The Dominican Republic is a country that has been experiencing economic growth for the last two decades. It has shown an average growth rate of 5.4% in its GDP between 1992 and 2014, with a growth rate of 7.0% in 2015, and ending 2016 with a growth rate of 6.0%. The rate of inflation, set by the Central Bank of the Dominican Republic at 4%, is projected to be 2.6% for 2016, 1.4% below the set target (Banco Central, 2016). Notwithstanding the foregoing, unemployment rate stays high at around 14% (Trading Economics, 2016), and the government keeps increasing its external debt as it accumulates fiscal deficit (Ruiz, 2015).
In light of the above situation, the Dominican Republic needs to maintain the economic stimulus to keep its healthy and sustained growth rate. Controlled expansion is in order to maintain a moderate inflation rate and a steady growth rate and government can use discretionary policy tools for this.
These policies are:
Government purchases which is the amount of money government
…show more content…
Transfer payments, which become personal disposable income, must be adjusted to inflation rate in order to increase the level of consumption of the beneficiaries of transfer payments which will cause an increase in aggregate demand to help maintain real GDP and price levels according to the moderate inflation expected. The slight increase in aggregate demand will be less than the change in personal disposable income.
The World Bank portrays the Dominican Republic as one of America’s fastest growing economies since 1992. Unfortunately, this growth has not been accompanied by a reduction in poverty and an improvement in social welfare. Unemployment level is still high. The level of indebtedness is a reason for concern and should be addressed in order to avoid a severe setback in the
The depression in the 1930’s in the country of Argentina was one of the most devastating internationally. In 1929, Argentina had the fourth highest gross domestic product; however a few short months later, this would no longer be considered the case. Considering that the economy heavily depended on foreign trade for daily essential produces, the economy was deficient of vital goods and thus lacked important industry. Mainly dependent on the foreign capital from Great Britain at the time, domestic industry was severely affected by the market crash due to the halt of British domestic capital investment. Through the Domino Effect, mass and widespread unemployment was a major and constant theme in the Argentinian culture at the time. This further affected the government revenue dropped significantly as the export of the country faulted investment and imports were decreased exponentially due to the international depression. As a result of the decline in national revenue, grand deficits began to appear. To repair the shortage of the countries’ profits, the government began to borrow mo...
The republic of Colombia has been fighting an internal war for over 50 years. On April 9th 1948, 1:00P.M. The leader of the Liberal Party Jorger Eliecer Gaitan walked out of his office in the downtown area, got shot 3 times and died once he got to the hospital. This day went down in Colombian history as the Bogotazo. Gaitan was a moderate socialist congressman that gave a voice to the middle and lower classes in Colombia. He gave hope to those that had nothing under the right wing elitist government. In 1948 after his death, the era of the Violencia started. A civil war between the Colombian communist party and the farmers against the right wing military conservative government due to the high inflation and unfair assistance to those that
Today I bring to your forefront of thought, the island of Hispaniola. This island is the namesake for the two countries who run the land, the Dominican Republic and Haiti. Both nations hail from a joint introduction into the world market and post-European colonization, but as time progressed, each one had a different outlook to the world stage. The present day Dominican Republic and Haiti are worlds apart on an island which keeps them together. Their culture is separated by the colonial residuals that lay imbedded into their communities. They are on different sides of the spectrum of structural growth due to the resulting outcomes from decades of political ruling and policy making. On one side we have the second independent state of the Americas,
Most consider the sport of baseball to be America’s pastime. While many in the United States spend countless hours following or playing the sport, it is more than a diversion in the Dominican Republic; it can be the key to overcoming impoverishment. For most citizens of the island, poverty is the only known way of life. In 2015, 32.4% or 3.4 million lived at or below the national poverty line. The per capita income for the country in 2016 was $6,909.13, which is $45,285.76 less than that of the United States. In order to achieve their goal of creating a better life for themselves and their family, baseball provides Dominicans an opportunity for upward mobility. It is common for children in the Dominican Republic to grow up playing baseball, the country’s beloved sport, hoping to make their hobby a full-time job.
The Center for Strategic Studies. Dominican Action—1965: Intervention or Cooperation?. Washington, D.C.: The Center for Strategic Studies, 1966.
In conclusion, the current macroeconomic situation in the United States is characterized by moderate growth because of better economic conditions that were brought by the events of 2013. The country has experienced moderate economic growth since the 2008 global recession but has shown real signs of momentum. While the country is not concerned about recession or inflation, the rate of unemployment is still a major challenge despite improved consumer and business confidence. As a result, the Federal Open Market Committee or Federal Reserve System needs to adopt fiscal and monetary policy initiatives that help address the unemployment issue and promote high economic growth.
Steven Gregory’s The Devil behind the Mirror is a strong book in the field. It offers real and resourceful information on economic, gender and racial oppression and inequality in the Dominican Republic. Although more research should be done on his topics of discussion, Gregory has set in motion a fundamental understanding of the effects globalization has had on specific
“Family is the most important thing in the world.” ~ Princess Diana. The Dominican Republic is a diverse country in the Caribbean. It shares many of the same values and norms as the United States. In order to fully understand Dominican Republic families it is important to look at their structure, traditions, and values.
In the Dominican Republic has many economic factors and it is very difficult for Dominican families to find work to support their families and provide them with the necessary things that they need. Due to this lack of economic resources in many cases is why many Dominicans robbed convenience stores, steal food from farms, ect…. just to feed their families. Many Dominicans have been struggling in their native country and due to this struggle they have been forced to do bad things to afford food for their families. Many have robbed bodegas (comer stores) for the basics that they need to eat just for one day. They have also been to the country side and steal vegetables, rice, animals, and other things to support their families. Many have also been arrested due to this delinquency but the government fails to see that our country needs more resources to keep citizens from commuting the crimes that they are committing just to support their families and not starve to death like it has happened too
The Dominican Republic or also known as La Republica Dominicana is a small island that is 18,816 square miles, located off the coast of Florida. The Dominicans of this land share their island with the Haitians. The island has a subtropical climate, mountains, rolling hills, and fertile river valleys. The economy is mainly dominated by sugar, which still earns much of the country's foreign exchange despite establishment of varied light industries and the development of nickel, mining and tourism. Coffee, cocoa, tobacco, and bananas are also a major export crop. But, despite their seemingly stable economy, and lush landscaping, a vast majority of the estimated 8,603,200 people that live there wish to migrate to the United States. This may be due to the fact that since the time the Dominican Republic was proclaimed in 1844 as a dictatorship, it has come under the attack of bad political leadership, and civil strife. In 1899 the country was bankrupted by civil strife after the murder of Ulises Heureaux, their dictator. Shortly after that the country came under U.S. control. Even under U.S. control the country still suffered from dictators with highly restrictive policies on leaving the island, and harsh economic conditions. These terrible economic conditions only worsened and caused a gigantic influx of immigrants from the Dominican Republic to the United States in the early 80's and even more in the 90's (Hale-Benson, p. 97). The people came in groves to the United States seeking more opportunities and a better life, but they soon learned that they would face many of the same cultural, racial and ethnic barriers that other ethnic immigrants have faced when seeking a new life in a new land. In this paper I w...
This previously inexistent economy is what allowed Trujillo to attain and strengthen his power in the Dominican Republic. Oddly enough, the same peo...
are trying to avoid and the poverty in the Dominican Republic is what the Sosuan women
"Dominican Republic." Gale Encyclopedia of World History: Governments. Detroit: Gale, 2009. Student Resources in Context. Web. 1 Apr. 2014.
In the study of macroeconomics there are several sub factors that affect the economy either favorably or adversely. One dynamic of macroeconomics is monetary policy. Monetary policy consists of deliberate changes in the money supply to influence interest rates and thus the level of spending in the economy. “The goal of a monetary policy is to achieve and maintain price level stability, full employment and economic growth.” (McConnell & Brue, 2004).
Seen another way, this apparatus measures the "genuine"— that is, balanced for inflation—estimation of income after some time. Note that the segments of the CPI don't change in cost at the same rates or even fundamentally move the same course. For instance, the costs of auxiliary training and lodging have been expanding a great deal more quickly than the costs of different merchandise and benefits; in the interim fuel costs have risen, fallen, risen again and fallen once more—every time strongly—in the previous