Money, Stabilization And Growth Course Work Examples

Published: 2021-06-24 18:20:04
essay essay
This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

GET MY ESSAY
Introduction

2008 Nobel Prize winner, Paul Krugman, published a new book “End this depression now” in which he viewed prompt evolution of the economy to be obtained through government spending. As a result, the economy of any given country should not worry about the deficit it is causing to the country as long as the economy is increasing. It is worth noting that planning is an essential part of any successful undertaking. Therefore, the spending of the government should be a planned one.

However, according to Paul, one ought not to worry about the spending. Therefore, the government should spend so as to push the economy into a fast recovery. This implies that proper planning would not have been achieved through this fast recovery. Moreover, with the increase in spending, the economy grows. This gives hope to citizens of the country. Unfortunately, with an increase in government spending, inflation usually arises. As a result, measures have to be taken to curb the inflation from crippling the economy.

According to Paul Krugman, when inflation increases, austerity measures are to be set. These measures aid in the balancing of the budget and reduction of the deficit. It is worth noting that these austerity measures will affect the same citizens of the country, translating to false hopes that the citizens had. This is because the austerity measure, more often than not, affect the people of the country.

Conclusion

This is because these measures are applied in terms of increased taxes, the cut of spending, or a mixture of the two. Notably, these will affect the people of the country translating to an economic crisis.

Warning! This essay is not original. Get 100% unique essay within 45 seconds!

GET UNIQUE ESSAY

We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read