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Economics
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How does the type of economic system determine the growth and stability of a nation?

Mar 24th, 2015

A term used to describe the financial system of a nation that displays only minorfluctuations in output growth and exhibits a consistently lowinflationrate. Economic stability is usually seen as a desirable state for a developedcountry that is often encouraged by the policies and actions of its central bank.

Economic stability enables other macro-economic objectives to be achieved, such as stable prices and stable and sustainable growth. It also creates the right environment for job creation and a balance of payments. This is largely because stability creates certainty and confidence and this encourages investment in technology and human capital.

Better government budgeting

As with consumers and companies, governments and their electorates – their citizens – also benefit greatly from economic stability. Low inflation in a strong, well-managed euro area makes government borrowing less expensive. This means that interest repayments on national debt, which can be substantial, are reduced. This releases large amounts of taxpayers’ money, previously used to repay the interest, for other purposes depending on national priorities; for example, for tax cuts, new public infrastructure, or welfare systems. In addition, economic stability allows governments to plan national expenditure and revenues with more certainty.

Economic stability also makes the euro area more resilient to so-called external economic 'shocks', i.e. sudden economic changes that may arise outside the euro area and disrupt national economies, such as worldwide oil price rises or turbulence on global currency markets. The size and strength of the euro area make it better able to absorb such external shocks without job losses and lower growth.


Mar 24th, 2015

A term used to describe the financial system of a nation that displays only minor fluctuations in output growth and exhibits a consistently lowinflation rate. Economic stability is usually seen as a desirable state for a developed country that is often encouraged by the policies and actions of its central bank.

Economic stability enables other macro-economic objectives to be achieved, such as stable prices and stable and sustainable growth. It also creates the right environment for job creation and a balance of payments. This is largely because stability creates certainty and confidence and this encourages investment in technology and human capital.

Better government budgeting

As with consumers and companies, governments and their electorates – their citizens – also benefit greatly from economic stability. Low inflation in a strong, well-managed euro area makes government borrowing less expensive. This means that interest repayments on national debt, which can be substantial, are reduced. This releases large amounts of taxpayers’ money, previously used to repay the interest, for other purposes depending on national priorities; for example, for tax cuts, new public infrastructure, or welfare systems. In addition, economic stability allows governments to plan national expenditure and revenues with more certainty.

Economic stability also makes the euro area more resilient to so-called external economic 'shocks', i.e. sudden economic changes that may arise outside the euro area and disrupt national economies, such as worldwide oil price rises or turbulence on global currency markets. The size and strength of the euro area make it better able to absorb such external shocks without job losses and lower growth.


Mar 24th, 2015

this is copied and pasted

Mar 24th, 2015

This is the one you are expecting.

How does the type of economic system determine the growth and stability of a nation?

Answer:

The type of economic system determine the growth and stability of a nation by following different ways.

1. If the people are not agreeing the economic system they will against on that. This create a great cause of mass protest by the people.

2. The capital economy system will always help for the owners of organisation. In this situation people won't support it. 

3. Which ever the economy system we are following that should help the mass. Then only it will get a great success.

Mar 24th, 2015

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