Imagine you are a columnist or have been contracted to write an Assignment

Imagine you are a columnist or have been contracted to draw up an opinion piece, for a quality publication such as The Economist o - Assignment illustrationA good example is what is being witnessed in Greece where the economy has been observed to decrease by 5% every year. Governments should adapt to the idea of spending to boost the economy and besides concentrate on equilibrize the books as the private sector facilitates the economy rise. It is strange how the people who believe in ascesis trip up this as an impossible move and believe that you can not spend when you got a debt. Keynes Theory The arousal vs. ascesis argument arises the debate about if the money supply should be increased or reduced. The leaving between function one and function three envisions of money brings up a big debate. as well as the creditors and debtors have a conflict of interest here. Creditors prefer the level three. They are to a greater extent concerned with the monetary fund of survey an d want their money to increase value and be worth something when they are paid back. Debtors visualise to earn the less money and pay back real terms. Multiplier The battle between austerity and stimulus mainly bases around money as a vital factor that greatly determines in that location strength. Money functions are sub-divided into three which include a medium of exchange, a unit of measurement of account and a measure workshop of value. These three functions bring out the difference between the stimulus and austerity. ... 10) Money also functions as a unit of account where it is basically used as a common unit for measuring the difference in value between two commodities or more. For example in work trade economy, you can exchange two sheep for three goats whereas in the money economy you can value the goats for six shillings. Money functions as a unit of account in that it tells what things are worth. For example a sheep is worth three shillings and a goat at two shillings. The otherwise function of money is as a store of value, in this sense, money is attributed by the fact that it cannot be spend immediately it is gained. The view of money as a physiologic medium of exchange improves the economy positively. An increase in physical exchanges increases the level of trade thus leads to quick economy growth. If money is perceived as a store of value then it will negatively contribute to the economy .The less the amount of money stored, the more valuable it becomes. Restriction on the amount of money in supply increases its value. Problems of Applying A Keynesian comment Everyone would agree with the fact that we are facing an economic crisis. Some people believe that this situation is caused by the government giving promises it can not deliver in the long run and the best stylus to solve this remedy is by austerity. Whereas other people think that it is due to the private sector unfitness to create jobs and growth and prefer stimulus .The stimulus fo lks point to Europe to indicate that austerity has failed. This did not only cure economic problems but it was also rejected at the polls. On the other hand austerity switches blame to the United States and argue that stimulus was disguised. It is strange with