Introduction
The work reviews the issues, which constitute a core of the third American economic conference as well as their implications for global monetary policies. Mainly, the paper targets the issues of the U.S. fiscal debates, the introduction of the American Reinvestment Act. Finally, the controversy over debts and jobs places creation is regarded.
Debatable Issues of Fiscal and Monetary Reforms
The reviewed materials provide an opposition between the implementation of debt reformation, which targets a $700 billion bail that could constitute a rescue for the market downfall. The strategy allows purchasing mortgage-related sources and stabilizing economy without taxes impose. The planning was supported by George Bush. However, it found a severe criticism among some representatives of Republican Party, who stated that tax-free bailout poses a threat to individual markets’ stability (Bush 373).
Secondly, the efficiency of the American Reinvestment and Recovery Act, which was introduced in 2009, is analyzed. According to the author, the package that served as a response to the U.S. economy crisis provided a $787 billion budget sustention, which targeted the problems of tax credits, investments, and energy productions. Despite its relative efficiency, the experts claim that the reform did not improve the grave situation of unemployment since the bail was too small for the creation of new workplaces (Bivens 147).
According to the review of the content of the American Recovery and Reinvestment Act, the beneficial reformations, which were introduced by the policy include providing the support for needy citizens, founding consistent investment platforms, and relieving taxes for both businesses and individuals.
The controversy of debt and credit solutions took two stances at the conference. Thus, from the first point of view, it was suggested that there are some consistent reform projections, which could eliminate the U.S. debts without imposing any considerable taxes increase. These are, for instance, entitlements and vain programs restriction. On the opposite, some experts claim that there is only one way, in which deficit problem might be solved. The solution includes expenditure cut as well as taxes increase (Edwards 275).
The potential of interest rates increase is discussed. Thus, the U.S. economists predict that Treasury bonds might need substantial protection, for the policy can damage fiscal regulations. The suggestion of discount and bank rates is reviewed as a constructive planning of safe interest increase. However, the writing overviews some potential threats as well. For instance, it is claimed that the reform might inflict some subsidiary expenditures, which threatens with the deficit (Cochrane par. 5).
The Overview of the U.S. Economy Experiences
The future of the American economy depends heavily on the fiscal policies. Therefore, the previous models of policy approaches are analyzed with the purpose of drawing some meaningful lessons from the past experiences. Specifically, it is concluded that fiscal consolidation predetermines a substantial decrease of debts and deficit. Moreover, the experts suggest that regular structural reformation of monetary policies contributes to the refinement of financial strategies (Simon 101).
Finally, the readings analyze the ability of the economists to predict the future of the American monetary policies efficiency. According to the previous experiences of downfalls and risks of the U.S. economic regulations success, it is claimed that Treasury securities, as well as economic reviews, provide a consistent tool of effectiveness measurement (Haltom and Weinberg par. 1).
Works Cited
Bivens, Josh. “Die the American Recovery and Reinvestment Act of 2009 Create Jobs?” Yes/No 9.1 (2010): 146-147. Print.
Bush, George. “Is the Treasury’s $700 Billion Bailout the Solution to the Credit Crisis?” Yes/No 20.1 (2010): 372-372. Print.
Cochrane, John. Treasury Needs a Better Long Game. 2013. Web.
Edwards, Chris. “Can U.S. Deficit and Debt Problems Be Solved without Increases in Taxes?” Yes/No 16.1 (2010): 275-276. Print.
Haltom, Renee and John Weinberg. Unsustainable Fiscal Policy: Implications for Monetary Policy. 2012. Web.
Simon, John. “The Good, the Bad, and the Ugly: 100 Years of Dealing with Public Debt Overhangs.” World Economic Outlook. Ed. Andrea Pescatori. Washington, DC: International Monetary Fund, 2012. 101-129. Print.