Economic And Economic Development Of The United States,...

The objectives for this newly developed capitalist society are to establish sustainable high rates of growth and a robust middle class. In order to achieve this there must be an effective government institutions, economic policies, laws, and to establish the role of the worker. If these objectives are not achieved then the newly developed nation is in danger. Due to this it is essential to analyze the great nations of our time such as the United States, Germany, Great Britain and Japan. One must see what they have achieved and what have they failed to accomplish, it will give us a clear indication in which route to take. As the newly appointed economic minister of the newly formed nation it would be essential for me to establish a†¦show more content†¦On the contrary employment, fluctuations in output and short term goals are all built in the inflation targeting goal. Also targeting policy is a very flexible approach to monetary since every source of information is used to create an appropriate objective to achieve the inflation target. If price stability is achieved then other monetary goals such as maximum employment can be achieved. The risk of letting inflation to get out of hand would cause the average level of prices to change daily, which alters the information being conveyed by the prices of goods and services. As a result economic decision making will be complicated for consumer, business, and the government which would throw the economic system into a chaos. If the economy is in chaos then there will not be an opportunity for any form of growth. In many cases were sever inflation occurs it is followed by political turmoil which can devastate a newly formed democratic nation. Germany experienced this disaster firsthand during their economic and political turmoil in the years of 1920s to 1935. This is described in The Deutsche Bank by David A. Moss, â€Å"The economic environment was so chaotic that planning for the future proved almost impossible.†(Moss, P.243). If inflation is not dealt with the cost can be devastating both social and economically. The advantages of an inflation targeting central bank over a dual mandate central bank are crucial for both sustainable high rates of growth and a