Paper Topic:

What has happened in the economy of the Unites States since November 2004- November 2007

United States Economy since November 2004 to November 2007

Introduction

The distinction of the United States as the only remaining super power in the world may not only apply in their military force but in their economic might as well . But historically , according Bernard Baumohl , it was only during the early 1970s that the U .S economy was open to international market following the collapse of the Bretton Woods Agreement , which was intended to establish a stable foreign exchange system . As a result , Baumohl said currency values in the world financial

market began to float freely , sometimes moving wildly up and down (p . 240 . The immediate impact of this is that the world trade grew faster than ever . Baumohl point out that this development resulted to the influx of cheaper foreign goods which were often of better quality and increasingly found their way into the U .S market and started to pose serious competition for US producers (p . 240 . As this was the case , American companies responded by operating more efficiently , and lower their prices while also seeking new market overseas . Baumohl noted that since then , trade has evolved to become one of the most important forces shaping the US economy (p . 240 , the United States economy soared so high that in the short span of time they became one of the most if not the wealthiest economy in the world

Price stability in the United States

As the US economy soar high in the international arena and the purchasing power of the US dollar remains strong against the euro , the US has maintained a stable price . The OECD economic outlook noted that inflation in the US has remained with in a desirable range through the help of the long-term household survey measures . Inflation , the OECD noted have remained well anchored , even if indexed-bond have drifted somewhat (p . 24 . The article point out that this stability has helped limit the second-round effects from the oil price and exchange rate shocks , but it is all the more important that further policy action validate the still serene expectation (p . 24 ) In the OECD Economic Surveys United States 2004 article , it noted that in price stability firmly anchored long term inflation expectations are especially important , not only to maintain public confidence in the durability of low inflation achieved over the past two decades , but also to limit the risk of a potentially self- reinforcing deflationary spiral in the face of hypothetical negative shock (p . 46

Unemployment . Nazimudeen Saleem stated that unemployment in the US soared to a record high in 2004 at 5 .6 reaching over the threshold of 5 . An internet article from entitled Unemployment noted that in April 2007 unemployed adult men stands at 4 .0 percent while adult women , at 3 .8 percent , Caucasians , 3 .9 Hispanic (all races , at 5 .4 percent African American , 8 .2 percent , and teenagers with the highest number of unemployed at 15 .3 percent

Amadeo noted that the weakest year-by-year employment was 1 .2...

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