SS Central America

Neutrality of Money: A Criticism Neutrality of money is a widespread if rather flawed assumption which underpins much of mainstream macroeconomics. Political economists disagree with this assumption due to the endogenous nature of monetary supply, encompassing reverse causation and exogenous interest rates. It would be inappropriate to discuss neutrality of money or the rejection thereof without first discussing money itself. At its most basic, money is something deemed by an economy to…

For almost all of the last 1200 years, Central Europe has been a multiethnic space governed by overlapping political entities. We usually don 't think of it that way, because the Cold War created a new dichotomy o (advanced, democratic) Western Europe and (feudal, primitive, totalitarian) Eastern Europe, even though Vienna is about 150 miles southeast of Prague. Even before the Cold War, Central Europe had gotten a bad rap, since historians touted the nation-state as the teleological endpoint of…

On September 11, 2001, the United States and many of its citizens became eager for revenge on Osama Bin Laden and the Taliban. As an effect of losing nearly three thousand American lives, President George W. Bush signed and enacted a joint resolution, allowing him to “use force against those responsible for attacking the United States,” on September 18, 2001 (“U.S. War in Afghanistan”). Only a week after the heart-breaking attacks, the nation widely supported what would turn out to be the most…

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…