ECON220 Unit 5 DB

ECON220 Unit 5 DB - ECON220- Unit 5 DB Cheri Bolin May 27,...

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ECON220- Unit 5 DB Cheri Bolin May 27, 2011 A triumvirate is defined as: a political system dominated by three powerful individuals. A 2009 article in Newsweek listed the top 50 most powerful people in the world. The triumvirate as they were called was included within that list. Ben Bernanke was #4, Jean-Claude Trichet was # 5 and Masaaki Shirakawa was # 6 out of the top 50 people. These three men identified in the Newsweek article are central bankers of the three most important central banks in the world: U.S., EU, and Japan. Central banks around the world are given the powers to engage in a monetary policy. These monetary policies direct the supply of money which affects the lives of all citizens in an economy. The growth of money supply increases the supply of available funds for loans; ensuring there is more money available for loans. “End-users can spend more money via credit, business can acquire loans to finance investments , and families can purchase cars and houses allowing economic activity to expand”. Interest rates tend to decrease as the supply of funds for loans increase. Lowering interest rates allow for end-users and organizations purchasing to be done at noticeable less expense. Debt maintenance for the national and local level is concentrated. Lowering interest rates creates lower cost deficit spending. This allows for more public spending
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ECON220 Unit 5 DB - ECON220- Unit 5 DB Cheri Bolin May 27,...

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