Essays on Monetarist

The United States of America suffered great economic recessions like the bank panic and depression in the 1820s. Again, there were the hard economic times that came in late 1830. The most significant economic illness that was so dark and so long came in 1930. It is what is commonly referred to as the Great Depression (Eichengreen and Barry 200). The adverse economic problem varied across many nations, having started as early as 1929 in most of the nations. It had its roots in the US after a significant fall in the stock prices that began in the last ...

Abstract

The use and interpretation of economic policies are fundamental to the formulation of strategic plans and courses of action. Economists and policy makers play a vital role in executing this important analytic and interpretive task. Keynesian and monetary schools of thoughts are some of the important alternatives applied in making economic decisions. Monetarists believe that government involvement in controlling the level of aggregate demand in the economy is counterproductive in the long run. In its stead, they propose that the best way the government can control unemployment and inflation levels is by the use of monetary policies. Monetary policies ...

Unlike most countries, that use the central Bank system the U.S has a federal Banking system which is also known as the fed. The headquarters of the federal Bank is in the capital Washington D.C and also has other twelve district banks in different locations. Decisions made by the Federal Reserve Bank are critical because they ensure that the country has a safe and sound financial system. Federal Reserve Act established the fed in 1913 and was formed to solve problems of money in the country. Therefore, the Federal Reserve Bank is mandated to formulate the best fiscal and monetary policies ...

The article talks about how US monitory policy is related to the Federal Reserve lending rate. The Federal Reserve has the mandate to regulate circulation cash in the public hands. By doing so, the country is able to achieve; stabilizing prices, standardize long-term interest rates, creating employment opportunities and attain general economic growth. The Articles shades the challenges arise for policy makers while balancing the objectives. When the central bank stabilizes prices for a long time, items, goods, services, and labor prices remain unwaged by inflation. While this paves a prosperous economy, it too indicates efficient resources allocation hence a better living ...

Higher Educational Establishment

Introduction Aggregate demand and interest rates, along with the actual economic growth and the prospects are the benchmarks of any Federal government. In order to control the economy, government uses monetary policies to analyze essential measures.

Open Market Operation

Open Market Operations involve purchase and selling of governmental securities which helps to stabilize inflation. The Federal funds rate is equal to the interest and lending rates, according to which financial institutions charge for the loans. The Domestic Open Market Operations are guided by the Federal Open Market Committee and continuing with the aid of strengthening the efforts to support economy recovery ...

There have been few instances in the United States' relatively short history that have looked so dismal as the Great Depression. To this day, people who lived through the Great Depression remember the fear and uncertainty of that time; it remains indelibly etched into the American cultural memory. However, what few people realize is that the Great Depression was not an instance that was unique to the American experience; countries around the world experienced economic depression to varying degrees during the time period that American history calls “the Great Depression.” There are a number of factors that historians believe contributed ...

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 ...

In The Shock Doctrine: The Rise of Disaster Capitalism (2010), Naomi Klein found numerous examples of how the United States imposed a system of free trade, free markets and laissez faire capitalism on the rest of the world over the past forty years, through manufacturing crises to impose ‘shock treatments’ and structural adjustments on Asia, Africa, the Middle East, Latin America and Eastern Europe, or simply taking proper advantage of a crisis that was already underway. She calls the many “orchestrated raids on the public sphere in the wake of catastrophic events, combined with the treatment of disasters as exciting market ...

The U. government had been dissatisfied with the leftist, nationalist and neutralist policies of Brazil’s civilian leaders for at least ten years before it organized the military coup against President Joao Goulart in April 1964. From Washington’s viewpoint, this problem grew especially acute after the Cuban Revolution in 1959 and the refusal of the Brazilian government to join enthusiastically in the covert and overt campaigns to remove Fidel Castro from power. There was precedent for the military and Central Intelligence Agency (CIA) actions against President Goulart, including the removal of President Jacobo Arbenz of Guatemala in Operation ...

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 ...

Introduction

Various instruments of macro-economic policy affect a country’s economy and the global economy at large. They include monetary policy, fiscal policy, and the supply side policy. Monetary policy is when the government decides to use the interest rates and the money in the economy to control the economy (Griffiths & Wall, 2012). This can be applied during recession to expand the economy, or during boom to restrict the economy. Fiscal Policy is used to direct the economy by deciding the expenditure of the government, the resources, and the taxation. The supply side policy is used to change the economic ...

Abstract

Multilateral organizations, such the International Monetary Fund, play a major role in our society, working in the areas of technical and financial assistance through structural adjustments in developing countries, as well as funding and sector-specific policy guidance. This domain has an inherent dynamism, and must be understood by analyzing the historical trajectory of these organizations and understanding that their actions are guided by the ideology that sustains the society we live in, which is rooted in the capitalist mode of production. This led me to ask the simple question: to what extant has the IMF been a force for good in ...