...Inflation and unemployment were not improved by monetary policy Abstract The global financial crisis made a long term negative effect on the economy all over the world as well as New Zealand. GDP and inflation decreased with a high level of unemployment rate. This essay is going to discuss the effect of the actions from reserve bank. According to their response, the IS-LM, AD-AS and Phillips models will be used to analyze the effect of change in OCR on economic activities. Furthermore, some previous literature will be used in this essay which is relative to some problem happened during the recession. Introduction There is a big impact on the economic environment following the 2008 financial crisis. New Zealand faced a negative effect on unemployment rate, income, inflation and output and etc. as an important part of developed country. The main aim of this essay is to investigate what monetary policy has been used in response to the recession and whether it is useful to make a significant recovery. The financial crisis can be seen as a very serious problem in New Zealand. The stock market got hit seriously because the investment, income, confidence, employment rate etc. all fall. During the recession, the unemployment rate rose from a low of 3.5% in December of 2008 to a high level of 7.3% in June of 2012. (TRADING ECONOMICS, 2013) The New Zealand GDP had a negative growth during 2008 and 2010 because many businesses shut down and the unemployment rate increased...
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...The Policy Process Part 1 The Policy Process Part I Tobacco use and the effects of second hand smoke have been an ongoing issue for many years. Looking at the attitude of the 1950’s and 1960’s when smoking was thought of as cool, suave, mature, etc., there has been a major turnaround in the way society looks at the use of tobacco. Now the issue is not just smoking and the damage to health that it causes, but now there is the additional awareness of what second hand smoke can do to individuals. It used to be commonplace to smoke in a hospital room and now due to the changes in the laws, smoking is not even allowed on the campus of a hospital. Many if not all large buildings including government buildings ban smoking in and around the buildings. This paper will present information on the first part of the policy process that includes the formulation stage, legislative stage, and the implementation stage. The goal is to provide enough information on these stages so that the reader will be better informed in the process of policy making. Identify the Problem As with anything a problem must first be identified. In this case the problem that is to be discussed is second hand smoke and its effects on the public. In recent years the effects of second hand smoke have started to be brought into the public eye. What is second hand smoke? According to the Centers for Disease Control and Prevention (n.d.) second hand smoke is a combination of smoke from two sources, the smoke...
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...past studies of foreign policy decision-making described the media mainly as a channel for delivering messages during the process, but...
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...Principles of Macroeconomics, 9e - TB1 (Case/Fair/Oster) Chapter 18 Debates in Macroeconomics: Monetarism, New Classical Theory, and Supply-Side Economics 18.1 Keynesian Economics 1 Multiple Choice 1) Who wrote the General Theory of Employment, Interest, and Money? A) Adam Smith B) David Ricardo C) Milton Friedman D) John Maynard Keynes Answer: D Diff: 1 Topic: Keynesian Economics Skill: Fact 2) Keynesian economics includes the idea that A) economic policies are ineffective. B) the economy is basically stable. C) prices adjust to clear the markets. D) labor markets don't always clear due to wage rigidities. Answer: D Diff: 1 Topic: Keynesian Economics Skill: Fact 3) Among the propositions of the Keynesian school of thought is A) economic policies are ineffective. B) aggregate supply management is the key to a stable economy. C) aggregate demand determines equilibrium output. D) rational expectations. Answer: C Diff: 1 Topic: Keynesian Economics Skill: Fact 4) Keynes believed which of the following? A) The government has a role to play in fighting inflation, but not in fighting unemployment. B) The government has a role to play in fighting unemployment, but not in fighting inflation. ...
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...been charging duty on imported goods in local currency. Enterprising Zimbabweans have been taking advantage of the overvalued Zimbabwean dollar to import cars and other luxury goods for resale in Zimbabwe. According to the central bank figures, Zimbabweans have been spending an estimated US$400000 a day importing an average of 80vehicles from Britain, Dubai, Japan, Singapore and the United states. This resulted in a boom in the used car industry. The business had become so brisk; some foreign car dealers were advertising their latest brands of cars in the Zimbabwean press. The government through Zimra moved from its traditional way of charging duty in local currency through the statutory instrument 80A of 2007 which stipulated that with effect from 5 April 2007, importers of cars and other luxury goods were now required to pay duty in foreign currency. “Payments of customs duty and value added tax on the importation of any items designated as luxury shall be payable in US dollars, Euros, or any other currency denominated under the exchange control”Mumbengegwi said.(The herald 9 April 2007).An official at the reserve bank said that the move to levy duty in foreign currency was a “hostile reaction” to the central bank’s refusal to devalue the local currency.(Newzimbabwe.com).He further went on to say the government has decided to levy duty in...
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...Evaluating the tax incentives for foreign investors policy Reporting to the Manufacturers league Executive Summary This report has been written in response to the government’s proposed tax incentive policy for foreign multi-national corporations to increase foreign direct investment within Australia. The report draws attention to the reasons behind the government’s proposal. These include the slow growth trends of the manufacturing industry, restoring the dropped level of foreign investment caused by the global financial crisis as well as a desire to increase levels of employment within the manufacturing sector. It continues by drawing attention to the resultant competitive issues that may be caused by such a move as well as issues that may arise due to inflation. It also draws attention to the tendency for foreign investment to result in less government intervention which may affect the industry in the longer term. It is recommended that: * The government increase the breadth of its proposal to all investors in the manufacturing industry so as to reduce competitive pressures on local manufacturers. * The government increases investment in training to provide a skilled workforce and reduce inflationary wage pressures. Introduction This Report shall be to determine whether or not tax incentives, with relation to foreign direct investment (FDI), are beneficial, holistically. First we must say a word about the nature of FDI. FDI can be defined as “....
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...Many countries have now implemented laws to ban smoking in workplaces and public places. The aim of this policy is to protect the health of general public and workers from the harms tobacco use can cause such as death, disease and disability. Studies in the USA, Scotland and England showed that smoke free laws have positive health impacts such as the reduction of hospital admissions for heart attacks. In England, The legislation resulted in a significant reduction (-2.4%) in the number of hospital admissions for myocardial infraction after the legislation went into effect (Sims et al, 2010), which is equivalent to 1.200 fewer emergency admissions from 2002 to 2008. As well as an increase of smokers who attempted to quit smoking (Bauld L, 2011). However, there were many concerns on the severe and negative effects these policies may have on the economy and businesses such as business closures and job losses. This essay will...
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...Government policies and laws include tax, benefits, divorce and marriage. * Feminist- social policies assume the ideal family is a patriarchal nuclear family, so social policies favour this type of family. * New right- argue benefit systems undermine traditional nuclear families by actively encouraging lone parents. Item 2B: * Government policies and laws include tax, benefits, divorce and marriage. * Feminist- social policies assume the ideal family is a patriarchal nuclear family, so social policies favour this type of family. * New right- argue benefit systems undermine traditional nuclear families by actively encouraging lone parents. Examine the ways in which laws and social policies affect family life (24marks) Laws and social policies can affect the family in a number of ways, it can differ from being beneficial to the families to having negative effects. Some examples of policies are china’s one child policy, the legalisation of abortion in 1967 and the divorce reform act in 1969. China’s one child policy was introduced in 1979, the policy was design to limit the number of children parents can have, this allowed most couples to only legally have one child, if couples had more than one child they would have to pay a fine and would not get all the benefits such as free child and health care that families who only had one child would. Women were strongly encouraged and pressured to be sterilised after having their first child. This policy was introduced...
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...The economic benefits of environmental policy A project under the Framework contract for economic analysis ENV.G.1/FRA/2006/0073 - 2nd FINAL REPORT November 2009 Matt Raymenta, Elke Pirgmaierb, Griet De Ceusterc, Friedrich Hinterbergerb, Onno Kuikd, Henry Leveson Gowera, Christine Polzinb, Adarsh Varmaa a b c d GHK Sustainable Europe Research Institute (SERI) Transport & Mobility Leuven VU University Amsterdam, Institute for Environmental Studies (IVM) Institute for Environmental Studies Vrije Universiteit De Boelelaan 1087 1081 HV AMSTERDAM The Netherlands Tel. ++31-20-5989 555 Fax. ++31-20-5989 553 E-mail: info@ivm.falw.vu.nl Internet: http://www.vu.nl/ivm vrije Universiteit amsterdam Contents Executive Summary 1. 2. 3. 3.1 3.2 3.3 3.4 3.5 3.6 4. 4.1 4.2 4.3 4.4 4.5 4.6 5. 5.1 5.2 5.3 5.4 5.5 5.6 6. 6.1 6.2 6.3 6.4 6.5 6.6 7. 7.1 7.2 7.3 7.4 7.5 8. 8.1 Introduction Environmental Policy and the Economy Environmental Policies and Productivity Description and background Policy instruments Review of evidence from the wider literature Evidence from examples and case studies Scale of economic benefits to date and assessment of the further potential Beneficiaries and timescale Environmental Policies and Innovation Description and background Policy instruments Review of evidence Examples and case studies Scale of economic benefits Beneficiaries and timescale Environmental Policies and Employment Description and background Policy instruments Review of evidence from the...
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...Short-Term Effects on Vehicle Growth, Congestion, and Fuel Consumption J un Y an g, Yi ng Li u, Pi ng Q i n, an d An tu ng A. Li u Environment for Development Centers Central America Research Program in Economics and Environment for Development in Central America Tropical Agricultural Research and Higher Education Center (CATIE) Email: centralamerica@efdinitiative.org Chile Research Nucleus on Environmental and Natural Resource Economics (NENRE) Universidad de Concepción Email: chile@efdinitiative.org China Environmental Economics Program in China (EEPC) Peking University Email: china@efdinitiative.org Ethiopia Environmental Economics Policy Forum for Ethiopia (EEPFE) Ethiopian Development Research Institute (EDRI/AAU) Email: ethiopia@efdinitiative.org Kenya Environment for Development Kenya University of Nairobi with Kenya Institute for Public Policy Research and Analysis (KIPPRA) Email: kenya@efdinitiative.org South Africa Environmental Economics Policy Research Unit (EPRU) University of Cape Town Email: southafrica@efdinitiative.org Tanzania Environment for Development Tanzania University of Dar es Salaam Email: tanzania@efdinitiative.org Sweden Environmental Economics Unit University of Gothenburg Email: info@efdinitiative.org USA (Washington, DC) Resources for the Future (RFF) Email: usa@efdintiative.org The Environment for Development (EfD) initiative is an environmental economics program focused on international research collaboration, policy advice...
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...Program and Its Effects Evaluation Abstract. A car feebate program is one of governmental policies to improve our environment. It is designed to impose a fee on high-carbon vehicles and give a rebate to low-carbon vehicles, so that it aims to shift consumer purchases to low-carbon vehicles. Starting from 2015, Korean government will plan to implement this policy for this purpose. To evaluate the effectiveness of this policy, this paper conducts research from three different aspects: its effects on Korean auto industry, fiscal neutrality, and consumer welfare. Based on the evaluation, this paper concludes whether it is timely or premature that a car feebate program is introduced in Korea as planned. 1. Introduction Due to a fee imposed on high-carbon vehicles and a rebate given to low-carbon vehicles, the relative price adjustment arises among vehicles: the price of high-carbon vehicles relatively goes up, whereas that of low-carbon vehicles relatively goes down. This paper asks how this relative price adjustment affects Korean auto industry. Moreover, given the fact that this policy pursues “fiscal neutrality”, which means the amount of fees imposed equals to that of rebates given, this paper doubts whether or not it could secure the fiscal neutrality. Lastly, this paper shows how this policy influences on consumer welfare. As global warming has been getting worse due to vehicle exhaust emissions, many countries are introducing environment-protecting policies. A car feebate...
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...highly unlikely a new mother will take any longer than 12 weeks, no matter what job she has (Berger & Waldfogel, 2004). In fact, the United States has a very short maternity leave when compared to other countries (Berger, Hill & Waldfogel, 2005). When making policies for maternity leave, companies fail to realize how short maternity leave can take away from the care the mother is able to give to her child. Also, short maternity leave can affect the mother’s mental health. This present paper will show how short maternity leave impacts breastfeeding, the health of child, and behaviors of the child and the mental...
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...------------------------------------------------- Policy Paper, spring 2012 ------------------------------------------------- Is a Greek exit from the European Union inevitable? 0909512 Table of Contents Pg. List of Illustrations 3 Executive Summary 4 1.0 Introduction 5 2.0 The Economic Cost and Benefit for State Membership of the EMU 5 2.1 Benefits of EMU Membership & Mechanisms 5 2.2 Costs of EMU Membership 7 3.0 Contextual Factors: The Profusion of Dept 10 3.1 The Eurozone Crisis 10 3.3 Greece- The Forefront of the Euro Area Crisis 13 4.0 Alternate Policies and the Effective Consequences 15 4.1 Predicament 15 4.2 Abetting Dependent on Austerity 16 4.3 Creditor-Led Default 17 4.4 Debtor-led Default and Greek Haircuts 19 4.5 Greek Exit 20 5.0 Recommendation 21 Appendices: Appendix 1: Preferential liberalization References List of Illustrations Pg. Illustration 1: The cost of EMU- Diminishing Domestic Flexibility to Asymmetric Macro Shocks 7 Illustration 2: Cost and benefit of Monetary Unions 9 Illustration 3: Evolution of Nominal Unit Labor Costs in the Eurozone Pre to the US Credit Crunch 9 Illustration 4: Current Account Balances in Percentage GDP 10 Illustration 5: Core Bank Exposure to the Weaker Eurozone Member States 12 Illustration 5: Holders of Greek Government Bonds and Dept (in...
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...Tutorial Test S1 2014 MACROECONOMICS 1 ECON 1102 School of Economics Australian School of Business Name:_____________________________________________________________________ Student number:_____________________________________________________________ Tutorial day/time:____________________________________________________________ Tutor’s name:_______________________________________________________________ 1. You must provide student ID before you begin the test. 2. You will have 30 minutes to answer all of the questions. 3. A non-programmable calculator may be used. 4. Answer the questions in the space provided on this test paper. 5. All electronic communication devices must be switched off. 6. Tutorial tests will be constructed from the following pool of short-answer questions. 7. Each Tutorial test will be comprised of a sufficient number of short-answer questions to add-up to a total of 20 marks. 8. The marks for each question provide an indication of how much is required to answer the question. 9. Tutorial tests may contain questions on different topics. 10. The set of questions used will vary across Tutorial tests. 11. Where questions have numerical parts, the actual numbers used will be changed for the Tutorial tests. 12. Since the following questions will be used; lecturers, tutors and PASS leaders will not provide help in directly answering the questions. The following equations describe planned spending for a closed economy. ( ) (a) Write out the equation for...
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...The concept of fiscal policy is the level of government spending and taxation set by the president and congress. Fiscal policy contains short term and long term effects; short run effects include fiscal policy on aggregate demand for goods and services. Long term effects are better saving and investments over the period of time. The government goes about changing the prices to obtain a stable prices, low unemployment and high growth. In the united states the legislative and executive branch is in charge of putting the policy in place. Fiscal policy can be used to stimulate a sluggish economy or slow down an economy that is growing too rapidly. Prior to the Great Depression the nation maintained economic stability by sustaining a balanced budget, soon they found out that more had to be done. President Roosevelt was the first to apply fiscal policy into the government’s economic system. When this policy was first implemented it didn’t seem to have great success and scholars report this was in part of the current economic condition as this was during the middle of the Great Depression. The late 1930’s proved to be the point when the fiscal policy was out into place most effectively. As WWII started employment rose, and the New Deal was implemented. This allowed government relief and new government organizations. The New Deal is actually what fueled the progress of fiscal policy. This was the first the government had intervened to help the citizen’s with their financial burdens...
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