Wednesday, October 16, 2019

MICROECONOMIC REPORT Essay Example | Topics and Well Written Essays - 1500 words

MICROECONOMIC REPORT - Essay Example It is in this context that mergers, diversifications and rapid expansion at the industrial level are often argued as the symbolic representation of capitalism as a measure for economic development (Pacione, 1985). Notably, this particular understanding has been considered when selecting articles for this assignment. In this regard, it has been observed from the articles reviewed that the government can also play a vital role in terms of formulating adequate guidelines and deregulation systems in order to develop the country’s economic position. Article 1: â€Å"America's Big Banks are Back on Top† As revealed in the article by The Economist (2013), after a remarkable invasion of financial crisis in the year 2008, the American banks have re-established their real role in the Wall Street’s financial environment in the current year. The banking institutions of the US have faced dramatic alterations owing to incessant instability on investments since the last five ye ars. The volatility within the financial performance has also been observed in the financial institutions due to the rapid pace of fluctuation on the global financial movements and variations in the financial portfolio of the global banking institutions (The Economist, 2013). ... overnment have occupied a number of steps in the midst of the financial crisis in the year 2008 with the intention to deal with the financial crisis faced by the country. The crisis initiated in America’s real estates and banking as well as the other financial institutions expansion to the world economy deciphering greater sustainability (Poole & William, 2010). Few of the major decisions of the Federal Government focusing on considerable changes and development of the financial rules by the banking institutions have made the great recession to an end at a much earlier phase than the expected stipulated period. For instance, the Emergency legislation passed by the U.S. assembly in the year 2008 and in the early quarter of 2009 focused on assisting the financially declining phase of various industries in the economy. Additionally, few of the other major initiatives that developed by the federal government as explained in the article The Economist (2013) have been illustrated he reunder. Avoiding breakdown of the major financial institutions Reducing the impact of the limitations of US financial institutions Providing instant incentives to consumer spending through raising after-tax household income Providing temporary funds to the state and the local government in order to reduce the needs and the spending during the recession period Looking after the newly laid off workers and members of other economically vulnerable populations taking anti-poverty measures Making available of federal endorse for infrastructure investment Source: (Poole & William, 2010) Furthermore, as noted in the article, The Economist (2013), in accordance with the recessionary effects in the global financial position, along with the US, the UK financial institutions have also faced severe

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