Country Report Assignment Example | Topics and Well Written Essays - 1500 words

Country Report - identification ExampleOn the other hand, the disc overy of oil in the 1940s transformed Qatar (OBrien, 2010, p.412). At present, it has lavishly standard of living with highest GDP per capita in the cosmos as of 2010 of more than USD 88,000 (Greenfield, 2012). For the present paper a comparison of the monetary policies and inflation rates of these two countries are considered. Furthermore, in the UK, during the regime of the labor authoritiess, governments size and spending grew significantly. Compounding the budget deficit Labor government bailout several British banks in 2008 and indulged in massive governments borrowing ( unite Kingdom, 2013). In 2010, after formation of primary Minister David Camerons ConservativeLiberal Democrat coalition government austerity measures were implanted rigorously. In early 2012, the saving returned to recession and growth averaged zero over the year as a whole. In its budget announcement of March 20, the UK govt. decided to s tick to its deficit-reduction plan, which is broadly fiscally neutral (United Kingdom, 2013). UK Fiscal indemnity and Inflation rate- UK Governments fiscal plan is underpinned by a forward-looking fiscal authorisation to achieve cyclically-adjusted current balance by the end of the rolling, five-year estimate period, as cited in the June Budget 2010. The fiscal mandate directs fiscal policy decisions over the medium term, ensuring that the Government sets plans steady with a reduction in the structural deficit. The fiscal mandate is based on A cyclically-adjusted aggregate, to allow some fiscal piece of cake at times of economic uncertainty A rolling five-year forecast period, to ensure that fiscal consolidation is delivered over a realistic and probable timeframe and The current balance, to protect the most productive public enthronement expenditure. The establishment of Office for Budget Responsibility (OBR) has significantly enhanced the credibility of the UKs fiscal fab ric by ensuring that the Governments fiscal policy decisions are based on independent forecasts for the economy and public finances (Copy of the Budget Report, 2013 p12). Figure-1 (Deficit, national debt and government borrowing - how has it changed since 1946? 2013) UK inflation has been above target since declination 2009 and the central bank has quoted this as one reason for not resumption of its bond repurchase program. in high spirits inflation has had an erosive impact on the UK economy, reducing households disposable income Approximately a 40% bob up in food prices and the impact of rising oil and commodity prices coupled with a weakening pound, irrefutable hikes to VAT sales tax and tuition fees took a huge toll on the high street (Katrina, 2013). Figure-2 Source United Kingdom Inflation Rate, 2013 Qatars Fiscal policy and inflation rate- While many advanced world economies were twirling under severe recession in the recent past, Qatar has taken head on, the global fin ancial crisis, reflecting by the bye and focused policy response by the authorities. The considerable advancement of liquefied natural gas capacity, bear-sized government support to the banking system, and increase in public spending helped Qatar in sustaining high growth rates. knockout investment in liquefied natural gas (LNG) production capacity and increases in LNG production over the last couple of years have been the main drivers of Qatars robust growth (Qatar Economic Statistics at a Glance, 2012,p.4) Figure-3 (Qatar Economic