'Macroeconomics Assignment Essay\r'

'Current sparing conditions in the U. S an all around the demesne are rising to alarming situations, with the predicament being common that whether its inflation or recession, which is hampering the economy badly. The fluidity issues are affecting the U. S economy badly, the bullion sum up is shrinking although the Federal Reserve is engage an accommodative monetary policy, but receivable to its lesser control and the dynamism of the U. S economy, this policy seems to have a very(prenominal) low effect on the fluidness situation in the overall economy.\r\n afterward a rise in the specie picture for few months the money tote up has been contracting since then, the M2 component of the money supply, which consists of cash, consumer deposits and checking has been shrinking. mend M3 which consists of the above, plus the large measure deposits and otherwise items is also changing its direction towards a lower end. The figure depicts the trends of the money supply and how it has dipped gradually. intention 1: yearbook U. S. Money furnish Growth\r\n tooth root: Shadow Government Statistics, 2009 This condition piece of ass result into the debilitative of economic bodily process and pulling out money from stocks. late the downfall in the consumer spending and the ponderous of the stock prices is the sign of scorched liquidity in the economy (Kellner, 2003). In this menses situation of economic dilemma, the current economic conditions demands active measures from the new president and the U. S congress to overcome the hazards growd by the weakening economy.\r\nGovernment should hand over to push to a greater extent(prenominal) liquidity into the market; the FED should try to increase the money supply by lowering the interest rate, force more money into the economy by accompaniment the companies and the corporations that can throw more constancy in the economy. The government should try to create more jobs into the economy by pushing their spending this will surely create more consumers spending and thus providing a ground to combat recession in the economy. These economic measures are the need of the time and they will certainly have their effectuate on the economy.\r\nThus, by acting proactively on these strategies the government can easily baptistery all the difficult circumstances. References Kellner, I. (2003, November). Where has all the money gone?\r\nRetrieved Feburary 10, 2009, from Market Watch : http://www. marketwatch. com/ word/Story/Story. aspx? guid=%7BF1B1B20B-EBDE-435F-8349-A19E26DBB945%7D&siteid=mktw&dist=nwhpm Figures Figure 1: annual U. S. Money Supply Growth Shadow Government Statistics. (2009). Annual U. S. Money Supply Growth. Retrieved Feburary 10, 2009 from http://www. shadowstats. com/charts_republish#m3\r\n'