Describe and evaluate the main macroeconomic policies used by the Essay - 4

Describe and evaluate the main macroeconomic policies used by the Government and Central Bank of China over the last two years - Essay Example Monetary policy involves regulating the money supply and interest rates by a central bank with the aim of controlling and stabilising the currency (He and Chen, 2014). Over the last two years, china’s macroeconomic policies aim at containing inflation to 4% eventually, to contain real estate by bringing prices of houses down, to maintain a decent growth rate of about 8 to 9% and to preserve the value of China’s foreign assets (He and Chen, 2014). This essay discusses the monetary and fiscal policy as used by the government and Central Bank of China. China has used a proactive fiscal policy over the last two years. A proactive fiscal policy is a moderately expansionary policy, which creates demand and triggers economic growth by growing domestic demand (Zhang, Fan and Haan, 2010). The policy has over the period aimed at ensuring the steady growth of China’s economy, making proper adjustments to its economic structure, promoting reforms and benefiting its people. That said, the policy continues to try to maintain balance between enhancing economic growth, keeping prices stable and protection against financial risks. Unfortunately, China’s economy risks being stalled. This was seen in 2014 where the annual GDP growth hit a low of 7.4% (see figure 1), the lowest rate since 1990 (Wei, 2015). However, as many economic policy enthusiasts believe, continued use of moderately expansionary policy will generate positive results on China’s economic growth in the midst of slow export growth. The expansionary policy is aimed at spending to generate income. Build-up of development and infrastructure needs and vast fiscal resources have made China channel immense spending into the economy. China has in recent years has relied on its large population to provide the required demand for their products to generate the required income. Government expenditure has, however, been seen to mainly lie in the areas of education, healthcare and other social expenditures (Jia,

Valuing environmental benefits of air and water Essay

Valuing environmental benefits of air and water - Essay Example Typically, many people living in major towns in developed and developing countries invest in getting cleaner and less-smoked air, while people living in polluted lakes and dams are investing to have water catchment areas cleaned. Air is an essential part of human lives. Kneese (2013) agrees that clean air is an integral ingredient to a livable environment as well as a continuous healthy live. Global warming is an international economic threat that has been caused by increased use of uncontrolled industrial technologies. While industrial revolution forms a fundamental part in today’s world economy, uncontrolled use of industrial technologies may lead to degradation of the environment through the hazardous gases and waste from industries. Countries that recognize the environmental benefits of air draft bills and enact laws to control the use of industrial technologies, and ensure that misuse of these technologies attract severe penalties. According to OECD (2001), areas that have little will-power to control the use of these technologies have witnessed continual air pollution making many regions within industrial and major urban centers uninhabitable. This is a typical case of people who do not value the benefits that clean air present to the livability of their environment, as well as the health longevity of the residents. On the other hand, water is considered as the most priceless yet highly crucial resource in human habitation. Many economists and environmentalists have warned of the huge disregard for water resources. Due to this, many laws have been passed by different governments as well water conservative authorities instituted to ensure the resource is protected. The value of clean water in the environment ensures that people, animals and plants have healthy living (Kneese, 2013). Societies that understand the environmental benefits brought about by clean water ensure water catchment areas are well protected from agents of water pollution. Studies