Central Park

I will be examining the risks of the student loan bubble. Over the last 5 years the American federal reserve bank has increased spending on federal student loans over 1,000%. From $100 billion to over $1 trillion dollars. According to Kate Hardiman from University of Notre Dame “Economists believe the amount of federal money allocated to student loans shown in this graph is highly “unsustainable.””. With the increasingly large amount of risky student loans being given out its not going to be…

In response to Rip Curl’s inquiry to issue bonds in Switzerland, this report aims to cover the positive and negative aspects of such a solution and attempt to determine a solution that will be the most feasible. Although the interest rates in Switzerland are relatively low compared to those in Australia, by issuing these bonds overseas, Rip Curl are inherently taking in risks associated with the market that may include: - Foreign currency risk - Inflation risk By relying on the exchange rate…

In today’s society, many households and business are affected by monetary and fiscal policy in regard to real income and the increase in spending. Monetary policy affects the way society spends when the Federal Reserve regulates the amount of money in circulation. The Federal Reserve controls the money supply by the interest rates offered to banks. Therefore, more money is borrowed by the banks at lower interest rates which means more money will be in circulation. In contrast, higher interest…

determine the causation of the war; of the theories that have arose, Neorealism and Neoliberalism seem the best at explaining the conflict. Of these two theories, I believe that Neorealism best explains the war aspirations of both the Allied and Central Powers. Beginning on the theory of Neoliberalism; it begins with a theory in which states are self interested players willing to cooperate…

exports plummeting as a result of changing consumer tastes. This shock is illustrated in diagram 1 through a leftward shift in aggregate demand (AD) from AD to AD’. In a monetary union, both countries have a common nominal exchange rate and the common central bank may need to make a choice. If the…

A Dive Into Culture In the story, “The Old Man Isn’t There Anymore,” the author, Kellie Schmitt, focuses heavily on the differences between Chinese and Western cultures. Schmitt challenges the reader by introducing concepts that were not yet known to the reader and making her recall the differences that she has faced in the past regarding different cultures. Schmitt uses her experience from the past three years of her living in Shanghai, China, she illustrates the contrast between the two…

The period between 1980 and 2000 displayed extra ordinary macroeconomic stability, and became known as the great moderation (Investopedia, 2016). The years from 2001 to 2007 lie between two remarkable, but very different episodes and U.S. economic history. In 2001 our economy was faced with a mild recession. It was caused by the Dot.com bubble, 9/11 attacks, and the outrageous accounting scandals. The Fed intervened by implementing new credit into the economy, pushing interest rates to their…

charges all banks and all finance corporations for loans. The MPC make the decisions on the level of interest rates. Economic growth is an aim of the Bank of England, this is done by preserving the government’s policy and price stability. The British central bank has two main sections they must deal with and they are financial and monetary stability. Monetary stability has two main criteria; 1. Sureness in currency 2. Sound prices Stable prices are maintained by ensuring that the government’s…

Monetary policy describes the way that central banks work to reach desired macroeconomic policy goals including overall price stability, total employment, and consistent economic growth. The Federal Reserve of the United States has certain macroeconomic goals set by Congress such as reaching full employment and ultimate price stability (Economic Outlook, 40-41). In combination with these particular objectives, the United States Congress decided that the functional behavior of monetary policy…

Economical Impact The impact the Great Depression had on the economy was brutal. As unemployment reached all time highs. Which meant less money flowing through the economy. As America was the leading economy in the work, when it faltered, it also caused other nations economies to collapse as well. Steinberg 9 Some economists point a finger at protectionist trade policies and the collapse of international trade. The Smoot-Hawley tariff of 1930 dramatically increased the cost of imported goods…