Comparison between US and UK Essay Example | Topics and Well Written Essays - 1000 words

Comparison between US and UK - Essay ExampleSimilarities inhabit in the way decisions are do economically, in the United States of America, decisions related to economic policies are made by the central bank, by the Federal Reserve commission, headed by the Federal Reserve chairman. These decisions heavily deposit on macro-level economic data, factors such as real estate trends, rates of inflation, patterns of economic growth and home base values are indicators that are commonly used. The federal funds rate is set by the central bank, so influencing the rates for consumer and business accounts for savings and loan. Monetary policies are majorly concerned with balancing healthy growth and decreased inflation, or increased prices. This is one of the ways the government tries to control the economy. The fast growth rate of inflation is as a consequence of increased money depict, and when inflation is down this means money supply is down. Generally, the US inflation target is se t to maintain the steadiness of the inflation, which should be between 2-3% (Grtner 46). The UK monetary insurance policy is set in almost a similar fashion. It is set by the Monetary Policy Committee (MPC) of the bank of England. Though they are independent in setting the interest rates that will wherefore influence the interest rates for savings and loans for individuals and businesses, they must put to consideration governments inflation target. The policy is make out in influencing the spending of consumer and Aggregate Demand (AD).