Economics

Federal Reserve also known as the Federal Reserve System is the United States formal system of central banking. It was established in 1910 and through the Federal Reserve Act of 1913 it was enacted as a constitutional monetary institution. The Act came to be following bank runs and panic particularly the 1907 panic. The responsibilities and roles of Federal Reserve have expanded   over time and the systems structures have also evolved to encompass numerous responsibilities. The Great Depression...

From 1970 to 1993, we can observe an exponential growth in almost all the categories of national health expenditure. Some of the categories have initial year growth rate even exceeding 100, hence showing the doubling and tripling of expenditure figures. Growth rates of nursing home care, home health care, prescription drugs and program administration have gone as high as 127, 529, 161 and 169 respectively. However after 1997, the expenditure in all the categories was increasing at moderate rates...

Information asymmetry in the healthcare marketplace Information asymmetry is a scenario in which a portion of the healthcare participants has correct information while the other falls short of information.  For example, a doctor could be aware of patients health status while the patient may fall short of this information.  In this case, transactions may be incomplete.  There are different models of information asymmetry. For example, there could occur adverse selection in which the...

Business ventures will present with them revenue and costs. But ultimately they will yearn to break even. In breaking even rarely do we consider environmental depletion costs. Uranium mining in Saskatchewan has been these odds by policy. While global warming is a global concern, Uranium mining has indeed polluted the environment but reduced the encroaching effects of the same. Uranium has provided an emission free source of energy. As I endear to put you in the picture about source of energy, I...

The Human Development Index is the measure of the well-being of a country through parameters set by the World Bank. Parameters such as the levels of poverty, the efficacy of the education system and the standards of living are used to gauge the HDI of a country. The HDI has some problems in the way it is calculated. For instance, some data that is difficult to measure cannot be represented and used to judge the HDI of a country. An example is the inequality in a country. There is no measure of inequality...

Even though ecological experts propose that disasters should be less viewed as a random occurrence without potentiating factors, it is hard to completely believe that such convergence of possible causative factors are direct incidences resulting from inhumane actions of man to its own ecosystem. Even though one does not always suffer the consequence of its action but such consequence rarely escapes repercussion. Repercussion of risk can thus be said to be transmissible. With this understanding,...

Although the Chinese economic growth can be traced several hundred centuries back, but the financial impact of modern China, preceding the communist revolution and the modern era provide useful insights into the factors that have made Chinese economy resilient to the worst scenarios. Instead of focusing on the multiple historical periods, it is viable to study the contemporary macroeconomic affects in the periods from 1911 to 1937, before the outbreak of World War II and the last seven years leading...

Recession refers to a period when there is a contraction in the business cycle. During this period, the economic activities are usually on a slow down. During this period, the average spending of the population is usually on the decline. 2008 was the year when the United States economy was undergoing turmoil. In the month of September of that year, the Federal National Mortgage Association together with the Federal Home Loan Mortgage Corporation was declared bankrupt. Mortgage lenders thus lacked...

The Federal Reserve was established in 1913 when Congress passed the Federal Reserve Act, also known as the Glass-Owen Bill.  It would serve as the central bank of the United States of America.  This was created in response to the initial financial crisis that took place in 1907 where there was widespread panic and bank runs.  In this capacity, the Federal Reserve, or the Fed for short, has the power to oversee the monetary policies of all banks in the United States such as influencing...

Considering the expenditure approach, GDP has four components private consumption, investment, government spending and net exports. Any changes in these four components adjust the GDP, such as increasing the private consumption will shift the GDP level upwards. When private consumption, investment and net exports increase, it actually increases aggregate demand in the economy. Consequently to accommodate increase in demand, output in the economy is increased and hence the GDP. However when government...

According to Eurostat, the European Union statistics agency, there was a 7.7 percent unemployment increase in Europe. This increase occurred in October 2008 amongst the 15 nations that share the Euro. This was the highest level of unemployment in a period of two years that was accompanied with a sharp drop in growth. As compared to a 3.2 percent sink of the annual inflation rate in October, the 2.1 rate in November culminated in the plunge of prices. With lower inflation rates, the European Central...

Summary of the Article According to CNN, the uncontrollable drop of the American economy since the recession in 2007 caused the unemployment rate to surge up from 6.7 to 7.2 in November 2008. While recession is taking its toll, approximately 2.6 million Americans lost their job by the end of the year. As noted, it was considered as the highest figure of total job losses for over six decades (Goldman Worst year for jobs since 45). Statistics provided by CNN showed that unemployed Americans in 2008...

Introduction National debt refers to the money owed by the government. National debt can be internal or external. Internal debts are owed to the people and organizations within the country. External debts are owed to foreign lending organizations. Government borrows on short term (for a short duration) or on long-term basis. There are various tools of borrowing internally, for example, bonds, securities, direct borrowing among others (Davis, p. 32). Due to the increasing effects of global economic...