StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

ECON_Unit 5 Discussion - Assignment Example

Cite this document
Summary
Economics Unit 5 Discussion Monetary Policy Name of the Writer Name of the Institution Economics Unit 5 Discussion: Monetary Policy Money, position and power- a heady mix that gets you noticed. Whether you are a multi-billionaire like Carlos Slim of Mexico, Steve Jobs of Microsoft or Donald Trump of Trump Enterprises, you simply cannot avoid the limelight…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.9% of users find it useful
ECON_Unit 5 Discussion
Read Text Preview

Extract of sample "ECON_Unit 5 Discussion"

Economics Unit 5 Discussion Monetary Policy of the of the Economics Unit 5 Discussion: Monetary Policy Money, positionand power- a heady mix that gets you noticed. Whether you are a multi-billionaire like Carlos Slim of Mexico, Steve Jobs of Microsoft or Donald Trump of Trump Enterprises, you simply cannot avoid the limelight. Once it is known that you are successful and in a position of power, people want to follow your every move. It is interesting that Newsweek chose to put Ben Bernanke of the US Federal Reserve, Jean-Claude Trichet of the European Central Bank and Masaaki Shirakawa of the Bank of Japan in the spotlight as numbers 4, 5 and 6 in their list of the Newsweek’s 50 most powerful people in the world: all three men are central bankers, in essence controlling the value of money and interest rates across most of the developed world (Samuelson, 2008).

Though the full extent of their power might never be properly understood except by more erudite scholars of economics and finance, it is not difficult to reflect upon the fact that as chiefs of the financial institutions that they have been appointed to, these three men make decisions that do affect the value of money in terms of fiscal and monetary policy. Japan is the world’s largest economy, with the USA and the European Union vying for second and third place. According to a documentary The Story of Stuff by Annie Leonard, ‘of the 100 largest economies on Earth now, 51 percent are corporations’ (Anderson & Cavanagh, 2006).

So it is not surprising if Bernanke and company command more power than a few of the world’s presidents and prime ministers. It is economic power that rules more than the political. Monkey see, monkey do. With the onset of the present economic crisis still fresh in our minds, and President Barack Obama unable to stem the rot and restore consumer confidence despite his best intentions, it is most enlightening in hindsight to reflect upon how the crisis unfolded and enveloped the world in a matter of months.

What has happened today is that the world’s banks have sought to even place sizeable chunks of their monies abroad in the effort to both diversify risk as well as get a better return on their money. Iceland was a place of choice. But with risk spread thin, and the world’s best opportunities well known in higher circles, we quickly run out of choices. Since the world’s markets are so closely connected, a run on one bank or one sector of the economy invariably spreads across borders. The world’s economies are more closely connected than ever, and so the fiasco is easily exacerbated.

Remember, with a lot of bankers watching these top three central bankers of repute, a consensus to lower interest rates was followed almost unanimously when it was taken. It makes no sense to keep your interest rates high when other countries have lowered theirs to help stimulate the economy. Regarding the best monetary policy to follow, I would imagine that lowering interest rates, reduction in unemployment benefits and higher taxes on the rich would help instill confidence and reduce economic inequality.

We need to instill consumer confidence and should look at how the various New Deals by President Lyndon B. Johnson helped lift the USA out of the Great Depression of the 1930s, a situation often compared to the crisis today. References Anderson, S. & Cavanagh, J. (2006). The Top 200: The Rise of Global Corporate Power. Washington, D.C.: Institute for Policy Studies. Samuelson, R. J. (2008). The Global Elite: Economic Triumvirate. Newsweek, 20 Dec 2008. Web. 05 Mar 2011.

Read More
Tags
Cite this document
  • APA
  • MLA
  • CHICAGO
(“ECON_Unit 5 Discussion Assignment Example | Topics and Well Written Essays - 250 words”, n.d.)
Retrieved from https://studentshare.org/other/1410216-econunit
(ECON_Unit 5 Discussion Assignment Example | Topics and Well Written Essays - 250 Words)
https://studentshare.org/other/1410216-econunit.
“ECON_Unit 5 Discussion Assignment Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/other/1410216-econunit.
  • Cited: 0 times

CHECK THESE SAMPLES OF ECON_Unit 5 Discussion

Company initiatives (5yr plan) and intellectual properties

Company Initiatives (5yr Plan) and Intellectual Properties Brief Description of Company Ford Motor Company was founded in the year 1903 by Henry Ford, which is a famous automaker all over the world.... The effeciency and sustanbaility of the adopted plans and startegies of Ford can be illustrated from the fact that during the global economic crisis, Ford was observed as the only American automaker which was able to do away with a major decline in its overall sales in 2011....
4 Pages (1000 words) Research Paper

Improving the Efficiency of Light Distribution in Passive Optical Network

An EPON system is a point-to-multipoint fiber optical network with no active elements in the transmission path from the source, an optical line terminal (OLT), to the destination, an optical network unit (ONU).... This article discusses how EPON technology is utilized in implementing FTTx solutions for last mile bandwidth bottleneck problems....
11 Pages (2750 words) Article

Powergen case study : strategy and corporate planning

Prior to this, generation and distribution of electricity was the responsibility of Central Electricity Generating Board (CEGB).... The number of power… Moreover technical complexities in running these stations were also increasing.... In order to solve these problems the electricity generating activities of CEGB was divided among three newly formed organisations, The first two companies were responsible for generating non-nuclear electricity....
12 Pages (3000 words) Essay

Macroeconomics: Production Costs

This term paper discusses the production costs that business organizations incur in the process of creating goods for consumption.... This paper also talks about the broad categories of production costs, subdivisions, as well as examples of each category and subdivision.... hellip; Every business organizations engaged in transformation of inputs into finished products incurs certain specific costs....
15 Pages (3750 words) Term Paper

Importance of the Development of the Nuclear Power for Belina

The paper "Importance of the Development of the Nuclear Power for Belina" highlights that with newer systems we will be showing the world that Belina is a city which is growing and is ready to invest in good quality things only that way will we be able to invite foreign investments.... hellip; It is quite essential to state that with a developed land where electricity will be provided our people will work and improve their generations to come ethically and environmentally we are rich so why not become economically and mentally rich too and use these systems to improve our and our nation's life....
8 Pages (2000 words) Case Study

Real Estate Business: Eton Land Inc

The objective of this study is to examine the Real Estate Company Eton Land Incorporated in terms of marketing, management, and finances.... Therefore, the paper reveals the industry and market analysis, competitive advantage, and business description of the company.... hellip; Eton Land Inc.... is a Real Estate Brokerage Firm situated in Denver Colorado, capitalized by a single broker who has her own license and an impressive career in real estate for the past 10 years....
10 Pages (2500 words) Term Paper

International Monetary

This essay "International Monetary" comprehensively discusses the measures taken up by the government for dealing with the adverse conditions.... nbsp;The crisis situation in a country's BOP occurs when it moves beyond the control of the government to remove the current account's deficit.... hellip; The economy has to solely depend on the automatic mechanism of the market for mitigating the crisis in the balance of payment of a country....
7 Pages (1750 words) Essay

Integrated Pollution Management of Eco Industrial Park

… The paper "Integrated Pollution Management: Eco-Industrial Park" is an outstanding example of a research paper on environmental studies.... The case study of various units of Kalundborg in Denmark is proven to be the frontrunner in industrial symbiosis and is taken up as a model eco-industrial park first of its kind in the world....
9 Pages (2250 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us