The economic cycle can be easily compared to a roller-coaster ride. The unpredictable behavior of the ride is emulated by the volatile nature of the economic markets. However, there are many ways in which to make our economy prosper. In discussing the predictions for the economy and for policy in the future, we have to look at how we got here. The financial crisis that hit global markets in 2008 and 2009 was more severe than any since the Great Depression. Governments and central banks worked together to prevent collapse. There have been some positive developments over the past few years. In the financial sphere, our banking system and financial markets are significantly stronger and more stable. Credit availability has improved for many borrowers, though it remains tight in categories such as small business lending. Importantly, given the sources of the crisis, structural reform is moving forward in the financial sector, with ambitious domestic and international efforts under way to enhance financial regulation and supervision, especially for the largest and systemically most important financial institutions.
International trade is needed so that all countries can avail themselves of the things that they need (and want), and that are not available in their own country. The most common example is oil, which is needed throughout the world, but it is limited to particular areas, and so is traded internationally. Surplus is an amount of something left over when requirements have been made. Whenever there is a surplus of products, regardless of origin, the price drops. Even to the point of selling at a loss, the holder has already paid the invoice and taxes, but still has to pay storage, the longer it holds the product the more money it costs, selling at a loss moves the product out of storage and clears the store front for another product. One example of an import