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

Analyzing Fed Policymaking 1996-1998 - Term Paper Example

Comments (0) Cite this document
Summary
Analyzing Fed Policy Making 1996-1998 Name: Course: Presented to: Date: Analyzing Fed Policy Making 1996-1998 The health of an economy is affected by various economic factors such as production output, employment, borrowing and spending among others. For any given period of time, an economy goes through recession and recovery at different points of the period…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.6% of users find it useful
Analyzing Fed Policymaking 1996-1998
Read TextPreview

Extract of sample "Analyzing Fed Policymaking 1996-1998"

Download file to see previous pages With upward rising of the aggregate, there are favorable conditions to drive economic growth such as high job creation, high production, and business expansion. The Federal Reserve policies between 1996 and 1998 were aimed at stimulating growth in ensuring increased productivity, which resulted in increased employment and reduced inflationary rates through control of interest rates. A report by Federal Reserve Board (1999) showed that, economic growth between 1996 and 1998 was remarkable and stronger than many had expected. The economy growth was more than 3.5% in 1997 and between 2.5 and 3.0 % in 1998. By 1998 the real GDP growth was at 3.5%, and was expected to rise further in the following years (Lewis, 1998). According to Lewis, at the start of October 1998, the S& P was abnormally high having risen from about 1000 in earlier years to about 1400 by July 1999. The Fed had to impose a 40% increase in the S &P by hiking interest rates from 4.75 to about 6.5 in the following years. This rise resulted from an “irrational exuberance’ where too much money was being injected into the booming internet and technology industries (Lewis, 1998). Figure 1 portrays the general trend of interest rates during this period, Figure 2 portrays the relations between money supply and price levels between 1950 and 2008, while figure 3 shows the dollar performance compared to German’s in 1998. The major driver of the U.S economy that resulted in a high economic growth between 1996 and 1998 was capital spending. Many organizations continued to invest heavily in information technology and modernizing communication equipment to improve their productivity (Lewis, 1998). The market interest rates affect borrowing and lending policies, which affect the production and consumption of goods, products and services. The Federal Reserve Board (1999) explains that, these factors largely influence employment and job creation; high interest rates will discourage investors hence low job creation opportunities. For example, during this period, Fed decided not to hike the interest rates to control the exponential market growth in preventing the economy from tending to inflation. This is observed in graph 1. In the year 1996, it was expected that inflation and interest rates would be on the rise towards the end of that year, but it turned otherwise (Federal Reserve Board, 1999). As Mishkin (115) explains, the demand for money and interest rates are inversely related using the opportunity cost aspect. This is the expected return sacrificed by an investor by not holding the alternative asset, which refers to a bond in this case. Moreover, demand for money is determined by the wealth or income and the price levels in the market (Mishkin, 116). The federal authority polices during this period were aimed at robust growth in employment, recovery and strengthening of the dollar, and regulated interest rates, which increased wealth and lowered the interest rates making the demand of money to increase. There was a general fall of the domestic interest rates and national debts over this period (Mishkin, 11). In the third quarter of 1998, uproar in financial market globally resulted in a sharp drop in value of the dollar, having dropped from DM 1.7993 to DM 1.6718, which could have shifted the economic growth as well as interest rate policies towards encouraging more borrowing. Low interest rates contributed ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Analyzing Fed Policymaking 1996-1998 Term Paper”, n.d.)
Analyzing Fed Policymaking 1996-1998 Term Paper. Retrieved from https://studentshare.org/macro-microeconomics/1458026-analyzing-fed-policymaking
(Analyzing Fed Policymaking 1996-1998 Term Paper)
Analyzing Fed Policymaking 1996-1998 Term Paper. https://studentshare.org/macro-microeconomics/1458026-analyzing-fed-policymaking.
“Analyzing Fed Policymaking 1996-1998 Term Paper”, n.d. https://studentshare.org/macro-microeconomics/1458026-analyzing-fed-policymaking.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Analyzing Fed Policymaking 1996-1998

Scandinavian Airlines System 1998

...Case Study of Scandinavian Airlines System 1998 Scandinavian Airline System is an international airline serving travelers in different part of the globe. Beset by problems in 1981, the ascent of Jan Carlzon as CEO paved the way for a complete turnaround. The new strategies undoubtedly revolutionalized the whole system. This paper will examine the strategies employed by SAS, their drivers and implicants. It will also try to prescribe solutions for SAS’ future. Question 1. Critically analyze the type of strategies employed by John Carlzon and SAS during the course of its history (500-750 words). Students should use material from course notes and Chapters 1-2 of Richard Lynch Corporate Strategy. The ascent of Jan Carlzon as President and CEO...
12 Pages(3000 words)Case Study

The Human Rights Act 1998 and Immigration Control

As stated by O’Donnell (2004): “a truly democratic rule of law ensures political rights, civil liberties, and mechanisms of accountability which in turn affirms the political equality of all citizens and constrain political abuses of state power.” (p.32)

Various laws and policies have been designed to restrict entry for a variety of reasons. The reasons may be economic, as when foreign immigrants could take jobs that should have gone to citizens of the country. It can also be for reasons of security, quite relevant in this present time, considering the surfeit of terrorist bombings brought about by religious fundamentalism.

The primary Human Rights document in the United Kingdom is the Human...
11 Pages(2750 words)Term Paper

Family Law Act of 1996: In Re Homer and Maria

...Family Law Act of 1996: In Re Homer and Maria Question: Whether the couple comes within the definition of “associated persons” and “cohabitants” under the Family Act 1996. Ans.: Yes, the relationship of Homer and Maria comes within the definition of cohabitants and associated persons under the Family Act 1996. The said law defined cohabitants as “a man and a woman who, although not married to each other, are living together as husband and wife.”1 On the other hand, the same law defined “associated persons” as, inter alia, those who are “(b) presently cohabiting or cohabited in the past; (c) living or have lived in the same household except if one is a tenant, employee, lodger or boarder. 2 The couple’s relationship falls within...
9 Pages(2250 words)Case Study

The British Constitution vs The Human Rights Act 1998

This research essay analyses the above statement and arrives at a conclusion.
Integration of the provisions of ECHR into U.K’s domestic law by way of HRA 1998 can be regarded as revolutionary as it facilitates the majority of the ECHR rights provisions directly applicable in the U.K. Before that integration, a U.K Court has to presume that when there is a clash between U.K’s domestic law and ECHR rights provision, the ECHR rights provision will always prevail. This principle has been laid down in R v Secretary of Home Dept ex parte Brind1 and R v Secretary of Home Dept ex parte Thakrar. 2
Courts have now the power to declare any statue which they find incompatible with ECHR provisions and order for fine-tunin...
9 Pages(2250 words)Case Study

The Impact of the Human Rights Act 1998 on Individuals

...Critically evaluate the impact of the Human Rights Act 1998 on individuals. The implementation of the Human Rights Act 1998 (HRA) theoretically strengthens individual rights by enabling UK citizens to enforce fundamental freedoms under the European Convention on Human Rights (ECHR). Some commentators have argued that the HRA is the first significant move in the UK towards implementing a constitutional Bill of Rights through the direct effect of the ECHR rights under national law1. Furthermore, section 2(1) of the HRA provides that “a court or tribunal determining a question which has arisen in connection with a Convention right must take into account Convention rights” and any determinations by the European Court of Human Rights2...
11 Pages(2750 words)Coursework

Deconstruction component of the 1998 and 2001 film RUSH HOUR

....” Journal of Communication 56 (2006): 157-177. Ferguson, Patrice. “Wuz’ Up Nigga, My Niggaz, You Nigger!” Retrieved from: http://www.csun.edu/csbs/departments/pan_african_studies/pdf/wuz_up_nigga.pdf Kennedy, Randall. “Who Can Say ‘Nigger?’ And Other Considerations.” The Journal of Blacks in Higher Education 26 (1999-2000): 86-96. Naylor, Gloria. “Mommy, What Does Nigger Mean?” Retrieved from: http://teachers.lakesideschool.org/us/english/Aegerter/ documents/Naylor_Mommy_What_Does_Nigger_Mean_000.pdf Rush Hour. Dir. Brett Ratner. Perf. Jackie Chan and Chris Tucker. 1998. New Line Cinema, 1998. DVD. Rush Hour 2. Dir. Brett Ratner. Perf. Jackie Chan and Chris Tucker. 2001. New Line Cinema, 2001. DVD.... Cultural Differences and...
6 Pages(1500 words)Essay

Analyzing a Communication Situation

Communication is part of everyday life. It is not limited to adults or learned individuals. Babies communicate with their mothers as they cry when they are hungry, the mute use sign language to express what they want to say, while the mentally disabled laugh when they are happy or excited. The forms of communication people use may vary but common elements are usually present. These include the message and the communicators or the participants who play the role of either the sender or receiver of the message. In the communication situation, I had with my friend, these common features were present along with others namely, feedback, noise, context, and mutual agreement/negotiation. These elements affected the outcome of the conversa...
12 Pages(3000 words)Case Study

Analyzing a Fictional Story Called Storm

... Teacher Analysis Essay on Kate Chopin’s story “The Storm” Introduction This essay is aimed at analyzing a fictional story: “The Storm”. The Storm story is a setting of Friedheimer’s store in Louisiana and neighboring house of Calixta and Bobidot of late nineteenth century. Generally five paragraph method is being used to write an argumentative essay. But here I am using my own effective method to write this fictional essay. This essay is written with a focus on the main or lead character of the story “The Storm” which was written by famous classical author Kate Chopin. The Storm is a fictional short story about the storm. The word selection of the author of this fictional short story, Kate Chopin, is amazing that is seems... Teacher Analysis ...
7 Pages(1750 words)Essay

Analyzing Film To Kill a Mockingbird

...To Kill a Mockingbird To Kill a Mockingbird To Kill a Mockingbird is a feature film directed by Robert Mulligan. Based on the award-winning novel by Harper Lee, the film was released 2 years after the book in 1962 and made a sensation. It is still considered to be one of the best films in history as it manages to keep spectators engaged even though it is not rich in special effects or posh things. This black and white film is exceptional due to the quality of performance, directors work, editing and superb score. This essay will analyze the film in detail focusing on its relevant elements in order to prove that this film can easily compete with modern blockbusters because it is a masterpiece of cinematography. The cast of the film...
8 Pages(2000 words)Scholarship Essay

Education: Analyzing the Curriculum

... goals Learning objectives Economic goals 1. Societal goals – The societal goals of education aim at furthering political and social awareness such as understanding political structure of the global economy and attaining high levels of patriotism. 2. Administrative goals- The administrative goals aims at ensuring that the learner attains administrative skills that are essential in driving change and attaining organizational goals (McKernan & McKernan, 2013). For instance, one is taught on planning, time organization, delegation of responsibilities and leadership aspects. This is the case with principals of high schools and administers in higher learning institution. 3. Educational aims- These goals are set by the policymakers...
10 Pages(2500 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 Term Paper on topic Analyzing Fed Policymaking 1996-1998 for FREE!

Contact Us