Essays on Deflationary

1) Which were the primary causes of the Great Depression? According to Walton and Rockoff, an acceptable explanation for the Great Depression has to distinguish between the initial forces, which brought a downturn in financial activity, and later events, that turned a downturn into a calamity. We can detect two issues on the economy that foreshadowed the real slump in economic activity. First, there was a decline in the construction industry that began 1925, that had a significant impact on the depression. Second, the agricultural sector suffered greatly, with falling world prices and massive indebtedness (422). Walton and Rockoff ...

Gupta and Goldfajin defined a tight monetary as “a case in which real interest rates in the aftermath of the crises are higher than the average real interest rate during the 24 months preceding the crises”(Goldfajn and Gupta, 1999, p.4). The primary objective of ensuring that the monetary policy is tightened is to make sure that the supply of money in the economy is reduced and also to ensure a conducive environment for businesses. For a commercial bank to lend money, there are a lot of factors that it considers. Some of the factors include the volume of ...

Financial risk of an enterprise can be defined as the probability of adverse financial consequences in the form of loss of income and capital under uncertainty conditions for its financial activity. Financial risks have a great variety and for the implementation of effective management are classified by several main features that will be considered below. Financial risks arises in the process of enterprise relationships with financial institutions (banks, financial, investment, insurance companies, stock exchanges and others). Causes of the financial risk are inflation factors, the growth of bank interest rates, reduction of the value of securities and others.

Financial risks are roughly divided into two types:

1) ...

Introduction

The Great depression was an intense worldwide economic depression preceding World War II. This was in the time period of 1930s. This remains to be the most horrible economic phenomenon of the 21st century made of separable but interrelated events. The depression began in USA after the stock market crash of 1929 following the fall in stock prices; Black Tuesday. The resultant was devastating result on all sectors of the economy with employment loss among the employed. The Depression brought about mixed reaction among economists, historians and the political class. The economists’ failure to understand the development of contemporary ...

Article Review: Japan’s Growth Strategy is All Wrong

Abstract The article Japan’s growth strategy is all wrong is about the policies implemented by the Japan government led by Prime Minister Shinzo Abe that is viewed to jeopardise the country’s low interest rate environment that is conducive for spending and investment. The purpose of the student in writing this paper is to present the economic problem faced by Japan as an implication of the policies executed by the government, applying the concepts and principles that I have learned in my Economics. The article entitled Japan’s growth strategy is all wrong is about the ...

Historically, the United States economy has experienced recurring periods of demand-pull inflationary gap, deflationary gap and cost-push stagflation. Each economic era affects the country’s gross domestic product (GDP) and employment rates significantly. For example, the US economy suffered immensely from the prolonged deflationary gap, which was one of the key causes of the Great Depression. The Great Depression, experienced from 1928-1933, was one of the worst periods in the US economic history. Deflationary gap can simply be termed as an economic period associated with the decline in the prices of goods and services. Among the significant causes ...

Over the years and in all cultures of the world, people have always called for the truth. It is commonly taught as a societal virtue which all individuals have to master and perfect. In every facet of life, people are always asked to pursue the truth. Whether in religious terms or under societal teachings, people will forever ask for truth. However, there is an aspect that comes up when the concept of truth is further dissected. There rises a question as to what exactly the truth is and how it can be upheld. This essay seeks to look at the concept ...