Does Devaluation Cause Economic Growth?

1044 Words 4 Pages
Devaluation cause inflation, Economic growth is one of the most important and popular causes of the devaluation. From the first ages the economy started growing bigger and bigger till now a days, you may ask yourself how? I can tell you, its because of the devaluation that causes inflation.It may seem a little bit confusing, and you also may ask yourself who is dominating this growth ? what statistics and rules they are using? The government or the leader of the country started putting these rules, and oversees this economic growth. These rules are called Economic Policy it is the actions that the government take in the economic field. The Government might want to achieve an objective of a low rate of price inflation. With the development …show more content…
if the government wants to improve the economic growth it increases the productivity and unable low the inflationary growth. And lows the taxes incentives.Our economic policy through the lens of the history first was not really successful because in 2008 the united states experienced a financial crisis. the stock market lost 40 percent of its value and the world entered the recession. The US unemployment rate went from 4.5 percent to 10 percent. Between the 2008 September and 2009 September the economy lost half million jobs a month. I truly don 't support the supply side economics theory at all, because the taxes is really important income for the government and these money are not going anywhere only to the services for the citizen to higher their life standard. The real estate taxes incentives you may pay in mostly everything, have a tax percentage and it helps the economy to …show more content…
The purpose of the federal reserve system is conducting the nations monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices and also for maintaining the stability of the financial system and containing systemic risk that may arise in financial markets. The three tools of the federal reserve system is the discount rate, reserve requirements and open market operations. all those three tools affects the amount of the funds in the banking system. This discount change commercial banks for short times loan. firstly i asked my self does the federal reserve operate without influence of the government? no, the federal reserve banks operate under the general supervision of the board of the government. The monetary policy was super successful in our history according when Governer Donald Kohn, among others has expressed opposition to an inflation target for the central bank. I ugly support the monetary policy theory because it had a really successful history in the united states. Devaluation cause inflation, Economic growth is one of the most important and popular causes of the devaluation. There is lots of ways to help our country to flourish and become more

Related Documents