The influence of quantitative easing monetary policy on Japan and the Research Paper

The influence of quantitative easing monetary policy on Japan and the United States - Research Paper Example Expansionary monetary policies aimed at stimulating the economy usually involve central banks buying short-term government bonds so that the market interest rates can be lowered. Nonetheless, when short-term interest rates go towards zero, this approach may no longer be effective. In this kind of situation, the monetary authorities may employ the use of quantitative easing to stimulate the economy through purchase of assets that mature in the long-term rather than short-term government bonds, therefore decreasing the interest rates away from the yield curve. Quantitative easing may be important in assisting to make sure that inflation does not go below the target, but it has risks including over-efficacy than originally intended against deflation, thereby resulting in higher inflation in the longer term from increased supply or sufficiently effective in the event that additional reserves are not lent out by banks. Based on the opinion of various economists as well as the IMF, quantitative easing used since the beginning of the financial crisis that was experienced between 2007 and 2008, has been critical in mitigating various adverse impacts of the crisis (Gindin and Panitch 326). Various economists and analysts argue that the US Federal Reserve employed some type of quantitative easing from 1930 all the way to 1940s in the fight against the Great Depression. Nevertheless, as the Federal Reserve employed quantitative easing initiatives to address the effects of 2007-08 financial crisis, various critics have considered its actions extraordinary. Further, charts have been created to point out that, as a fraction of GDP, the balance sheet after the financial crisis had not gone past the percentages that were attained between 1939 and 48 as of May 2013. The phrase â€Å"quantitative easing† was for the first time employed by the Bank of Japan when it was dealing with domestic

Operating Segments Essay Example | Topics and Well Written Essays - 1500 words - 2

Operating Segments - Essay Example IFRS 8 normally applies to the individual and separate financial statements of a business organization, or consolidated financial statements of a group of business organizations managed by a company. Through this statement, we can denote that there is a need of carrying out financial reporting through operational segment reporting (Bragg, 2010). Segment reporting involves giving of separate accounts of the individual divisions or units of a company, its subsidiaries and other divisions. In an annual accounting report, the purpose of a financial segment reporting is to give an accurate picture of the performance of a public company to its shareholders and investors (Crawford and Helliar, 2010). Future or prospective investors will also use this financial statement for purposes of making a decision on whether to invest or not in a business organization. For the management of an organization, segment reporting is used for purposes of evaluating the assets, liabilities, expenses and inco me of each segment. This is for purposes of assessing how risky or profitable the business segment under consideration is. It is through this assessment that the managers of a business organization will develop policies aimed at meeting the objectives and aims of the business organization (Bragg, 2010). When it comes to the evaluation of large capitalized companies, carrying out an analysis of important financial information is the beginning point. On a general perspective, it is always difficult to understand the financial records and information of large capitalized business organizations (Bragg, 2010). To understand their operations and financial records, there is a need of analyzing every operation of the business organizations. This is individually. The segment data of a company is therefore an important place to begin an analysis of the