Opposing Views of the Effectiveness of Monetary Policy Essay -- Econom

Opposing Views of the Effectiveness of Monetary Policy Monetary policy is a powerful governmental weapon which has historically proven that it is difficult to wield. This difficulty is one of the reasons why some economists doubt the effectiveness of monetary policy as a whole. These economists find that monetary policy is difficult to implement because of estimation problems and time lag problems, as well as cyclic effects. They also point out situations in which monetary policy may not work at all. On the other hand, some economists swear by monetary policy as one of the most influential economic tools. These economists show that controlling money supply in America is a relatively young idea, and is developing rapidly. They also attempt to show that money supply affects many variables in our economy, and that it is useful in more situations than the anti-monetary policy economists, Keynesian economists, would have us believe. To gauge the ineffectiveness of monetary policy some economists call our attention to the great depression. How could governmental monetarists allow one quarter of the country to be unemployed[1] or for one third of commercial banks to be put out of business by â€Å"bank panics?†[2] People who took part in these bank panics were not only taking out their â€Å"own† money, but were taking out possible loans for others (the amount they took out multiplied by the money multiplier) which eventually became 31% of the total money supply.[3] The economist best fit to use monetary policy would be able to tell the future, or at least provide a pretty good estimate. These estimates are very difficult when sometimes the results of policy actions are not seen for months to over a year. Corrections of these ... ...ed: Mishkin, F.S. The economics of Money, Banking, and Financial Markets. Sixth Edition. 2003. Schwartz, A.J. Money Supply. The Concise Encyclopedia of economics. The Library of economics and Liberty. Online: http://www.econlib.org/library/Enc/MoneySupply.html Meltzer, A.H. A Liquidity Trap? Online: http://www.gsia.cmu.edu/afs/andrew/gsia/meltzer/a_liquidity_trap.pdf Online: http://www.korpios.org/resurgent/Fed.htm What Role did the Fed Play in Causing the Great Depression? Ueda, K. Speech at Japan Society of Monetary economics. December, 2001. Online: http://www.boj.or.jp/en/press/koen072.htm#0202 Online: http://www.arts.unimelb.edu.au/amu/ucr/student/1997/Yee/depression.htm The Cause of the Great Depression in 1929. Online: http://www.shambhala.org/business/goldocean/causdep.html What Caused the Great Depression of the 1930’s?

Oppisition Arguments Essay

Animals deserve the same rights as people because they can feel pain; therefore, everyone in the world should become vegetarians. Animals do not deserve the same rights as humans. If so then we should give plants and vegetables rights as well. We kill a lot more plants then we do animals, so I believe that everyone should eat strictly meat only. America should not act as a â€Å"World Policeman† because it has enough domestic issues of its own to deal with. Even though America has a lot bases throughout the world, this does not mean that we are the world Policeman. We are just helping our allies so we could keep trading with these countries for natural Resources. Immigration should be allowed without any caps because it brings in skilled workers and increases the cultural variety of American Society. If we decided to take the cap off on immigration then we can see a lot more businesses hiring cheaper labor which means the unemployment percentage will go up and cause us to have another great depression. Parents should never be held responsible for the crimes of their juvenile children because children should be held responsible for their own actions, even if it means trying them as an adult. Parents should be held responsible for their kids because it is their job to raise them and look after them. If they were watching their kids then their kids probably wouldn’t be committing crimes. Beauty pageants are a fantastic way for young girls to increase their self-esteem, practice public speaking and cultivate their talents. Beauty pageants are one of the worst places for young girls to increase self-esteem. You’re in a competition were all the contestants are trying to be the most beautiful of them all and will try to put you down to win.

Learn to Calculate Percent Change

Percent increase and decrease are the two types of percent change, which is used to express the ratio of how an initial value compares to the result of a change in value. A percent decrease is a ratio that describes a decline in value of something by a specific rate, while a percent increase is a ratio that describes an increase in the value of something by a specific rate. The easiest way to determine whether a percent change is an increase or a decrease is to calculate the difference between the original value and the remaining value to find the change then divide the change by the original value and multiply the result by 100 to get a percentage. If the resulting number is positive, the change is a percent increase, but if it is negative, the change is a percent decrease. Percent change is highly useful in the real world, for example,  allowing you to calculate  the difference  in the  number of customers who come into  your store daily or to determine  how much money you’d save on a 20-percent-off sale. How to Calculate Percent Change   Suppose the original price for a bag of apples is $3. On Tuesday, the bag of apples sells for $1.80. What is the percent decrease? Note that you would not find the difference between $3 and $1.80 yielding and answer of $1.20, which is the difference in price. Instead, since the cost of the apples has decreased, use this formula to find the percent decrease: Percent decrease (Older – Newer) à · Older. (3 – 1.80) à · 3 .40 40 percent Note how you convert a decimal into a percent by moving the decimal point twice to the right and tacking on the word percent after that number. How to Use Percent Change to Alter Values In other situations, the percent decrease or increase is known, but the newer value is not. This may occur at department stores that are putting clothing on sale but don’t want to advertise the new price or on coupons for goods whose prices vary. Take, for example, a bargain store selling a laptop for $600, while an electronics store nearby promises to beat the price of any competitor by 20 percent. You would clearly want to choose the electronics store, but how much would you save? To calculate this, multiply the original number ($600) by the percent change (0.20) to get the amount discounted ($120). To figure out the new total, subtract the discount amount from the original number to see that you would only be spending $480 at the electronics store. In another example of altering a value, suppose a dress regularly sells for $150. A green tag, marked 40 percent off, is attached to the dress. Calculate the discount as follows: 0.40 x $150 $60 Calculate the sales price  by subtracting the amount you save from the original price: $150 - $60 $90 Exercises With Answers and Explanations Test your skills in finding percent change with the following examples: 1) You see a carton of ice cream that originally sold for $4 now selling for $3.50. Determine the percent change in the price. Original price: $4Current price: $3.50Percent decrease (Older – Newer) à · Older(4.00 - 3.50) à · 4.000.50 à · 4.00 .125 12.5 percent decrease So the  percent decrease is  12.5 percent. 2) You walk to the dairy section and see that the price of a bag of shredded cheese has been reduced from $2.50 to $1.25. Calculate the percent change. Original price: $2.50Current price: $1.25Percent decrease (Older – Newer) à · Older(2.50 - 1.25) à · 2.501.25 à · 2.50 0.50 50 percent decrease So, you have a percent decrease of  50 percent. 3) Now, youre thirsty and see a special on bottled water. Three bottles that used to sell for $1 are now selling for $0.75. Determine the percent change. Original:  $1Current:  $0.75Percent decrease (Older – Newer) à · Older(1.00 - 0.75) à · 1.000.25 à · 1.00 .25 25 percent decrease You have a percent decrease of 25 percent. Youre feeling like a thrifty shopper, but you want to determine the altered values in your next three items. So, calculate the discount, in dollars, for the items in exercises four through six. 4.) A box of frozen fish sticks was $4. This week, it is discounted 33 percent off the original price. Discount: 33 percent x $4 0.33 x $4 $1.32 5.) A lemon pound cake originally cost $6. This week, it is discounted 20 percent off the original price. Discount: 20 percent x $6 0.20 x $6 $1.20 6.) A Halloween costume usually sells for $30. The discount rate is 60 percent. Discount: 60 percent x $30 0.60 x $30 $18