The US faces a liguidity trap.The federal government should be doing huge fiscal stimulus to reverse that problem.But if the US slips back into another contraction which there is a 50-50 changes of in the next six months than policy can change again.
One of the most important engines of that growth has to be an increase in exports and the further incouragement of invard investment into the UK.Right now it looks like (nominal GDP) is stagnating. If it starts falling,the US could fall into a dept trap.Another parallel is that one thing we have not done is deal with the housing market problem.Another major problem is big mismatch in the jobs market.
CONCLUSION:-
The coalition's drive to increase exports and encourage investment in our industries will help us out of recession
Today, the country still benefits from the fundamental reforms that the Thatcher government undertook. The power of trade union leaders to hold the nation to ransom has been removed, the burden of the nationalised industries is no longer with us, and the previous crippling rates of taxation have largely gone.
Moreover, as we are slowly, painfully emerging from a severe recession, the need to stimulate growth is paramount. The current state of public finances means that growth has to come essentially from the private sector.
We must, therefore, do everything we can to reduce the trade barriers faced by both manufacturing industry and the service sector.
Trade policy, consequently, has to be at the very centre of the government's approach to stimulating the economy, and it is for that reason that I was delighted to be asked by the prime minister to help develop and drive forward an ambitious trade agenda.
Submitted by:-Ramandeep kaur
Submitted to:- Prof.Gurdeepak Singh
MBA1-'C'
.
Raman - a good try but title not as per the guidelines and no referencing. Structure not followed. Who are "we" you are referring to in the conclusion????
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