Current Focus on Inflation within the American Economy
A review of two articles examining US monetary policy: "U.S. Monetary Policy: An Introduction" published by the Federal Reserve Bank and "Allowing Himself a Smile" published by "The Economist".
# 105214 | 884 words | 3 sources | APA | 2008 |
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This paper discusses two articles focusing on monetary policy, the role of the Federal Reserve, and inflation, which are all connected to scarcity, choices, tradeoffs, and opportunity cost. The paper relates that information from the two articles, "U.S. Monetary Policy: An Introduction" and "Allowing Himself a Smile", could be closely linked and analyzed using the macroeconomic tools but the connection with scarcity and opportunity cost presents the analysis in a microeconomic framework, since the articles focused on decision making for the government as an entity.
From the Paper:"Scarcity within this context relates to the fact that as a society resources are scarce and choices have to be made, hence there is always an alternative that has to be forgone, the value of this forgone alternative is called the opportunity cost. Monetary policy highlights that when an economy does not have enough resources (scarcity), and demand is high the economy will self-regulate and increase prices (demand-pull inflation), or if the supply of a resource commodity is limited, this can cause cost push inflation (like the rise in oil prices leading to inflation). Correcting inflation via monetary policy highlights how an economy overall has to make choices, whether it be consumers or the government and the associated cost of these choices is indicative of how an economy maintains macroeconomic stability."
Sample of Sources Used:
- Federal Reserve Bank, (2004). U.S. Monetary Policy: An Introduction. Federal Reserve Bank of San Francisco Publications. Retrieved August 29, 2007 from http://www.frbsf.org/publications/federalreserve/monetary/MonetaryPolicy.pdf
- The Economist, (2007 July). Allowing himself a smile. The Economist: Monetary Policy. July 19. Retrieved on August 29, 2007 from http://www.economist.com/finance/displaystory.cfm?story_id=9516503
- The International Herald Tribune, (2007 August). Unemployment rate edges up to 4.6 percent in July as job growth slows. The International Herald Tribune. Retrieved August 29, 2007 from http://www.iht.com/articles/ap/2007/08/03/business/NA-FIN-ECO-US-Economy.php
Cite this Article Review:
Current Focus on Inflation within the American Economy (2008, July 01) Retrieved December 03, 2023, from https://www.academon.com/article-review/current-focus-on-inflation-within-the-american-economy-105214/
"Current Focus on Inflation within the American Economy" 01 July 2008. Web. 03 December. 2023. <https://www.academon.com/article-review/current-focus-on-inflation-within-the-american-economy-105214/>