Credit Counterparts of Broad Money Essay Example | Topics and Well Written Essays - 500 words

Credit Counterparts of Broad Money - Essay Example This paper illustrates that the effect of a government loan to another government is a reduction in the money supply in the economy. Based on the IS-LM model, it is apparent that reducing the supply of money shifts the LM curve to the right thus moving the equilibrium interest rate upwards and the level of national output downwards. On the macroeconomic level, the government can use this item of the Broad money counterparts as a macroeconomic policy to curb inflation or unsustainable increases in national output. The policy can be used as a contractionary fiscal to reduce excess liquidity in the economy and control inflation. Excess liquidity refers to a situation where the money being held by the public is in excess inducing excess spending and hence excess demand. The excess demand to supply can cause an unhealthy price increase. Foreign reserves are adjusted using the surpluses of trade that is a stimulus to increase exports thus increasing the foreign reserves while an increase i n imports decreases the foreign reserves. Changes in foreign prices in countries largely dependent on international trade have a significant effect on the money supply, inflation, and national output. The increase in the prices of imports will result in inflationary pressures in the economy. On the contrary, an increase in export prices will cause an increase in the profitability of the export goods and hence a shift of resources in the production of export goods. The change in import and export prices affects a countries balance of payment situation. The government can control national output and inflation through fiscal policies regulating imports and exports. When the balance of payment has been offset by over importation, the government can curb the inflationary effects by introducing higher tariffs that will adjust imports to a sustainable level.

Political Dialogue between Hitler and Stalin Essay

Political Dialogue between Hitler and Stalin - Essay Example Thesis statement: The imaginary political dialogue between Adolf Hitler and Joseph Stalin prove that Nazi and communist worldviews on key political issues are theoretically correct but practically disastrous. The Nazi and Communist worldviews on key political issues The Nazi ideology was based upon racial purity, Aryan domination and hatred against the Jews. James Giblin â€Å"There are no memorials to Adolph Hitler in Germany, the country he ruled with an iron hand from 1933 to 1945† (1). At the same time, this ideology was deeply influenced by Friedrich Nietzsche’s philosophy. On the other side, the Russian Communism was deeply influenced by Marxism which originated in Germany. At the same time the practical side of both these political ideologies (say, under dictators) proved to be disastrous. The imaginary political dialogue between Adolph Hitler and Joseph Stalin proves the same. A. On French Revolution Hitler: Good morning, Mr. Joseph Stalin, are you happy with yo ur manipulation of Communist ideology and its degradation in USSR? Stalin: Morning, see Mr. Hitler, you know nothing about the will power of the working class people. I represent the Communist Party in USSR, not dictatorship. If you know more about working class struggle, please tell me about French Revolution? Hitler: Ha, ha, ha. It was the most foolish attempt undertaken by the so called revolutionaries in France. Did they win anything? No. Were they able to overpower the world? Then why you people back up such a foolish act. I feel pity of you. Stalin: Your words prove your ignorance. See, French revolution deeply influenced the world history and it elevated the dignity and personal liberty of human beings in general. But you people will not try to understand the same as a human attempt to regain dignity because you do not believe in human dignity. William Doyle states that â€Å"In political terms pre-revolutionary France was an absolute monarchy† (21). Hitler: Again talk ing nonsense. You consider yourself as the messiah of revolutionaries, and then what is your role in USSR? Why you wear the mask of a Communist? Stalin: You are beating around the bush, without pointing out any important matters regarding political issues like French Revolution and it’s after effects. So, I feel better to conclude this matter. Thanks. Hitler: But you never reveal your real identity as a fake communist and a dictator. B. On American Revolution (1775–1783) Stalin: Mr. Hitler, what is the Nazi opinion on American Revolution (1775–1783)? Was it a revolutionary attempt undertaken by the Rebels in America? Hitler: Mr. Stalin, it was a lame attempt undertaken by anti-revolutionaries in America. Stalin: I was quite sure that Nazis will consider American Revolution as a lame attempt. But did the American revolutionaries in thirteen colonies of North America defeat the Great Britain? Hitler: See, the French, Spanish and Dutch conspiracy defeated the Briti sh forces, not the revolutionaries. Stewart Ross points out that â€Å"However, America’s revolution was more than just a military triumph† (8). Stalin: Ok. Who did authorize the British Parliament to impose direct taxation or the Stamp Act of 1765 in American colonies? What was the consequence? Did it accelerate the American attempt to form a shadow government? Hitler: See, your knowledge is not deep and the