For this essay, we are to write about “Fiscal policy in midst of high inflationary pressures”.
And with the more detailed, we have to write:
“During times of high inflation, governments can use fiscal policy to reduce inflation by influencing the overall level of demand in the economy. This can be achieved by influencing the level of economic
aggregate expenditure, and thereby the economic performance, through the use of government expenditure and taxation.
As an academic economic consultant, you have been invited to write an article to critically discuss how a government can make use of its fiscal policy in conjunction with its monetary policy and direct intervention to lower inflation rates.
Choose a country and write a report about that country’s fiscal policy in the format of an academic essay.
You may want to consider discussing various economic terms that may include (but not limited to) inflation rate, demand, full-employment output, government expenditure, tax rates, among others.
Your report will adopt a clear and accessible writing style, though it must incorporate relevant economic terminology and concepts.”
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
Fiscal Policy in the Midst of High Inflationary Pressures: A Case Study of Country X
Introduction
During periods of high inflation, governments face the challenge of stabilizing the economy and reducing inflationary pressures. One powerful tool at their disposal is fiscal policy, which involves using government expenditure and taxation to influence the overall level of demand in the economy. By effectively managing fiscal policy in conjunction with monetary policy and direct intervention, governments can lower inflation rates and promote economic stability. This report aims to critically discuss how a government can utilize its fiscal policy to combat high inflation rates, taking into consideration various economic terms such as inflation rate, demand, full-employment output, government expenditure, and tax rates. The focus of this analysis will be on Country X.
The Current Inflationary Environment
Before delving into Country X’s fiscal policy approach, it is crucial to understand the current inflationary environment. Inflation refers to the sustained increase in the general price level of goods and services over time. High inflation rates erode purchasing power, create uncertainty, and hinder economic growth. In Country X, inflation has reached alarming levels due to a combination of factors such as excessive aggregate demand, supply-side constraints, and external shocks.
The Role of Fiscal Policy
In tackling high inflation, Country X’s government can employ fiscal policy measures alongside monetary policy and direct intervention. Fiscal policy involves adjusting government expenditure and tax rates to influence aggregate demand and stabilize the economy.
Government Expenditure
One approach is for Country X’s government to reduce its own expenditure. By decreasing government spending, the overall level of aggregate demand decreases, leading to a decrease in inflationary pressures. However, this approach must be carefully implemented to avoid negative consequences such as reduced public services or increased unemployment.
Taxation
Another tool available to Country X’s government is adjusting tax rates. Higher tax rates can reduce disposable income and consumer spending, which helps curb inflationary pressures. Additionally, adjustments to tax policies can encourage savings and investments, further stabilizing the economy. However, it is important to strike a balance between reducing inflation and maintaining economic growth by ensuring that tax policies do not stifle productive activities or discourage investment.
Full-Employment Output and Demand Management
To effectively combat high inflation, Country X’s government needs to consider the concept of full-employment output. Full-employment output refers to the level of output that can be produced when all available resources are utilized efficiently. By managing aggregate demand through fiscal policy, the government can aim to maintain output levels close to full-employment capacity while curbing inflation. This requires a careful balance between stimulating economic activity and preventing overstimulation that could exacerbate inflationary pressures.
Coordination with Monetary Policy and Direct Intervention
Country X’s government should also coordinate its fiscal policy with monetary policy and direct intervention measures to effectively reduce inflation rates. Monetary policy involves regulating interest rates, money supply, and credit conditions to influence borrowing costs and overall economic activity. By aligning fiscal and monetary policies, the government can create a cohesive strategy that supports the goal of reducing inflation.
Direct intervention measures may include implementing price controls or subsidies on essential goods and services to alleviate immediate inflationary pressures. However, these interventions should be temporary and targeted, as excessive interference in market mechanisms can lead to unintended consequences such as distorted resource allocation or reduced market efficiency.
Conclusion
In conclusion, in the face of high inflationary pressures, Country X’s government can employ fiscal policy measures to reduce inflation rates and stabilize the economy. By strategically adjusting government expenditure and tax rates, demand can be effectively managed to curb inflation while promoting economic growth. Coordinating fiscal policy with monetary policy and direct intervention measures ensures a comprehensive approach to combatting high inflation rates. However, it is crucial for Country X’s government to strike a balance between reducing inflation and maintaining sustainable economic growth while considering the impact on full-employment output, ensuring that fiscal policy measures are implemented thoughtfully and with a long-term perspective in mind.
