This problem is however not new to regulators who have an interest in limiting both factors. This relationship between unemployment and inflation is shown in the Philips curve which is declining in the short term. There seems to be a clear inverse relationship between the two factors in the short term. (Brinner, 1999).
However, this apparent relationship ceases in the long run with the two being more or less independent of each other. The Federal Reserve is thus acting on a well established economic theory that interventions aimed at countering inflation are only effective in the short term. Meltzer is ...
Money Supply Argumentative Essays Samples For Students
2 samples of this type
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Introduction
Financial crisis has become a global issue because it has affected many countries in the world. It is important to understand its meaning in order to know how it has affected the economy of various countries. Financial crisis is a situation in which the financial assets in a country loss value. During this period, the currency becomes unstable (Irving 2009). In this situation, the country becomes affected adversely because financial problems become unbearable for most investors. The main reason for this is that there are no foreseeable returns from the investments made in the country due to hard financial times experienced.
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