Economics cuurent macroeconomic situation Research Paper

Economics cuurent macroeconomic situation - Research Paper ExampleThese figures argon significantly show progress but by no means indicate that things ar turning out for the go around (Avent, 2010).Unemployment and its direct correlation with inflation clearly show on these figures. This indicates that stimulus packages and the low interest order provided by the g everywherenment is showing its effects. Without these, businesses would not venture into accruing capital and entrenchment would ensue. More and to a greater extent firms and departments are hiring temporary workers including census jobs which will show countercyclical effects. This suggests that confidence and optimism is slowly gaining momentum. It is a clear indication that more needs to be done before the country can truthfully say that it is out of the corner slump. Robert Reich (2010) suggests that only reason the economy is not in a double-dip recession is due to the boosts injected by the government. He further adds that 41,000 refreshed jobs provided in May which mostly consisted of temporary Census workers is not enough. At the minimum, 100,000 new employments are needed every month to cope with the population growth. Apprehensions are now directed over what will happen once these are directly withdrawn from the economy.Policy makers play an integral bureau in ensuring the health of the economy doesnt flat line. The applied easy money policy tools which are apparent in the contingency efforts of the government to stabilize the economy are already in place. It becomes critical at the current situation but Effectively zero interest rates are creating distortions in capital markets. Monetary conditions need to be back to normal by the time economic relax disappears and inflationary pressures begin to reassert themselves (Padoan, 2010). Government hand can only go so further before it reverts into prioritizing the need for other programs before money runs out and the Federal Reserve re verts to government