Economic Crises and Policy Responses: 1917-1932
Responses to the Economic Crisis
Initially, almost all countries adopted austerity policies aimed at improving profitability by reducing production, selling surpluses, and reducing wages. These measures were intended to reduce production and financial costs by restricting credit. It was believed that this strategy would allow the most efficient firms to survive and help maintain the state budget deficit. However, this strategy further deepened the crisis by encouraging under-consumption, as it placed
Read MoreEconomic Crises and Global Development: Causes and Impacts
Economic Crises: Causes and Impacts
Origin of Economic Crisis: Keynes
Keynes believed that economic crises happen when people stop spending money, causing demand to fall. He argued that governments should spend money to boost the economy. This spending helps create jobs and gets the economy moving again. He saw government action as key during recessions.
Origin of Economic Crisis: Samuelson
Paul Samuelson built on Keynes’ ideas and said crises happen when businesses and consumers stop spending. He suggested
Read MoreUnderstanding Annual Accounts and Financial Reporting
Annual Accounts: True and Fair View
The annual accounts consist of the Balance Sheet, Profit and Loss Account, the Statement of Changes in Equity, the Cash Flow Statement, and the Report.
Elements of the Annual Accounts
In the Balance Sheet:
- Assets
- Liabilities
- Equity
In the Profit and Loss Account or, where appropriate, directly in the Statement of Changes in Equity:
- Income
- Expenditure
Grants, Donations, and Bequests Received
A grant is a transfer of assets aimed at delivery in cash or in kind without compensation
Read MoreProduct Lifecycle and Promotional Mix Strategies
Product Lifecycle
A product is anything that can be offered to a market for attention, acquisition, use, or consumption and that might satisfy a want or need. A product is a physical good, service, idea, person, or place that is capable of offering tangible and intangible attributes that individuals or organizations regard as so necessary, worthwhile, or satisfying that they are prepared to exchange money, patronage, or some other unit of value in order to acquire it. This model includes four stages
Read MoreKey Terms in Public Administration and Technology
Technology and Public Administration
- Big Data: Huge, complex datasets that are hard to manage with normal tools.
- CIO (Chief Information Officer): Person in charge of managing an organization’s technology and data security.
- Cyber Hacking: Breaking into computer systems or networks.
- Cybersecurity: Protecting data and systems from attacks or theft.
- Digital Democracy: Using technology to support democratic processes.
- E-Gov: Using technology to provide public services and communicate with citizens.
- GIS (Geographic
Foreign Exchange Market: Participants, Transactions, and Rates
Foreign Exchange Market
The foreign exchange market provides a source of credit (letters of credit).
Market Participants
- Bank and Nonbank Foreign Exchange Dealers: Bank and nonbank traders and dealers profit from buying foreign exchange at a “bid” price and reselling it at a slightly higher “offer” (also called an “ask”) price. Competition among dealers worldwide narrows the spread between bids and offers. Dealers in the foreign exchange departments of large international banks often function