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

Economy Foundation course 2 - Essay Example

Comments (0)
Summary
Economy Foundation course essay 2 Table of Contents Introduction 3 Keynesian economic policies and its effective implementation during the Golden Age 3 The end of the Golden Age 5 The rise of Monetarism and monetarist economic polices 7 Conclusion 9 References 10 Introduction Keynesian economic policies derive its name from the proposed ideas of the British economist John Maynard Keynes…
Download full paper
GRAB THE BEST PAPER
Economy Foundation course essay 2
Read TextPreview

Extract of sample
Economy Foundation course 2

Download file to see previous pages... The increase in level of liquidity in the economy resulted in increased production of goods thereby leading to higher GDP growth rates. The end of golden age prompted policy makers to resort to monetarist economic policies. Keynesian economic policies and its effective implementation during the Golden Age According to Keynes’ economic theory, the expenditure of one person leads to an income of another person. The purchase of goods and services from one person leads to an expense of another person. This expense results in the earnings of the person that has sold the goods or services. According to Keynes, this is the underlying theory for circular exchange of money in the economy which leads to its smooth functioning (Hein and Stockhammer, 2011, p.59). Keynesian economic policies state that the aggregate demand in the economy could be boosted by raising government expenditures. The increase in government spending would encourage private investment. This is supported by a rise in investment savings (IS). Thus the IS curve would shift from IS1 to IS2 as shown below. The IS-LM curve shown below is interpreted as follows. Due to shift in the IS curve, the point of general equilibrium with the LM (liquidity preference and money supply) curve also shifts upward. This gives rise to rise in interest rates from i1 to i2 as shown in the graph. Also the liquidity level of the economy enhances due to rise in money supply from Y1 to Y2. After the great depression in 1929 and during the post world war period from 1945, the economy of UK experienced unprecedented growth. The economic prosperity in UK during this period of reconstruction and industrialization led to the emergence of golden age which prevailed from 1945b to 1970s (Rollings and Middleton, 2002, p.5). This could be attributed to the Keynesian economic policies. During the golden age, the policymakers banked on the underlying theories of Keynesian economics and increased government spending. The policymakers embraced government deficits and reduced government taxes in order to boost the income level and employment rates in the economy of UK. Thus the government spending was increased in order to boost the productivity and demand of the economy in UK (Tobin, 1989, p.27). The growth rate of GDP and per- capital income level increased rapidly. This was comparatively much higher with respect to the earlier phases of the economy. The income- level per person grew at the rate of 3.4% in the 1960s as compared to 2% in 1950s. The total productivity of labour increased doubly as compared to earlier stages in the economy. As compared to the last century, the GDP growth rates were also double. The trade volumes increased eight times as compared to the period before the World War. The growth of industries, total factor productivity, growth in the volume of trade and increase in capital stock led to booming conditions in the economy of UK (King, 2003, p.60). Thus the golden age during the period of 1945 to mid-1970s showed the effectiveness of Keynesian economic policies. The end of the Golden Age The golden age which existed in the developed countries like UK in the post world war period came to an end during the later stages of 1970. The decline of the golden age highlighted the flaws of ...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
Course Syllabus Essay
Stresses in this environment often come from ineffective administrative leadership who do not maintain sociological or psychological knowledge of nurse emotional needs and therefore do not create effective policies or systems designed to deal with stress.
7 Pages(1750 words)Essay
Economy Foundation course essay 1
Group: Student Number: Name: Words Count: Due Date: 20th June 2013 Introduction There is no doubt that one of the greatest economic growth periods was ‘The Golden Age’, after the Second World War. During the 1960s and the early 1970s, the US enjoyed high economic growth with low inflation and unemployment.
6 Pages(1500 words)Essay
Foundation of scholarship Essay
It is necessary to process the knowledge, analyze and interpret it, and effectively use to build the argument. Therefore, the process of essay writing implies such vitally important steps as analyzing the question, establishing the core argument/point of view, research on the topic, planning and organizing the ideas, editing and referencing (Kane 1983).
4 Pages(1000 words)Essay
Foundation of Marketing Essay
Customers are dynamic human beings in business situations. A diversification strategy requires that before PGI offers a new insurance product into the marketplace, home insurance plan, the company must plan step-by-step how it will conceptualize, build and market the product to its existing and new customers.
6 Pages(1500 words)Essay
School management
labour share of value added) and the external characteristics (e.g. vertical integration) of a business. As the unit progresses, 'macro' factors are introduced which allow us to contextualise our 'micro' understanding. This unit requires no prior knowledge of the accounting, economics and political economy although a general awareness of economic and corporate conditions and debates is useful.
16 Pages(4000 words)Scholarship Essay
Sigmund Freud: An Understanding of the Word Uncanny
Uncannily comes from a Gaelic word “Ken” which means “To Know”. Therefore, it is un-ken-my; Of the Unknowable. Uncanniness is an experience of goosebumps on the skin when one feels something strange or unusual that arouses superstitious fear.  Children aged ten and up usually experienced it by reading scary stories, watching movies of monsters.
12 Pages(3000 words)Essay
Globale Economy Essay 2
One of the first approaches is the shareholder capitalism in which the objective is to maximize the value of shareholders. Because
2 Pages(500 words)Essay
Course work-essay
Hazel says that during the past decade, several countries were victimised by the ‘hot money’ era. This is the era in which huge chunks of money were given out to
3 Pages(750 words)Essay
Course Self Reflective Essay
While some people take it as a leisure activity, others rely on it for academic success. The level of expertise depends with the reason as to why a person has to write. The purpose of this paper is to examine my personal experience as a writer. At
2 Pages(500 words)Essay
Effects of emerging technologies in Accounting Information Systems- focusing on XBRL
XBRL (extensible business reporting language) is an XML (extensible markup language) supported standard for the electronic communication of accounting and business information. The primary objective of XBRL is to ease the preparation, publishing,
10 Pages(2500 words)Research Paper
Let us find you another Essay on topic Economy Foundation course essay 2 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