Paper Topic:
modern economic system
[Author] [Course code] [Instructor] [Date] Reflections on the Modern Economic System and its Impacts The debate on modernity has taken for granted a certain kind of economy : the modern economy . A modern economic system is highly specialized and differentiated to produce a wide-range of goods and services . Now , a modern economy , according to Brown , presupposes a multinational corporate structure which is itself organized on a global scale , together with a vast network of interlinking financial marketing , scientific and technological agencies (91 . This modern economy originates from modern macroeconomic
theory . The principles which guide foreign exchange , inflation , monetary contraction , and other macroeconomic phenomenon are derived from simple economic assumptions The first assumption has something to do with the relationship between price , demand , and production . Price determines the amount by which suppliers are willing to produce , and buyers are willing to purchase The second assumption is about the nature of free trade . It is impossible for a modern economy to function well without trade . Trade provides suppliers incentives to produce a certain range of goods . The third assumption has something to do with the supply of money and interest rates . The supply of money diminishes when interest rates rise and vice-versa . A specialized economy must be able to balance fiscal and monetary policies in order to achieve economic efficiency
However , the modern economy is not just a synthesis of efficiency and production . The modern economy is a logical outcome of the marriage between society and development , between history and social change . An...
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