Noel Palmer entitled "Macroeconomic Aspects of the Irish Economy" reports that the instruments of macroeconomic policy are those which are available to governments that are economically independent and are of the nature that help in gaining the macroeconomic objectives which include: (1) monetary policy or the control of interest rates and the supply of money; (2) exchange rate policy or the change or allowing of change to the foreign exchange value of Irish currency; and (3) fiscal policy or any conscious action by the government which affects the magnitude, structure, or timing of government revenue (taxation) or expenditure. (Palmer, nd) Ireland, a member of the European Central Bank has no discretion to pursue economic policies that are independent in nature and additionally reported is that Ireland is now a member of the Euro zone and monetary policy for the Euro zone is set by the EBC
Despite this personal belief regarding the inefficiency of fiscal policies in creating long-term economic growth, fact remains that the policy does reveal a series of advantages. These refer primarily to the following: Fiscal policies decentralize the costs and spread them throughout a wider national palette of individuals reducing as such the strains placed on a single category of tax payers (Auerbach, 1997) Fiscal policies can increase the access of the population to specific products and services which can be subsidized through federal funds
They also decreased the state aids for a vast category of individuals, such as unemployed or women on maternity leave. On the other hand, they increased taxes by imposing new duties on revenues and other gains (O'Grady, 2010)
The fact that the economy has continued to remain stagnant, will result in more consumers choosing to spend their additional income at the company's numerous retail stores. (Farfan, 2009) Evidence of this can be seen by looking no further than same store sales for the first quarter of 2009
The reduced trade barriers are making it easier for the firm to find even lower costs for purchasing an assortment of goods. (Freedman, 1997) Evidence of this can be seen with observations from renowned economist Milton Freedman who said, "We cannot eat, wear, or enjoy the goods we send abroad
The market is seen as more responsible for economic outcomes, not tax policies. Tax reform means less federal government intervention and a changing relationship between the state and the private economy (Blyth 2001)
The logic of "Keynesian" economics became widely accepted. Economists increasingly came to believe that government could and should effectively manage the capitalist economy (Dyson 2010)
Fiscal Policy Before the United Stated entered the Great Depression, the government's approach to the economy was laissez faire, which means it did not intervene in business affairs. Taxes were typically paid only by the very richest individuals and companies, and were therefore often referred to as class or mass taxes under an "Ability to Pay" arrangement (Waltman 1985)
More incomes were being paid in cash by employers via weekly paychecks. A new political economy had opened up and ushered in new ideas about taxation (Weber and Wildavsky 1986)
That can make unemployment look worse because those workers don't count as unemployed until they start actively seeking a job." (Andron, 1) The outcome of this trend, whatever its implication, is to place Miami at the forefront of the labor crisis impacting state and nation as a whole
In fact, long-term inflation expectations haven't budged and the Fed is still ahead of curve on inflation,' said John Canally, an economist and investment strategist at LPL Financial in Boston." (Mutikani, 1)) This is an optimism which is not shared by everybody
In the future, this will ensure that the nation maintains its competitive edge. (Fried, 2010) While raising the minimum age for Social Security is occurring to slow
Anyone who is underwater in their mortgage will have the chance to: reduce what they owe and move into a fixed rate loan (regardless of their past history or if they are behind). (Griffith, 2012) At the same time, a federal works program needs to be implemented by hiring American workers and companies to work on infrastructure projects
government budgetary process. (Moffat, 2012) ("The Budget and Economic Outlook," 2009) If the federal government reduces the budget deficit by reducing spending, assume nothing else changes, what affect would that have on the AD? This would cause AD (i
As government officials are willing to use any means necessary to stimulate the economy. (Dapena, 2009) Part B Describe when and why central banks buy either their own currency or the currency of another nation in an effort to control exchange rates
This is significant, because it is showing how various laws are enacted to boost household expenditures. (Fox, 2010) Explain and discuss if and how this has changed over the past 5 years Over the past five years, this has changed from: using tax cuts to stimulate the economy to taking more unorthodox measures
4% of the GDP rate. (Prasad, 2009) How well did each country's efforts work at stabilizing the economy? The efforts of the ECB, the Bank of England and the Federal Reserve helped to stabilize the economy
government's fiscal policy is focused on spending more to stimulate economic growth. (Stein, 2011) Would you describe it as "expansionary" or "contractionary"? This policy would be described as both expansionary and contractionary
Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to ...
In economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy.