Breanna Archer

International Econ Paper

Econ/372
April 11 2016
Muhammad Bashir

International Economics

Money is a big concern for the United States. In fact, it is a big concern all over the
world. Currency is something that can either turn someones life around, or completely destroy
it. The Government handles a lot of money they also spend a lot of it too. Understanding how
much power the Government has over capitol is important to be aware of in any given situation.
Having knowledge about the Governments role in the market will help for better understanding
of economics.
The president and Congress play a big role when it comes to economics. The president
and Congress have to work together to have a balanced agreement. The president will create a
federal spending budget, which will be submitted to Congress to approve. Back before the 20th
century, there was a law that was passed called the Laisse-Faire policy. Because of this policy, it
kept the government from interfering with the market. When the 20th century rolled around, this
policy was removed and the Government regained some control over the circulation of money.
On the other hand, there is the Monetary Policy, a policy that states the Government can
control how much or how little of money is being circulated around, and even how much is
printed for bills and coins. The Monetary Policy is controlled by the Federal Reserve. The
Federal Reserve is also responsible for monitoring how much money a bank can have in their
reserves, (the minimum), change bank discount rates, and use moral suasion. Moral suasion is
when the federal government will use their morality to help influence or change the behaviors of
people. Moral suasion even happened back when William Garrison was promoting his AntiSlavery Act.
Now, it might be in question why policymakers create the policies that they have.
Policymakers are often influenced by what is already happening in the economy. Most often,

they make policies to help restore the economy to a more stable state. Because there are so many
people, businesses, and supply and demand are always changing, having stability often fluxes
and new policies have to be made; hence why there are so many of them. Each policy reflects
some point in history and allows for new changes to be made to hold more stability. However, if
a policy proves to be useless they are able to be removed and new ones take their place. Since the
first major crisis, policymakers have made the decision that their advice was not exactly the best
to be giving out to other countries. When the government is in charge of money, they have the
power to create stability as long as they work together as one.
When Barrack Obama expressed his understanding of urgency to become strict with their
fiscal responsibilities, Congress produced more Acts that actually made coming back to a stable
state harder than ever. According to what I have researched, the Federal Reserve does not say
much for a maximum employment rate, but they do tailor their policies according to the
economy. Meanwhile, the Feds have been optimistic about the strength of the economy in the
last few years.
In the Organization I chose, Apple, cooperation from other countries with a strong
economic system is important because it ensures that those who work in warehouses across seas
will be able to continue to make product for them with a lower budget. If the across-seas
economy were to crash, it would only make it more difficult for the company. I would suggest to
this company to be more reliant on the economy here in the U.S. in order to ensure that the
company does not crash or fail because of the dependency on other countries. Being self
sufficient is important, especially when no one can be 100% sure that other countries will be able
to maintain their economic stability. There are too many countries that are having economic

instability. Perhaps, making a deal with somewhere like Dubai, may be a better choice. Dubai is
known for their riches and gold.
Every company knows it is risky when it comes to economics. Supply and demand, as
mentioned before, is always changing. Policies are always being updated and changed, and there
are lawsuits for everything imaginable waiting around every corner. Making sure to have every
I dotted and every T crossed is extremely important. Now that the Government has control
over most of the money, being prepared for the worst is an absolute must.

REFERENCES:

Economic policy. (n.d.). Retrieved from http://www.ushistory.org/gov/11c.asp

Economic Policy and Federal Reserve. (n.d.). Retrieved from
http://www.investopedia.com/study-guide/series-62/economicfundamentals/economic-policy-and-federal-reserve/
Bankrate. (2016). Retrieved from http://www.bankrate.com/finance/federalreserve/what-did-federal-reserve-say.aspx