Inflation targeting in monetary economics Essay Example | Topics and Well Written Essays - 750 words

Inflation targeting in monetary economics - Essay Example In the event that the inflation of a country is above the target, the bank raises its interest rates. In the long run, the action results to cooling down of the economy by bringing down the inflation rates. The remedy for inflation rates below the target involves lowering the interest rates. Consequently, there is acceleration in the economy and rise in the inflation rates after some time. Since investors in a country’s economy have a heads up to the inflation targets of the central bank, they factor in fluctuations in interest rates while making their investment decisions. Economists regard inflation targeting as one way of promoting a nation’s economic stability. The goals of inflation targeting are different across the central banks of various nations. However, an observable trend indicates that most central banks aim to stabilize prices in countries. In the United States, the Federal Reserve indicates that its main goals are to stabilize prices, have moderate and stable long-term interest rates as well as facilitate maximum employment through the policy (Bernanke 17). Other banks also list having stability in the exchange rates as among its primary objectives. New Zealand has reaped numerous benefits through inflation targeting. Once the subject of volatile inflation, it was the first country to seriously consider and implement inflation targeting as a way to achieve economic stability and growth. Currently, New Zealand boasts of low inflation rates and stable economic growth (Bernanke 33). Germany was also among others to take up inflation targeting as a productive monetary policy. However, varying dynamics of nations suggest that inflation targeting should not be taken up blindly. In the case of New Zealand, it emerges that there can be movements in policy instruments beyond the expectations of the central bank. This emerges from focusing on a narrow inflation target through strict implementation of inflation

Marxism as a major ideology in the 21st century Essay

Marxism as a major ideology in the 21st century - Essay Example The mere fact that the beginning of the Marxism was 1848, when Karl Marx and Friedrich Engels published the Communist Manifesto, speaks for itself: it was a different time. And the current XXI century is not the XIX century, and, if Marxism was not to gain a foothold in the minds of people in the nineteenth and twentieth centuries, then this will not happen in the twenty-first century. And such notorious Marxist terms and phrases as â€Å"the proletariat†, â€Å"Rent†, â€Å"world revolution†, â€Å"communism - a bright future for all mankind† are can not often be heard even at rallies and demonstrations organized by the Communists at the present time. We know that in the twentieth century the ideology of Marxism was adopted by the Soviet Union, some countries of Eastern Europe, China, Mongolia, North Korea, Vietnam, Cambodia and Cuba. Lots of aforementioned countries still remain the supporters of Marxism nowadays. Even in the most developed capitalist co untries there are always some Communist Parties. With all respect to certain postulates and the noble ideas of Marxist philosophy, our contemporary society can not possibly accept Marxism as a whole, so the given ideology is unlikely to return as a major ideology in the twenty first century. Let us take, for example, such a doctrine of Karl Marx, as his famous theory of surplus value. Marxists believe that under capitalism a great part of the produced surplus value is given to the capital, which inevitably leads to an increasing stratification of society and the growth of class struggle.... Marxists believe that under capitalism a great part of the produced surplus value is given to the capital, which inevitably leads to an increasing stratification of society and the growth of class struggle (â€Å"Karl Marx – Stanford Encyclopedia of Philosophy†). In accordance with this postulate (and the inevitable growth of the class struggle), it is possible to make a conclusion that sooner or later the global economic crisis and revolution will occur. Besides, ultimately the means of production, sooner or later will move to the workers and peasants. Thereafter, in accordance with the following Marxist postulate, productivity growth will sooner or later lead to the fact that human capabilities will outstrip human needs, thus, social wealth will flow an endless stream, comes communism. Under these circumstances, the postulate that â€Å"material existence of any person ultimately determines his or her consciousness† will work. Thus, we can run to the conclusion that each person will receive material benefits according to needs. And all the people will automatically become happy. An era of universal happiness will come. That what is said about the strengthening of the class struggle in the Manifesto of Communist Party, â€Å"Over the past few decades, the history of industry and commerce was nothing but the history of the revolt of modern productive forces against modern conditions of production, against the property relations that are the conditions for the existence of the bourgeoisie and its rule. It suffices to mention the commercial crises that, coming back from time to time, call into question the existence of the entire bourgeois society ... The growing competition among the bourgeois, and the resulting commercial