Essay Marketplace Changes for Coca Cola

The economic meaning of a recession is that the gross Domestic Product (GDP) has declined for two or more consecutive quarters. Unemployment rises, housing falls, stocks fall and the economy is in trouble. Whenever the government sees that the economy is entering a recession it is important for it to act. The U.S acted in two ways during the Great recession of 2008 through fiscal and monetary policies. Renaud Fillieule identifies that “ Monetary and credit expansions have been the main tools used by the U.S. government and central bank to try and recover economically from the Great Recession of 2008” (Fillieule r, Pg. 99 2016). These Keynesian policies are debatable among economist, none the less they were implemented and put the U.S on the road to recovery.

Although business leaders may not have a crystal ball to help them plan for the future, they do have access to a wide range of Federal Reserve publications that can help identify recent and current trends and what these economists believe will take place in the coming months. Given the lingering effects of the Great Recession of 2008 on the American economy today, identifying the future economic outlook for America using this type of freely available information therefore represents a timely and valuable enterprise. To this end, this paper provides a review of relevant publications to identify the Federal Reserve's current assessment of economic activity and financial markets, its current view about inflation and various monetary tools that have been used to stabilize the economic and prices in recent years. Finally, an analysis of the economic outlook for the next 12- to 18-month period is followed by a summary of the research and important findings in the conclusion.

Everybody in the United Stated was affected by the recession that began in December of 2007 and spanned all the way to June 2009. Even though the recession is over, many people are still being affected by it and have still not been able to recover from the great recession. “The recent recession features the largest decline in output, consumption, and investment, and the largest increase in unemployment, of any post-war recession”. Many people lost their jobs due to the recession and some of them are still having a hard time finding jobs and getting back on their feet. Businesses

In the late 2007, early 2008 the United States and the world was hit with the most serious economic downturn since The Great Depression in 1929. During this time the Federal Reserve played a huge role in assuring that it would not turn into the second Great Depression. In this paper, we will be discussing what the Federal Reserve did during this time including a discussion of our nation’s three main economic goals which are GDP, employment, and inflation. My goal is to describe the historic monetary and fiscal policy efforts undertaken by the U.S. Government and Federal Reserve including both the traditional and non-traditional measures to ease credit markers and stimulate the economy.

The Congressional Budget Office is estimating that the economy will continue to grow. Consumption spending will continue to grow, but at a smaller rate. The growth is contributed to the ability to have an increased likelihood to be eligible for a loan. Consumer spending will also increase due to more jobs in order to keep up with an increase in output. Unemployment will have to decrease to keep up with output and prevent shortages, and unemployment will eventually fall below penitential. Inflation will rise the to the increase in aggregate supply and aggregate demand. An increase in employed workers will cause an increase in disposable income that will result in increased spending. In order to slow the inflation rate, the Federal Reserve will

As Wolfers acknowledges in his article, if the economy of the United States enters into a recession, the Federal Reserve System cannot use their usual solution of decreasing interest rates to energize the economy. It is because they already have interest rates set nearly as low as they will go, thus not giving policy makers much room to

The health of the current U.S. economy appears to be growing gradually. The second quarter real GDP growth was 3.7% and the unemployment rate declined to 5.3%. The U.S Federal Reserve (Fed) is expected to raise interest rates in the near future when it sees clear signs of strong economic growth and improvements in the job market.

Exchange rate gains or losses are brought to account in determining the net profit or loss in the period in which they arise, as are exchange gains or losses relating to cross currency swap transactions on monetary items. Exchange differences relating to hedges of specific transactions in respect of the cost of inventories or other assets, to the extent that they occur before the date of receipt, are deferred and included in the measurement of the transaction. Exchange differences relating to other hedge transactions are brought to account in determining the net profit or loss in the period in which they arise. Foreign controlled entities are considered self-sustaining. Assets and liabilities are translated by applying the rate ruling at balance date and revenue and expense items are translated at the average rate calculated for the period. Exchange rate differences are taken to the foreign currency translation reserve.

According to the financial definition, a recession is a significant decline in activity spread across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income, and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country's GDP. (Dictionary.com) A less official and more realistic definition of an economic recession is the social perception of the state of the economy at a given time. The collective beliefs of the public, mainly businesses and consumers, drive the social perception of whether things are seen as positive or negative. Unfortunately

The U.S. economy is slowly regaining its strength since the 2009 financial crisis. In 2017, consumer spending achieved its biggest increase in eight years , signaling a general positive market environment. Furthermore, the developing geographies also experienced a tremendous economic growth across the years as it currently contributes around 80% of the global economic growth.

According to Investopedia, “a recession is a significant decline in activity across the economy, lasting longer than a few months.” Technically a recession is viewed and measured by evaluating and verifying negative growth in a nations’ Gross Domestic Product (GDP) for two successive quarters. A recession can be seen when there is a decline in “industrial production, employment, real income, and wholesale-retail trade (INVESTOPEDIA, 2016)”. Recessions are a typical part of the business cycle however, the Great Recession of 2008 wreaked havoc on the global economy mainly due to unusual and high risk investment tactics. The Great Recession brought negative impacts which saw the burst of a highly booming housing market, the failure of thousands of businesses, unprecedented unemployment rates which reached historical highs of more than 9.5 percent, which all ultimately crushed consumer spending during this recessionary period (WelshGibbs, 2015). During a recession like the one experienced in 2008; governments enact fiscal and monetary policies in an attempt to right the economy and combat the negative impacts a recession has on a nation’s economy.

Using quantitative easing has helped the recovery of the USA and other developing countries. The Fed’s then limited their ability to pursue more measures, but congress ignored those appeals to help support the economy. The Fed’s decided to use smaller steps to help investor expectations and to prevent a possible financial crisis in Europe. In 2011 it was announced that the FED’s would hold short-term interest rates close to zero percent through 2013; to help support the economy. Soon after it was announced that using the “twist” operation would push long-term interest rates down, by purchasing $400 billion in long-term treasury securities with profits from the sale of the short-term government debt. Inaugurating a policy to help shape market expectations, which will raise interest rates at the end of 2014.

This recession has been the biggest economic struggle in my lifetime. Everything that could go wrong went wrong. The event that led to this recession is the housing crisis, where banks were giving out loans, almost without any restrictions. People were getting involved in one of the best economic times in our history. Confidence was everywhere and the ideal mindset hit everyone. When the economy hit all new highs, people thought the supply and demand chain would continuously rise. The business cycle seemed to be a lie to many Americans. However, the business cycle is real and the world lives a part of it everyday. When deregulation became extreme and private companies, especially banks, got all the power, nothing could stop them

Keep an eye on capital spending going forward and until we see it rise and demand for durable goods pick up we can expect to continue with this moderate to slow economy for a while longer.

The Fed is expected to raise interest rates this week for the first time in nine years. This could be a turning point in the overall economic landscape. The Fed in its latest meeting has sighted a healthy employment picture and an expectation that inflation will normalize in the near term as the reasons for a rate hike this week. We typically think of low inflation and low unemployment as keys to a healthy economy and this is for the most part true. However, our economy is faced with low wage growth and high debt as a nation. In my opinion we are very near the end of the long term credit cycle. We typically see a long-term credit cycle last around 70-80 years. The next leg of this credit cycle would call for deleveraging. When we have high levels of debt we would want moderate inflation so that our debt burden would not be as hard to pay off. For this to happen we need inflation that will cause an increase in wage growth. So far, we are just not there.