Economic Policy and Globalization

Abstractii

Introduction4

Discussion4

Conclusion11

Appendix15

Abstract

This study paper reflects the light on an article published on March 31st, 2013in New York time named as “On the Economy, Think Long-Term”, written by Jeffreyd D.Sachs. The study highlights the current challenges of USA economy due to globalization and the importance of policies to meet the challenges of globalization. In addition to this the paper also highlights the current problems of the country which includes unemployment, income inequality and non effective policies in long term. The study completely focuses on the article and the issues mentioned on it. But simultaneously the study also makes an effort to link the current highlighted issues with the different economic phenomenon and the consequences of these issues in future. The author has also suggested some policies to the government in order to meet the challenges of global environment.Economic Policy and Globalization

Introduction

(Cline, W. R, 2010) mentioned in his study that the financial crises in US during the period of 2009 badly affected the economic growth of the country. Various markets like housing market, credit market collapsed badly. The financial crises in the country reached on extreme in October 2008 and remained till March 2009. The stability began after March. The effects of these financial are still somewhat present in the economy of the country. The discussion is about the article published in New York Times.

This study gives complete picture of the article and the issues discuss int. The selected article emphasizes on the status of current economy of United States. The challenges related to global economy like unemployment, inequality of income, energy consumption and weak policy measures. It also points out the advantages of long term policy measures in order to meet the challenges of today worlds. Now, due to globalization and trade liberalization the world has become so small. Transfer of goods and services are taking place very rapidly across the world. The phenomenon of globalization has various benefits but simultaneously it brings many challenges to the economies of the countries. The discussion below highlights the current economic challenges faced by the United States. It also reflects some recommendations or suggestions by the author of the article to overcome the economic challenges of the country. The author also emphasizes on the implementation of the long term policies for economic crises or challenges.

Discussion

After the economic recessions period during 2009 in US economy various steps have been taken by the government in order to stabilize the economy. In the beginning the effects of these steps were very visible on the economy but with the passage of time effects become slow. The policies were made to reduce the bad effects of economic recession but the long term effects of these policies have been slower. The economy of United States is still facing crises in some sectors due to globalization. Economic crises of 2009 caused budget deficit and a large current account deficit. According to the study made by (Brown, G. W & Lundblad C. 2009) the economic contractions related with financial crises ...