The Economy, Monetary Policy, and Monopolies

Topics: Monetary policy, Inflation, Economics Pages: 3 (1009 words) Published: July 14, 2013
Assignment 2: The Economy, Monetary Policy, and Monopolies
Jaclyn Cunningham
Dr. Bonina
ECO 100
June 19, 2013

1. Analyze the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment in your analysis. The current economic situation in the U.S. compared to five years ago is a bit of a change. Our economic growth has averaged less than 2.25% since our economic recovery began, but has been estimated to have slowed down by as much as 1%. With the economy having budget problems, it remains to faster growth. To reduce the annual deficit, last year did little to nothing and part of the current deficit is just from us having a very weak economy now. Some factors can give a better outlook as to how things currently are. Unemployment, for almost the past three years, hasn’t drastically changed, but it is coming down slowly in a steady pace. In order to have a major turnaround, jobs need to be created significantly. As much as 300,000 or more per month would bring the unemployment down tremendously. Regarding the inflation, the policy makers are able to relax when the annual inflation is between zero and 2%, but consumer prices have risen only about 1.8% over the past 12 months (Sivy, 2013). The economy is slowly improving and getting better, but it can easily be thrown off by unexpected issues and situations. An example is the country of Iran. The U.S. having conflicted issues with then can cause our oil prices to go up (Sivy, 2013). Though there are people who are in a more stable financial place and they have secured jobs with good credit, our taxes, gas prices, and the inflation can go up. That still won’t make things better for the unemployment situation or help those who are underemployed. With the budget reforms not being pushed and driven enough, it will slowly bring the economy to stagnation. Going back five years ago, our economy wasn’t in the situation it’s in now. It actually was...

References: 1. Sivy, M. (2013). What the Current Economic Outlook Means for American Families.
Retrieved from: http://business.time.com/2013/01/16/what-the-current-economic-outlook-means-for-american-families/
2. Irwin, N. (2012). Why 2013 should be a good year for the U.S. economy. Washington
Post. Retrieved from:
http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/26/why-2013-
should-be-a-good-year-for-the-u.-s.-economy/
3. Investopedia. (2010). A History of U.S. Monopolies. Retrieved from:
http://www.investopedia.com/articles/economics/08/hammer-antitrust.asp
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