Nobody downloaded yet

Macroeconomics. US markets - Essay Example

Comments (0) Cite this document
Summary
The topic of talk in this paper is the collapse of the US markets, its economy and hence the world economy. Before we enlighten you on the economic issues, we would have a look at the statistics. Easily the world's largest economy, it has a colossus GDP of $14.3 trillion which is equivalent to almost 23% of the gross world product in terms of market exchange rates…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
Macroeconomics. US markets
Read TextPreview

Extract of sample "Macroeconomics. US markets"

Download file to see previous pages Given all of these statistics and the facts that the USA is the land of opportunity, how is it possible to witness in our lifetime, an economic period rarely ever seen before, both in the US and the world All of this has led the big companies of America and of around the world to counter these crises by increasing the shareholder's value and increasing the investor's drive. This will enable these companies to stop the spiral where no investment and severity of the crises are going to lead the world to bigger problems. By providing incentives to shareholders in terms of shareholder's value and increasing the investor's drive, some money is going to be pumped into the economy that will have the convalescing effect on the injured economy of the world. (Allbusiness, 2010).
Shareholder's value is a broad term depicting more than what is being shown in the financial statements of a business. In the earlier years, many people used financial results of a company as a measure of Shareholder's value. However, this approach had plenty of loopholes and due the fact that there was no widely acknowledged definition of shareholder's value. Many people changed the way they used to measure the shareholder's value. ...
This crisis continued till 2008, matured and gnawed the world economy. Many arguments were given about how this financial crunch started. Many people argued that it was started by the booming oil prices, whereas other people stated that this crisis is a result of poor economic policies of IMF and World Bank which overheated the global economy and resulted in the financial crunch. Whatever the reason of this crisis, one can almost be sure that this crisis has affected subprime mortgages, declining house prices and caused investor bankruptcy. Although global financial crisis result in more problem than those stated above. How is this related to shareholder's value and investor's drive First of all investors usually invest in a company where they see they can earn reasonable return on their investments. However, due to reckless lending by banks and other financial institutions (DFIs), many potential investors in the banking sector became worried about their returns. They predicted that these lending by the banks are risky and hence they could lose a big deal of money if they invest in the banking sector. Hence, they decided not to invest in this sector. Many organizational psychologists predicted that this is a result of value delivery system which was very low in the banking system at that time. In other words, potentials investors could see more harm if they invest than if they do not. The reasons behind this behavior of the investor's were that they see little or no drive to invest. As a result, there was a shortage of investments in the banking sectors. The banking firms who had lent the money found themselves in the liquidity crises and many of these institutions filed bankruptcy. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macroeconomics. US markets Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Macroeconomics. US markets Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/miscellaneous/1530228-macroeconomics-us-markets
(Macroeconomics. US Markets Essay Example | Topics and Well Written Essays - 1250 Words)
Macroeconomics. US Markets Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/miscellaneous/1530228-macroeconomics-us-markets.
“Macroeconomics. US Markets Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1530228-macroeconomics-us-markets.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macroeconomics. US markets

Macroeconomics

...? Macroeconomics The article selected for the project is “Do Tax Cuts Leads to Economic Growth” (Leonhardt, . The article is focused on the US economy and described about the impacts of tax cuts on the economic growth. The article is written in technical language of economics and it seems that the author has conducted an in depth analysis on the US Economy. 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...
10 Pages(2500 words)Essay

Macroeconomics

...?Running header: MACROECONOMICS Macroeconomics: Industry type decision Macroeconomics, the study of economies on an aggregate scale is a general approach to economics. Two types of business industries are being addressed in the following paper, the goal is to decide between the types of industries based on what will perform best. 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. Industry A Industry A has 20 firms and a (CR) of 20%. The Concentration Ratio is centered around how much of the market... the...
4 Pages(1000 words)Essay

Macroeconomics

...?Hayek vis-a-vis Keynes Perhaps two of the most contrasting economist whose economic supposition is in almost diametric opposition against each otheris Friedrich August Hayek and John Maynard Keynes. Hayek was a stout defender of free market and classical liberal idea and against centralized planning and socialist economies while Keynes was for modern liberalism and espoused government intervention in a given economy to lift it from economic depression. Hayek totally abhorred collectivism believing that such structure can only be maintained by a centralized authority which could subsequently lead into totalitarianism. He believes that it is only free market, in contrast to a socialist or mixed economy, can coordinate an efficient... ...
2 Pages(500 words)Essay

Macroeconomics of Financial Markets

...? Microeconomics of Financial Markets Task This paper discusses various topics in economics with the purpose of enabling a better understanding of the financial markets. It focuses on exchange rates, inflation, financial markets and monetary policies. Question One A rising dollar makes goods produced in the US expensive in other countries and while goods produced in other countries become cheaper for consumers in the United States. Thus, a rising dollar makes imports cheaper in the US and exports expensive in other countries (Mishkin, 2010). Foreign businesses that would like to purchase goods in the US have to convert the currencies they have into US dollars. However, a rising dollar makes the foreign businesses to use much... to access...
9 Pages(2250 words)Assignment

Macroeconomics

...? Macroeconomics Macroeconomic factors such as unemployment rate and inflation play a pivotal role in the national economy of the country. Rapid inflation takes away the benefit of rising GDP or in other words brings down the real GDP growth rate and thereby real income of the people. 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. Both are equally bad for the national economy. Current GDP, Inflation and Unemployment Rate The...
4 Pages(1000 words)Essay

Macroeconomics

..., Graham; Willett, Thomas D. Currency Wars. World Economics 12.4 (2011): pp. 121- 136. Print. Lachman, Desmond. Can Emerging Markets Be the World's New Locomotive? International Economy 24.2 (2010): pp. 64-66. Print. Rapoza, Kenneth. “In Global Currency War II, Shots Fired Over India”. Forbes, 6Nov, 2013. Web. 19 Dec, 2013< http://www.forbes.com/sites/kenrapoza/2013/06/11/in-global-currency-war-ii-shots-fired-over-india>. Semmler, Willi .The Macroeconomics of Austerity in the European Union. Social Research 80.3 (2013): pp. 883-914.Print.... . Further, as a result of the currency war, the emerging markets may turn to other currencies other than the euro, dollar or yen. An available alternative in this sense include buying...
3 Pages(750 words)Assignment

Macroeconomics

...bank. Any money supply changes must originate from the central bank monetary policies. Printing more money by the central bank causes an increase in money supply. The central bank changes the money supply through channels. These channels includes buying and selling bonds from the public in exchange for money, changing reserve requirement of banks, and lastly, changing the borrowing rate of discount by banks from the central bank. By using these three tools, the central bank can lower rates of interest by raising the supply of money and increase rates by cutting the money supply. Increase in supply of money causes an increase in money demand and interest rates. The expectation of this is a higher inflation which makes...
3 Pages(750 words)Assignment

Macroeconomics

...Macroeconomics Expansionary Fiscal Policy A reduction in the production and sale of oil implies that UAE risks having a reduced economic growth rate. This can however be controlled through the application of proper fiscal policy tools. In order to stabilize or enhance its economic growth, UAE, should follow the expansionary fiscal policy (Larch & Nogueira, 2009). This policy will lead to increase in demand in the market in order to enhance economic growth. The expansionary fiscal policy will consist of: A raise in the government spending for commodities Lowering of taxes A combination of the increased government spending and lowering of taxes The Expansionary Fiscal Policy should be used...
4 Pages(1000 words)Research Paper

Macroeconomics

...= 1,209,560 - 993,200 x 100% = 21.78% 993,200 France = 2,619,410 - 2,487,960 x 100% = 5.283% 2,487,960 Germany = 3,440,820 - 3,096,490 x 100% = 11.12% 3,096,490 Greece = 254,460 - 293,390 x 100% = -13.27% 293,390 Ireland = 214,410 - 208,780 x 100% = 2.696% 208,780 Japan = 5,546,400 - 5,401,640 x 100% = 2.68% 5,401,640 UK = 2,327,620 - 2,257,910 x 100% = 3.087% 2,257,910 US = 15,556,860 - 14,408,000 x 100% = 7.974% 14,408,000 c. Plot the figures on a graph. What patterns do you observe? When the above figures for the real GDP growth rates are plotted on a bar graph, the following trends are observed. Reference Carlin, W., & Soskice, D. W. (2006). Macroeconomics:...
1 Pages(250 words)Coursework

US and Saudi Stock Markets

...US and Saudi Stock Markets of the of the Introduction A stock market or an equity market refers to a place where buyers and sellers of stock come together in order to execute their trade. Transactions can now be executed electronically in the online platform of the exchange. A stock exchange can be said to be an organization where traders of stock can trade in stocks. Whereas some companies want to get their stocks listed in a formal stock exchange there are other companies which prefer that their stocks should be traded over the counter. There are a number of stock exchanges across the world. The largest amongst the different stock exchanges by means of market capitalization is the New York stock exchange. In the following pages... the...
7 Pages(1750 words)Essay
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 Essay on topic Macroeconomics. US markets for FREE!

Contact Us