Canadian public economics policy Essay Example | Topics and Well Written Essays - 750 words

Canadian public economics policy - Essay Example Government spending has been used to determine the size of a government because it constitutes a large part of GDP, such that increasing it will effectively increase GDP. Furthermore, because government spending increases inflation as a result of increased money supply; increases deficits by choosing not to increase revenues vis--vis spending; and increases debts by choosing to borrow funds to finance spending, it makes a logical measure of the size of government. While this observation is theoretically sound, the actual effect of government spending is inconsistent. First, with regard to tax breaks and subsidies, because of its varying effects on the behaviour of businesses, the effect of government spending varies as well. For example, Canada's Five Year $100 billion Tax Reduction Plan should lead to a decrease in the size of government. However, because it makes Canada's business climate more competitive, it may induce corporations and business owners to move operations to, or increase operations in Canada, leading to an increase in the size of government instead. Second, it will also have varying effects on other components of GDP. ... as pensions and loan guarantees that are not always accounted for, but nonetheless exists, government spending is rendered an unreliable measure of the size of government.(375 words) Question 2 A debt management policy utilizing government bonds indexed to inflation is one way governments illustrate credibility in fighting inflation by intentionally removing incentives to inflate. In this respect, the Canadian government is committed to fighting inflation because as part of its debt management policy, it issues security bonds, indexed to the country consumer price index (CPI). A government's credibility in fighting inflation through indexed bonds can be illustrated through the differences between conventional and indexed bonds. With regard to the use of conventional bonds, a government debt's real value decreases in accordance to increases in inflation because as borrower, it will only have to pay a particular amount, based on nominal terms, regardless of changes in a currency's purchasing power caused by inflation. Since government financing through bonds indicate an implied obligation to pay in the future, conventional, nominal bonds eventually decreases in real value as the purchasing power decreases through yearly inflation. While these risks can be reduced through setting nominal interest rates that forecast possible increases in inflation, they are not secured from its unexpected sharp rises or declines. Thus, if inflation increases sharply, governments will require fewer resources to pay for its bonds transferring the loss in real value to the bond holder. Contrary to conventional bonds, indexed bonds, by linking their nominal terms to inflation specifies a more stable value for bondholders because the burden caused by inflation is placed on the

Lynn Tilton's Leadership Helps Turn Around Failing Companies Case Study

Lynn Tilton's Leadership Helps Turn Around Failing Companies - Case Study Example When it comes to her biophysical traits, Tilton maintains high energy level. To illustrate, Tilton usually walks down the manufacturing line and interacts with factory workers to ensure that everything is going fine. Finally, Tilton possesses a set of better personality traits such as self-confidence and self-efficacy when she lacks traits like self-regulating and sociability. 2. While analyzing the given case study, it is obvious that different positive and negative leadership traits and styles are displayed by Tilton. One of the major positive leadership traits of Tilton is that she is fair in her dealings, and has no favoritism. In addition, Tilton has deep understanding of the manufacturing processes and job activities. To illustrate, the case study makes it clear that Tilton has gained a detailed knowledge of metal alloys and machine-tools when she worked with MD Helicopter plant (470). Open and effective communication is another positive leadership trait expressed by Tilton. The case writer tells that Tilton quickly mingled with factory workers with her earthy jokes. The case study reflects that honesty is also a positive leadership behavior of Tilton (470). However, it is identified that Tilton is selfish and close minded. Throughout the case scenario, the author reflects that Tilton’s operations and decisions are self-centered, and she is not open to suggestion. Tilton’s vindictive behavior can be highlighted as a negative leadership trait. For instance, Tilton harshly replied to Ford Motor Company’s purchasing chief Tony Brown when he criticized Tilton’s operational approach (469). Tough personality is another negative leadership trait of Tilton, and this issue leads to high employee churn at Patriarch, according to the case study. 3. Managers often follow situational approaches toward leadership to obtain better outcomes, because situational leadership theories state that use of