Economy, Monetary Policy and Monopolies
The benchmark interest rate currently stands at 0.25% compared to 0.2500 that was registered in January 2011 (Trading economics, 2012). Meanwhile, the annual inflation has remained unchanged at 1.7% in June 2012. Inflation rate, here, means a general rise in prices measured against a standard level of purchasing power. GDP deflator and CPI are the most common measures of inflation. CPI measures consumer prices where as GDP deflator measures inflation in the entire domestic economy. Consumer price index for the urban consumers remained unchanged in June, 2012 albeit on a seasonally adjusted basis.
The last 12 months before June, 2012 registered an all items index of more than 1.7% before seasonal adjustments. The decline in index was offset by increases in indexes of for food and all items less food and energy. There was a fall in the energy index by a margin of 1.4%. Meanwhile, the gasoline index declined for the third month in a row. Other energy indexes nonetheless remained mixed. Food index however rose 0.2% in June. There was a rise of 0.2% in index for all items less food and energy in June, 2012, the fourth consecutive such increase. The index for used cars and trucks remained unchanged after a series of increases. However, the index for airline fares declined in the month of June 2012. Indexes for both medical care and apparel and recreation both rose in June. That for medical care registered the largest increase since 2010 (Trading economics, 2012).
Unemployment rose by 163, 000 in July 2012. The U.S. Bureau of Labor Statics...
Economy, Monetary Policy, and Monopolies "The benchmark interest rate in the United States was last reported at 0.25%," (United States interest rates, 2012, Trading Economics). This is one of the lowest interest rates ever recorded in the history of the U.S. economy. It is a manifestation of the Fed's recent attempt to spur economic growth by encouraging consumers to borrow and spend more and to alleviate the pressures upon debt-ridden
" (ECB, 2007) Operational efficiency is held to be the most important of all the principles of operation for the ECB and can be defined as "the capacity of the operational framework to enable monetary policy decision to feed through as precisely and as fast as possible to short-term money market rates. These in turn, through the monetary policy transmission mechanism, affect the price level." (ECB, 2007) Equal treatment and harmonization
The deal was immediately criticized as anti-competitive by William Kennard, the chairman of the Federal Communications Commission, and by the Communications Workers of America, which represents some workers at both of the merged companies. But neither government regulators nor union bureaucrats will have the slightest impact on the latest merger. They have neither the power nor the desire to oppose the plans of the giant telecommunications monopolies. More substantial opposition
Federal Funds Rate The federal fund rate was part of the solution, comprised in the Federal Reserve Act of 1913, to centralize the banking system and gain public control of the money supply, inflation, and economic growth. The banking crisis of 1907 was a result of decentralized, unregulated banking that caused confusion with private bank notes being used as currency. There were occasional episodes of monetary mismanagement where the money supply
This also implies inadequacies in fiscal sustainability, which influences investments in private sectors. The second channel happens through the level, composition and quality involved within the public investment, which shows the level at which the public investment replaces the private investments (Schmidt- Hebbel, Serven, & Solimano, 1996). The final channel regards the level of taxation on the corporate earnings and the rules applicable in depreciations. There have been arguments that fiscal policy
Prevent Competitive Markets in the United States The United States follows a system of "free market economy" in which most businesses are privately owned and where individual producers and consumers determine the kinds of goods and services produced as well as the prices of such products. Competition is a key factor in market economies as it keeps the prices of products in check, forces the competitors to enhance the efficiency
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