Macro Economics Essay Example | Topics and Well Written Essays - 2000 words - 1

Macro Economics - Essay Example owth structures of the variables could be assumed to be concluding that the economy in the period of study is displaying a stable situation in spite of the regular periods of booms and recessions that are a part of the regular business cycle which every economy has to pass through. Apart from that, if the long run pattern has to be considered, it is found that the economy exhibits a stable condition. The pattern of movement of the macroeconomic variables in an economy are the ones that exhibit the way that the economy is moving at present, i.e., the present situation of the economy. The patterns of behavior that they exhibit are very important to take decision about the future plans and policies that the economy should be subjected to. For example, if an economy is going through a high inflationary phase then, the appropriate monetary policy should be to reduce the flow of money in the economy and thus check the amount of liquidity in the country. However, before doing so, it is also necessary for the decision makers to find out the exact root of the disturbance, i.e., if the excess money supply in the economy and not a low rate of interest is the cause behind the rising inflation. Thus the importance of checking the behavior of the macroeconomic variables is of key importance for the nationals and particularly the decision makers of a nation. In this paper, attempt has been mad e to study the pattern of behavior of a number of relevant macroeconomic variables, viz., the inflation rate, the gross investment, the inventory investment, the nominal rate of exchange between Australian and US dollars, the real exchange rate, the real rate of interest, the private household consumption, the unemployment rate, productivity of labour, the supply of money in the economy and the current account balance. The movements of all these variables taken together indicate how stable the economic situation is and how stable it is going to be over the future years and thus provide a

OHIO & DUBAI (Comparative Essay) in Business Research Paper

OHIO & DUBAI (Comparative Essay) in Business - Research Paper Example However, the economic prospects of Ohio today are quite unattractive and that this adversely affect investing or doing business in the state. This is reflected in a study conducted by Bo Carlsson (2002) wherein the firms in Ohio report a lack of regional venture capital firms as well as a lack of venture capital firms based outside the state particularly those interested in Ohio-based startups. (p. 171) All in all, the dismal business environment in Ohio can be seen in the economic activity, population trends, tax and real estate. There is an ongoing competition among US states for a share in investment as they compete with each other in regard to which locale is able to provide the best investment climate. In this landscape of escalating inter-state competition, selective interests within traditional industrial states sough to mobilize governmental powers and resources behind a strategy of inward investment. In Ohio’s case, construction of an inward-led model of economic development consisted of three elements. According to Nicholas Phelps and Philip Raines, these are: a set of economic and political interests that provided the social base for the strategy; formal institutions dedicated to a particular form of economic development; and, a framework for coordinating economic development practices. (p. 84) In Ohio’s economic history, it is clear that development came from the interconnection of these three elements. The first involved the establishment of the Ohio Department of Industrial and Eco nomic Development; the second is the codification of the relationship between State and private interests in the form of Ohio Economic Development Council; and, the third involves the routine practices through which inward investment has been pursued as a policy for the last four decades. (p. 85) Today, however, one fact stands out for Ohio: it is dramatically losing its competitiveness. Since the twenty-first