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

ECON - Research Paper Example

Comments (0)
Name: Lecturer: Course: Date: Introduction Budget deficit is when the anticipated expenses outweigh the anticipated revenue collection for a given financial year. This normally happens due to lack of proper budgeting process, occurrence of some unplanned (unforeseen) happenings among others…
Download full paper
Read TextPreview

Extract of sample

Download file to see previous pages... Hypothetically, the relationship is that with a budget deficit, there is likelihood that the government may finance this deficit through printing of more money and pumping it into the economy. This leads to more money into the economy leading to inflation. Since this printing of money is not going concordant with production of goods and services. This concept is popular with developing countries where financial markets are not well developed to finance the deficit or when the public lacks enough confidence in the government of the day to invest in the government’s debt, or when the central bank is not independent and therefore easily manipulated by the government to finance its debts. Data pointing on the relationship between budget deficit and inflation are hard to come by since different countries give varying statistics. Some show a direct relationship while some do not hence this research. This research will use the statistics of the United States budget deficit and inflation and United Kingdom deficit and inflation. UK and US financials The united kingdom and the united states are considered to be relatively economically stable countries with independent central banks and relatively stable financial markets. This means the central bank is under no influence by the political class and financial markets may be used to finance budget deficits. This leaves the budget deficit and inflation as independent entities and it would therefore be interesting to see what other relationship there may be between the two concepts. Financial data of these two countries will be used in this paper. Budget Deficit or Surplus Data US Surplus or Deficit data The above graph shows the US deficit and surplus over a period of 20 years. The fluctuation over the years may indicate change in political environment and shift in policies. UK Surplus or Deficit data The above graph shows similar data over the same period of time but of the UK. The figures show huge variations between the two countries. It may seem the two are exact opposites of each other. For the rise of one over a given period, a fall of another within the same period is reflected. Inflation Data US inflation rates The inflation data chosen is of the same period of years, 1982-2012. The figures are also fluctuating over the years, this too may be due to changing monetary policies, and political era shifts. UK inflation rates The inflation figures between US and the UK are not as varied as the budget deficit figures. The figures seem to go in tandem with each other. This may be due to economic common factors that lead to such. The common factors may be global, bearing that the US and the UK control a significant portion of the world’s economy. Budget deficit/inflation figures US Budget deficit/Inflation The US budget deficit and inflation figures show a relationship between the two. A rise in one shows a rise in the other. This may indicate lack of full independence of the central bank. However, lagged the relationship may be, there is a relationship. UK budget deficit/Inflation The UK budget deficit and inflation figures show a more lagged relationship. The relationship between the two graphs is not reflective of an active relationship between the two figures. It may indicate a very independent central bank. However, it is important to consider the difference in the economic operation between the two c ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
A rise in exchange rate also happens when demand grows slower as there is little importation happening. When investors are offered higher rates, these countries will attract more capital (Baumol and Blinder 758). There is also another type of exchange rate system also known as the fixed exchange rate which is run according to the fixed rules set by the government.
1 Pages(250 words)Essay
Corporate Social Responsibility
 The foreign affairs and international trade department, Canada, has defined Corporate Social responsibility (CSR) as the way companies integrate social, environmental and economic concerns into their values and operations in a transparent and accountable manner. 
5 Pages(1500 words)Research Paper
Lake Wabarmun, Alberta Oil Spill 2005
At 1 am MIC was escaping (Varma, Roli, and Daya Varma, 2005). Manufacture of the chemical seven began in Bhopal in 1980, using the chemical methyl isocyanate, MIC. The Union Carbide of India Limited was at the time a 50.9% subsidiary of the Union Carbide Corporation of the United States; the third largest chemical manufacturing company following Du Pont and Dow Chemical.
4 Pages(1000 words)Research Paper
Economic Relations Between China and the U.S.: Is Conflict Avoidable
We live in such a diverse world, filled with different cultures, varying religions, and a plethora of philosophies, all of which aim to promote successful, productive, and well-rounded societies of healthy people. It is no wonder that very often certain peoples just cannot seem to find the “common grounds.”
8 Pages(2000 words)Research Paper
Supply determinants in this case is equal to the availability of related products where relationship of substitute product is negative. This means that if
2 Pages(500 words)Research Paper
Explain the Law of Demand
When the price of a good becomes less the consumers may buy more or the demand for that good may increase and when the price increases, the demand may decrease. In other words, law of demand educate us that price and demand are inversely proportional. This
2 Pages(500 words)Research Paper
Econ 101
Keynes was born and bred in the elite society, and as a result, he received the best education that could be. The main contribution to economics that was developed by Keynes came with the publishing of his book, “The General Theory of Employment,
1 Pages(250 words)Research Paper
In this forecast, I choose to use the American GDP in the year 2015 during a quarterly period because the GDP is a good indicator of understanding the economic growth. In calculating the
2 Pages(500 words)Research Paper
Ethical Dilemma
Thus abandoning being a good mother and wife, Margaret Keane risks to be judged by the entire society, however, living with an authoritarian husband who claims her artworks as his own destroys her
5 Pages(1250 words)Research Paper
Econ 101 Model Building Exercise
The life history model and human models of mating suggest that scarcity of economic resources prompts an increase in efforts aimed at attracting attention from resource-rich entities, whether individuals or companies
5 Pages(1250 words)Research Paper
Let us find you another Research Paper on topic ECON 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