The perils of falling inflation Article Example | Topics and Well Written Essays - 1000 words

The perils of falling inflation - Article Example America also suffered the same consequences as Europe, where it was reported in September that the inflation rate dropped from 2% to 1.2% in July, and it has stayed like that for a period of time, this led Federal Reserve propose to loosen the monetary policy, they argued that this policy was working with other economies such as Japan which had not experienced low inflation for the last 15 years. Britain was seen as the only rich economy where inflation rate was doing well on an average of 2.7% overall. Therefore, this article studies the relationship between macroeconomic variables and the circulation of income in rich economies such as Europe and America. This can be the best method of stabilization when it comes to issues of policies in any given economy (Addison 1987).it Experimental analyses has received very little concentration among macroeconomists Disaggregate variables are analyzed to recognize the repercussion of restriping the macroeconomic models, but they are not measur ed as alternative helpful information. The paper tries to determine which common aggregate variables explain the pattern of relationship among individual income and macroeconomic shocks. The paper uses several measures of macroeconomic shocks which include Gross National Products (GNP) growth, real devaluation rate, unemployment, and inflation rate. All the indicators seem to affect income inequality to some extent, higher inflation reduces sectoral and education income for all populations. Aggregate variables to consider in the paper are displayed in the figure 1 below. Figure 1: Dynamic index models, sectoral income Gross National Product (GNP) (I) Surveys show consumers still expect medium term inflation to be at their reach or above the central bank’s target of 2%.but if the economy will experience high unemployment, wages and prices are eventually likely to fall. Ultra-low inflations have dangerous effects, where it tends to go with weaker economies and higher than neces sary joblessness. For example, America unemployment rate is 7.2%, Spains26.6% and France 11.1%.this means that the nominal incomes will experience slow growth than when the prices would have raised. This pushes household and governments debts impossible to pay, especially to economies with a single currency. Trade liberation mostly touched on exports promotion and imports liberalization, with reduction in tariffs for imports and attractive incentives for foreign Investments, will be an advantage to countries with a single currency like Spain and Italy to compete with big economies such as Germany with the inflation rate of 1.3%, which undermines it ability to combat more recession. This lead to the increase in fixed investments up to 30% and over as indicated in Figure 1.the changes reflects to have an increment or rise of the unemployment rate, although a recovery in economic activities would be realized after implementation of the reforms .most Rich

Taylors Law and the Right to Strike by Public Employees Research Paper

Taylors Law and the Right to Strike by Public Employees - Research Paper Example The law states that the public employers should negotiate and enter into agreements with the unions regarding the terms and conditions of employing their employees. The law highlights the procedures to resolute collective bargaining disputes as well as defines and prohibits any improper practices conducted by public employers and union. Taylor Law strictly prohibits strikes by public employees and establishes a state agency known as the Public Employment Relations Board (PERB) that is responsible for administering the law (PERB 2013). While the statements which are asserted are not conclusive regarding the existence of such a right, there is an immediate need to inquire and determine whether a right to strike exists or not. Discussion Right to Strike by Public Employees Strikes are collective actions which are taken by workers as a means of safeguarding their interest (Swiatkowski 2005, 285). Over the last six decades, the International Labor Organization (ILO) has recognized that th ere is a positive right to strike by public employees that are inextricably interlinked to and an unavoidable consequence of the right to freedom of association (Bellace 2013, 2). According to Samuelsen (2012), the right of public employee unions to bargain collectively is being challenged aggressively by Conservative politicians and media. In the United States of America, both the Republican and Democratic Government have collectively supported the regulations (bills) that put restrictions on what unions can bargain for and have bludgeoned public workers into massive cuts. Under the impression of the freedom of association, it was witnessed quite frequently that workers joined together to demand better terms of employment from their employers. If the employer refrained from agreeing to their demands then workers usually resorted to some form of industrial actions such as strikes, boycotts or picketing in order to put pressure on the employee to meet their demands (Bellace 2013, 6-7 ). Every public employee does deserve the right to strike in order to prevent themselves from being exploited by their superior or employer. It is of utmost importance to demonstrate disagreement in situations where excessive domination is done by the employers (Lacampagne 1983, 510). Milne (2011) explains that there are five reasons why public service workers have the right to strike. The author explains that the government is trying to exploit the employees by trying to make most pay more and work longer for less even after the month’s modest concessions. The author explained that this practice is being done by the government not to fund pensions because people are living longer, but to help bail out banks by paying the deficit when an economic crisis is triggered.