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Essay

Collapse Economy

Essay specific features

 

Issue:

Business

 

Written by:

Chad W

 

Date added:

March 8, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 829

 

Was viewed:

9526 times

 

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Essay content:

For instance, since last September the Federal Reserve has lowered its basic interest rate 7 times and has kept a semblance of order in the financial system through a constant flow of cheap money. However, even though government policies in the short term have saved the economy from a total collapse there seems to be a very high price to pay in store (no pun intended!) One of the main consequences of the Fed's policy of cheap money is to have driven down the value of the dollar, which has set record lows against the Euro and other major currencies, thus pushing up the price of commodities in the world market, which are priced in dollars...
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In other words, the Fed's policy has sharply increased inflationary pressures around the world. Faced with the obvious fact of rising prices, the US government has acknowledged in recent weeks that inflation is escalating. The latest government data shows that in May inflation in the US is running at a yearly rate of 4...
displayed 300 characters

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