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

Comparative Economic Systems - Essay Example

Comments (0)
Summary
Comparative Economic Systems Abstract In 2007 to 2009, the US economy had to face the worst economic recession in the history. The financial market crashed, housing debt increased, GDP fell and the unemployment rate also increased during that period, igniting a crisis situation within the economy…
Download full paper
GRAB THE BEST PAPER
Comparative Economic Systems
Read TextPreview

Extract of sample
Comparative Economic Systems

Download file to see previous pages... In order to deal with the loss experienced by recession, each nation implemented certain monetary and fiscal policies applying distinct frameworks to stabilize their economy. However, the level of growth and recovery has been noticed at an uneven rate in every nation. Hence, it can be assumed that the economic policies applied, might have evidently worked in different principles for each nation. Introduction At present, the US economy is continuing to undergo an average growth and recovery from its recessionary consequences. The recovery started with the growth of its Gross Domestic Product (GDP), but has been decelerated significantly throughout 2011. Several economists referred that to date, the economic recovery of the US is uncertain and disappointing (Byun & Frey, 2012). Furthermore, the GDP rate of the UK is expanding at a modest rate. Confronted with the slow economic growth and recovery, Americans have started to suspend formation of families, acquisition of homes and vehicles among others. Although four years have passed since the recession, the US economy has not observed the superfluous growth that often triggers retrenchment (Miller & Matthews, 2013). Based on this aspect, the essay describes about the economic problem faced by the US. Furthermore, the essay also explains the policy alternatives of the UK and Germany for attaining economic recovery and growth. Policy Responses for the US Economic Growth and Recovery Monetary Policies In order to boost economic stability within the US, the government has utilized conventional monetary policies by reducing the federal funds to about zero for stimulating the economic activity. Subsequently, the rate of federal funds reduced from 5.25% in 2007 to 0.16% in 2008. Since the unemployment rate increased, the government reacted by implementing numerous policies for soothing the financial market and increasing the availability of credit for people and organizations. For example, the US government boarded large-scale asset purchase program and quantitative easing scheme in order to drive down the mortgage rate. These policies resulted in better channel for liquidity and encouraged better confidence among investors (Byun & Frey, 2012). Fiscal Policies The fiscal policies of the government majorly included functions in two grounds namely spending and tax policy. In order to ensure economic growth and recovery, the US government also sanctioned Economic Stimulus Act in 2008, which was intended to deliver tax discounts to households and quicker depreciation regulations for business. With respect to extraordinary actions, the government also enacted Emergency Economic Stabilization Act in 2008 for improving the aggregate capital position of banks and removing troubled assets from balance sheet. Furthermore, government has also extended the unemployment benefits and temporarily reduced the payroll tax to support its failing economic growth (Elwell, 2013). Economic Growth and Recovery in the US The economic recession that was strategically engrossed by the US economy has alleviated due to the adoption of unparalleled policies. During 2010, the deep and long international recession has bottomed out and economic recovery of the US has proceeded. Apart from the US, in Europe, the UK and Germany has also returned to positive economic growth, however applying a distinct policy framework (Cronin, 2013). After the global economic recession, the US economy returned to a positive growth in the third ...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
Economic Environment of China
The system in which the Chinese markets work has made it the fastest growing economies of the world. The international trade of the country is also quite pronounced and it has made the country one of the dominant players in the world market. This paper makes the attempt to analyze how far the socialist structure of economy has been implemented in China and how it has contributed to the GDP growth and the economic welfare of the country.
17 Pages(4250 words)Essay
Comparative Economic Systems
Substantial variances were found in the economic performances of these nations, especially in the post-recessionary period, wherein the paper also intended to highlight the underlying reasons for such disparities. Introduction The economic growth pattern of trend of a country is determined depending on many factors such as the Gross Domestic Product (GDP) growth rate of the country, its foreign trades and its investment measures in response to budgetary fluctuations.
7 Pages(1750 words)Essay
Comparative Business Systems
The country weathered the global financial recession, which had insignificant effects on Brazil economy; hence, it was one of the last to fall in to recession during 2008 and among the first to resume the growth in 2009. Germany has been considered the largest national economy in EU; in fact, it is ranked fourth largest nominal GDP worldwide and fifth GPD (PPP), during the year 2008.
3 Pages(750 words)Essay
Economic System
Economic systems benefit the people in a broad sense but in essence these work to promote the basis of a country's economic problems and woes on a proactive basis. It looks to solve the issues which could crop up in the wake of the economic recessions, global downslides in stock markets, etc.
5 Pages(1250 words)Essay
Comparative economic systems
All economic activity including agriculture and trade was conducted as inherited roles within a family structure. Tradition determined what people did for a living and how the work was to be performed. In
10 Pages(2500 words)Essay
Comparative Economic Systems
The phenomenon of globalization has become ubiquitous in the new neo-liberal world order of the last few decades. This particular form of capitalism has steadily replaced socialistic and communistic
3 Pages(750 words)Essay
Comparative Economic Systems
in the framework of electoral democracy, the government finds it unacceptable “to leave the marginalised groups without the means of labour and to fend for themselves, since this carries the risk of turning them into the dangerous classes” (Chatterjee, 2008, p.53). With the
4 Pages(1000 words)Essay
Modern Business in Comparative Perspective
In the traditional system, activities are shaped by the traditional system. Long existing patterns determine how people exchange goods and services, how individuals, and
8 Pages(2000 words)Essay
Analyse three types of economic systems illustrating the problems and advantages associated with them
The mode in which goods are services are produced, and resources are allocated is referred to as an economic system (Tucker, 2010). An economic system forms a platform on which goods and services are produced and exchanged. Different countries have
5 Pages(1250 words)Essay
Islam and Conventional Economic Systems
An Islamic economic system is one that relies on the principles and guidelines of the Al-Sunnah and Al-Quran. The system discourages gambling and usury. A conventional economic system is based on diverse economic standards of interests. The operational structure is flexible depending on various frameworks.
4 Pages(1000 words)Essay
Let us find you another Essay on topic Comparative Economic Systems 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