The great recession of 2008 significantly changed the way our economy functions and our methods of controlling it. Justin Wolfer’s discusses how our economy changes since the Federal Reserve decided to introduce trillions of assets into our monetary supply through quantitative easing, this lowered interest rates so low that it put our economy at the “zero bound”.
Changing the interest rate through altering the money supply is the Federal Reserve’s primary controlling and repairing the economy through a process called monetary policy. During economic crises they perform open market purchases, which lowers the interest rate. Since our economy is flooded with money and our interest rate is at the zero bound, monetary policy is rendered almost useless. Wolfer believes that although the federal reserve has recently decided to raise rates, that in the future we will likely return to the zero bound. Two economists, Michael Kiley and John Roberts, ran a simulation replicating the outcome of targeting interests in both the current economy and the old economy which wolf calls “The good old days”. The results showed that the old economy only reached the zero bound two percent of the time, while the new economy hit the zero bound one third of the time. If we return to the zero bound and monetary policy is useless there is another solution, fiscal policy, which is the altering of government spending and taxation. Wolfer uses the example of constructing roads during a recession, which creates jobs and benefits businesses. Fiscal policy is still able to function at the zero bound and is the only other method of battling recessions. While monetary policy is controlled by the federal reserve, fiscal policy is at the hands of politicians which sparks some controversy. If the interest rate continues to rise, monetary policy will gain its effectiveness and we will be able to control our economy using both methods. However, if Wolfer is correct, and we return to the zero bound, we will have no choice but to rely on fiscal policy. https://www.nytimes.com/2017/04/07/upshot/the-economy-may-be-stuck-in-a-near-zero-world.html?_r=0
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In this article by the New York Times, Sonys global chief executive, Andrew House, offers insight on the skepticism and success the VR headset has had. He opens by talking about how he had doubts in the product. He only wanted to produce smaller numbers at first as he did not think people would be fond of the idea. Of course, after showing off VR and seeing how the public received it House was surprised. The people liked the concept and wanted more. Thats what Sony brought and continues to promise us. In the months following this article, the VR helmet has continued to heavily advertise and create new software compatible with the helmet showing just how successful it is. VR headsets offer a new way to interact with technology. One that may leave us dizzy but overall one that creates new worlds and expands our imagination. Even though other companies like Oculus from Facebook, and Samsung offer similar products, Sony is able to change current customers experiences by having the VR headset interact with the Playstation. They hope a majority of current customers will see the value and excitement in using the products together helping sales in ways different than their competition. The fact that Sony has had so much more success than the other VR products, shows how important the consumer base is for a product. As the market continues to grow it is important the technology remains user friendly and the costs to make these VR headsets everyone wants goes down. Currently the headset may seem large and bulky with lots of “extras”. Sony knows it needs to simplify the headset. Although currently people have taken a liking and sales will surpass goals by April 2017, competition is doing research. Sony would like to remain the market leader yet will need to continue to stand apart from competition. As technology continues to advance the VR headsets design and functions will also advance. https://www.nytimes.com/2017/02/26/business/sony-playstation-vr-sales.html?ref=business&_r=0 Technology & The New Way of Working: Chicken OR egg?
Which came first? Was it the drive for a flexible work schedule, a global economy, and two income families that pushed us in the direction of telecommunicating? Or was it the availability of technology that enabled us to alter where, how, and when we work? In today’s age we have an abundance of technology that allows us to work and communicate with people across the globe, making our homes a virtual office. Technology’s Extension of the Office If we were asked what environment we prefer to work in, I am sure most of us would say at home, on our couch, wearing sweatpants. Up until recently, this was just a pipe dream. However, since the New Economy in the late 90’s and the boom of the Internet and technology, this dream has come true for many of us. Multiple access points, tools, aps, new forms of telecommuting and monitoring mean that today’s employees and entrepreneurs can work from virtually at any time. Cloud based storage such as Google Drive or remote computer access systems like GoToMyPC, allow the retrieval of data and documents and eliminate the need of being tied to the office or to one’s device. Online communication systems such as Skype and Viber, enable employees to hold meetings from remote locations minimizing the need for business travel and large in person conferences. The functionality of smartphones, laptops, and tablets combined with the connectivity from WIFI, and personal hot spots, provide the utmost flexibility and have created a new way of working. The possibilities are virtually limitless and support the face of today’s changing business --- dual income families who need more flexibility, global workforces who need to accommodate multiple time zones and the ‘new normal’ of instant access and responsiveness. Technology has created new opportunities and new demands. Or have new demands created new technology? The Drive to Innovate The transformation to a digital work place create the need for new solutions such as software that allows collaboration and data on the go, security measures to protect data and privacy. This trend is expected to continue to meet the growing demand and changing workforce. As society defines a globalized flexible work strategy, advancements in technology will continue and technology will be used to innovative in new ways. One such example is Google Glasses; this virtual reality headset has multiple applications ranging from video gaming to virtual chat. The possibilities are bound only by our own imaginations. Business applications include allowing multiple engineers or architects to collaborate on a single project virtually, to realtors providing a virtual tour of a home in San Francisco to someone in Belgium from their living room in Sydney. Technology and its applications are shaped by the demands of the virtual workforce. The Circle of Innovation The point of technology is to make lives easier, simpler, and more efficient. As technology advances we advance and as it adapts we adapt, as it becomes more efficient we become more efficient…... Or is it the other way around? There is a circular driving force between technology, people and business. Technology will never cease to grow, what really matters is which direction it takes. That is determined by the needs of the market. So which do you think came first, the chicken or the egg? http://www.netregistry.com.au/blog/can-technology-support-flexible-worker/ https://www.shrm.org/research/surveyfindings/articles/documents/09-0464_workplace_flexibility_survey_report_inside_finalonline.pdf |
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