The effects of 9/11 on the US economy can be broadly divided into two categories: the short run economic effects the long-term effect on government policy and various industries. The first of these two categories was immensely impacted by the attacks and the widespread repercussions for economic activity, market confidence, and unemployment. The effects in the long-term, however, were not nearly as profound. As shown by the fairly rapid recovery after the attacks. Furthermore, a large portion of
liberalization impossible. United states was the very first country took advantage of capital account liberalization. as after the collapse of Bretton Woods system, dollar was no longer set to gold and Federal Reserve started inflation targeting policy, meaning Federal Reserve of US could issue more money to prevent deflation. Hereafter US turned from a supporter of capital controls as a promoter of capital
erratically, affecting production, employment, and inflation. Keynesian economists often argue that private sector decisions sometimes lead to inefficient macroeconomic outcomes which require active policy responses by the public sector, in particular, fiscal policies implement by the government and monetary policies implement by the central bank, in order to output stabilization and production over the business
SDRs and SDRs as reserve currency The Special Drawing Rights (SDR) was created by the International Monetary Fund (IMF) in 1969 to support the Bretton Woods fixed exchange rate system. It was created in response to concerns about the limitations of gold and the U.S. dollars as they were inadequate in supporting the expansion of world trade and financial development. However, SDR is not a currency that can be bought and sold in private markets. SDRs value is based on a basket of the four principal
PAPER 1 What is Inflation? Inflation refers to as a constant growth in the overall cost level for goods and services. It is measured as annual percentage increases. As inflation rises, every dollar you own buys a lesser percentage of a good or service. The value of a dollar does not stay continuous when there is inflation. The different types of inflation and the types that are experienced by Trinidad and Tobago. Inflation in Trinidad and Tobago is the direct result of a few influences that can
Inflation, a monetary phenomenon where the general prices of goods and services increase along with the decline in the purchasing value of money (Burdekin & Weidenmier, 2001). Over the past decades, the issue of inflation has existed in most of the countries and it has always been the major concern of the global society. In fact, economists viewed inflation as a double-sided issue as the impact resulted from inflation can be either positive nor negative. Since inflation eventually brings different
individual families and firms, and some macroeconomic models explicitly make this affiliation. A substantial segment of the money related focuses secured on television and in day by day papers are of the macroeconomic collection, however review that monetary viewpoints is about more than basically endeavoring to understand when the economy is going to improve and what the Federal Reserve is doing with credit costs. B) MINIMUM EFFICIENT
The macroeconomic environment of a firm as suggested by Oxelheim, L. and C. Wihlborg., (1987) is constituted by a set of four relative prices; the inflation rates, interest rates, exchange rates and political risk premiums (the premium charged by the company for the rules about the uncertainty of the market game). In any developing economy, it is important to consider these particular macroeconomic variables and how their behavior over time affects the company’s health and ultimately its survival
attainment of sustainable economic growth (assumed to be around 3-4%), price stability, full employment, ecologically sustainable development, income equality and external stability. The two main macroeconomic policies used by government are the fiscal policy and monetary policy. Fiscal policy refers to the government’s manipulation of the two variables, taxation and government spending to alter the level of aggregate demand in the economy. If the government wants to encourage growth, they can run
1 INTRODUCTION The great depression has been argued to have been caused by many factors. The frequently used argument is the global imbalance reflected by economic policies of East Asian countries. However, in the unexpected global financial crisis, Justin Yifu Lin argues global imbalance resulted from increased demand in the US from recent international wars and tax cuts. In addition to this, over consumption by households supported by wealth effect from the housing bubble. This is explained by