Essays on Monetarism

Answer 1: The factors that influence the Fed's balance sheet are its assets and liabilities. In assets Fed hold securities like U.S Treasury which is controlled by open market operations. Then the foreign exchange reserves issued by the foreign governments. The SDR(special drawing rights) and gold are official asset, other Federal Reserve asset and the discount loan. In liabilities, the currency in circulation, the reserves i.e. the accounts with commercial bank , government accounts and other liabilities which mainly consist of reserve repo rate. The asset that has increased Fed balance are purchase of treasury and mortgage bonds(Kearns). ...

Economics

Introduction The Golden Age was an important and unusual period in terms of economical development for the history of world economical affairs. During the time of about 25 years almost all of European countries were expanding their economies at approximate rates of at least 5 % GNP increase per annum – a significant growth, taking the just ended World War II and the destruction that it has brought into consideration. What is also unusual is that economic expenditure was followed by an equally strong rates of employment, which made a state of practically full employment possible for most of European countries, thus making ...

Introduction

The Golden Age (Long Boom) was an absolutely unique period in West European economic history. During this time period of about 25 years that followed the end of the Second World War, countries of the West Europe expanded their economies at the unseen before rates of at least 5 % GNP increase per annum, which nearly doubled the previously recorded rates of growth. What is more significant, is that this economic growth was also accompanied by the equally strong increase in employment, which made possible for the European countries to experience a state of practically full employment and thus almost the maximum ...

Milton Friedman Background

Milton Friedman was an American economist, author and a statistician born on 31st July 1912 Brooklyn, New York. Milton Friedman attended and graduated from Rahway High School in 1928. He graduated with a Masters in mathematics from Brown University and masters in Economics from the University of Chicago. He taught at the University of Chicago where he later became the leader of the University. Milton made major contributions to the economics when he was the leader. He is known for major contributions and research on the consumption analysis, theory and history of money and the concept of stabilization policy. He has ...

Keynesian and Monetarist Policies in Macro Economy

In the macro economy, there are policies, which are employed to control the economy of a country. The policies are the Keynesian or demand sided policies and the supply sided policy, which is also referred to as Monetarism policy. Monetarism is currently classical economics and Keynesianism is Mercantilism economic policies. These policies have various differences on how they are employed to control the economy. Keynesian school of thought claimed that the Classical thought is rigid in their assumptions in that they advocated for price flexibility and full employment, but, on the other hand, they were rigid in their advocating for ...