Financial Markets Assignment Essay Example for Free

Financial Markets Assignment Essay Explain how interest rates decline following major Fed purchases of mortgage-backed securities. The FED implements quantitative easing by buying financial assets of longer maturity, e. g. , mortgage-backed securities, from commercial banks and other private institutions in order to inject a pre-determined quantity of money into the economy. This is a means of stimulating the economy and lowering longer-term interest rates further out on the yield curve; quantitative easing increases the excess reserves of the banks, and raises the prices of the financial assets bought, which lowers their yield. Graphically, this can be explained with the aid of Figure below. The supply of money is shifted from point 1 to the right (MS1 to MS2) and, all else equal, the new equilibrium point (with aggregate money demand curve) is at point 2, where the interest rate is lower. i i1 i2 AD1 MS1 MS2 Quantity of Money 2. What could be the implications of lower interest rates for households and businesses? By implanting the policy of purchasing mortgage-backed securities, the FED has set its sight on increasing consumption and investment, which will ultimately increase employment. As described in question one Bernanke’s policy decreased interest rates to new record lows, encouraging borrowing for both businesses and households. The ability to borrow money at more attractive rates stimulates investment in durable consumer goods, such as automobiles, and in operational necessities such as buildings and capital equipment for businesses. Indeed, after the implementation of the policy mortgage applications increased significantly. Because of low interest rates households and businesses as investors could shift their preference away from bonds and into stocks. According to frbsf. org, the increase in stock trading volume has the effect of raising the value of existing stock portfolios, which in turn stimulates consumer and spending across the country due to the psychological effects of rapid capital appreciation. Lower interest rates can have negative effects on the value of the local currency compared to other currencies. As foreign investors dump their local-denominated investments in favor of more profitable currencies, exchange rates can shift to the detriment of the local currency. The weakening of the local currency serves to increase the attractiveness of local goods to foreign purchasers, which has the effect of boosting exports and international sales. All of the factors mentioned above have the combined effect of increasing productive output, or GDP, and increasing employment across a wide range of industries. As individuals, businesses and foreign investors are encouraged to spend more due to increased access to capital, higher portfolio valuations and weaker currency values, businesses in nearly every sector experience an increase in sales, often requiring them to grow their operations and employ additional labor. However, there are some negative implications from this policy. Without a strong commitment to control inflation over the long run, the risk of higher inflation is one potential implication of experiencing real interest rates below the economy’s natural interest rate. Low interest rates provide a powerful incentive to spend rather than save. In the short term, this may not matter much, but over a longer period, low interest rates penalize savers and those who rely heavily on interest income. If short-term interest rates are low relatively to long-term rates, households and firms may overinvest in long-term assets, such as Treasury securities. If interest rates rise unexpectedly, the value of those assets will fall (bond prices and yields move in opposite directions), exposing investors to substantial losses. Finally, low short-term interest rates reduce the profitability of money market funds, which are key providers of short-term credit for many (large) firms, e. g. the commercial paper market. 3. Explain the Fed’s policy dilemma and try to rationalize why unemployment in the US is stubbornly high while inflation is low. Based on the theory of the Philip’s curve diagram we notice that there is an inverse relationship between inflation and unemployment. Stated simply the lower the unemployment in an economy the higher the rate of inflation. Philip’s Curve Inflation Unemployment The explanation of the inverse relationship between inflation and unemployment is based on two assumptions. The first has to do with the fact that as unemployment rises there is no room for workers and labor unions to demand an increase so a wage inflation that would increase the prices of the final products cannot occur. Secondly high unemployment is a reflection of the decline in economic output and indicates an economy’s slowdown. Therefore competition among firms in recession will lead the prices at lower levels. But this is not the case currently in the US since we observe high unemployment and low inflation. The FED is concerned about the unemployment rate and in an effort to stimulate the economy and improve the labor market conditions it started implementing the quantitative easing policy. So the FED purchased MBS, helped banks to rebuilt their balance sheets, contributed into maintaining price stability, preserved interest rates near zero for more than three years, and prevented the economy from slipping into greater recession. Despite all these efforts the situation in the labor market did not improve. Apparently the fact that unemployment is still very high depicts the limitations of the monetary policy. The low business confidence, policy uncertainty, and the government’s reluctance to act are beyond the FED’s capacity. What is more the infinite use of the quantitative easing may produce undesirable effects in the long run such as stagflation. The only optimal solution under these circumstances is the co ordination of the FED’s monetary policy with the government’s fiscal policy plan that could boost the society’s confidence. . Do you think that another round of quantitative easing (QE) by the Fed would help stimulate the US economy? Please explain. The FED declared that the use of QE will be aggressively continued until the economy is improved. The cash injections into the economy helped interest rates to remain at low levels. Consequently everyone wins from this decision in the short run; homeowners can borrow at historical low levels of inter est rate, corporations can also take advantage of this act and invest, consumption increased and also the banks increased their profits and the stocks record a growth. So as long as the QE is active in the short run everyone is a winner. But in the long run things become vague. First of all historical evidence shows that despite the fact that interest rates may be at levels near zero it remains uncertain whether this will be the incentive to boost the actual economy. Secondly the fact that consumers will have more money to spend but fewer goods to buy might lead to a hyper inflation. Furthermore by repeating the use of QE is very possible to lead to a liquidity trap, unless the economy finds ways to stimulate production. Last but not least the FED’s decision to inject cash into the economy by purchasing MBS is questionable; Mortgage backed securities entail the risk of defaulting once again as they did in the real estate crisis and that would cost the Americans a lot more money repeating the history that started back in the September of 2001. To sum up the use of QE is indeed very effective but only in the short run. Short periods of economic recession can be avoided by stimulating the economy temporarily through cash injections but to maintain growth on the real economy we need to improve labor market conditions, productivity, innovation and bolster the economy’s confidence. So a combination of fiscal and monetary policy is the only way to prevent an economy from collapsing, and also is this is the only way to avoid a possible systemic risk that will negatively affect all the institutions and individuals. . How is a loose Fed monetary policy in the US affecting fundamentals (such as inflation, asset and commodity prices) in other countries? What does that imply about global monetary policy? Since the dollar is the vehicle currency in the global economy almost every country is tied to its value and everyone is affected by the monetary decisions of the FED. By the QE, the supply of dollars is increased and consequently the dollar depreciates against foreign currencies. This means that America’s exports will increase and on the contrary the imports will decrease. So countries trading with the US fear about the capital inflows and the possible inflation on commodities. On the other hand the FED support that there can be no further inflation since the global economy is in recession. Moreover countries experiencing huge capital inflows resulting in inflation can implement fiscal policy, such as imposing taxes, in order to contain the effects of foreign capital inflows which push up local stock prices and the currency itself. Every country should focus on its own monetary policy adjusting it to the problems that may experience. For example the US chose to inject more money in the economy. The results of such a decision are low interest rates, more exports but always with the risk of inflation. On the other hand a country experiencing high inflation might limit the money supply, increasing the interest rates with the risk of experiencing a decline in exports.

Individualism and Paradox in the Works of D. H. Lawrence :: Biography Biographies Essays

Individualism and Paradox in the Works of D. H. Lawrence      Ã‚  Ã‚  Ã‚   When you read something by D. H. Lawrence, you often end up wondering the same thing: does he hate people? Lawrence has a profound interest in us human beings, but it's the fascination of a child picking at a scab that drives him, rather than a kind of scientific or spiritual quest for some mythical "social truth." Some of Lawrence's works--"Insouciance," for example--question mankind's tendencies outright: what good is served by a world of "white-haired ladies" wasting time "caring" and sounding intelligent and cultured and talking about pretentious, bourgeois issues?(2)    But this work is blatant in its negative descriptions of people and their behavior in society. At one point in "Insouciance," the narrator--Lawrence--comes right out and pontificates for several paragraphs on the defects of "modern" society. But for me, it is the more subtle pieces that hold greatest power. When Lawrence hints, insinuates, or implies his views, he is, in a way, letting us discover the kernel of truth, however upsetting or controversial. This process, utilized in "Mercury," is of far greater interest than the almost direct missive from Lawrence used in "Insouciance," that flatly states his view of what "living" really is. For not only must we discover the meaning; we must also decide whether our interpretation is really Lawrence's intent--perhaps we have confused some inadvertent seepage of Lawrence's personnel venom with his intended meaning. It is a risk we will have to take as we analyze works such as "Mercury". Instead of condemning society in "Mercury," Lawrence actually tries to leave it, ascending to "the top of the Merkur," where he has a new vantage point on the world. He develops some of the same ideas as in "Insouciance," but at the end of the work, Lawrence redeems society, or at least apologizes for it, adding new fire to our question. By the end we cannot, with certainty, tell whether Lawrence hates people or not--and this reflects a sort of internal struggle for Lawrence.    One could lessen the scope and dilute the importance of this topic by suggesting that the "Sunday people" Lawrence criticizes are not humanity as a whole but rather a specific group--perhaps the vacationing, upper-middle class Schlegels, perhaps the aspiring, pseudo-intellectual Leonard Basts of the lower middle class, who think culture lies in a misunderstood walk through the woods.

Seeing the situations that over rule an administration

Seeing the situations that over rule an administration everyday makes an administrator of the school wonder with regards which part of education does the institution still needs to work with besides the aspect of student achievement. It could not be denied that the institution has already reached its peak aim of producing student achievers who are both academically and athletically serious about their schooling.However, besides just the idea of achieving, the proposal that follows tries to embark on the idea of making certain changes with regards the morality of the students as this is one of the most neglected areas of importance in the institution. PRESENTING ALTERNATIVE ASSESSMENT MODELS IN A SCHOOL ALREADY CITED FOR HIGH STUDENT ACHIEVEMENT Section 1: Introduction 1. 1 Background of the Study The schools and other educational institutions today are facing large problems regarding the issue on the students’ lack of self discipline resulting to under-achievements of the stud ents in the school as well as violence within the school premises.How close are these two issues related to each other? Mostly, the age-stage of which the student enters when he attends secondary school is ranged as the puberty stage of an individual’s growth. According to psychologists, this particular stage of growth introduces an individual to several major decisions that he has to face along the way towards his maturity. Hence, confusion of priorities and aggravation of depression through the environment occurs (Coon, 1999, 88).As reports could attest to this fact, it is not that hard to understand that there is an essential need of restructuring the procedures of the school when it comes to disciplining students who are attending secondary education. This is the reason why the researcher of this paper opted to discuss the issue mentioned. The timeliness of the research would indeed help in solving the problems at present especially with regards the issues of education, d iscipline and student achievements. 1. 2 Significance of the ProblemThe problem as mentioned earlier directly affects the achievements of the students in their schools. This means that because of the lack of discipline, the students of the secondary school level face the challenges of being misaligned when it comes to their focus and at some point become highly attracted to drugs and violence. This is the fact when it comes to school procedures. The actual reports that pertain to the said issue are indeed much disturbing and further more alarming to the institutional boards.As most of the schools affected by this dilemma are public educational institutions at [79%] whilst Private schools are affected by at least [45%], it is indeed necessary to identify the reasons behind the incidents that lead to students’ lesser interest in school and a higher rate of attraction towards drugs and violence. Through the proceedings of this particular research, it is expected that the reasons behind the ongoing issue in schools would be further regulated and controlled by institutional administrations through the use of psychological and psychosocial motivation.1. 3 Research Questions To be bale to attend to the most important issues related to this particular problem, the researcher decided to use the following questions as guidelines for the completion of this particular study: †¢Ã‚  Ã‚     What are the primary sources of the discipline of the students? Do those sources pertain to the personal or the social connection of the students to the society? †¢Ã‚  Ã‚     How are students reacting to the discipline that they learn from their homes and from their environment?What are the elements that are so far affecting the vision of the students towards their achievements in school as well as towards their future? †¢Ã‚  Ã‚     How are drugs and violence related to the effects of lack of discipline among students? These particular questions shall serve as the primary foundation of the study. These questions shall be the settling ground of the researcher in finding the right sources for the completion of this paper as well as deciding on the right method to be used to collect actual data for the validation of this study. 1. 4 Purpose of the StudyTo add up to the stress that this study places on the topic to be discussed in this paper, the following presentation of the purposes would primarily support the existing statements of the problem to assist in the validation of the facts that are to be presented. The purposes of this study are: †¢Ã‚  Ã‚     TO assist the ongoing researches on school students’ discipline issues and help the institutions solve the impending results of the said problems. †¢Ã‚  Ã‚     To make assessments on how the issues could be investigated through the use of psychological assessments and actual-report-based evaluations of the situation.†¢Ã‚  Ã‚      To strengthen the procedures of s tudent motivation that is already currently used in schools in the society today. The utilization of these purposes within the completion of this study certainly helps in aligning the focus of the researcher. Hence, by doing so, the researcher expects that the focus would be on the cycle of events that involve The source of discipline, the results of the influential elements of the environment to the discipline of the students and the future of the students afterwards. Section 2: Literature Review 2. 1 What Psychology Says and how Anthropology RelatesBoth psychology and anthropology concentrate on the behavioral study of humans. Through the use of the said studies, the reasons behind the occurring behaviors of students in secondary school could be well identified. With regards the issue on discipline and how it affects the students, Psychologists claim that the situation is much controlled by the upbringing of the students. The original discipline that they receive from their homes are supposed to be the basis of why they act the way they do when they are already mingling with their peers or with the society as it is.(Coon, 1999, 89) Moreover, girls of the same age are differently reacting to the discipline that they receive from their homes compared to that of the boys. Anthropological studies attest to the claims of psychology as the said field of human understanding particularly points out the instance by which the discipline received by students from their homes are directly affected by the elements of the environment when they already begin to mingle with their peers or the society. As mentioned earlier, the effects vary.To young girls, the discipline that they receive from their homes are more likely more evident in their system of dealing with others as young girls are expected to be more emotionally and personally attached to the their families compare to that of the boys who are at some point more affected by the elements of change that they encounter in dealing with other people especially with their peers (Coon, 1999, 90). Knowing the sources of the discipline, it is essential to evaluate the claims of both psychology and anthropology through the use of the actual reports that are further presented for better understanding of the readers.

About Jurassic Park by Michael Crichton - Free Essay Example

Sample details Pages: 2 Words: 603 Downloads: 8 Date added: 2019/08/15 Category Cinematographic Art Essay Level High school Tags: Jurassic Park Essay Did you like this example? Summary The story took place in Costa Rica where accidents keeps on occurring day after day caused by unknown animals. News have gone around and reached the United States drawing curiosity in US doctors and scientist. There is something unusual happening in this island called Isla Nublar. Researchers and doctors began to question, others have given their thoughts. Some explained its dinosaurs but others think that its impossible because they were extinct billions of years ago. But it is starting to happen again, in this island in Costa Rica. Don’t waste time! Our writers will create an original "About Jurassic Park by Michael Crichton" essay for you Create order At the end of the book, some people already knew what was on that island but a lot still didnt. The government didnt want the news to spread around so they made those people who knew stay in their country for awhile so they can study about what those things are before word goes around. But something was happening, there might be more animals out in the jungle and they dont know what it will do. The animals want are migrating and they dont know what might happen next. Theme I think the theme of this book is about survival. Humans have always had to fight for survival against nature. Technology has a big role in helping us figure out how humans can survive when that time comes. Nature is unpredictable and thats the biggest challenge we have to face. We have tried predicting everything but changes happens. We think we can control the outcome when in reality, we cant. We have to adjust in whats happening around us and accept the fact that we cant save the whole planet. We dont have that power against nature. Character Analysis Dr. Bobbie Carter – a doctor in Costa Rica who helps people who are injured or sick. Bobbie was thinking about the boy hands. They had been covered with cuts and bruises, in the characteristic pattern of defense wounds. She was quite sure he had not died in a construction accident; he had been attacked and he had held up his hands against his attacker. Where is this island theyve come from? Alice Levin she saw Tinas drawing of the lizard and explained that it was a dinosaur. She is a technician. No, Alice Levine said, shaking her head. Look at it. Its very clear. Big head, long neck, stands on its hind legs, thick tails. Its a dinosaur. Powerful Quotes Lets be clear. The planet is not in jeopardy. We are in jeopardy. We havent got the power to destroy the planet- or to save it. But we might have the power to save ourselves. I thought this quote was powerful because it explained the reality of nature and humanity. We are the destruction and we are creating the destruction and now its coming back to us. Humans need nature to survive, but nature doesnt need us. So if we keep on destroying it, were only hurting ourselves. The shorthand is the butterfly effect. A butterfly flaps its wings in Pecking and weather in New York is different. I picked this quote because they were talking about the butterfly effect. Its interesting to think about how one thing affects whats going to happen next. Theres so many what ifs and all these questions about possibilities of what couldve happened, all these questions unanswered about nature. Ending I thought the ending was interesting because they ended it in away where the dinosaurs didnt go extinct and they didnt decide to capture them. The ending is just the beginning of this story. People still doesnt know whats going on and what those animals are.