The Christchurch earthquakes had a significant impact on the economy but also left the country in turmoil. Many economists were unaware of the economic impacts this event would have and the governments fiscal position was significantly impacted. The earthquakes spanned over 2 years in which the first struck on 4th September 2010 then almost 5 months later, the second hit on the 22nd February 2011. Christchurch was trying to recover from these horrific events as family homes and business were destroyed. This led to many consumers losing confidence in spending as priorities lay else where such as rebuilding homes. Unemployment rose as businesses were not able to operate in which many residents relied on for their livelihood. Christchurch entered a recovery phase which meant growth had to increase. The OCR …show more content…
This assignment will help determine the reason and the effect the lowering of the OCR would have on promoting growth using the IS-LM model. This model will work with the policy. The proposed policy will mean the New Zealand economy will be able to move from a negative to positive state. This scenario can be used by other countries if a natural disaster strike and has the same impact like on the NZ economy. The short term impacts were minimal as only GDP were impacted which was different to the forecasts predicted. Many industries moved and relocated to different parts of NZ at a cost. To understand the reason for the chosen policy to lower the OCR, IS-LM theory must be explained. A literature review of the theory which will be used for further analysis and evaluation of the chosen policy to see the effectiveness on the recovery state of the New Zealand economy. The fiscal policy undertaken the government will be discussed and explained in how it counteracted the economic impact the earthquake caused. Spending and debt increased to ensure short term income for rebuilding of
After all the research on this recessional era, I have concluded that the recession was not as extreme until the terrorist attack, which deeply affected the United States. The recession became worse after the attack, and many things were affected by this, including jobs, the government, and families. The fiscal and monetary policies would have been more affective as long as the terrorist attack wouldn’t have happened. The government handled the recession as well as possible, and the policies enforced worked, but not as fast as it could have. After working towards strengthening the economy for three years after the recession had officially ended, the government had finally gotten everything back on track.
Gustman, A. L., Steinmeier, T. L., & Tabatabai, N. (2012). How Did The Recession Of
Boom! Crash! Sound echo everywhere. People scream all around you. A deadly 7.1 magnitude earthquake has just hit your town. On October 14, 2013 this happened in the Philippines (B-Essay). There were 3,512,281 affected individuals and 36,645 houses damaged (Doc. D). 39 roads and 18 bridges were in disrepair (Doc. D). People respond in certain ways after a natural disaster. They band together and react with Red Cross and government, Evacuation centers, and Gathering supplies.
One of the major aftermaths of the Northridge Earthquake of January 17, 1994, was the widespread connection damage that posed a major question regarding the behavior of field-welded, field-bolted moment frame connections, also known as Pre-Northridge connections.
On February 1, 2003, the Space Shuttle Columbia was lost due to structural failure in the left wing. On take-off, it was reported that a piece of foam insulation surrounding the shuttle fleet's 15-story external fuel tanks fell off of Columbia's tank and struck the shuttle's left wing. Extremely hot gas entered the front of Columbia's left wing just 16 seconds after the orbiter penetrated the hottest part of Earth's atmosphere on re-entry. The shuttle was equipped with hundreds of temperature sensors positioned at strategic locations. The salvaged flight recorded revealed that temperatures started to rise in the left wing leading edge a full minute before any trouble on the shuttle was noted. With a damaged left wing, Columbia started to drag left. The ships' flight control computers fought a losing battle trying to keep Columbia's nose pointed forward.
Earthquakes can be very dangerous but what matters the most is that everybody is safe, and that we need to work together. One earthquake, in the Philippines, was truly devastating. It was classified as a 7.2 magnitude. The Philippines responded very well by gathering their resources, spreading the word, and giving donations. They bounced back very quickly.
What are earthquakes? An earthquake is what happens when two pieces of the earth suddenly slip past one another. The surface where they slip is called the fault or fault plane. The location below the earth’s surface where the earthquake starts is called the hypocenter, and the location directly above it on the surface of the earth is called the epicenter, or focus.
According to the writers of Encyclopedia Britannica, the 1906 San Francisco Earthquake and fire caused 28,000 buildings to be destroyed, causing $350,000,000 in damage. This earthquake was one of the most devastating earthquakes ever. There are many views on this earthquake, and even some footage of it. The earthquake caused the fire, which was even more devastating than the earthquake itself, but they both still did a substantial amount of damage. Over 3000 people were killed, 250,000 left homeless, and the survivors camped in Golden Gate Park or Dunes West, and some fled to neighboring towns. (Encyclopedia Britannica). The eyewitness accounts “Comprehending the Calamity” by Emma Burke and “The Horrific Wreck of the City” by Fred Hewitt are both about the 1906 San
The effects caused by earthquakes are devastating. They cause loss of human life and have effects on infrastructure and economy. Earthquakes can happen at any time anywhere. In January 12, 2010 an earthquake of a magnitude of 7.0 hit the nation of Haiti. An estimation of 316,000 people were killed, and more than 1.3 million Haitians were left homeless (Earthquake Information for 2010). Haiti was in a terrified chaos. After the earthquake, families were separated because many of the members were killed. Homes, schools, and hospitals were demolished. People lost their most valuable belongings. It will take time for the country to recover from this terrible disaster. The long damages are economic issues, health-state, and environmental issues that effect in the beautiful island of Haiti.
These previous events, while also helping state and local communities plan and prepare for the next earthquake, demonstrated the need for a fast response. As the text notes, inspectors and Caltrans staff were out inspecting freeways the same day the earthquake hit. Within three weeks, reconstruction had begun and repairs to I-10 were completed within three months. All remaining repairs to the highway system were completed by November 4, 1994 (U.S. Department of Transportation, 2002). While the response was quick and public infrastructure was quickly repaired, many heavily damaged neighborhoods “had a slow recovery” (Edwards, 2013). Many homeowners did not have earthquake insurance and/or could not find financing to make repairs. Homes were abandoned and businesses closed. Negative effects lingered for years (Edwards,
This Laissez-Faire attitude did indeed decrease the deficit and lower inflation; it also increased growth, the value of the New Zealand Dollar, and unfortunately unemployment. The economy has improved greatly and with it unemployment has been brought down.
In order to assess the current state of the economy, the examination of important economic indicators or variables has always played a vital role in the understanding of the complex economic systems we live in. The analysis of these economic variables studied by many, not only has served as a tool to evaluate the current economic performance of a country, but also has allowed experts to envisage and continue the pavement of an economy's road. Currently, some economic variables have had favorable improvements indicating a general good outlook for the economy for the following months, requiring a further individual analysis and comparisons in order to foresee crisis or successes.
Difficulties in Formulating Macroeconomic Policy Policy makers try to influence the behaviour of broad economic aggregates in order to improve the performance of the economy. The main macroeconomic objectives of policy are: a high and relatively stable level of employment; a stable general price level; a growing level of real income (economic growth); balance of payments equilibrium, and certain distributional aims. This essay will go through what these difficulties are and examine how these difficulties affect the policy maker when they attempt to formulate macroeconomic policy. It is difficult to provide a single decisive factor for policy evaluation as a change in political and/or economic circumstances may result in declared objectives being changed or reversed. Economists can give advice on the feasibility and desirability of policies designed to attain the ultimate targets, however, the ultimate responsibility lies with the policy maker.
The economy tend to move from boom to recession, it is difficult for government to maintain and achieve macroeconomics objectives. At this time, there are “conflicts between government macroeconomic objectives”, which is this extended essay main theme. This essay will look at the government macroeconomic objectives, the conflicts between macroeconomics objectives, the best policy or mixture of policies to minimize the conflicts between macroeconomics objectives and recommendations, which are classified as main objectives and additional objectives.
Earthquakes belong to the class of most disastrous natural hazards. They result in unexpected and tremendous earth movements. These movements results from dissemination of an enormous amount of intense energy in form of seismic waves which are detected by use of seismograms. The impact of earthquakes leaves behind several landmarks including: destruction of property, extensive disruption of services like sewer and water lines, loss of life, and causes instability in both economic and social components of the affected nation (Webcache 2).