In the face of the global financial crisis which swept over almost all nations around the world, especially those which are industrialized, the Australian government proved itself to be one of the most resilient and flexible of the lot. Instead of injecting a huge money flow…
A low GDP, or rather a GDP below the potential full employment of a nation, might not be suggested in normal times as far as the views of the Keynesian school of thought, since that would mean curbing down the economic growth potential of the nation as well. However, since the economy was confronting a terrible financial crisis, unknown within the world’s 70 years history, the situation was indeed a delicate one and needed to be handled with a great degree of perseverance.
People already had lost their faith in the monetary system of the nation and thus the demand for liquid money was already high. In such a situation, if the government had been lenient enough and allowed the GDP to rise, there would have been an excess demand for commodities, which would have resulted to inflation. In a fragile situation as the one prevailing, inflation would have worsened the circumstances. But, as Okun’s Law describes it, a lower level of inflation is always accompanied by a rise in the rate of unemployment in the economy and vice-versa. This is because a lower inflation would mean a lower price level prevailing in the economy. Now a low price level would mean lower profits for the producers and thus they would prefer to wait until the prices reach a feasible level, before they start further supply. But when production is low, there is no reason why the employers should keep on supporting idle workers and thus they start retrenching them, leading to a rise in the level of unemployment.
However, a low inflation would mean a rise in the value of the national currency implying a rise in the value of the indigenous goods in terms of the foreign currency. This would again indicate that the value of exports rise compared to that of imports, since goods meant for exports are produced in the domestic economy while those supposed to be imported are produced in the foreign lands. Hence, the terms of trade for the concerned country are bound to rise, where ...
The bodies had been discovered by one of Nancy’s friends who went to the Clutters’ house to check why they had not yet got prepared for church. She had found an eerie silence inside the house and shockingly discovered the four bodies in different parts of the house.
This motif is so pervasive because it pragmatically envelops almost all the facets of human life. The epic poem Beowulf tends to continue and build on the same theme and portrays the eternal and emphatic conflict between the forces of the good and the evil through the rich exploitation of the symbolism associated with the epic hero Beowulf and the monsters and through the Christian and pagan allusions in the poem.
Then the letter started to sound to me like a global call for help against the violence that is perpetrated against women in society. The words of her call were simple yet they were powerful, and showed the state of oppression and pain she was living in. 2.
In the same token, the Chinese customers would prefer to buy higher quality imported spare at prices with the lower ten percent tariff.
(wieso neue font) A country such as the United states that opens up its market for free trade to other countries like China will, in fairness, ask them to open up their countries' markets to imports from the US and EU.
The United States has been at the forefront of this movement, thus the news coming out of Washington about a proposal to force the auto industry to purchase only American made raw materials caused a lot of controversy in the international community. Protectionism is
Fatty foods are tastier than other food items which forces the public to use it more frequently than any other food items. This paper is written as a commentary of the article "Fat tax could save 3,200 lives each year”
Globalization has a hotly debated topic amongst economists and politicians both. Some critics regard globalization as an instrument for increasing the rate of development. For others, globalization is a threat to the economic
A speculation of the demand of money will in turn reduce since too much has been spent in government’s deals. Finally the interest rates are increased by the central bank in a manner to curd the increased