Fiscal Policy - 731 words
Fiscal policy and monetary policy, which is concerned with money, are the two most important components of a governments overall economic policy, and governments use them in an attempt to maintain economic growth, high employment, and low inflation. Fiscal policy is expansionary when taxation is reduced or public spending is increased that stimulate total spending in the economy. Expansionary policy might occur when a government feels its economy is not growing fast enough or unemployment is too high. The government can increase spending or cut taxes, and individuals and businesses will have more money. When individuals or firms increase their purchases, they raise demand, creating jobs and ...
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Fiscal Policy - 317 words
Policy that uses taxation and government spending to steer the economy. Fiscal policy describes two governmental actions by the government. The first is taxation. By levying taxes the government receives revenue from the populace. Taxes come in many varieties and serve different specific purposes, but the key concept is that taxation is a transfer of assets from the people to the government. The second action is government spending. This may take the form of wages to government employees, social security benefits, smooth roads, or fancy weapons. When the government spends, it transfers assets from itself to the public. Since taxation and government spending represent reversed asset flows, we ...
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Monetary Policy And The Economy - 2,024 words
... duce consumers demand for cars and light trucks. Beyond these effects, consumption demand is lowered by a reduction in the value of household assetssuch as stocks, bonds, and landthat tends to result from higher long-term interest rates. The implications of changes in interest rates extend beyond domestic money and credit markets. Continuing with the example, when interest rates in the United States move higher in relation to those abroad, holding assets denominated in U.S. dollars becomes more appealing, and the demand for dollars in foreign exchange markets increases. A result is upward pressure on the exchange value of the dollar. With flexible exchange rates (rates that fluctuate as ...
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Tang Dynasty - 1,761 words
Until this century dynastic families have provided most of the rulers over the human race. Kinship formed an in-group network to support the power holder (or rival) as well as a principle by which to settle (or dispute) the explosive question of the succession of to power. Out of all the dynasties, of the world, none ruled as large a state as China or maintained such a monopoly of central government. As institutions of government, the major Chinese Dynasties are in a class by themselves. Neither Japan, India or Persia produced regimes comparable in scope and power. One such Chinese dynasty was called The Tang Dynasty. This dynasty ran from 618-907. The Li clan of the Tang provided 23 emperor ...
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Turkish Banking Sector Analysis - 4,651 words
... ition (billion dollars) T. assets T. liabilities Fx position Commercial banks 42 38 51 46 -7.7 -8.8 Privately-owned 52 48 63 59 -6.6 -6.6 Dev. and inv.banks 63 60 63 59 -0.0 0.1 The share of loans in total assets reduced by 10 percentage points to 36 percent The change on the loan accounts of Ziraat Bank A.S. had a significant effect in this decrease. Due to the transfer of some part of the loans accounts to the other accounts in the Bank, the share of other assets in total assets increased from 15 percent to 23 percent. The shares of liquid assets and permanent assets increased by 1 percentage point to 33 percent and 8 percent, respectively. The share of government securities excluding ...
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Floating Exchange Rates - 1,227 words
... or that crisis passes over (Germany's reunification, for example), we will have economic and political peace and be able to fix exchange rates. But crises in Europe and elsewhere haven't ceased just because Hitler is no longer alive and the Berlin Wall has fallen. Overwhelming problems will at some point strike the system--we haven't advanced beyond war, mayhem and natural disasters--and there will be no solution but to leave the monetary regime, as has happened before (notably in World War II). People with money in the currency market know this, and knowing this, help to make it inevitable. One misconception about fixed exchange rates ought to be noted here: the difference between real ...
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Global Implications Of Dollarizing Economies To Attain Monetary Stability - 415 words
Global Implications of Dollarizing Economies to Attain Monetary Stability Dollarization is when one country abandons its own currency in favor of another countrys currency. This is good because it will provide a stable currency but unfortunately the country who changed its currency has no monetary independence and no power to print currency. This means that the country controlling the currency may not keep in mind the affect actions may have on the secondary countrys economy. This is an example of a fiscal policy because it deals with the way a country handles its money. Other examples of fiscal policies are floating currencies, pegged or currency board, and a monetary union. The two latter ...
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Indonesia - 1,681 words
... d 2%. Furthemore, the Board of Governors, in consideration of condition on market liquidity and base money target, predicts that one month SBI interest rate will be around 10%-12%. Bank Indonesia will keep monitor interest rate development in line with price and exchange rate development. Over the past few years, Indonesia went through essential reforms leading to a prospective recovery. Prior to 1997, slowing economic growth in Indonesia heightened political unrest. This lead to growing tensions and popular disaffection with the status quo. These tensions in short term attributed to a more difficult and aggravated economy. The economy suffered with falling investment, collapsing private ...
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Prevent Contagion - 1,527 words
Globalization has been the theme directing the future. Yet, as Mr. Henry M. Paulson, chairman and CEO of Goldman Sachs Group Inc. recently acknowledged, national and regional markets are linked only in precarious ways leading to weak spots within the economy and fueling the possibility for regional or even worldwide financial crises (Peck Ming, 12/8, p.1). In just the past 12 years, three major crises have caused tremors felt around the world. All three examples represent incidences of contagion, or the interaction between financial sector crises and balance-of-payments crises in which a loss of investor confidence may set off vicious cycle of capital flow reversals, a liquidity squeeze and ...
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Dominican Republic - 1,517 words
In 1999, the Dominican Republic continued its miracle growth rate of 8.3%. This was one of the worlds highest growth rates in 1999. In the previous 4 years before, the growth rate of the Dominican Republic was on average, a little over 7%. The Dominican Republic now leads the world in economic growth. Who would have thought this possible? In the late 80s and 1990, the GDP fell by up to 5% and price inflation reached 100%. After this period, the Dominican Republic entered a new stage of development. It became a period of moderate growth and declining inflation. In 1995 inflation was reported at 9%, while GDP grew by 4.5%. A year later the inflation rates dropped 5% and the GDP grew to about 7 ...
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The Effect Of Chrysler - 1,082 words
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Pat Buchanan - 1,635 words
... w-skill sectors of industry where Third World countries are attracting U.S. companies. The Stolper-Samuelson theory states that trade affects relative prices and that the real return to the factor used intensively in the production of a good (labor) will increase accordingly and the return of the other factor which is used scarcely will decrease. According to this model trade has a significant impact on income distribution within the countries involved. This can be seen in the U.S. where the low skill, low wage jobs are being lost to Third World countries who have an abundance of these workers. At the same time the U.S. has an abundance of high-skill, high-wage jobs and this is resulting ...
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Roosevelt's Response To The Great Depression - 1,544 words
The Great Depression of the 1930s was a great blow to America especially after the seeming prosperity of the twenties. The depression was a result not of false prosperity in the twenties, although the distribution of wealth was very uneven the affluence was very real, but rather from a lack of economic and political maturity to address the problems either before 1929 or as a cure post 1929. The Great Depression is often seen as a result of the twenties when rather it was a failure of the thirties. If the necessary policies had been drawn up in the twenties there would have been widespread hatred for these policies by the wealthy ruling class. This would have made them impossible to implement ...
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The Highland Clearances Re-examined - 1,484 words
The popular conception of the Highland clearances depicts a simple, clear-cut tale of injustice depicted through sensational images of massacre and destruction. The clanship is often romanticised and the issues surrounding the clearances often trivialised to the extent that process of homogenisation occurs whereby all historical data becomes subsumed into one overriding dominant narrative. Usually glorifying the Higlanders and villifying the Southerners. Unsurprising as most accounts were written by one side or the other. Thus it is important to keep an objective viewpoint. For instance, many accounts talk of the years before the clearances having been a golden age. The very idea of such a g ...
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Containment Early Cold War - 994 words
In the early years of the Cold War, both the Truman and Eisenhower administrations pursued a policy of containment to counter perceived Soviet aggression. Generally, the presidential administrations pursued this policy to maintain stability in the international arena, to maintain a balance of power, and also in a sense, to express disapproval of totalitarian, non-democratic regimes. Containment was expressed through a variety of policies and institutions: economic, political and, of course, military. The ways the early presidential administrations defined and implemented containment strategy inevitably changed in focus, importance, and emphasis over time. While both external and internal rea ...
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Containment Early Cold War - 1,029 words
... persuasion - say, convincing Germany solely with rhetoric that America would support a united Germany (which, indeed, they did try to do) - it is arguable whether that would have worked in deterring the popular Soviet-influenced communist parties. Clearly, the Truman administration had to pursue a strategy of military containment. However, internal politics dictated quite the opposite strategy. The republican leadership in both the Senate and the House was committed to fulfill their campaign promises of a 20% reduction of income taxes. At this point, Truman had to convince both the Senate and the American people how pressing the international situation was, and how important it was to p ...
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Unemployment - 4,846 words
ter>Sam Vaknin's Psychology, Philosophy, Economics and Foreign Affairs Web Sites I. Recommendations Get the Real Picture No one in Macedonia knows the real picture. How many are employed and not reported or registered? How many are registered as unemployed but really have a job? How many are part time workers as opposed to full time workers? How many are officially employed (de jure) but de facto unemployed or severely underemployed? How many are on indefinite vacations, on leave without pay, etc.? The Statistics Bureau must be instructed to make the gathering and analysis of data regarding the unemployed (through household surveys and census, if necessary) a TOP PRIORITY. A limited amnes ...
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George Washington - 1,185 words
... afayette. Outnumbering the British by two to one, and with 36 French ships offshore to prevent Yorktown from being relieved by sea, Washington forced Cornwallis to surrender in October after a brief siege. Although peace and British recognition of United States independence did not come for another two years, Yorktown proved to be the last major land battle of the Revolution. Washington as a Military Leader Washington's contribution to American victory was enormous, and analysis of his leadership reveals much about the nature of the military and political conflict. Being selective about where and when he fought the British main force prevented his foes from using their strongest asset, t ...
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Flucations In The Australian Dollar - 999 words
The Australian Dollar is a "Commodity Currency". A "Commodity Currency" means that its fortunes are heavily dependent on the prices of Gold, Copper, Nickel, Coal and Wool. All of these commodities are Australias main exports. At present, commodity prices are low, especially gold. Melbourne-based mining consultant Surbiton Associates said exports of Australian gold were in danger of declining if exploration failed to be supported and production declined as a result. The country produces about $5 billion worth of gold each year and over the past 10 years the metal has earned $42 billion in export revenue. Presently, our dollar has been the weakest in history, comparable to the United States (U ...
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Keynesianism, Monetarism And The Shift Of Economic Policy - 1,136 words
H2>Q1: How and why were Keynesian economic policies abandoned in the UK? Keynesianism was the economic model followed by governments in the UK from the 1950s up until the late 1970s. In the 1950s and 1960s, the name Butskellism was given to Chancellor Butler and Chancellor Gaitskells Keynesian approach to management of the economy, with an overall aim of maintaining full employment by substantial government intervention. Keynes rejected the idea of laissez faire (leave alone) policies that left the market to regulate wages and prices. He said that if the economy were left alone in this way, there would be a recession, meaning more people being laid-off from their jobs and reduced real wages. ...
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