Money supply

even issue its own currency? Have you ever wondered why we allow a group of unelected private bankers to run our economy? We all know how trustworthy and constitutional politicians are; So, is it that hard to believe the truth, that all banks make money off debt. The Federal Reserve could have prevented deflation by preventing the collapse of the banking system or by counteracting the collapse with an expansion of the monetary base, but it failed to do so for several reasons. The economic…

The 32nd President of the United State, Franklin Delano Roosevelt was a good example of strong leader who guide the nation to accomplish the common good without overuse the exploitation of government intervention. FDR introduced the New Deal which helped to ease the Great Depression and to laid the foundation for an American welfare system. During his administration, he launched different programs to help the unemployed and needy. He established the Public Works Administration “PWA” to lower the…

own currency on the foreign exchange market in return for the currency to which it is pegged. According to Xu unlike the fixed rate, a floating exchange rate is determined by the private market through supply and demand. A floating rate is often coined "self-correcting," as any differences in supply and demand will automatically be corrected in the market. Look at this simplified model: if demand for a currency is low, its value will decrease, thus making imported goods more expensive and…

was through the eyes of Capitalism. Why do professional athletes make more money that the average American worker? If you look at morals today in our society, we measure the roles of people. Even though we know that, the need of a teacher is great for the education of our children and us. There is a greater desire to be entertained by sports events or some other form of entertainment. Many people spend much of their money on their priorities in life. Only after they pay for the essentials…

large numbers of people are unemployed, there’s a drop in available credit, and reduced trade and commerce. It can discourage spenders and investors. As borrowing and spending decreases, so does demand, which causes businesses to lay off workers. Less money is being circulated, which causes the economy to shut…

first of which included the effects of seasonality shocks caused by regional differences in demand for money, largely do to agriculture cycles. During harvest, money held in central banks (such as New York) was quickly transferred to the Midwest to compensate farmers. As a result, money supply in the East would dramatically fall every year, causing an environment where “interest rates spiked and money market conditions tightened” (Carlson and Wheelock). Of course, this phenomena, which occurred…

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 of liquidity by the banks. The reserve requirement can be reduced to stimulate the economy as this allows banks to lend more of their money to various individuals and companies including Starbucks. The…

Alexander Hamilton was a brilliant man who had a keen insight on economic policies. He was a member of President Washington’s Cabinet and was the secretary of treasury. Hamilton always had an affinity towards the British Government because he believed that there government was well- run, and this affected the way he thought about economic engagement. Hamilton was an advocate for a federalist government, a government centered on a strong central government that made the main decisions for the…

currency reform on local fiscal policies. During the warlord period, local governments already knew how to use monetary policy such as increasing money supply to lower budget deficits. Once central government controlled monetary policy, local governments could theoretically not use this tool anymore. In the 1940s, the central government increased the money supply to fund the Sino-Japanese War and the Chinese Civil War. I am interested in how fiscal policy of local governments responded to…

Problem and solution in Zimbabwe Introduction Inflation refers to rise or increase in prices and fall in the purchasing of the value of money. A problem tends to affect many countries worldwide. Among the countries that have been affected by this crisis, Zimbabwe is one of them. The problem always plunges many countries into long seasons of instability. It is one of the countries facing the problem of inflation for a longer period. The problem of inflation in Zimbabwe came because of bad…