Macro Data report, Fiscal Policies,

Monetary Policies along with the

Economic history Analysis
The GDP
The total value of all goods and services produced by all
citizens and companies in the country

Nominal GDP – This includes raw measurements taking

care of price increments

Real GDP - It reflects the value of all the commodities

produced in a country in a given year but the inflation is
adjusted and is usually expressed in base- year prices
Analysis of Annual GDP During the
Period 1990-2000
GDP Growth Rate( %)
5

4.5

3.5

2.5

1.5

0.5

0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Unemployment and Inflation 1991-2000
Year Unemployment Inflation Rate(%)
Rate(%)
1991 4.9 2.1
 
1992 3 2.0
1993 5.8 2.1
1994 8.3 2.4
1995 2.2 2.2
1996 7.0 1.9
1997 3.5 3.2
1998 8.2 2.2
1999 7.6 2.1
2000 4.3 3.4
Effects of Interest Rates Fluctuations on GDP
An increase in interest rates leads to a decline
in demand.

Low interest rates results in surge in demand for

commodities which can’t be met by supply.
Relationship Between Foreign Trade and other Economic
Outcomes
The GDP of a country increases if exports are more
than imports and decreases if a country imports more
than it exports.

Foreign trade is affected by external factors such as

wars and changes in trade barriers.
Government Policies for the Period
1990-2000
Fiscal Policies:
Policiesthrough which the proper levels of taxes and
expenditure are determined.

Monetary Policies:
Policiesthrough which it monitors the supply of
money in the economy .
The Fiscal Policy

The US economic growth turned negative in 1993.

Fiscal policy was removed via tax cuts, tax reforms and
direct cash expenditures to individuals.
Fiscal Policies Measures 1990-1994
1991: Economic Development and Tax Reprieve Reconciliation Act
Abolished the marriage forfeit
Raised the exception for the Alternate Minimum Tax
Abolished the Inheritance Tax

1993: Jobs and development Tax Reprieve Reconciliation Act

enhanced certain of the tax discounts of the 2001 Act
Reduced tax on shares and long-term capital expansions
 

1994: Prolonged several Act tax cuts of 1993

Prolonged the exemption of the Alternative Minimum to
1955
 
 Fiscal Policy Contd.
PROJECTED FISCAL OUTLOOK IN 1991

  ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97

Incomes 2277 2144 1957 2516 2002 2191 1972

($millions)

Expenditure 2045 1976 1731 2129 1778 1828 1750

s
($millions)

Excess 232 168 226 387 224 364 222

($millions)
Fiscal Policy Contd.
ACTUAL AND REAL ECONOMIC RESULTS
  ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97
 

Incomes 2166 1982 2061 2189 2383 1993 1896

($millions)

Expenditure 1553 1264 1577 2813 1778 1664 2056

s
($millions)

Excess 633 718 484 -624 605 329 -160

($millions)
 
Monetary Policy 1990-2000
The U.S economy grieved a reasonable recession in the
period between March and November 1991. due to the
ending dot-com boom and the subsequent sharp decline in
stock prices.

The terrorist attacks and the raid of Iraq in early 1993 clouded the
economic state in the first part of the decade.
Monetary Policy Contd.
Monetary Policy Contd.
Conclusion
For the ten year period 1990 -2000 the following was noted.
GDP was highest in 1990 the lowest GDP was recorded in 1996, however, the
GDP continued rising from 1996 to 199 where it declined for the case of 2000
The unemployment rates fluctuated constantly with the highest rate
recorded in 1994 and the least in 1995. On the other hand, inflation rates
seemed to fluctuate at constant rates with the highest recorded in 2000 and
the least in 1996.
Government policies have an effect on GDP. High interest rates leads to low
demand with overwhelming supply while low interest results to high
demand which cannot be met by supply leading to inflation.
Wars and other policies on foreign trade affects the rate at which the
country trade with other countries.
References
Belongia, M. T., & Ireland, P. N. (2016). The evolution of
US monetary policy: 2000–2007. Journal of Economic
Dynamics and Control, 73, 78-93.
Williams, J. C. (2016). Monetary Policy in a low R-star
World. FRBSF Economic Letter, 23, 1-23.
Kuttner, K. N. (2014). Low interest rates and housing
bubbles: still no smoking gun. In The Role of Central Banks
in Financial Stability: How Has It Changed? (pp. 159-185).
Van den Berg, H. (2016). Economic growth and
development. World Scientific Publishing Company.
Thank you