Macroeconomic - Government Policies in Reducing Inflation...

MACRO-ECONOMIC | Discuss the role of government policy in reducing unemployment and inflation. In your discussion make use of the diagrammatic representation of the macroeconomy developed in lectures in Term 2 | Unemployment and inflation are factors that have negative effects on the performance of the economy as a whole. Therefore, policies to achieve low and stable price inï ¬â€šation, a high and stable level of employment are big macroeconomics issues of our time. This essay focuses on discussing the role of government policy on reducing unemployment and inflation in relation to Keynesian and Monetarist approaches, including examples of impacts of expansionary fiscal and monetary policies on New Zealand economy. Fiscal policy is a†¦show more content†¦They would argue that direct interest rate changes could be used to control aggregate demand. Whereas, Monetarism does not believe that government should intervene by managing the level of aggregate demand, they rather prefer the use of monetary policy to achieve a long-run view of price stability. Monetary policy involves manipulating the interest rate charged by the central bank for lending money to the banking system in an economy, which influences greatly a vast number of macroeconomic variables. In the UK, the government set the policy targets, but the Bank of England and the Monetary Policy Committee (MPC) are given authority and freedom to set interest rates, which is formally once every month. Contractionary monetary policy may be used to reduce price inï ¬â€šation by increasing the interest rate. Because banks have to pay more to borrow from the central bank they will increase the interest rates they charge their own customers for loans to recover the increased cost. Banks will also raise interest rates to encourage people to save more in bank deposit accounts so they can reduce their own borrowing from the central bank. As interest rates rise, consumers may save more and borrow less to spend on goods and services. Firms may also reduce the amount of money they borrow to invest in new equipment. AShow MoreRelatedMonetary Policy On The Connections Between Money, Banks, And Credit960 Words   |  4 Pages This paper focuses on Monetary Policy, which centres on the connections between money, banks, and credit to lenders. In addition, this paper will cover the effect on macroeconomic factors such as GDP, unemployment, inflation, and interest rates. With many combinations of monetary policy, the paper covers the optimal balance between economic growth, low inflation, and a reasonable rate of unemployment. Money is any object that functions as a means of exchange that society accepts social and legalRead MoreMacroeconomic Policies Of National Development1117 Words   |  5 PagesIntroduction Macroeconomic is a study of an economy in an aggregate. Macro economy defines economic changes that affect household, companies and market. Macro economy can be used to analyze the things that influence policy goals such as economic growth, price stability, employment and the achievement of sustainable balance sheet. Macroeconomic problems occur in every country, both developed countries and developing countries. Therefore, the government created the macroeconomic policies so that nationalRead MoreTrade Off Between Inflation And Other Macroeconomic Aims1595 Words   |  7 PagesTrade Off Between Inflation And Other Macroeconomic Aims Keeping inflation as low as possible can be undesirable especially when we consider the short run trade-off between inflation and other macroeconomic factors such as output and employment. This can be seen from the AD-AS curve drawn below. Assume that the country is initially at and is the natural level of output in Figure 4. In order to move to a higher level of output, reduce the output gap and unemployment, inflation is inevitable asRead MoreImportance of the Macroeconomics Objectives Towards the Malaysia Economic Performance.1564 Words   |  7 Pages| 3 | 2.0 | Macroeconomic Objectives | 4 | 3.0 * 3.1 * 3.2 | Economic GrowthThe ImportanceExample | 556 | 4.0 * 4.1 * 4.2 | UnemploymentThe ImportanceExample | 778 | 5.0 * 5.1 * 5.2 | InflationThe ImportanceExample | 9910 | 6.0 | Conclusion | 11 | 7.0 | References | 12 | 8.0 | Appendix | 13 | 1.0 Introduction This assignment is to discuss the importance of the Macroeconomics Objectives towards the Malaysia economic performance. There are four main Macroeconomics Objectives, butRead MoreMacroeconomic Objectives Of The Malaysian Economy1542 Words   |  7 PagesFour macroeconomic objectives In this section I will be discussing how well does Malaysia manage to achieve the four macroeconomic objectives which are; high and stable economic growth, low unemployment, low inflation and avoidance of large balance of trade deficit. One of the ways that Malaysia’s economy plan to reach the goals of high and stable economic growth is by implementing a fiscal consolidation â€Å"The Malaysian government has embarked on fiscal consolidation† (Ratings and Investment InformationRead MoreGovernment And Central Bank Control Unemployment1597 Words   |  7 PagesHow can the government and central bank control unemployment? Consider both fiscal and monetary policies and the effect of these policies on other macroeconomics variables such as inflation and economic growth. Unemployment is the labour force who available to work but cannot fine a job. Imagine that someone who lose the job become to unemployed worker. Certainly, they have to worried about their income and decide to cut on spending such as reduce to eat out for save money. From this situation,Read MoreAnalysis Of The Aggregate Demand And The Aggregate Supply Model Essay946 Words   |  4 PagesThe aggregate demand and the aggregate supply model is a macroeconomics model that explains price level and real output through the relationship of aggregate demand and supply. The aggregate demand curve consist of consumption(C), investment (I), government spending (G), net export (NX). The question caused by monetary expansion. In this essay, it analysis monetary policy, Philips curve which relation between inflation and unemployment.it draws conclusion and apply the theory into two countries whichRead MoreThe Need for Stimulative Monetary and Fiscal Policies1405 Words   |  6 Pagesa period of high unemployment, interest rate sare at almost zero, inflation is about 2% per year, and GDP growth is less than 2% per year the Federal Reserve System would have to focus on monetary policy and the government would have to concentrate on fiscal policy. The Fed would thus need to install a stimulative monetary policy in that would better the economys Gross Domestic Product in the future. Monetary policy would, however, have to be regulated in order to keep inflation in its current positionRead MoreThe Relationship Between Inflation And Unemployment On Growth1553 Words   |  7 PagesINTRODUCTION 1.1 Background of the Study Three ultimate macroeconomic goals which every government strives to achieve in order to ensure sound macroeconomic policy are maintenance of relative stability in domestic prices, attainment of a high rate of employment or full employment and achievement of a high rapid and sustainable economic growth. The relationship between inflation and unemployment on growth remains a controversial one in both theory and empirical findings. Originating from the LatinRead MoreMacroeconomics Is Better Or Worse Than The Market1518 Words   |  7 Pages Macroeconomic Status Kari Haslip Devry University 12/8/2014 The definition of macroeconomics is, â€Å"The study of the behavior of the whole aggregate economies or economic systems instead of the behavior of individuals, individual firms, or markets.† Macroeconomics focuses on areas such as, unemployment, the gross national product, inflation or deflation, and covers the role of monetary and fiscal policies and the determination of consumption and investment levels. It seems that people

Child Behavior Issues And General Parenting Methods

Child Behavior Issues and General Parenting Methods By Moheac Daim | Submitted On September 14, 2011 Recommend Article Article Comments Print Article Share this article on Facebook Share this article on Twitter 1 Share this article on Google+ Share this article on Linkedin Share this article on StumbleUpon Share this article on Delicious Share this article on Digg Share this article on Reddit Share this article on Pinterest Sensible and reasonable parenting techniques demand for manners and etiquette that should be learned by children positively and convincingly. It is a well known fact that now children are more sharp and active as compared to the old generation. Former and outdated parenting tips and strategies have proved futile†¦show more content†¦Basic and root level manners: Best parenting ideas always initiate with the concept of expecting less from young ones and let them know the etiquette from the root level to avoid later problems. Easy concepts of conduct can be taught to them with parenting tips including sharing and eating properly with a good hygienic system. Exchange of gifts and greetings is also a sign of manners. As child grow, modify your parenting tips according to the age of child and give him composite lessons on manners. Manners: Manners are basic constituent of the personality of a child. It can be a really hard and challenging task for parents to teach the right set of manners and etiquette to their offspring. With the emergence of new generation, the conventional manners are going to be vanished gradually. The rebellious vein running through modern society has taken the place of manners. But still it is possible to imbue the kids with manners from grass level that will go with his personality as he will grow young. Manners shape the person according to the social norms and skills and also serve as a tool in his future life. Parents are model: Parents should first set example before the kids as it will not be sufficient to convey message to them and expect for a well mannered child. A child wants to see his parents do whatever they preach. In other words parents should be a role model for the

Exchange Rates Quantitative Financial Economics

Question: Discuss about the Exchange Rates for Quantitative Financial Economics. Answer: Introduction Many businesses especially those involved in international trade like Toyota Motors are exposed to various foreign exchange risks.A risk means the possibility of occurrence of an event, as well as the consequences derived. There are three different methods that weill be covered in this paper on how Toyota Motors mitigates itself against foreign exchange risk. Risk coverage entails a set of strategies that can be implemented to minimize failure and uncertainty in the face of a threat (Foreign currency exchange, 2009). Foreign Exchange risk: this risk, also called the exchange rate, comes from changes in the currency exchange rates.It happens when the consumer places part of his assets in a foreign currency (either in currency or in a financial instrument with a currency denomination). Forward contracts Toyota motors in Japan uses the forward contracts the forward currency situation is unique, you can make a forward contract to purchase or dispose a particular currency. Toyota has an agreement to buy US dollars when it is on a low values and sell Japanese Yen the counterpart at a date in future at the Current exchange rate. That is the car producing company will buy and sell currencies during a time when it is deemed profitable to the company in future. As the rate of exchange between the US dollar and the Japanese Yen changes between the contract date and the settlement date, one party loses and the other wins relatively, one of the currency will have appreciated against the other and Toyota Motors will emerge the winner by mitigating itself against Forex losses (Cuthbertson, Nitzsche, 2010). Forward contracts entered by Toyota Motors reduce vulnerability to currency risk, but they can also be made by need of the currency at a date in future (for example to pay a debt which is in a certain currency) or purely for speculative purposes expecting the exchange rate to favorably fluctuate to produce a gain at the close of the contract. Currency swap A currency swap is the simultaneous sale and purchase of one currency by another. In theory, at a later date these operations will be reversed. Toyota Motors buys and sells a currency in which at a future date the operations will be reversed.to mitigate against currency exchange losses.The first is done at a price, and the second, to another, but to the future and are agreed at the same time, as they are intended to compensate each other (DeRosa, 2013). Toyota Motors together with the other party must assume its obligation of repayment as a guarantee of the agreement, alos, they may devise this strategy as a secured and risk-free loan. They often resort to them entities to help finance their money balances and investors to cover their positions. Lead or lag strategy Lead and lag is yet another strategy that is used by Toyota to mitigate foreign exchange risks. This is done when the company decides to alter receipts or normal payment in a transaction that involves foreign exchange currencies (Rheinla?nder, Sexton, 2011). This is as a result of changes expected in exchange rates. When there is an expected increase in foreign exchange it is likely that the company will speed up payments. On the other hand, an expected exchange rates decrease the company will slow down transactions. References Cuthbertson, K., Nitzsche, D. (2010). Quantitative financial economics (1st ed.). Chichester [u.a.]: Wiley. DeRosa, D. (2013). Options on foreign exchange (1st ed.). Hoboken, N.J.: Wiley. Foreign currency exchange. (2009) (1st ed.). [Mosman]. Rheinla?nder, T., Sexton, J. (2011). Hedging derivatives (1st ed.). New Jersey: World Scientific.

Merchant Of Venice - Secular And Religous Views Essays - Shylock

Merchant Of Venice - Secular and Religous Views The secular and religious views of both, Antonio and Shylock, were portrayed very bluntly. The religious opinions of both characters were that their religion was superior to infidels and also very stereotypical. In the business world, Antonio owned ships with valuable goods and was extremely generous. He always relied on their return to shore and expressed his faith in this book. On the other hand, Shylock was a greedy man and used the Bible for sources of interest to collect more money. Relating to religious views Antonio and Shylock were very parallel, but in means of business the two were reverses. "I[Shylock] hate [Antonio] for he is a Christian. . . [Antonio] hates our sacred nation." This phrase said by Shylock, a Jew, isbased on the beliefs of other Jews upon other Christians. Shylock is being very stereotypical because Shylock doesn't really know Antonio, Shylock heard of Jew-hating Christians, so he thinks that all Christians hate Jews. Antonio happens to be a great man a nd Shylock didn't even give him a chance, he just hates Antonio for being of different religion. "The Hebrew[Shylock] will turn Christian; he grows kind." Antonio says this, thinking that no Jews are kind, emphasizingnaiveness. Then Antonio sees the Hebrew, Shylock, becomes amiable, so he believes that's impossible. So Antonio interprets the scenario as Shylock being Christianized, because he is becoming generous. This quotation shows how Antonio thinks that his religion, Christianity, is superior to Judaism. The previous quotation illustrated how Shylock was stereotypical about Christians. Both characters have similar beliefs about other religions. "Why, fear not, man, I will not for felt it! Within these three months- that's a month before this bond expires-I do expect, returnof thrice three times the value of this bond." This phrase was said by Antonio assuring Shylock that his ship with all his goods will return with the interest that Antonio owes Shylock for borrowing mone y. This shows Antonio's trust in his ship even though there were strong winds and high chances that his ship will be overturned. Antonio is very naive about the real world of business and no matter what happens he thinks he will be successful. On the other hand, Shylock is a wise business man, but very greedy. These characteristics are displayed in the following quotation: "Mark what Jacob did . . . and in the doing of the deed of kind [Laban] struck them up before the fulsome ewes, who then conceiving did in eaning time fullparti-colored lambs, and those were Jacob's. This was a way to thrive, and he was blest; and thrift is blessing if men steal it not." When Shylock gave Antonio a loan, he charged him interest justified by the story in the Bible mentioned before. Shylock compares Antonio to Laban, both being kind, therefore both must be givers of interest.My view is that Shylock puts himself on the level of Jacob, a righteous man, showing his egotistical character. His greedy personality is expressed when Shylock finds sources of interest in a farfetched manner. In truth, this passage is an act of kindness, stressing Shylock's characteristic of being narrow minded. Antonio and Shylock are very similar people as well as opposites. Both, as proven in the story, are against the infidels to their religion and believe that their religion is the superior one. In terms of business, Antonio is generous, being willing to give thricethe loan, and Shylock is greedy, by asking for three times the loan. Antonio agrees to the deal, being very naive that his ship willreturn safely, and Shylock is very clever, but sneaky, in terms of this deal. While Antonio's perspectives on the secular and religious world are very naive, Shylock makes judgements based on first impressions. Antonio and Shylock showing their good qualities, suggest that men may look perfect, but deep inside, they acquire negative characteristics.