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.

Macroeconomics - Term Paper - Essay Example

Comments (0)
11th November 2013 Fiscal and monetary policy theories and application Fiscal policy entails the process through which government collects tax and spends it to achieve economic development. Taxation is one of the key avenues though which governments collect revenues from local and foreign residents…
Download full paper
Macroeconomics - Term Paper
Read TextPreview

Extract of sample
Macroeconomics - Term Paper

Download file to see previous pages... In the regulation of the money in circulation, central bank makes adjustments to the interest rate that entails the price of borrowing money. This paper keenly discusses fiscal and monetary policies theories and application. Fiscal policy In their efforts to regulate spending and maintain taxation at an affordable level, governments emulates three types of fiscal policies. The first one is neutral fiscal policy. This type of policy is adopted when the economy is in equilibrium. One of the key aspects of neutral fiscal policy is that all the fund that the government uses to establish projects such as roads, factories, ports among others, is full obtained from tax revenue (Hansen 34). Another type of fiscal policy that government can use to achieve economic development is the expansionary fiscal policy. This entails a situation whereby government spending exceeds tax collected from the residents. This will mean that governments must look for donors to fund them so that they are able to maintain their economy at a competitive level. The policy must be looked keenly to make sure that funds borrowed from the donors are not diverted to other unplanned project .The third policy is contractionary fiscal policy. ...
The federal government controls how the money is shared according to the financial year and how they have planned for the budget. The budget must be gone through by the stake holders that include president and the congress. The two bodies must work together so as to come with a comprehensive report that is going to make life bearable to its citizens (Larch and Nogueira 46). The president makes sure that the proposed budget is passed to the congress so that they can decide how much money the government is going to spend on public needs for example, the issue of security is a problem world wide and health care .On the other hand expansionary fiscal policy is commonly used by the federal government to make sure that their business problems are stabilized. Another application area in expansionary policy is the issue of unemployment to its citizens. The unemployed high number of people has to borrow money and return the same money with low interest. In contrast, contractionary fiscal policy is mainly used by the central bank or the finance ministry to make sure that the rapid economy growth of a country is put under control. This means that the government must come up with the measures to control it. The government has to increase the interest rates, the central bank then regulates the money their customers are going to deposit and the notes the other bank are going to hold. Monetary policy Monetary policy refers to the process by which the government through central bank regulates the money supply to its citizens with aim of controlling price fluctuations (Heyne et al, 19). This means that the government must make sure that the prices of commodities are stable. The government must still ensure that the interest rates and exchanges rates are guarded fully against ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
Article Summary The article titled “AUD/USD: Trading the Reserve Bank of Australia Interest Rate Decision” written by David Song, was posted on Saturday 30 April 2011. It discusses the impact of Australia’s monetary policies as a response to target inflation rates, on the Australian dollar and the exchange rate (Song, 2011).
7 Pages(1750 words)Essay
Following is the evaluation of the article. 1. Principles of Economics & US Tax Cuts The article has beautifully covered the different economic indicators along with their projected movements on the basis of the proposed strategy by the current Govt. The author has identified, as well as, analyzed the impact of tax cuts by taking into consideration of the different economic theories.
10 Pages(2500 words)Essay
Industry A has 20 firms and a Concentration Ratio (CR) of 20%. Industry B has 20 firms and a Concentration Ratio of 85%. Addressed in the paper are the names of these industry types, characteristics inherent, potential long run adjustments and implications of the anticipated adjustments.
4 Pages(1000 words)Essay
Fundamentals of Macroeconomics Paper
It is calculated from the summation of all the annual output of the goods and services in a country. With regard to income, GDP is expressed in terms of output producing factors; labor and capital, or the expenditure on the output by the government businesses and individuals (Schnatz, 2000).
3 Pages(750 words)Essay
What is Macroeconomics
The reserve with the central bank can control supply of money via selling and buying bonds. If the central bank purchases securities, it exchanges money for security. Consequently, if the government intends to decrease inflation, it sells government bonds for money hence reduces money supply in the economy.
7 Pages(1750 words)Essay
Similarly, high unemployment rate does not augur well for the economy as it tends to raise the income disparity among the people. The paper attempts to explore how unemployment and inflation can be tamed through policy matters. The US has experienced high unemployment and high inflation rates in the past.
4 Pages(1000 words)Essay
Macroeconomics II
It will analyze the trend in the interest rate and correlate the same with growth and point out areas of weakness or areas, which
6 Pages(1500 words)Essay
It further explains the rational expectations of labour markets to predict behaviour of economy, from a macroeconomic view. Through these models and theories, factors contributing to
8 Pages(2000 words)Essay
Term paper
Companies have also employed forensic accountants for prevention of fraud and perform supervisory role in order to comply with regulations laid out by the SOX 2002. The current paper will examine the role of
12 Pages(3000 words)Essay
Macroeconomics Term Paper
Economists consider the global financial crisis to be the worst scenario after the Great Depression of 1930s (Chari, Christiano and Kehoe, 2008, 1). The stock markets fell around the world. The governments of almost all the nations had to
5 Pages(1250 words)Essay
Let us find you another Essay on topic Macroeconomics - Term Paper for FREE!
Contact us:
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