Recent orders
Negative Impact of Economic Recession
Negative Impact of Economic Recession
The recession is the fall of a country’s National output or GDP resulting the loss of jobs, low incomes, high government borrowing, and high inequality levels. For instance, the recession that occurred in 2008 to 2012 had many negative impacts on many citizens especially in the US. The purchasing power of the country’s citizens goes down due to poor salaries from their employers and production of goods and services goes down. Many producers sell their products at throw away prices as the economy suffers due to the declining GDP. There is a lot of suffering of families during a recession as people work hard hoping that things will improve. Recessions affecting the economy are short-term although the consequences may have a devastating effect on the industry and the consumers. There are many negative impacts of economic recession such as unemployment, low purchasing power, falling incomes, and low economic development.
Economic Damage
Recession results to massive loss of jobs leading to instability in many families as many people lose their self-worth and wellbeing. There are many individuals who suffer depression and results to alcoholism and self-denial due to difficulties in the provision of basic needs Murphy, & Athanasou, 1999). Individuals who lose jobs due to the recession can look for short-term solutions such as borrowing from friends or getting a lower paying job to meet the family needs. Other long-term solutions may be furthering education and relocating to places with less inflation. Unemployment and loss of income may lead to a reduced educational achievement and poor nutrition in many families as Dahl & Lochner (2008) asserts. Some other adverse effects of lack of employment are poor health, delayed education, and family conflicts. There will be reduced investment and innovation due to reduced adoption of the advance technology.
Another sector affected under economic damage due to the recession is education due to reduced human capital resulting to slow economic growth. Lack of funds for parents with children in the early years of education may affect the quality of education the children receive as they cannot take them to good schools. Improved nutrition impacts on the cognitive development of young children especially in developing countries (The Connecticut Commission on Children, 2004). Recession reduces the ability of parents to provide good nutrition to their children leading to poor performance in schools and poor income later in life. Education is also affected by such things like health services since unhealthy individuals cannot perform well in schools. The number of people subscribing for insurance cover will also be low due to lower levels of income. In the 2008 recess, the number of without health insurance was 46.3 million in which over 7 million were aged below 18. Some families also delay or abandon any education plans for their children. A survey in Colorado showed that some parents with children colleges taking two-year courses had planned earlier to take them to four-year, but the recession disrupted their plan (Kahn, 2009). The result of such failed plans is poor earnings and lower level of employment in the future.
Loss of opportunity
Recession and high levels of unemployment result in reduced economic opportunities for families and individuals such low earnings for graduates who enter the job market during the recession (Card, 1999). When children lose opportunities to attend good schools, due to the effect of the recession, they end up with high levels of poverty and may later engage in crimes affecting the economy negatively. Poverty has long-term consequences especially for small kids as they can develop serious problems such as cognitive, emotional, and behavioural challenges. Wealth helps in shaping economic opportunities providing a good life for families and more investment in the economy. Poor families have fewer opportunities and worse economic outcomes for their children and dependants. There are several ways in which people lose life opportunities such as educational attainment, poor nutrition, and other health challenges leading to future challenges in life (Hoddinott, Maluccio, Behrman, Flores, & Martorell, 2008). A recession may last two years, but its consequences may be experienced by many generations to come. Economic outcomes especially wealth distribution resulting from a recession are always affected by any form of economic recess.
Decline in private investment
Recession leads to slow economic growth due to low investments which in turn leads to poor technology advancement. Recessions always result in a decrease in investment, spending, and development of new technology. Demand for firms products reduce since the customers’ spending power is low due to the reduced incomes. Consumers and firm owners have limited access to credit facilities limiting their ability to invest. The other factor is uncertainty to during the recession periods leading to retrenchment and suffering of many. The firms may also reduce their production capacity due to low demand for their manufactured products. The human and physical interaction hinders technological equipment leading to less purchase of newer equipment. Workers cannot utilize all their skills leading to poor development. Less capital investment leads to lower levels of production especially in the future and hence lower wages for employees. Recession can also hamper formation of small businesses and entrepreneurship (Greenberg, & Keating, 2008). Business formations are important as they lead to innovation through the implementation of new technologies. Since new businesses require new customers, a recession means that there are less spending power and people wanting to start new businesses may delay and wait for the right time. Banks will also stop lending loans to customers since for fear of default by the customers due to low profits. For instance in 2008, a report by the US showed that the freezing of credit for short-term funding affects the economy, as there is a reduction in the production of goods and services (Irons, 2009). The initial Public Offering activity is also affected by the recession as some firms utilize funds from IPOs for investment and its decline results to severe losses.
Impact on the children
Changes in the household income and employment for parents affect children especially during the recession when their incomes are very low. He children experience low levels of wellbeing especially in cases of financial insecurity experienced by their parents according to Heckman & Masterov (2007). Parents will always like to take their children to good schools but with the onset of a recession, they end up taking them to low-cost schools. The children receive unequal education outcomes, which affect their employment and future salaries. The early years are the most difficult for children especially in children centres and childcare centres as they receive poorer services compared to the time when there is no recession. The family courts are now full of cases concerning children welfare and inadequate support. According to Ruel and Hoddinott (2008), families are worrying too much because of the high cost of living neglecting their children. Reducing children’s poverty requires the government to lay out strategies and find out its effect on the children’s wellbeing then take measures for increasing family income. The government budget for the children might reduce during the recession period leaving them to suffer under the care of their unable parents.
Impact on business
The recession will lead to reduced sales and profit in large businesses, which will make the manufacturers cut back employing new workers or stop buying new equipment. The other areas affected the recession will be research and development leading to low technological innovations. The manufacturers may also decide to reduce marketing and advertising expenditures affecting the entire business world. The manufacturers stock declines and lower the rate of dividends upsetting the shareholders (Irons, 2009). There may be many changes in the organization such hiring new management staff at lower pay and reduce the advertisement and marketing activities. The fall in the dividends will automatically lead to the withdrawal of many shareholders and finally the collapse of the company. The accounts receivable also suffer due to low payment of money by the borrowers or simply total default. If borrowers do not pay on time and in full, the company activities will be impaired. The other challenge that can face a business due to the recession is the productivity per employee, and they may be a force to work for longer periods and harder to keep the business afloat. There is the possibility of cutting the quality of goods and services. For instance, transportation companies may decide to lower maintenance costs, overload the passengers, or drive at high speeds to make several rounds. Other companies may charge more for the same package making the commodities very expensive. There might be reducing consumer access to valuable information concerning the products as companies shy away from advertising. Some small businesses may shut down due to low sales and low profits leading to bankruptcy. If the business is the main supplier to the smaller businesses, the smaller businesses will also feel the hitch and may close down.
Effect on the government
A period of recession leads to government spending such as unemployment benefits and income support for the vulnerable groups. Taxation is always affected by an economic recession as firms make fewer profits leading less corporate tax. Employees receive lower wages and salaries making the government collect less tax and lower stamp duty from houses (Irons, 2009). The other form of tax affected by the recession is the VAT payments for instance Greece revenues reduced by 18% as 60,000 businesses went bankrupt (Irons, 2009). The falling tax revenues collected by the government and the high welfare payments lead to a budget deficit and government debt. There is also a decline in the yields on government bonds as it happened in the US and UK in 2008-2012 (Irons, 2009). All these problems worsen the economy as inflation sets in making lives very difficult.
Conclusion
Recessions have a lasting effect especially long-term investment can and do have a lasting impact. Recess is not good for the economic growth of any state as it slows the economy by scaring away investors. The producers also cannot produce as per their capacity due to lack of markets for their products. The recession affects employment as many people lose jobs, and others receive low wages and salaries. The business sector is another one that suffers due to the recession because of low sales and low profits that make some business wide up. The government’s earnings decrease due to low tax and high spending on providing essential services to citizens. The tecession has a negative impact on the entire economy and leads to long-term effects such as low education and health standards.
References
Card, D. 1999. The Causal Effect of Education on Earnings. In O. Ashenfelter and D. Card, eds., Handbook of Labor Economics, Vol 3. Elsevier-North Holland.
The Connecticut Commission on Children. 2004. “Children and the Long-Term Effects of Poverty. 2004, at HYPERLINK “http://www.cga.ct.gov/COC/PDFs/poverty/2004_poverty_report.pdf” http://www.cga.ct.gov/COC/PDFs/poverty/2004_poverty_report.pdf.
Dahl, G., & Lochner, L. 2008. The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit. National Bureau of Economic Research, December. HYPERLINK “http://www.nber.org/papers/w14599” http://www.nber.org/papers/w14599
Greenberg, Anna, & Jessica Keating. 2008. Young Adults: Trying to Weather a Recession. Greenberg Quinlan Rosner Research, April, at HYPERLINK “http://qvisory.org/cms/0000/0141/Trying_” http://qvisory.org/cms/0000/0141/Trying_ to_Weather_a_Recession_Study.pdf.
Heckman, J. J. & D. V. Masterov. 2007. The Productivity Argument for Investing in Young Children. National Bureau of Economic Research, Working Paper No. W13016. Cambridge, Mass.: NBER.
Hoddinott, J. A Maluccio, J. R., Behrman, R., Flores, and R., Martorell. 2008. Effect of a nutrition intervention during early childhood on economic productivity in Guatemalan adults. Lancet. Vol. 371, pp. 411–16.
Irons, J. 2009. Economic Scaring: The Long-term Impact of Recession. http://www.epi.org/publication/bp243/
Kahn, L. B. 2009. The Long-Term Labor Market Consequences of Graduating from College in a Bad Economy.Yale School of Management. (forthcoming Labour Economics), at HYPERLINK “http://mba.yale.edu/faculty/pdf/kahn_longtermlabor.pdf” http://mba.yale.edu/faculty/pdf/kahn_longtermlabor.pdf.
Ruel, M. & Hoddinott, J. 2008. Investing in Early Childhood Nutrition. IFPRI Policy Brief 8, November at HYPERLINK “http://ageconsearch.umn.edu/bitstream/48929/2/bp008.pdf” http://ageconsearch.umn.edu/bitstream/48929/2/bp008.pdf.
Murphy, G. C., & Athanasou, J. 1999. The effect of unemployment on mental health. Journal of Occupational and Organizational Psychology. Vol. 72, pp. 83–99.
Oreopoulos, P., Page, M., & Stevens, H. 2005. The Intergenerational Effects of Worker Displacement. National Bureau of Economic Research, Working Paper No. 11587: Cambridge, Mass.:NBER.
Macroeconomics is concerned with objectives, issues, and policies that affect the whole economy for a specific country or sta
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Macroeconomics
Question 1
Macroeconomics is concerned with objectives, issues, and policies that affect the whole economy for a specific country or state. All the economic analysis that concentrates on aggregates is considered as macro. The following are the main objectives of a macroeconomic policy:
Full employment
The petitioner exclude is the more seasoned, a greater amount of date, measure of unemployment utilized as a part of the UAE. Those excluded must be of work, physically fit to work and searching for it, and guaranteeing profit.
For a more practical check, and for universal correlations, the ILO (International Labor Organization) measure is utilized. This incorporates the low-ranking unemployed who are not generally qualified to claim, wedded ladies who can’t assert if their spouse is gaining enough, and the individuals who claim disorder and invalidity profits. Many people just marginally hindered unemployed laborers are paid these profits instead of swell the petitioner tally of unemployment (Bekaert et al. 12).
Note the issue of dynamic and idle parts of the number of inhabitants in meeting expectations age (Bekaert et al. 14). Just the individuals who are dynamic are incorporated in the working populace (or work power), which is characterized as every one of the individuals who are utilized or enlisted unemployed. At the same time a percentage of the latent are in this classification by decision, for example, understudies and the individuals who resign early. Right now in the UAE, the level of work is the most astounding ever (almost 28 million specialists). However, one ought to note the huge contrast in the numbers utilized in assembling contrasted and the administrations (more or less 4 million against almost 18 million) (Caballero 12).
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Price stability
Inflation is typically characterized as a supported increase in the general level of costs. Actually, it is measured as the yearly rate of progress of the Retail Price Index (RPI), frequently alluded to as the feature rate of inflation . At costs to be steady, along these lines, the inflation rate ought to be zero. By and large, governments are euphoric in the event that they can hold the expansion rate down to a low rate. For a clarification of how the RPI is detailed, see the subject called ‘Unemployment and expansion (Bekaert et al. 15). The UAE government likes to focus on the underlying rate of expansion, or the yearly rate change in the RPIX. This is the same as the RPI with the exception of lodging expenses are uprooted fit as a fiddle of home loan interest installments. It bodes well for the administration to utilize this measure in light of the fact that the weapon they use to control expansion, investment rates, straightforwardly influences the RPI itself.
Different less well known measures incorporate the RPIY, which takes RPIX a stage further by additionally taking out the impacts of aberrant levy (e.g. VAT), and the purchaser value file, which is frequently utilized when making universal examinations. The expansion rates focused around these measures for the entire of 1999 were: RPI, 1.5%; RPIX, 2.2% and RPIY, 1.6%. An alternate imperative fact is that of normal profit development (Di Tella 29). Most economists accept that the development in wages straightforwardly influences the value level. The 4.6% figure for 1999 is sensibly low generally (absolutely contrasted and the early 90s), however there are reasons for alarm that it will have grabbed amid 2000. At the time of keeping in touch with it was so ahead of schedule there was no option get figures for the entire of 2000. This is something that you ought to find yourself. INCLUDEPICTURE “http://www.tutor2u.net/economics/content/diagrams/econ_policy2.gif” * MERGEFORMATINET
Stable economic growth
Financial development has a tendency to be measured in terms of the rate of progress of true GDP (Gross Domestic Product). At the point when the expression genuine goes with any detail, it implies that the impacts of swelling have been uprooted. GDP is a measure of the yearly yield (or wage, or use) of an economy. Here and there GNP (Gross National Product) is utilized, which is very much alike to GDP (Bekaert et al. 10). The main contrast is that salary earned from holdings held abroad is included and the wage earned by nonnatives who have possessions in the UAE is taken away (formally called net property pay from abroad). Development figures are distributed quarterly, both as far as the change quarter on quarter and as yearly rate changes.
UAE true GDP development was 1.8% in 1999, which is lower than the mid-90s, however much superior to the subsidence of the early 90s. Keep in mind that numerous economists were anticipating 1999 to be a year of retreat, so the last figure is truly very sensible. Note likewise that there is an enormous distinction between the development rates of the assembling division (-0.4%) and the administration segment (2.8%) (Di Tella 24). The administration segment has been solid for a long time, inasmuch as the assembling part, some would contend, has scarcely recuperated from the subsidence of the early 90s.
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Balance of payments in equilibrium
This is a huge point in itself. Take a gander at the subject called ‘Balance of Payments’ for substantially more detail. Quickly, this records all streams of cash into, and out of, the UAE over a given time period (generally a year). It is part into two: the Current Account and the Capital and Financial Accounts (once the capital record, despite the fact that analysts do still acknowledge this name). Most likely the most critical is the current record on the grounds that this records how well the UAE is getting along regarding its fares of products and administrations with respect to its imports (Di Tella 25). On the off chance that the UAE is to ‘pay its route’ on the planet over the long haul, then it needs to continue acquiring enough remote coin from its fares to pay for its imports. In the event that this is not the situation, the current record will be in deficiency.
Japan has the biggest current record surplus on the planet. Despite the fact that a surplus sounds better than a setback, both might be terrible. Japan’s surplus powers different nations on the planet to have shortfalls. Truth be told, while Japan’s surplus is the greatest on the planet, the USA’s deficiency is the greatest on the planet. This is not an occurrence! The UAE has a tendency to be in setback, despite the fact that the current record was in surplus several years prior, mostly because of our quality in the administration division.
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Question 2
The United Arab Emirates’ monetary flexibility score is 81.9, making its economy the 25th freest in the 2014 Index. Its score is 0.4 point higher than a year ago, with enhancements in the process of childbirth flexibility, business opportunity, and economic related opportunity exceeding decreases in the control of government using and opportunity from defilement. The UAE is positioned second out of 16 nations in the Middle East/North Africa area, and its general score is higher than the world and provincial midpoints. The UAE was initially evaluated in the 1996 Index and from that point forward has been a local pioneer in monetary opportunity. Upgrades in 50% of the 10 financial flexibilities incorporate headways in the administration of open using and business sector openness. Huge decreases in property rights and flexibility from defilement have kept a general addition, however the economy has attained its most astounding monetary opportunity score in 10 years in the 2014 Index. The UAE can improve in the tenet of law. Regard for the principle of law stays undermined by the legal framework’s absence of freedom and defenselessness to political impact.
The United Arab Emirates is an emirates of seven governments. The legislature reacted to requests for change amid the “Middle Easterner Spring” by launching a $1.6 billion project to enhance the framework in the poorer northern emirates. It additionally extended the amount of individuals permitted to vote in the September 2011 races for the Federal National Council. Abu Dhabi represents something like 90 percent of oil creation; Dubai is the inside of economic , business, transportation, and tourism (Di Tella 20). Facilitated commerce zones that allow 100 percent outside proprietorship with zero levy help to differentiate the economy. UAE nationals depend vigorously on open segment job and sponsored administrations. Oil and gas fares represent about 80 percent of government incomes.
The UAE has no salary duty and no government level corporate assessment. In a few emirates, distinctive corporate charges exist for certain business exercises. There are few different assessments, and the general taxation rate is low at 6.1 percent of the economy. Government using is 24 percent of terrible household yield (Di Tella 19). Open obligation is low at about 18 percent of GDP. Oil and gas incomes help fundamentally to open using.
Propelling a business takes six methods and eight days, and no base capital is needed. Permitting prerequisites have been streamlined and are less excessive, yet finishing in any case them assumes control over a month. Vocation regulations are moderately adaptable, and the non-pay expense of utilizing a laborer is moderate. Kept rebuilding of vigorously financed and obliged government-related elements is required.
The UAE’s normal levy rate is 3.7 percent. Non-levy hindrances are not a critical hindrance to exchange. Remote possession in numerous areas of the economy is topped at 49 percent. The present day monetary part is productive and aggressive. Banks offer a full scope of administrations. Islamic keeping economic is progressively noticeable. State-claimed banks have kept up a solid vicinity, yet outside banks have in excess of 100 limbs around the nation.
The country needs demand-side solutions, and since unemployment is a systemic issue, the results must be systemic. One mainstream systemic result is to create higher total financial action, yet the main executor that can decide to do that — the central government — is fundamentally hamstrung at this time. An alternate result would be to change laws (which by definition are framework wide impacts) such that head honchos are compelled to contract more specialists.
Question 3
The Balance of Payment (BOP) is the strategy nations utilization to screen all worldwide fiscal transactions at a particular time of time. More often than not, the BOP is figured each quarter and each schedule year. All exchanges directed by both the private and open divisions are represented in the BOP keeping in mind the end goal to figure out the amount cash is going good and done with a nation. In the event that a nation has gotten cash, this is known as a credit, and if a nation has paid or given cash, the transaction is considered a charge. Hypothetically, the BOP ought to be zero, implying that advantages (credits) and liabilities (charges) ought to adjust, yet in practice this is infrequently the case. Accordingly, the BOP can tell the onlooker if a nation has a deficiency or a surplus and from which a piece of the economy the inconsistencies are curtailing.
Free-Floating Systems
In a free-floating Systems exchange rate regime, governments and national banks don’t take part in the business sector for outside trade. The relationship in the middle of governments and national depends on the one hand and cash showcases on the other is much the same as the normal relationship between these foundations and securities exchanges. Governments may manage securities exchanges to avert extortion, however stock qualities themselves are left to buoy in the business sector. The UAE government, for instance, does not mediate in economic markets to impact stock costs.
Managed Float Systems
Governments and national banks regularly try to build or decline their trade rates by purchasing or offering their monetary forms. Trade rates are still allowed to buoy, however governments attempt to impact their qualities. Government or national bank investment in a floating exchange rate system is called a managed float.
Fixed Exchange Rates
In a fixed exchange rate system, the exchange rate standards between two monetary forms is situated by government arrangement. There are a few instruments through which settled trade rates may be kept up. Whatever the framework for keeping up these rates, nonetheless, all altered conversion scale frameworks impart some critical peculiarities
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Question 4
Causes of economic Growth
Monetary Growth is created by enhancements in the amount and nature of the components of creation that a nation has accessible i.e. area, work, capital and undertaking. On the other hand monetary decay may happen if the amount and nature of any of the components of creation falls.
Enhancing the Quantity and Quality of Land Resources
Builds in the amount of area accessible for agribusiness will build monetary development. Nonetheless, the degree to which this happens is restricted to the degree to which shrub area might be changed over to rural area. All monetary assets are rare and have an open door cost. As hedge area is progressively utilized for agrarian purposes it is no more an environment for untamed life. The relative lack of area notwithstanding a developing populace implies that the theory of unavoidable losses may likewise get to be important. The law predicts that an expanding measure of work connected to a settled amount of area the peripheral gainfulness of the work will fall. This was the premise of the contention set forward by the Reverend Thomas Malthus. To keep this misfortune in gainfulness the nature of the area must be moved forward. This is possible through the application of better innovation through enhanced watering system, composts, and irritation control
Enhancing the Quantity and Quality of Human Resources
Builds in the supply of work can expand financial development. Builds in the populace can build the amount of youngsters entering the work energy. Expands in the populace can likewise prompt an expand in business request therefore fortifying generation. Nonetheless, if the populace develops at a quicker rate than the level of GDP the GDP for every capita will fall.
It is not basically the measure of work that will prompt monetary development. It is frequently the nature of that work (Shleifer, Andrei, and Robert 17). This will rely on upon the instructive procurement in nations. Enhancing the abilities of the work power is seen as being an essential key to financial development. Numerous states have endeavored huge endeavors to give widespread essential training. As more capital is utilized, work must be better prepared in the aptitudes to utilize them, for example, overhauling tractors and water pumps, running lodgings and introducing power. It ought to dependably be recalled that training using includes an open door cost as far as present utilization and along these lines it is frequently alluded to as speculation using on human capital.
Policy Response to Economic growth
As opposed to the Great Depression, quick and exhaustive fiscal power intercessions served to deflect a worldwide economic related breakdown. The expansive nature and size of intercessions as a rule growing the general population part monetary record, has been remarkable in present day times. The measure of intercessions in the economic related parts amid 2008–2009 was extensive, totaling on normal for cutting edge economies something like 50 percent of their buying influence equality (PPP) weighted GDPs (Sørensen, Peter Birch, and Hans 36). Yet regardless of capital infusions, exceptional liquidity offices, financial moving, procurement of insurances, anxiety testing, and the publication of economic related rebuilding plans, the status of budgetary area monetary record repair is still indeterminate.
Notwithstanding backing to the budgetary part, the worldwide economy is confronting a remarkable issue of coordination (Shleifer, Andrei, and Robert 13). Tending to the emergency obliges a wide, conclusive, and all inclusive composed arrangement activity as a financial boost that goes past national limits. In most cases,G20 nations have received notwithstanding backing of their fiscal segments financial jolt measures that arrived at 0.5 percent of their normal GDP in 2008, 2 percent in 2009 and 1.5 percent in 2010. A specific attention was set on optional using on base, provided for its higher multiplier impact.
Question 5
Monetary and fiscal policy Impacts
Credit in the UAE has been developing both in outright terms and as a rate of GDP. This is a positive improvement that will strengthen as the UAE economy keeps on differentiating, and as its fiscal markets and keeping money part create further. Credit, notwithstanding, is indicating cyclical conduct, frequently overshooting pattern development and at different times undershooting the pattern. By their temperament, credit cycles have a tendency to be determinedly associated with business cycles. Credit development is speedier amid the great years and slower amid the terrible (Shleifer, Andrei, and Robert 10).
The monetary framework overall has a tendency to see hazards as being low amid expansionary periods of financial action. Incomprehensibly, it is amid the expansionary period of the business cycle that the dangers develop. This applies to most economies on the planet, including the UAE, where the economy accomplished solid credit development in 2008 (+49% year-on-year as of September 2008) which turned out to be unsustainable (Di Tella 24).
In the event that surrendered totally over to businesses, credit cycles could be exceptionally unpredictable. Furthermore given their relationship with business cycles, a credit crunch can prompt a noteworthy log jam in financial action, and the other way around. Strategy has a dynamic part to play. There is a requirement for financial approach and regulation to be countercyclical to attempt to smooth the cycle and its effect on monetary action.
This note has been ready for Dubai’s Economic Council and is separated into three fundamental parts. The main area takes a gander at the credit cycle and its mechanics. The second segment takes a gander at the imperatives confronting the UAE fiscal arrangement system. At long last, the third area takes a gander at conceivable strategy measures that might be actualized.
Works Cited
Bekaert, Geert, Seonghoon Cho, and Antonio Moreno. “New Keynesian macroeconomics and the term structure.” Journal of Money, Credit and Banking 42.1 (2010): 33-62.
Caballero, Ricardo J. Macroeconomics after the crisis: Time to deal with the pretense-of-knowledge syndrome. No. w16429. National Bureau of Economic Research, 2010.
Di Tella, Rafael, Robert J. MacCulloch, and Andrew J. Oswald. “The macroeconomics of happiness.” Review of Economics and Statistics 85.4 (2003): 809-827.
Shleifer, Andrei, and Robert W. Vishny. Fire sales in finance and macroeconomics. No. w16642. National Bureau of Economic Research, 2010.
Sørensen, Peter Birch, and Hans Jørgen Whitta-Jacobsen. Introducing advanced macroeconomics: growth and business cycles. McGraw-Hill higher education, 2010.
Lincoln Smith strongly stated that Bible has authority
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Response 1
Lincoln Smith strongly stated that Bible has authority. It’s true that based on the available literature and evidence from the bible, the Bible has complete authority as compared to other books written in past and modern history. This is because there is no any other documented book that can explain certain instances e.g. during exodus (Moses time); therefore, it leaves no room for references hence giving it sole authority. The bible is the oldest documented history, and it comprises of so many laws that are used in the contemporary world. It is the source of reference when addressing rules and regulation making it to be authoritative in nature. This teaches me that there is no other book other than the bible that has authority. In addition, I can also understand that the scripture was Godly is inspired.
Response 2
Christopher’s work states that the Bible indeed is God’s word since it is an error free because; It leaves no room for critics to interpret and analysis that some part of the bible is false hence considering the whole bible to be on false assumptions. On the other hand, the bible gives assurance to those who believe the teachings to have benefits of eternity. As a result, there is no person who will question the legitimacy of the bible hence giving it its authoritative power. However, the only place that it disagrees with him is that the bible only gives information that is righteous to the people and does not criticise sinners, but encourages them. Thus, it can be stated that the Bible is the only moral and authoritative Book. Christopher’s work is a credible lesson to me since I have now known the importance of the Word of God.
Response 3
Knapp’s work states that the Bible is the revealed words of God that were written after God’s inspiration. Inspiration of the Bible was when God breathed His Spirit, the Holy Spirit into the writings of the Bible to show it can be trusted and has authority despite human scribes. 2 Timothy 3:16 says “All Scripture is inspired by God and is useful to teach us what is true and to make us realize what is wrong in our lives. The writers themselves were not inspired however the writings were and through the work of the Holy Spirit, He makes Scripture come alive to its readers in order to change lives. His work has helped know that the bible the strongest book of all ages.
Response 4
As far as Miller personal beliefs on the infallibility, inspiration, and authority of Scripture, It is true that God created a perfect Word backed by His power and wisdom that is accessible and applicable based on the percussions I have experienced from it in my own and others’ lives. I don’t feel that I hold a blind faith in God’s Word, but I feel that it is worth focusing on the honest truths throughout the Bible and let the Holy Spirit guide my life through the Word. Without having been open and receiving to the Holy Spirit’s influence, the authors never would have been able to hear God’s voice. Based on Miller’s work, I was able to understand that one should obsess over the inerrancy of scripture simply because, as children of God, who have glimpsed the joy of His Holy Spirit.
Response 5
Kory’s states that the authority of the Bible originates from God, who is the ultimate authority because there is no power higher than Him. His word is a reflection of His power, essence and revelation. Walter Elwell states that the Bible “is the authentic embodiment of God’s self-disclosure” and proves that His word is the real record of His voice to the reader. We as readers are studying the printed record of God’s voice. In the light of scripture’s inspiration, the authors of scripture is only vessels God used to scribe His message. The men acted as a tool in the hand of God like their writing utensils were in their hands. He used them to articulate a written record of His word. Kory’s work is utmost correct and accurate because it is based only the bible. His example is also valid and just. Kory’s work is credible as it has built my understanding that the Bible is a vessel for success.