Principles of Economics.Monetary Policy and the Federal Reserve Essay Example for Free

Principles of Economics.Monetary Policy and the Federal Reserve Essay Investment and consumption decreased during the 2007 and 2009 recession. Government expenditure can increase Aggregate demand because it increases liquidity in the market. The government may operate below full employment when job seekers are more than available job hence end up accepting low wages. The multiplier can have a negative effect when people lose jobs as a result of government cut spending. This causes initial decrease in national income. The relationship between marginal propensities and multiplier is that an increase in MPC leads to an increase in multiplier. Similarly, increase in MPS causes a decrease in the multiplier (Farmer, 2008). 2. Fiscal Policy                9/11 attack led to decrease in aggregate demand, in United States. An example of a sector that was hit hard is entertainment and travel sectors. It also led to decrease in personal consumption. The attack caused an increase in equilibrium price levels. This is because there is an inverse relationship between Aggregate demand and equilibrium price levels.An Expansionary fiscal policy and Contractionary fiscal policy is used to increase aggregate demand. Expansionary fiscal policy is a policy used during the recession to increase AD by increasing government spending or decreasing taxes. Contractionary fiscal policy is used during inflation in order to decrease AD by decreasing government spending or increasing taxes (Farmer, 2008). After September 11’s attack, the government increased expenditure in different sectors such as national defense. 3. Money and Banking                Factors that led to the mortgage default crisis is much borrowings and flawed financial modeling majorly based on an assumption that prices of homes only go up, greed and fraud. Mortgage defaults affected lending banks in that their loans were not repaid leading to huge losses. In many cases, they got real estate that was valued far below what mortgage was when borrowers had a note. Default of bonds income backed by mortgage loans was interrupted banks were left with unwanted real estate (Friedman, 2010). Securitization is pooling different types of contractual debt. TARP is a program formed by the government of US to buy assets and equity from institutions that offer financial services in order to strengthen the financial sector. TARP opened a window of opportunity for banks to pay their own debt and acquire other businesses instead of lend money to private sectors. The Federal Reserve injected funds into the credit markets in order to help them lend again. It also reduced the target federal funds rate. Major provisions in the Wall Street Reform and Consumer Protection Act include Office of Insurance which creates Federal Insurance Office that monitors aspects of the insurance industry and Consumer Protections that creates Consumer Financial Protection Agency which protects Americans from unfair financial products and services. 4. Monetary Policy and the Federal Reserve                The Federal Reserve System refers to the central banking system of United States. Fed was launched in response to a series of financial panics. Federal Reserve Bank of Atlanta covers the states of Alabama, Georgia and Florida, 74 counties in Tennessee, 38 parishes of Louisiana, and 43 counties of Mississippi. William H. Rogers, Jr is the current Chairman of this Fed. This fed should remain politically independent because its rate is determined by market and is not explicitly determined by the Fed. The target for federal funds is adjusted by 0.25% or 0.50% at any given time. Fed give liquidity to banks to enable them gives credit in times of recession. Federal Open Market Committee is a committee in Federal Reserve System that is charged with the responsibility of overseeing the country’s open market operations. Fed should decrease their rates to help spur the economy of US. This is expansionary monetary policy (Axilrod, 2011). 5. Free Trade                I support free trade and the NAFTA. They are based on comparative advantage. Countries produce what they can export cheaply. US exports goods like corn and meat to Mexico. Some of goods imported into USA include snacks and processed fruits. However, despite the having the benefit of increasing growth and collaboration between countries, free trade has the cost of dumping goods into the country and destroying infant industries. Free trade should be restricted on some goods like natural resources. 6. Foreign Exchange                US dollar is currently losing value against the euro. This is because the European Union is finding solution to Euro crisis. Dollars are supplied by the Central Bank of USA. A dollar loses value when its demand goes down. For example, whenever US citizens buy products from Germany, the demand for Euro goes up against the Dollar. A falling US Dollar increases ones travel expenses. This is because has to use more dollars to buy a foreign currencies which are expensive. However, a cheap dollar is bad for the US economy because it discourages exportation. A free floating exchange rate refers to a monetary system whose exchange rates are free to move due to forces of the market without intervention by the government (Friedman, 2010). References Axilrod, S. H. (2011). Inside the Fed monetary policy and its management, Martin through Greenspan to Bernanke (Rev. ed.). Cambridge, Mass.: MIT Press. APA formatting by BibMe.org. Farmer, R. E. (2008). Aggregate demand and supply. Cambridge, Mass.: National Bureau of Economic Research. Friedman, M., Heller, W. W. (2010). Monetary vs. fiscal policy. New York: Norton. Starr, R. M. (2011). General equilibrium theory: an introduction (2nd ed.). New York: Cambridge University Press. Source document

Power of the Medical Monks Essay -- Sharp Pain, Machine Gun

Sharp pain. You look down and see a spreading patch of red. You know the end is near as you drop to the ground. Your rifle landing next to you. BANG! The men around you fire and advanced. This land has been at war with itself for a year. In the distance you see the gray uniforms of the Confederates. Next its all black. You awaken to see a lull in the fighting as two men pick you up on a litter and carry you to the waiting Carriage. While Napoleon’s personal surgeon Dominique-Jean Larrey, invented the â€Å"flying ambulance† the worlds first modern version of a ambulance service.(5) True battlefield medicine, and in correlation to this true EMS, did not begin until Dr. Letterman established the three tier battlefield medical system(1). This comprised of an aid station, the patient would then be transferred to a field hospital, and finally a regular hospital. This system revolutionary at the time of design(civil war) increased survival rates, and started to promptly provide medical care. (3) At the beginning and before the civil war there was little in the way of Sanitary practices. There was also little in the way of an actual Medical corp. The surgeon general at the time, Thomas Lawson no M.D., thought that sanitary practices were â€Å"unnecessary† at that his methods were â€Å"adequate and effective†. Lawson attained this position through seniority before being impeached through public opinion. Following his impeachment then allowed for the creation of the Sanitary Commission(early form of the Red Cross), as well as the implementation of Dr. Letterman’s three tiered approach. If it wasn’t for innovations like these our entire medical practice would be years behind what it is.(1) Rat-a-tat-tat, Rat-a-tat-tat. The sharp crack of machine ... ...imited than that of non-military M.D‘s or D.O.’s. Most military doctors are trained in multiple disciplines. The main reason for this is due to the instability of there responsibilities. A M.D. in the military can be treating mal-nourishment one minute, and rapid hemorrhaging the next. Combat Medics skill set hasn’t changed much; however, now there trained in some psychology. Military Medicine has a long and noble history filled with twists, and turns. Today practicing medicine in the military has allowed us to bring more men and woman home from combat; A standard that, while sadly exists, is welcome. Military health professionals prove a vital and necessary service, one that goes unsung. Today military medical professionals are warrior monks on the battlefield, they practice a peaceful art in a dangerous area. Saving the lives of everyone regardless of creed.

Comparison of Urban Sociological Theories Essay

Comparison of Urban Sociological Theories In order for an urban sociologist to discover â€Å"How urban societies work,† theories of â€Å"urban ecology† or â€Å"political economy† are used as a guide in their research. Urban ecology refers to the importance of social structure and social organization as shaping social life in the city. Urban ecologist concerns for social order, social cohesion, community ties and social differentiation offer key insight to how societies work (Kleniewski, 2001). Alternatively political economy stresses the use of power, domination and resources in the shaping of cities (Kleniewski, 2001). Urban sociologists’ theoretical approach to research questions is based on fundamental assumptions that they find most useful for understanding the operation of the social world. Therefore researchers using these different theories will ask different questions, examine different data and interpret their findings in different ways (Kleniewski, 2001). In the early years of 1910-1920, a time of social change and urban growth, urban sociologists in the United States, the Chicago School, were directly confronted by the diversity, liveliness and apparent fragmentation of urban life. The urban sociologists of the Chicago School drew a concern for order, cohesion and social relationships (Kleniewski, 2001). The founder of the Chicago School of urban sociology was Robert E. Park. He believed that cities are like living organisms, composed of interconnected parts and that each part relates to the structure of the city as a whole and to the other parts (Kleniewski, 2001). Park called his approach to urban life â€Å"human ecology,† a term used interchangeably with â€Å"urban ecology. Human ecology studies the â€Å"social norms† which are rooted in the relationship between human populations and the environment or territories they inhabit, stressing the orderly interaction of interdependent parts of social life in urban areas (Kleniewski, 2001). Human ecologist, Louis Wirth shared with the theoretical antecedents of urban ecology, Tonnies, Durkheim and Simmel, the notion that social interactions in cities were different from social interactions in rura l areas or small communities. He believed that social interactions in modern industrial cities were impersonal and fragmented. He believed that factors such as size, density, and heterogeneity were responsible for social relations found in cities (Kleniewski, 2001). This theory of human ecology was used to study human behavior such as, lives of gang members, homeless people and immigrants and to study changing land uses over time in order to show how the different populations of the city adapt to and compete for territories (Kleniewski, 2001. In comparison to urban ecology, political economy is concerned with how urban societies work. Although, political economist developed different understandings and interpretations of how urban societies actually work. In the 1970’s the city had many social problems which included welfare, unemployment and tax inflations. Theorist of political economy, Marx, Engels and Weber viewed the city as a site of struggle due to unequal distribution of resources (Kleniewski, 2001). Therefore in contrast to the urban ecology theory of humans being immediately dependent on their environment, the theory of political economy stresses that the city relies not only on its environment but its social arrangement, economic and political functions. Also in contrast to urban ecology, residential patterns are not only influenced by humans just adapting to their natural environment but by economic inequalities. This leads to competition. In contrast to urban ecology, competition not just among groups for space but among groups for control of economic resources. Political economists theorize that â€Å"social norms,† in contrast to urban ecology are not only influenced by size and density of the population but also influenced by the values of dominant groups (Kleniewski, 2001). These struggles or social forces help shape urban patterns and urban social life. Therefore, class, social status, political power, racial and ethnic conflicts also play a major role in shaping the city (Kleniewski, 2001). The Political Economy Perspective

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