Is it more cost effective during a fiscal trough to lower interest rates dramatically and increase governmental spending? ... While advocates of Keynesian economics will argue that private sector decisions sometimes lead to inefficient macroeconomic outcomes, monetary policy actions by a central bank and fiscal policy actions by the government are needed to stabilize output over the business cycle. ... Our world's free-markets have proven to triumph from the bartering system to complex trading for countless years, but with yet another fiscal cliff approaching will the economy emerge trium...

• Word Count: 663
• Approx Pages: 3
• Grade Level: Undergraduate

Now let's move on to the Policy of opening which has permitted China's development. 2. THE POLICY OF OPENING SINCE 1978 Let's begin with, A) Interior opening First I would like to talk about Agriculture because it's the first step of the opening. ... The first zones were established in 1984 along the coast and offered some advantages like fiscal exemption and exemption of the taxes on equipment's importation. ... Inflation is very high (2500% in 1993) in spite of a strict monetarist policy and the income of the country is used to pay the interests. ...

• Word Count: 1537
• Approx Pages: 6
• Grade Level: High School

However, the main constructive criticism to this strategy is that it is not cost effective fiscally and morally as well as this strategies tends result in accumulating a lot of resistance from the people. ... Externally, states can grant trading privileges for cooperating states thus increasing GDP that will strengthening the support state's fiscal power and agenda.One must note that this is does not create exclusivity nor delete existing relations. ...

• Word Count: 2529
• Approx Pages: 10
• Grade Level: Undergraduate