The Economy, Monetary Policy, and Monopolies Of United States

The Economy, Monetary Policy, and Monopolies Of United States

Introduction

The United States in the leading country in the world and it is the largest country around the globe. In the world, the largest economy is of United Sates. It is the world's countries who have higher values of GDP and per capita income. In 2011, the GDP of US is recorded to be 15 trillion dollars that is approximately quarter portion of the total GDP of all the countries in the world. US have also the highest purchasing power parity around the globe. The economy of US is very powerful in the world that enjoys the high level of output and also the US is the greatest trading country in the world.

The economy of the US is a mixed economy in nature that has continued a constant overall GDP growth rate, and high levels of capital investments. The major part of the US economy is comprised as the service industry. However the country also comprises of manufacturing industry and it stands as the fifth largest country in the world that is generating the high level of outputs from manufacturing activities. The reason of the country's largest economy in the world is that the country has the large area in which trillions of people are performing their activities in an efficient way that has positive impact upon the country's economy.

As the country's performance is somehow better than the previous years, yet the country has not been able to make significant improvements in reducing the unemployment rate in the country. The reason is that the global economy has moved to decline that has made negative impact upon the country. However the national economy of the country has significantly improved. The population growth rate of Unite States is also increasing that is also the major reason of increasing unemployment in the country. Despite of this reason, the migration rate of people from all over the world in the United States has also increased which is also the biggest reason of increasing unemployment rate. It is fact that US has the highest migration rate.

Discussion

At one end the national economy of the country is slightly increasing whereas on the other end, the country is suffering with various economic issues that include inflation rates, interest rates and unemployment rates of the country. The interest rate of US has decreased significantly in past few years that have affected many industries, real estate business and the banking sectors. Despite of the decrease in interest rate the borrowing in US has become more expensive that is affecting negatively upon various national economic activities. The interest rate is affected by the circulation of money at any specific time. The Federal Reserve Bank of the United States develops plans that have impact upon both the short and long term interest rates. These rates are ultimately affected by the open market operations that directly affect the bank reserves amounts and the money loan ...