, Sigmund Freud referred to religion as an illusion. Illusion, according to him, is fundamentally underpinned by human wishes as opposed to an error being essentially a consequence of mistake (213). Religion is an illusion because it is founded upon the...
7 Pages(1750 words)Book Report/Review

Identification of problems in the Criminal Justice System of the US

They are on trial and will be dealt with fairly. These laws ensure that no one, even if he or she has committed a crime is abused or punished cruelly.
Following the history of civilization like in china, we see the traces of systems for Criminal justice in order to provide safety for the citizens. Evolving through the years laws have been modified and changed to form the system that we know today.
 From its start, the “U.S. criminal justice system” has advocated the idea of “checks and balances”. To avoid dictatorial rule, the people who founded this system in such a way that one person was not given control or authority completely to punish the criminals. The idea of assigning a ‘jury...
6 Pages(1500 words)Assignment

China Faces Pressure over Currency

Making its products cheaper in the US and thus encouraging imbalanced trade. It has been universally agreed that the free-floating Yuan would be significantly worth 15 cents.
Chinese economists feel that the impact has been over-exaggerated and particularly to America from Yuan revaluation. In particular, a stronger Yuan will not reduce the US’s trade deficit as there is a very smart segment of overlap between China and America Production and hence the US will not be able to replace Chinese imports. The consumer will end up paying more for imports from china or Vietnam and this would be like imposing a tax on US consumers.
The World Bank chief also disagrees with the US’s suggestion on China's currency rise a...
9 Pages(2250 words)Assignment
sponsored ads
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.

Let us find you another Research Paper on topic Forecasting the Future of the US Economy Over the Next Year for FREE!

Contact Us