Setting Macroeconomic Policies

Inflation is a situation in the economy whereby the prices of goods and services continue rising while the income of consumers remain the same. During inflation times many people lose jobs and the cost of acquiring raw materials goes up resulting to increases in prices of commodities and many employees are laid off.Advertising We will write a custom essay sample on Setting Macroeconomic Policies specifically for you for only $16.05 $11/page Learn More The government through the central bank should effect policies such as the monetary policy, fiscal policy and wage control policies that shall reverse this situation. The monetary policy is aimed at reducing the amount of money in circulation and reducing its supply by the central bank. Initially, the government sets the inflation target and the Monetary Policy Committee forecasts the expected future inflation through economic statistics and imposes measures to curb it so as to meet the target (Pettinger 20 07). One of the measures is increasing the interest rates if the inflation rate is expected to go beyond the target. When the interest rates are high, they discourage people and banks from borrowing funds thus reducing money at their disposal. The high cost of borrowing imposed on commercial banks as they acquire funds from the central bank forces them to extend the cost to consumers, in terms of high interest rate. On the other hand, the central bank should increase reserve requirements where the commercial banks are expected to keep a certain amount of money with the central bank. Under this policy, the amount is increased up to the level the banks will be able to reduce money in circulation. Besides, the government can use the fiscal policy that involves increasing taxes coupled with a reduction on its expenditure. When taxes are increased, the amount of income at people’s disposal is reduced proportionately with the rate. This has the effect of decreasing the profits comp anies get, salaries and wages. It’s worth noting that the government spends a lot of public funds on various projects such as construction of roads, electricity and telecommunication. This kind of expenditure increases money available to the public increasing the possibility of inflation in the economy. Hence, if the government could cut its expenditure on infrastructure and other projects, it could curb inflation effects.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Another policy is that of wage rate control where employers are required to pay their employees for labor service up to a given level. This too is aimed at decreasing the amount of money the employees can access at a given time. The implications of this policy are that, the employees’ purchasing power is limited. Their demand for commodities is reduced and this pulls the prices down thereby curbing inflation. F inally, the government can employ supply side policies although they take time to reverse the effects of inflation (Pettinger 2007). Unemployment is a situation where there are no jobs to people who have the skills and experience for such positions. This at times arises out of retrenchment where employers lay off some workers to reduce the costs of production so that they can maximize their profits. This situation renders many people jobless affecting their living standards resulting to depression and suicidal attempts as those experienced during the great depression in the world economy. The government should hold talks with the employers and ask them not to lay off their employees, but instead reduce their working hours when the demand for their goods and services goes down. In addition, the government should provide incentives to the private sector by lifting tax and other barriers to job creation (Weisbrot 2011). These barriers include licensing, registration, and other industri al regulations. Lifting tax on the private sector has the effect of attracting investors from abroad to invest in the domestic country, creating more job opportunities. When taxes on the private sector are lifted their expenditure reduces significantly creating additional money to pay workers hence no need to lay them off. The government can also take an unemployment insurance to cover the expenses by the private sector for retaining workers despite the looming economic turn-down.Advertising We will write a custom essay sample on Setting Macroeconomic Policies specifically for you for only $16.05 $11/page Learn More The government can speed up the country’s GDP by ensuring that its projects and programs are finished in time as they contribute significantly to economic growth. On the other hand, it can limit imports allowing it only to capital goods that are not produced within the country or whose cost of production is high (Morrison 2006). Also, employing cheap labor will help cut costs involved in the country’s production and also increase the production levels. This in return has the effect of creating employment opportunities for those who qualify for it. Other approaches the government can take include economic reforms to ensure that mechanisms that have been devised are adhered to by employing the right people for the right jobs. Economic reforms also deal with ensuring that taxes are collected in time and at least everyone pays tax. Taxes such as value added tax on commodities indirectly imposed on goods helps to create equality in the economy in the sense that, even the poor person who buys from the market is taxed. Removing price controls will also allow market demand and supply forces to determine prices as these controls are deemed by the employers as unfair to their businesses. They in turn react by hoarding commodities until their prices rise significantly. Price controls are viewed by economists as temp oral tools of curbing inflation which lead to shortages of essential commodities such as sugar, rice, flour among others. When these shortages last for long, they impact negatively on the lives of the consumers leading to deteriorating health status especially of the poor from developing countries whose governments have complicated bureaucracies to correct such situations. Investing in education has a role to play in healthcare, well-being and social care of people (Lardy 2007). This is because educated people are well equipped with basics of public health and this in return accords them good life. The government can also open up health facilities across the country to cater for the sick because it is believed that, a health nation has got health people.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Many people from developed countries have access to social care facilities and this enables them to enjoy quality lives. Hence the government should invest substantive funds of its budget on education, healthcare and social well being of its citizens if it has prospects of facilitating its GDP growth. Finally, for the country to experience a stable growth in its GDP, then they need to revive their stock market. This has to do with first educating people on financial skills and how to be risk averse in portfolio management. In case the stock market is revived, then they should allow at least 75 percent of their citizens and only 25 percent of foreigners to invest in the exchange market. This provides opportunities for the locals to grow economically. References Lardy, N 2007, China: Rebalancing economic growth, Peter Institute of International Economics. Morrison, W 2006, China’s economic conditions. Web. Pettinger, T 2007, Policies to reduce inflation. Web. Weisbrot, M 2011, How to reduce unemployment and revive the economy. Web. This essay on Setting Macroeconomic Policies was written and submitted by user Dirty F0x to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Characters Migrate Essays

Characters Migrate Essays Characters Migrate Essay Characters Migrate Essay The epigraph to Mister Pip characters migrate relates to both the protagonist Pip in Great Expectations and Mantilla In Mister PIP. Throughout both novels these characters migrate physically from place to place, which Initiates a cognitive migration in their values and attitudes. This migration presents the themes of family, honesty, hard work, imagination and religion to the reader. At the start of Great Expectations Pip is a simple country boy of seven years, content with his status and future who knows no way of life other than his own. This changes hen PIP vaults Sati House for the first time and meets Estella who snubs him because of his working class ways. This physical migration to Sati House causes PIP to undergo a cognitive migration. When he returns home that day he thinks: I wished Joe had been more genteelly brought up and then I should have been too. Pip now longs to have a higher status and to be a gentleman. These first migrations position the reader to endorse the value of self-improvement and wish, along with Pip, for him to become a gentleman and win Estella. Eventually Pips wishes come true when he least expects it. My dream was out, my lid fancy was surpassed by a sober reality. With his migration to London imminent Pip begins another cognitive migration, becoming proud, arrogant and condescending, even towards Joe and Biddy. Before leaving for London he says to Biddy Joe is a good dear fellow-but he is rather backward in some things, for instance Biddy, In his learning and his manners. Here Pip a cts superior and judgmental of Joe, someone who he used to admire and emulate. This signals the migration of his values, from the ones Joe brought him up with, family, honesty and hard work, to the values of pride arrogance and status. Pips physical migration to London to begin his career as a gentleman further develops his arrogance and he also becomes very extravagant and materialistic. l soon contracted expensive habits and began to spend an amount of money that within a few short months I should have thought almost fabulous. During this stage in Pips migration we are positioned to reject the values of materialism, arrogance and extravagance through the older Pips narration, which condemns his excessive spending, and his treatment and attitude towards Joe. When PIPs mysterious benefactor Is revealed to be the convict Magnetic, Pip Is militate that his fortune came from someone so far beneath him and wants nothing to do with his patron. The abhorrence in which I held the man, the dread I had of him, the repugnance with which I shrank from him could not have been exceeded if he had been some terrible beast. Pips judgment of Magnetic reflects his values at this point: status, appearance and materialism. Pip doesnt recognize all the good qualities in Magnetic and the sacrifices he has made for him. It Is only a serves AT untenanted events Ana Pensacola amalgamations Tanat launch PIPs an cognitive migration. This includes his heartbreak, when Estella decides to marry Bentley Drummed and all the expectations, hope and dreams he has cherished since childhood are destroyed. This rejection makes him begin to realism that despite attaining wealth and class, he has not attained Estella and that his social improvement is unrelated to his real worth. When Pip visits Miss Having and she offers him money, Pip refuses it and instead insists the money to go to Herbert. This event shows that, at heart Pip is beginning to place kindness before his other unrealistic values. Following Pip and Mastitiss failed escape, Magnetic is sent to Jail. Pip visits him every day, holds his hand during the trial, and sits with him until his death. For now my repugnance to him had all melted away and in the hunted, wounded, shackled creature who held my hand in his, I saw only a man who had felt affectionately, gratefully and generously toward me with great constancy through a series of years. Pips behavior during these times shows his new feelings towards Magnetic, who he has now recognized as his second father. Pip no longer cares about social class; he only sees how good Magnetic has been to him and realizes from this how bad he has been to Joe. His morals have migrated and he knows that love and loyalty are more important than class and wealth. In the last chapters of the book the themes of family, honesty, hard work and self-improvement are emphasized by his mi gration to Cairo, where he makes a life for himself through hard work and finally his reunion with Joe and Biddy. At the opening of Mister Pip Mantilla is an innocent thirteen-year-old and, like Pip she is content with her simple island life. When the blockade is imposed, the school reopens with Mr. Watts as the teacher and Mantilla makes her first physical migration, to school. Mantilla going to school is the major event that begins all her cognitive migrations. At school Mr. Watts introduces the children to Mr. Dickens and reads them Great Expectations, the story that immediately enthrall Mantilla. Mr. Watts had given us kids another world to spend the night in. We could escape to another place. It didnt matter that it was Victorian England. We found we could Just as easily get there. Pip becomes a friend for Mantilla and the world of the book offers an escape from her difficult life during the war. Gradually, the world of Great Expectations begins to feel more relevant to Mantilla Han the island traditions, family trees and Christian beliefs her mother drums into her. This is her cognitive migration, when her attitudes and values begin to be taken from the characters and situations of Great Expectations. Through Pip, Mantilla gains new outlooks on her own circumstances: Now that I had met Miss Having and knew more about her unhappy past, I had changed my mind about my mum being like Pips sister. She had more in common with Miss Having- Miss Having who cannot move on from the day of her greatest disappointment. This shows that Mantilla has been able to understand her mothers feelings a little better through Great Expectations. As ten novel continues Mahatma Deigns to emulate away Trot near mother Ana near mothers views similar to when Pip migrates away from Joe and his values. L knew that orphaned white kid and that small, fragile place he squeezed into between his awful sister and lovable Joe Gagger because the same space came to exist between Mr. Watts and my mum. And I knew I would have to choose between the two. Mantilla knows she will have to choose which values she will adopt in her own life: her mothers or Mr. Watts. In this way Mister Pip is different to Great Expectations a s it presents the themes of religion and imagination through Mantillas role models rather than honesty, hard work and family. Eventually after Mantilla has migrated to Australia, New Zealand and England and reached adulthood, you can see that she has chosen features of both her mother and Mr. Watts values Oust as Mr. and Mrs. Watts decorated their daughters spare room with aspects of both cultures in order for her to choose for herself) and forged her own identity in her final cognitive migration. Therefore at the end of Mister Pip, the reader is positioned to endorse the homes of religion and imagination as they are both presented in a positive light, and Mantilla demonstrates that they can coexist. In both novels the protagonists go through many physical and mental migrations. Both begin in a place where they are satisfied, before they are given a taste of another world, which initiates their cognitive migrations until they reach mental and physical contentment. These characters migrations present the themes of family, honesty, hard work, imagination and religion to the reader, as these are the values the characters finally value and adopt for themselves.