Concepts of internal and external balances and what floating exchange Essay

Concepts of internal and external balances and what floating exchange rates can do to a country's economy - Essay Example This essay discusses internal and external balances and what floating exchange rates can do to a country’s economy. The internal balance of an economy is a situation where the level of activity is consistent with a stable rate of inflation (Enotes, 2009). A good level of business activity within an economy is necessary to provide a health job marketplace that allows an economic system to keep its unemployment rate low. Inflation must be maintained at a stable level in order to ensure that the participants of the economy are able to retain a monetary unit with consistent purchasing power. For example in an economy with a high inflation rate of 25% the people are losing 1/4th of their money if keep the money at home because the currency is depreciating at an accelerated pace. High inflation creates chaos in an economic because people panic and purchased faster than normal which drastically increases the level of economic activity in a system. The purpose of the external balance of an economy is to keep the flows of money in to and out of the country roughly balanced over a period of years (Bized, 2009). The import and export activity of a country determine the external balance position of a nation. If the imports are higher than the exports the country will have a negative external balance. On the other hand if the exports of a nation are higher than their imports the country has a positive external balance. One of the basic rules of macroeconomic policy concerning external balance is that the position must be sustainable and manageable in the medium term. A medium term in economics refers to a period between 1 to 5 years. The United States of America has the worst external balance of any nation in the world. The external balance of the US as of the year 2004 was negative $624 billion (Nationmaster, 2004). It does not seem that Americans are following the medium range sustainable balance universal economic policy.

Research Argument Essay Example | Topics and Well Written Essays - 750 words

Research Argument - Essay Example Admittedly the various crimes for which execution was the verdict have been brought down in recent times. Also the methods of execution (quartering, boiling, and impaling to name a few) have been made less barbaric in the recent years. However whether death penalty should be allowed a place in our law at all is a much debated point. Two thirds of the countries around the world have completely abolished capital punishment for any crime. Many countries have even abolished it as late as 2008: Uzbekistan for one did so on 1st January 2008. The European Union is also firm in its stand against death penalty. Currently though 60 countries retain the use of the same for certain crimes like premeditated murder while others retain death penalty but have not executed anyone within a span of 10 years (â€Å"Death penalty: Abolitionist and Retentionist countries†). The United States has been under fire from various fronts regarding the large number of executions since 1976, the year during which death penalty was reinstated in the country. The support in the nation against death penalty is steadily on the rise. Yet there is a strong belief among quite a large population that the only punishment fit for a person who has taken the life of another is death itself and no less. A legal scholar, writes, â€Å"Abolitionists appear to value the life of a convicted murderer or, at least, his non-execution, more highly than they value the lives of the innocent victims who might be spared by deterring prospective murderers.† (van den Haag). In certain cases like that of Timothy McVeigh, where the convict shows no remorse for his heinous crimes it seems like death penalty is the only fitting verdict that can be pronounced. Timothy McVeigh was sentenced to death and executed on 11 April 2006 for the attack on a federal building in Oklahoma. He was responsible for the death of 168 individuals, including 19