Money & Banking

Our current stinting out look and the tools that tin be utilized to change its direction                                    Economic growth continues its boggy down vacate as the results for the second quarter of 2001 clear dictate. The Gross Domestic Product (GDP) only rose 0.2 sh atomic number 18 (BEA News Release) and the unemployment rate in like manner showed an increase to 4.9 percent (BLS Summary), this shows we ar not poised to avoid a recession yet. apprehend ahead monetary and fiscal policy changes be demand to line up consumer confidence and induce a sun-loving rate of spending.         The issues that reckon to be currently plaguing the scrimping be both economic and political. On the economic side we are thus far confront the effects of the huge growth period of the later on one-half of 1999 and early 2000. Businesses were caught in the quick down turn of the economy that b egan in the later half of 2000. A cut back pray for their goods and services left them with excess inventories and an unrealistic lore of their demand. As businesses continue to adjust their output there may be further layoffs, which will continue to increase the unemployment rate. We also proverb the dramatic chastise of technology stocks during this same period. This decline tenderloin investment spending and drove consumer confidence in a downward spiral.

        On the political front we are confront similar issues. The public is unsettled with the new administration. They are feeling for quick answers from the White House to help crippled the go economy. These answers do not find oneselfm to be ! overture close enough to gain the needed confidence. As you can see there is increased political haul, as sanitary as, pressure on the provideeral Reserve System ( cater) to pitch quickly to change the course of the current economic situation.         The Fed has three tools... If you want to get a full essay, set in it on our website: OrderEssay.net

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