Fiscal policy

economies. Monetary policy is seen as the central tool of macroeconomic stabilization, and in some countries monetary policy is implemented by an independent central bank (Blinder, 1998). According to Singleton (2011), the world central banks have experienced two revolutions in the 1940s and 1980s, respectively. The former indicates that the central banks were less autonomous and were controlled by the governments with regard to the setting and implementation of macroeconomic policy. The latter…

Simultaneous targeting of the money supply and interest rates, foreign exchange markets and rates The questions that I will answer for this week’s assignment are as follows: Why the simultaneous targeting of the money supply and interest rates is sometimes impossible to achieve? How do central banks intervene in foreign exchange markets? What did the Bretton Woods Agreement do to the ability of foreign exchange rates to fluctuate freely? Targeting Money Supply and Interest rates Firstly, the…

In fact, the government needs to consider implementing another contractionary monetary policy. This time, they should decrease the money supply in the economy. If the Bank of Canada, decreases the money supply, it will raise interest rates and will decrease the spending in the economy (pg 158). The reason why interest rates will rise when…

Street Journal, WhatsApp is changing their privacy policy for the first time since joining Facebook. WhatsApp is planning on sharing data, especially phone numbers, with Facebook. The purpose of that is to show relevant business ads on Facebook that match the interests of the user while at the same time, ensuring that WhatsApp is being entirely private conforming…

G. Edward Griffin’s novel, The Creature from Jekyll Island, proposes a conspiracy between the United States government and the central bank of the United States, The Federal Reserve (the Fed). This alleged conspiracy dates back to the establishment of the Fed with the Federal Reserve Act of 1913. The basis of Griffin’s conspiracy is that rather than acting as an emergency line of credit for American banks and a regulator of the money supply, the Fed is a scheme for private bankers to profit off…

In Robert Reich’s Saving Capitalism, Reich discusses and conveys his thoughts on the United States of America’s current economic condition, as well as the steps Americans must take to save the system of capitalism. Divided into three distinct sections, this book effectively takes the reader through the foundation of the United States’ economy and the problems it faces. Reich himself was the Secretary of Labor under Bill Clinton and a well-known economic expert, as he shows his prowess and…

Management of liabilities at General Motors is guided by a stated liability policy, market trends and present liabilities structures. Additionally, choice of the transaction is necessary for the modifications of exposure to interest rate. Considering the business of GM has both sides of demand and supply, interest rate changes such as an increase may lead to increased borrowing costs on the part of the General Motors. Interest rates increases may also cause hiked auto loans on the part of…

Clearly, inflation is the most important factor Brazil considers when determining what economic decisions to make. When inflation is on the rise, historically the central bank of Brazil raises interest rates in order to control inflation. Due to this policy, Interest rates in Brazil have generally been higher than the…

There are two types of Forex merchants: People who make money. Others. What separates them? It's not the brain or the knowledge. So many smart people are losing money in Forex trading. Often the problem lies in the mismanagement of money - which delays the loss of trades too much or generates profits too soon. Successful traders have long lost Forex currency trading in the three commandments of Forex Trading. The first commandment: Calculate the risk-reward ratio The first thing to consider in…

Demographic transition is a demographic phenomenon that is characterized by changes in the population indicator of fertility and mortality from a high numbers towards a stable lower numbers. This phenomenon in the study of development is one of the alternative points of view to explain the development process, in addition to any other point of view that tends to emphasize the economic aspects, such as capitalism, industrialization, and the theory of modernity as the center of development process…