MWP2 Precis 5

In their article "A tale of two perspectives: Old or new challenges for monetary policy?" (2003), authors
Claudio Borio, William English and Andrew Filardo state that Inflation is main cause of our financial crisis. The authors strengthen their statement by providing numerous charts, credible citations and well organized research. The intended audience for this book is for people who are very educated within the field of economics. The purpose for writing this book is to furthermore identify the problem of our crisis and solve it.

MWP2 Precis 4

In his article "Finance and Economic Breakdown: modeling Minksy's 'Financial instability hypothesis'" (1995) author Steve Keen implies that in order to better understand our current financial crisis and also to solve it; we need to use Minksy's four theories of cause and effect. Keen constructs his argument by simplifying each and every theory while also correlating them with current events. The intended audience for this article is for those more economically educated. The purpose for writing this article is to inform and educate those who do not understand our crisis.

MWP2 Precis 3

In his article, "The Great Financial Crisis: Causes and Consequences" (2009), authors John Bellamy Foster and Fred Magdoff assert that if there is any possible way to pull out of our second Great Depression, it is to revisit the past events of our world. The authors support their claim by supplying ample amounts of statistics and very accurate historical events. The audience this article is directed towards is for those people who are business savy.The intended purpose for writing this article is to try and inform those people less economically aware.

MWP2 Precis 2

In their article "FINANCIAL INSTABILITY, RESERVES, AND CENTRAL BANK SWAP LINES IN THE PANIC OF 2008" (2009), authors  Maurice Obstfeld, Jay C. Shambaugh and Alan M. Taylor assert that a countries reserves and holdings influence the trade rates of emerging and advanced countries in 2008. They construct their theory by including many recent events relating them to past events. The intended audience for this piece of literature is for people who are economically interested.

MWP2 Thesis

Financial instability may sound like an age old problem that is easily solved; but the extreme difficulty in creating financial prosperity and stability remains elusive. Too many people are worried about themselves and their debt instead of focusing on the companies that put them into debt. Banks and credit card companies should not be allowed to hike interest rates so high that it literally suffocates any individual using loans or credit cards to pay bills. Even in our financial recession, the interest rates on loans and credit cards are at an all time high, thus making it nearly impossible for a struggling population to repay their debts.

Financial Instability

What exactly is the problem?

Throughout the world Financial Instability is causing repercussions that are causing extreme measures to be brought into play. More Precautions are being utilized in order to maintain financial prosperity. People are also becoming more timid about taking out loans because of the ever increasing loan interest rates that plague our receding economy.

Who is most affected by the problem?

People who are more likely to not pay back loans or other debts are the main people affected by increased interest rates and global financial instability. These people are causing a high risk to be emulated throughout the banking society. This high risk correlates to a harder process to be rewarded with a loan or other lending contracts.

What causes the problem?

A growing recession is causing people to be unable to make payments. The inability to make payments and their unethical morals are causing people to take loans out knowing they have no chance to pay them back. This recklessness is causing a gap in financial instability where lenders are hesitant to lend, causing those people who actually can pay the loans back to possibly not get them.

Has anyone tried to do anything about it? If so, why haven't they succeeded?

The government has tried to place regulations and other restrictions to protect against financial recession and instability. This is basically their way of making a back-up against any possible bad financial decisions. These unfortunately have not succeeded, obviously as we are currently fighting the recession each and every day we live.

What is likely to happen in the future if the problem isn't solved?

If the problem isn’t solved then financial collapse of a global scale will happen. If this financial collapse does indeed happen, we may drop back down into strictly a trade mentality, in which only goods are traded for services. Another possible problem that is portrayed by the issue is mob mentality amongst a countries population. If the currency of that nation does not hold true and strong, then many people will resort to violence and crime to not only be spiteful, but also to survive.

Someone should stand up and propose a drastic and effective solution to bring our global economy back from the brink of self-destruction. This proposal could include the likes of lower and more effective tax rates, more power to financial divisions to lower national debt and other possibilities.

Ch. 13 Precis of Good Reasons

In Lester Faigley and Jack Selzers' "Good Reasons: Proposal Arguments" They assert that in order to construct a successfully proposal argument, you have to follow six simple steps. The authors support their claim by identifying the six steps and defining each and every one. The purpose for this chapter in the book is to display one organized and effective way to write a proposal argument. The intended audience for this chapter of their book is for any person who is pursuing different ways to write academic arguments.