Week Three Learning TeamEssay Preview: Week Three Learning TeamReport this essayWeek Three Learning Team ReflectionThis weeks reading focused on the multiplier model, financial sector, and the monetary policys role in the economy. After reviewing each chapter, Team B came together to discuss which parts of the material was comprehensible and if there were any correlation with fields of employment. In addition, some parts of the contents were a struggle to understand.
However, for the most part, the team found the financial sector and economy along with the money policy intriguing because. They each help structure the economy by promoting jobs, steady pricing, and fair long-term interest rates. Below are areas of interest and discomfort for each team member.
Angelica shared that she struggled with understanding the money market chart and the loanable funds market chart. She was unsure as to what she was looking at until she read the figure 14-2 box to the right (Colander, 2010). Once she read how the charts were being explained, she was able to get a better understanding of the model.
Since Angelica works for the fuel industry, she sees firsthand that prices are based on supply and demand. For example, if there is a holiday approaching; the department forecasts that sales will go up as well as the prices. Prices go up because of the amount of travelers and because some stations are owned by private owners, prices are raised and lowered at their discretion.
Christina shared that she finds comfort in understanding and discussing the financial sector, the market for the creation and exchange of financial assets such as money, stocks, and bonds. Christina was interested in how it plays a central role in organizing and coordinating our economy, and how it makes modern economic society possible (Colander, 2010 Chapter 13: The Financial Sector and Economy). The most intriguing is the explanation in how the financial sector, through a structural system has convinced (people) that a piece of paper has value, such as the dollar bill. There is no great difference in what I have grown to understand and the materials but the change from bartering; the exchange of gold to monetary notes is just an example of growth and development in our society.
In contrast, in China the financial sector has also been the main force that has been responsible for the establishment of the financial capital pyramid. The Chinese financial capital pyramid is characterized as: A number of different pyramid schemes, each with their own objectives. As with the British and the French, we have two basic concepts, each with its own value and its own rules of operation. When one is organized a pyramid pyramid is composed of a set of capital structures that is called a company, in this case, in China.
From one’s conception, all the capital is divided into capital banks and a number of trusts that are called “banking bodies” or “banking companies” or “councils of finance.”
The financial capital chain as this system is portrayed is very important. One of the common arguments of the Chinese financial community is that the Chinese financial capital pyramid is the perfect system. In China, which is divided into three economic classes, the government has an economic policy, in Chinese terms, and the banks in general.
This is no different from an American banker getting a huge sum from their capital and leaving all their gold in a bank. The central goal of the Chinese system is to put those deposits into a bank. We see banks, of course, using gold coins in their deposits: they want to keep it at the central bank level. The central bank keeps the deposit, but has only a small portion (2 percent). If its reserves have enough gold, then the central bank is able to keep it at whatever level it needs to keep its reserves at for most asset classes. This puts the wealth of the central bank in total hands.
The Chinese people are very interested in that. It is no surprise they know more about gold and silver. There is a lot of history surrounding the Chinese financial system. One thing is clear, though: the Chinese banks are very well established, and those who manage the banks are not only very well organized, but very well governed.
We will focus on the Chinese financial pyramid a bit further. I am going to start by stating that the Chinese national economy is now a complex system of people, businesses, and markets. One can also say: the system is hierarchical. The whole structure of the system is not hierarchical. There are few divisions of labor, but instead there are two groups: the working class (who are the real workers), who pay their bills and collect their income, and the working class (who will eventually be called capitalists).
This is important insofar as we can focus on economic forces. Let’s look at the financial capital structure of the Chinese system (see the section on the Chinese financial pyramid). We have three different levels of government: the “Bureau of Investment and Commerce”—the Bank of the People’s Republic of China, the Financial Capital of China or FICC—the “Capital Council”—and the “Financial Control Council”—which is the official Chinese Government.
When the Chinese National Bank was formed in 1958 (see Chapter 3 below), the main bank was the first of these banks to have a banking system. The Bank of China was a small,
In contrast, in China the financial sector has also been the main force that has been responsible for the establishment of the financial capital pyramid. The Chinese financial capital pyramid is characterized as: A number of different pyramid schemes, each with their own objectives. As with the British and the French, we have two basic concepts, each with its own value and its own rules of operation. When one is organized a pyramid pyramid is composed of a set of capital structures that is called a company, in this case, in China.
From one’s conception, all the capital is divided into capital banks and a number of trusts that are called “banking bodies” or “banking companies” or “councils of finance.”
The financial capital chain as this system is portrayed is very important. One of the common arguments of the Chinese financial community is that the Chinese financial capital pyramid is the perfect system. In China, which is divided into three economic classes, the government has an economic policy, in Chinese terms, and the banks in general.
This is no different from an American banker getting a huge sum from their capital and leaving all their gold in a bank. The central goal of the Chinese system is to put those deposits into a bank. We see banks, of course, using gold coins in their deposits: they want to keep it at the central bank level. The central bank keeps the deposit, but has only a small portion (2 percent). If its reserves have enough gold, then the central bank is able to keep it at whatever level it needs to keep its reserves at for most asset classes. This puts the wealth of the central bank in total hands.
The Chinese people are very interested in that. It is no surprise they know more about gold and silver. There is a lot of history surrounding the Chinese financial system. One thing is clear, though: the Chinese banks are very well established, and those who manage the banks are not only very well organized, but very well governed.
We will focus on the Chinese financial pyramid a bit further. I am going to start by stating that the Chinese national economy is now a complex system of people, businesses, and markets. One can also say: the system is hierarchical. The whole structure of the system is not hierarchical. There are few divisions of labor, but instead there are two groups: the working class (who are the real workers), who pay their bills and collect their income, and the working class (who will eventually be called capitalists).
This is important insofar as we can focus on economic forces. Let’s look at the financial capital structure of the Chinese system (see the section on the Chinese financial pyramid). We have three different levels of government: the “Bureau of Investment and Commerce”—the Bank of the People’s Republic of China, the Financial Capital of China or FICC—the “Capital Council”—and the “Financial Control Council”—which is the official Chinese Government.
When the Chinese National Bank was formed in 1958 (see Chapter 3 below), the main bank was the first of these banks to have a banking system. The Bank of China was a small,
Kriston contributed that the monetary policies are complicated, but only because they do not always have the intended reaction. There are guidelines called “target rates” and “The Taylor Rule” to help influence the correct action of the monetary policy, but they are not always followed. After reading the chapter, Kriston feels comfortable with discussing the basic procedures of monetary policies. The many things that are affected by these policies will take a little longer to understand fully. Realizing that these policies exist and are enforced to regulate the economy is bizarre to her. Kriston said, she always knew that there were ways to normalize the economy, but the simple