Interestingly, North Korea is a completely nationalized state and the state owns all the assets of the country. Moreover, the citizens do not have to pay any taxes. More importantly, it has trade relations only with countries like Iran, Russia, Syria, Vietnam, and China (Library of Congress, pp. Significant here to note is that all these countries are the Anti-United States and that is why their names are there. Quite understandably, North Korea does not have all the resources that they require and they also do not have all the buyers for their products and services but being a closed economy means that North Korea has somewhat found a way to fulfill their needs with the existing resources. Moreover, they do not export much to other countries, try to consume as much as they can in their internal market and export little to the above-mentioned countries.
Despite the fact that the North Korean model does not fulfill the ideal and perfect definition of a closed economy but there is no country, which is closer to being a close economy than North Korea.
However, this same list includes countries like Cuba, Iran, and Bhutan, which are somewhat close to being an autarky. This paper moves on to the next section since the former section has presented a complete introductory picture of a closed economy and this would serve as the basis of discussion for the latter sections of the paper. The next section of this paper would discuss the impacts of three economic policy decisions on interest rates, the price level, and the output of the economy. Money is one of the most interesting and fascinating topics of economics.
Nominal quantity of money simply refers to the money supply of the economy. Quite understandably, the money supply has a lot of importance in economics whether studying open or closed economy. This is because of the fact that almost all of the monetary policy depends upon the alteration of the money supply.
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