Question

This rubric element wants you to look at the policies in place at the start of your chosen decade.

•You will need to provide details on the policies and examine how they were related to macroeconomic issues at the time. Your slide(s) on this will highlight the key points and your speaker notes will add the explanatory detail needed.

•You may need to take a peak at what was happening in the years leading up to the start of your decade.

I need an explanation on the above for the period of 1990-2000. Any help would be appreciated. Thank you!

Answer 1

The US economy in 1990 to 2000 was characterized by robustness in economic activity, high scale employment opportunities, rising productivity and sharp uptick in stock markets. These all events following were after end of 1990 recession.

The GDP consistently rose for 10 years with techtonic cganges in market structure and coupled with expansionary fiscal policy and expansionary monetary policy.

However drawback being inflation peaked at 8% while technological companies saw rise in dot com businesses and multiple job creation and consumer demand for goods which led to higher imports and trade deficit.

Secondly these all contributed to the dot com bubble in early 2000s which saw complete crash by 2002 end

However there were multiple geopolitical risks straight from Asian Financial crisis, Mexican crisis and Argentina inflation. The decade also saw signing if NaFTA and welfare reforms and egalitarian taxation system which led to robustness in economic activity despite challenging situations.