International Monetary Fund

The monetary policy was supposed to get everything into normal again, one of the most im-portant things the policy wanted to do was to low the interest rate near zero, however, the Fed-eral Reserve has increased the rates of interest. In Europe there are others banks that are ex-panding the quantitative easing program, which will help to low the interest rate and to increase the money offer, also the Bank of Japan is expecting pick up the pace of its monetary easing. On the other hand, the…

Neoliberalism stated that free markets had more stability than Keynesianism described, because the risks in market can be predicted in advance and prices will always objectively reflect possibilities. However, Keynesianism believed that government intervention will stable the economy. According to this article, the author agrees that Keynesianism is better than neoliberalism in spite of some weaknesses. I am convinced by her claim that government intervention will more stable than free market…

Today, most countries function under a regime of fiat money, in which a national currency has value based on government claims that it does. Operating in a fractional reserve banking system where banks only keep a fraction of all their deposits in reserve, it is the role of central banks to protect and preserve its value and ensure its stability (Plosser, 2014). Central banks play a very important role in the fractional reserve banking system, because their goal is to limit the freedom of banks…

economic conditions, characterized by accommodative monetary policies, ample liquidity…credit and low interest rates”12). According to Peter J. Wallison the 2008 financial crisis didn’t happen because of a lack of regulation but because of government policies. Policies…

Impacts of Chinese Economy on Tiffany & Co. Analysis Report In the last five years, China and Chinese consumers play an important role in the growth of luxury industry. The dramatic growth of domestic economy fueled Chinese’s appetite for the finer goods in life. For Tiffany & Co., we have reached record number of sales in China in the past five year. Given such a great achievement, Tiffany & Co. is considering the retail expansion plan to enhance its appearance in China by opening four more new…

that the economy will keep going. He doesn’t mind what activities or sector the money should flow as long as it is circulating in the economy. He advocates for government intervention of market through fiscal and monetary policies to steer the market. Keynes advises expansionary monetary policy a recession which is lowering down the interest rates. Low interest rates provide cheap credit to boost spending and investment. In case lowering the interest rates is not enough, he suggests that the…

ago on December 23, 1913 by President Woodrow Wilson. President Wilson signed the Federal Reserve Act making it a law in order to establish the Fed. Moreover, Congress created it with the goal of providing a safer, more stable, and more flexible monetary and financial system for the United States. The one thing about the Federal Reserve Act that President Wilson signed into law is that it is not going to expire. In the beginning,…

The Federal Reserve board controls the monetary policy whereby they control the money supply. Firstly, they can change the reserve requirement for various banks and institutions. A certain percentage of depositors to the banks’ must be kept by the banks. This aims at maintaining a required level…

Inflation is the “increase in the general price level of goods and services in an economy” (Heakak, 2017). Inflation can be broken down into different types, resulting from different situation in the economy. When there is a change in the supply side of the economy, cost-push inflation occurs. On the other hand, when there is a change in the demand side of the economy, demand-pull inflation occurs (Surbhi, 2017). Deflation and disinflation help to describe the level of inflation is in an economy…

higher than it would have been had economics remained closed. However, globalization is still under attack. Globalization, an idea which was meant to bring prosperity to both the rich and poor, went south during the financial crisis. Though international trade flows have gradually improved over the years, global banks are still declining from cross-border lending while politicians are speaking to the fears of the public regarding migrant workers undercutting their pay. In turn, though global…