Abstract
This paper answers the following questions: How does the movement of interest rates impact the economy? How do interest rates impact inflation, foreign exchange rates, stock markets, bond markets and corporate growth? What role does the Federal Reserve play in the ecomy and how can changing the interest rates improve or hurt the economy? What rates does the Federal Reserve set?

From the Paper
"1.1] Introduction Interest rates are an important macroeconomic tool, used by the Federal Reserve Board to exercise monetary policy decisions. Although there is a widespread debate on how such a policy should be complimented with fiscal policies which are used by the government there is a large consensus that it does help to prevent excessive overheating of the economy and also help prevent long term recessions. Fiscal policy on the other hand may not offer a similar support mechanism to markets and its effects on the economy may take place over several years."

Tags:fed, interest, policy, FOMC, consumer, Central, Bank

Abstract
The paper discusses the theories of John Maynard Keynes who is known as the "father of modern economics". He was the first economist who precisely described some of the causes and cures for recessions and depressions. The paper explores some of the effects his theories had on the Great Depression such as the Employment Act and the Council of Economic Advisors. It also shows the effects of his theories on World War II and provides a time-line for the Great Depression.

From the Paper
"Thus, according to Keynes, the solution that he bought through his theory was for the government to goose up its spending in any way it can either by printing money, cutting taxes, or increasing spending itself. He believed in supply and demand, which was an indirect way to let the economy balance itself. In his theory he not only convinced that in order to work for this system to work people needed money, which could only be done by creating jobs. He further believed that in order to reduce unemployment the government needed to increase the total demand, which is the total amount of goods being demanded. "

Tags:United, States, Federal, Reserve, Gold, Standard

Abstract
An examination of inflation from ancient time to the modern era, and how American economic policy-makers attempt to control it.

From the Paper
"Conflict between the Interests of Debtors and Creditors causes inflation. The history of money is one of unceasing conflict between the interests of debtors, who seek to enlarge the quantity of money and who seek busily to find acceptable substitutes, and the interests of creditors, who seek to maintain or increase the value of money by limiting its supply, by refusing substitutes or accepting them with great reluctance, and generally trying in all sorts of ways to safeguard the quality of money."

Tags:banking, markets, money

Abstract
To understand the implication of inflation and deflation, the author outlines the functions of money and of the price system. He defines terms such as Price Stability and Consumer Price Index. The paper discusses the history of business cycles and the associated problems. He concludes with a discussion methods to control the economy.

Graphs
ISLM
Target Inflation
Pricing

From the Paper
"Price stability exists when prices overall are stable, which is the same as the permanent value of money. This does not mean that prices are fixed, but rather that taken on the whole they are stable when measured relatively. Indeed, in an environment of price stability, one would expect some prices to be rising but other to be falling. The main function of the price system consists in guiding the productive structure and the market system requires the enforcement of private property because the price becomes the expressions of those interactions of individual valuations through the use and disposal of what is owned. These interactions of the individuals participating are the market modifies the relative price structure according to the changes that take place in their individual valuations. By contrast when the general prices level of goods and services have persistent and relatively large increase we have inflation and when prices move predominantly down we have deflation."

Tags:money, price, stability, consumer, gold, dollar

From the Paper
"A central bank serves as the banker to both the banking community and the government; it also issues the national currency, conducts monetary policy, and plays a major role in the supervision and regulation of banks and bank holding companies. In the U.S. these functions are the responsibilities of key officials of the Federal Reserve System: the Board of Governors, located in Washington, D.C., and the top officers of the 12 district Federal Reserve banks, located throughout the nation."

Tags:banking, Federal, Reserve, money, monetary, policy

Abstract
The paper presents an argument for raising minimum wage increases in higher increments so that inflation does not erode living standards. The paper gives a background and history of the minimum wage explaining the original objective of the minimum wage compared to its current objective. A graph is provided showing the increase in minimum wage since its inception. Arguments are given for and against minimum wage laws. The paper also compares minimum wages in the United States with those in Canada showing how the law affects women and workers in the two countries. The paper discusses whether the minimum wage is appropriate for the future economy.

From the Paper
"Minimum wage is the lowest hourly salary that an employer is allowed to pay an employee for services rendered. The Federal Labor board sets the minimum hourly labor rates. The lowest hourly rates are decided by a *collective bargaining, an arbitration and a board action legislation. Minimum wage laws were passed to ensure that employees are reasonably compensated."

Tags:Economy, workers, living, standards, cost, living

Abstract
This paper deals with examination of the four types of unemployment - frictional, structural, cyclical, and seasonal. It also examines the issues of full employment and natural rate of employment. This is then followed by an explanation of the causes and effects of demand-pull inflation.

From the Paper
"Unemployment rate is one of the indicators of the labor market and economic condition of a country. According to McTaggart et al, one is considered unemployed if they are job losers, job leavers, or labor force entrants and re-entrants (1999: 31.7). There are four types of unemployment, including frictional, structural, cyclical, as well as seasonal. Two of the many factors that lead to unemployment include the processes of job matching (a two-sided process of linking the right worker with the right job) and job rationing (the practice of paying employed people a wage that creates an excess supply of labor and a shortage of jobs ) (McTaggart et al, 1999: 31.10). Employers take time for their search process because this process is influenced by employment protection laws, which induce employers to more carefully consider any hire."

Tags:aggregate, cost, economic, force, gdp, indicator, labour, level, population, supply, wage, workforce

Abstract
This paper shows that Japan, Hong Kong, Singapore, Taiwan and Korea have been identified as the five best performing Asian economies, having grown twice as fast as other East Asian economies since the 1960's - 1980's. This essay identifies and discusses a range of reasons for the rapid economic growth rates of the economies of these countries. Arguments are supported by statements by different economists and statistical tables.

From the Paper
"At the end of World War II, Japan, South Korea, Taiwan, Hong Kong and Singapore were war-shattered, largely resource-poor areas with rapidly growing populations and very low living standards. By the 1980s, Japan had become one of the world's richest countries and the others had achieved or were approaching income levels of developed nations (FCJ Editors, 1998). South Korea has jumped from being a developing nation to the status of advanced industrial nation. South Korea and Taiwan have recently made the leap to democracy. Hong Kong, probably the most freewheeling economic region in the world, was incorporated into the People's Republic of China on July 1, 1997. Singapore is an economic leader of all of South East Asia."

Tags:gdp, macroeconomic, recession

Abstract
This paper deals with a general explanation of monetary policy and in what situations expansionary monetary policy should be used. This is further discussed by involving the role of interest rates and economic strength of the country, relating to most recent statistics.

From the Paper
"Monetary policy is the "attempt to moderate the business cycle and control inflation by changing the quantity of money in circulation to change interest rates" (McTaggart et al, 1999: 27.2). In another words, it is the Reserve Bank of Australia (RBA)'s attempt to change the quantity of money and interest rates so as to affect aggregate demand and, ultimately, equilibrium real GDP and the price level. McDonald defines monetary policy as the government's policy on setting the level of the money supply (1996: 149)."

Tags:aggregate, australia, bank, cash, contractionary, decline, demand, economy, equilibrium, expansionary, flow, government, inflation, interest, monetary, money, policy, rate, rates, rba, recession, reserve, supply, usa

Abstract
An analysis of the current budget deficit and its causes--a slow economy, tremendous spending on the Iraq war and tax cuts. The paper also addresses the economic effect of a deficit on the economy and the desirable and adverse effects caused by a deficit. This essay concludes that spending would be more productive if directed to structural elements of the economy.

From the Paper
"Budget deficits occur when government expenditure is greater than revenue, forcing the government to borrow to meet its requirements. There are many potential economic effects of a deficit; the most apparent is an expansionary effect on the economy caused by injections of money being greater than withdrawals. Fiscal policy, among many other mechanisms is used to manipulate the economy. However, budget deficits should be used as to not adversely affect the economy. The federal budget deficit set the new record of $374 billion in 2003, doubling last year's efforts (Fram). The record deficit has been caused by the slow economy, tremendous spending on the Iraq war and tax cuts for the rich. This indicates that the great America does not know how to balance the checkbook, and certainly does not know how to spend wisely."

Tags:bush, debt, fiscal, iraq, monetary, spending, surplus, tax, tax, trade, war