Debating about the Federal Reserve Preparation Briefing...

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Debating about the Federal Reserve: Preparation Briefing Writer: Olivier Nkengurutse For: Mr. Peter Politico Date: November 22, 2016 ------------------------------------------------------------------------------------------------------------------------ In this document, I will be giving a briefing to help Mr. Politico to run effectively the debate about the Federal Reserve and its function in the global economy. The Federal reserve—the national bank of the United States of America—plays a big role in monitoring the economy and making sure all the transactions are made fairly. There are many factors that might harm the economy if not monitored and controlled well. Those may include the exchange rates, the interest rates, and other money-related things. It is the task of the Federal Reserve to control that in order to keep the economic activities move smoothly. First of all, below are the terms that should be defined before we tackle any other subjects, as they are the basic terms to understand before entering such debate. - The real GDP : used to determine the economy growth rate, the “ real GDP is a measurement of economic output minus the effects of inflation or deflation” (Amadeo, 2016) It means that the real DGP is shown after having considered different market instabilities such as inflation and deflation of the currency. - Inflation : The business dictionary defines inflation as the general and continuous increase in prices that causes the devaluation of the currency (Business Dictionary, 2016) . With that in mind, the inflation cannot be measured in a single day of changes on the market, but it is an observation made over a period of time. - Unemployment : it is a case when a person in working age is not able to get a job (Business Dictionary, 2016). It is a general issue for many countries and is split into three main categories: Cyclical unemployment referring to the fact that it may happen in cycles. At a certain time, it is represented by “many ups and downs” in the economy (Study.com). Frictional unemployment referring to the time that it takes someone to get a new job (Study.com). When changing a current job or in the process of getting one, you are considered as frictionally unemployed. Structural unemployment referring to the time when there are jobs but workers lack skills required to complete the available job (Study.com). At this time, it might not seem like a real unemployment since there are more jobs to do, but people are not actually occupying them because they lack the skills needed.
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