The Economy, Monetary Policy, and Monopolies Research Paper

The Economy, Monetary Policy, and Monopolies - Research Paper Example The research paper "The Economy, Monetary Policy, and Monopolies" analyzes the American economy which has undergone a difficult period during the last five years because of a global recession. Some people believe that the economic problems were already over whereas others are of the view that these problems still persist. Since 2009, interest rates in America remain stationary at around .25%. In all probabilities, interest rates may remain in its present form at least for the next couple of years in order to support the economic revival. It should be noted that entrepreneurs will approach financial institutions for mortgages only if the interest rates remain at a low level. The following graph provides a rough idea about the unemployment problems in the US for the last few years. It is evident from the graph that unemployment rates in the US were around 2% during 2006-2007 period whereas that at present is over 8%. Unemployment rate almost touched the 10% mark in 2011 even though it is decreasing at present. In short, unemployment rate started to decline which indicates that American economic growth is back on track. It should be noted that Americans started to learn the philosophy of saving because of the recent recession. For the revival of economy and also for the creation of new employment opportunities, it is necessary to encourage spending. Keeping interest rate at a lower level will definitely help the people to spend money more freely. Inflation rate should be kept as low as possible.