Monetary Policy in 2007 Recession Essay Example | Topics and Well Written Essays - 500 words

Monetary Policy in 2007 Recession - Essay Example Notably, the monetary policy influenced the cost of credit and circulation of money. The heightened control of the availability of money promoted a healthy economy amidst the terrible crisis that threatened to reverse the gains the United States had achieved. The Federal Reserve Bank employed vibrant measures of boosting the economy by lowering the interest rates and skillfully controlling the amount of the bank reserves and offsetting the monetary shocks including the financial panic (Blinder & Zandi, 2010). In this respect, the monetary policy averted the economic collapse in the United States amidst panics over the solvency of numerous financial institutions. The Federal Bank adopted a comprehensive action plan that encompassed the lowering of the interest rates. The zero-rating of the interest coupled the decrease in the rates. The bank bought the Treasury bonds, as well as other securities in order to cut the long-term interest rates. In concerted efforts with the Federal Deposit Insurance Corporation that increased the deposit insurance limits, the Federal Bank spearheaded the actions of putting downward pressure on the long-term interest rates (Blinder & Zandi, 2010). The action was instrumental in facilitating the households and businesses to borrow funds. In this respect, the Federal Bank made the money available for the citizens and businesses to acquire during the severe 2007 economic downturn. In essence, the adoption of the monetary policy spurred aggregate demand and the revitalized real economic activities. Arguably, the policy cushioned the US economy from plunging into unprecedented inflation. The significant tightening of t he monetary policy by the Federal Reserve influenced faster economic recovery during the 2007 financial crisis (Carvalho, Eusepi, & Grisse, 2012). The policy shaped the aggregate demand in the United States.     

Comparing and contrasting Essay Example | Topics and Well Written Essays - 1500 words

Comparing and contrasting - Essay Example provision with respect to the control of finances, power of the electorate in respect of amendment of the constitution as well as the role of the prime minister and president in both Australia and USA. Finally, the paper presents the person who established the Constitution for the respective countries and discuss the importance of such an individuals or entity. The powers of the state in both countries are limited by the legislature and judiciary. The High Court of Australia and the legislature check on the powers of the state. The Australian Constitution Section 61 The first sight examination of Australia and USA reveals similar systems of government. The two nations have federated nations. The power to govern is therefore shared between national and state governments. Australian Constitution explicates the legislative, the executive, and the judicial arms of the Australian governance. However, Australia has a limited separation of powers. The members of Australian Executive are drawn from the legislature or parliament. On the other hand, the members of the Judiciary such as the High Court Judges are Governor General Appointees while being advised by the Executive (Saunders, 2008). On the other hand, the Constitution of United States illustrates the separate legislative, executive and judicial arms of the governance. Unlike, Australia the US Constitution prohibits the members of Congress including the House of Representatives and the Senate from being appointed to executives offices. Moreover, the United States’ cabinet members can never be members of legislature, unlike Australia and hence the US President and Secretaries are prohibited from being members of the Congress. The parliamentary sovereignty in both countries arises from their role of law making process as all the bills must be passed and approved by the parliament. However, in the United States the Supreme Courts can trim the laws made based on their wisdom, constitutionality, and workability.