...Effectiveness of Fiscal Policy under Both Fixed and Floating Exchange Rates using IS-LM-BP Model In order to examine the degree in which fiscal policy can be used effectively in this model, the variables that directly influence the outcomes of its use need to be identified. These are, exchange rate regime whether fixed of flexible that is in place and the degree that capital is mobile. The level of capital mobility is how challenging or simple it is for private individuals or firms to move funds across borders. Exchange rate regimes fall into two categories fixed and flexible, flexible exchange rate means that it is determine by supply and demand factors of said currency. In a fixed exchange rate scheme the value of the domestic exchange rate is fixed to a certain level, often to another currencies price or other commodity this can make trade between the given economy easier. Here is 8 combinations of fixed and flexible exchange rate and levels of capital mobility and how the outcomes show the effectiveness or ineffectiveness of the fiscal policy expansion policy implementation. Fiscal Expansionary Policy within a Flexible Exchange Rate Scheme with Somewhat Mobile Capital The mobility of the capital can be determine by the steepness off the BP curve, the steeper the curve the more mobile the capital as it is in this case. The expansionary policy is implemented and shifts the IS curve from IS1 to IS2 moving the equilibrium point from A to B, this leads to an overall deterioration...
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...investors the mistaken impression that its company is performing better than the underlying economic reality, include: recording revenue too soon; recording bogus revenue; boosting income using one-time or unsustainable activities; shifting current expenses to a later period; employing other techniques to hide expenses or losses; shifting current income to a later period and shifting future expenses to an earlier period. Recording Revenue Too Soon In order to shift revenue or gains in future-period to current period or to oversize bonuses and stock options, management may shift revenues or gains from future period to current period through recording revenue before completing any obligations under the contract; recording revenue far in excess of work completed on the contract; recording revenue before the buyer’s final acceptance of the product or recording revenue when the buyer’s payment remains uncertain or unnecessary. To mitigate the risk of such misrepresentation, investors should ware some warning signs of shenanigans: extended end date, sharp jump in accounts receivable, especially long-term and unbilled ones, using percentage-of-completion accounting or aggressive assumptions, inappropriately low discount rate, premature revenue recognition policy, Inappropriate use of mark-to-market or bill-and-hold accounting, consignment arrangements, incorrect shipping or liberalizing customer collection terms. Recording Bogus Revenue To accelerate its revenue, companies may create...
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...Topic 4 – Fiscal Policy Refers to the governments choices regarding the overall level of government purchases or taxes * Government spending – on health sector, education, infrastructure, defence. * Taxation policy – income tax, sales tax (VAT), corporate tax, capital gains tax. Fiscal policy and aggregate demand * Government spending – increase in G spending → AD shifting right * e.g. Gov places £10 billion order for new school buildings → building contractor has increased demand for output → hires more staff and increases production. * Taxation – * Income tax cut → consumption increases → AD shifting right * Corporate tax cut → investment increases → AD shifting right * If tax cuts are seen as temp then AD shift may be smaller Multiplier Effect The additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending. * Example continued… * Positive impact - The Gov buys £10 billion of buildings from Bob and Co, → demand from gov raises employment and profits at Bob and Co → as workers see higher earnings and firm owners see higher profits → increase own spending on consumer goods and so on… This is the multiplier effect. * Negative impact could be that spending on foreign goods may increase → neg impact on AD as imports increase. * Size of multiplier depends on marginal propensity to consume and import. * SHOW IMPACT OF MULTIPLIER...
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...Commission. Comments and inquiries should be addressed to: TAXUD TAXATION-PAPERS@ec.europa.eu Cover photo made by Milan Pein Despite all our efforts, we have not yet succeeded in identifying the authors and rights holders for some of the images. If you believe that you may be a rights holder, we invite you to contact the Central Audiovisual Library of the European Commission. This paper is available in English only. Europe Direct is a service to help you find answers to your questions about the European Union Freephone number: 00 800 6 7 8 9 10 11 A great deal of additional information on the European Union is available on the Internet. It can be accessed through EUROPA at: http://europa.eu. For information on EU tax policy visit the European Commission's website at: http://ec.europa.eu/taxation_customs/taxation/index_en.htm Do you want to remain informed of EU tax and customs initiatives? Subscribe now to the Commission's e-mail newsflash at: http://ec.europa.eu/taxation_customs/common/newsflash/index_en.htm Cataloguing data can be found at the end of this publication. Luxembourg: Office for Official Publications of the European Communities, 2012 DOI 10.2778/30466 ISBN 978-92-79-25419-2 © European Union,...
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...Demographic Shifts and Their Policy Implications Changing Patterns: Since the 1960s, the structure of the average American family has become increasingly unstable as a result of major demographic changes. Marriage rates have fallen over the last few decades while divorce rates have remained high. At the same time, the percent of non-marital births in the U.S. has risen steadily, from approximately 5% in 1960 to 41% in 2011. In addition to this instability, family structures are becoming increasingly complex as rising numbers of single parents pursue new partners and have more children. Importance: The potential negative impacts of these shifting demographic patterns upon the well-being of children are of particular concern to policy makers. Surveys indicate that children living in single parent households are more likely to live in poverty than children living in married households. According to the 2010 Current Population Survey (CPS), only 9% of married-couple families with children lived in poverty while 41% of single-mother families with children did so. Children born to unmarried parents also experience greater instability and complexity in family structure as a result of the shifting relationships of a parent. Over 30% of children born into single-parent households experienced 3 or more partnership transitions by a parent. Policy Implications: Strong correlations between parental marital-status and child well-being seem to encourage policies aimed at increasing...
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...difference between activist and laissez-faire economists is their differing views about whether the economy is self-regulating. Laissez-faire economists (Classicals) believe the pricing mechanism will bring the economy to an equilibrium (potential output and full employment) while activist economists (Keynesians) do not share that belief. 2. Classicals felt that if the wage was lowered, the Depression would end. They saw unions as preventing the fall in wages, and they saw the government lacking the political will to break up unions. 3. Five factors that shift the AD curve are: changes in foreign income, changes in expectations, changes in exchange rates, changes in the distribution of income, and changes in government aggregate demand policy. 4. Say there is a rise in the price level. That would make the holders of money poorer (the wealth effect). It would also reduce the real money supply, increasing the interest rate (the interest rate effect). Assuming fixed exchange rates, it would also make goods less internationally competitive (the international effect). All three account for the quantity of aggregate demand decreasing—decreasing spending as the price level rises. These initial increases are then multiplied by the multiplier effect as the initial spending reverberates through the economy. 5. Two factors that shift the SAS curve are changes in productivity and changes in input prices. 6. If the economy is in short-run equilibrium below potential output, input...
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...A B SRAS0 AD1 AD0 Y* Y*1 The situation worried the RBA because they had imposed their inflation rate target. An increase of inflation rate from π0 to π1 would be a main concern for the RBA because the inflation rate might have gone out of their inflation target range of 2 – 3%. The governor and the Board of the Reserve Bank would then be in a dire need to come up with a monetary policy to quell the economy from the soaring inflation and bring it back to its target range. The only step the RBA could take in order to do that was by shifting its policy reaction function upwards as the policy reaction function was related directly with the aggregate demand curve. By shifting the policy reaction function upward, the aggregate demand curve was automatically shifted downward. The way the RBA used to shift the policy reaction function upward was by increasing interest rate without any actual change in the inflation rate (tightening monetary policy). The...
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...to aspects of the three actions defined by Arendt as being essential to “the human condition”: family, work and community life. The findings reveal significant insights into how social capital is effectively reproduced in times of change. These insights are discussed in terms of their social policy implications. Fifty years ago Hannah Arendt (1958) published The Human Condition. In this work she contended that there are three types of action required to be “fully human”. The first two of these actions, engagement in family life and paid work, are necessary for human existence in contemporary society. The third action she called vita activa, or public life: a life that is actioned within jointly built civil spaces. Within these spaces we are capable of debate, we share actions and we resolve collective dilemmas (Arendt 1958). Arendt reminds us that the absence of, or over-attention to, any one aspect of the human condition is likely to be problematic. A half a century on from Arendt’s original thesis, public policy continues to debate aspects of vita activa and democratic governments still seek to engage vita activa in economically and socially productive ways. Working out the shifting balance between family life, paid work and vita activa is a crucial aspect of responding effectively to significant social change, be it local issues (such as natural disaster relief) or meeting the challenges that arise as a consequence of external or global...
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...Macroeconomic Policy 1. Stabilization policy is useful because a. there is no reason for society to suffer through the booms and busts of the business cycle. b. the economy would stabilize itself too quickly without government intervention. c. there are significant lags due to the nature of the political process. d. All of the above are correct. ANSWER: a there is no reason for society to suffer through the booms and busts of the business cycle. SECTION: 1 OBJECTIVE: 1 2. The Federal Reserve will tend to tighten monetary policy when a. interest rates are rising too rapidly. b. it thinks the unemployment rate is too high. c. the growth rate of real GDP is quite sluggish. d. it thinks inflation is too high today, or will become too high in the future. ANSWER: d it thinks inflation is too high today, or will become too high in the future. SECTION: 1 OBJECTIVE: 1 3. If the Federal Reserve loosened monetary policy today because it believed a recession was going to hit the economy in about one year, this is an indication that the Fed a. is undertaking an inappropriate monetary policy. b. recognizes the problem of lags. c. recognizes the fact that money is neutral. d. is conducting a procyclical monetary policy. ANSWER: b recognizes the problem of lags. SECTION: 1 OBJECTIVE: 1 4. When economists say that there is a time lag in the effect of monetary policy, they mean that ...
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...Therefore, southerners felted threaten about Lincoln and withdraw from the Union. Washington’s view of America was being free from Great Britain and protecting Americans (white) away from foreign countries. Shifting from Lincoln’s view of America as uniting as one and not dividing, while getting rid of slavery at the same time. Coming from different background. Washington and Lincoln cultures were different from each other. While Washington come from a wealthy family, Lincoln came from a poor one. Even from different places they were able to become people that changes history. Washington Like any other southerners have his own plantation that contain slaves while shifting to Lincoln who believed that slaves are meant to be free. Washington believe America is done with British rule shifting to Lincoln who wanted to united every states to be one instead of two. Where one side id free states while the other is slave states. Washington’s views of America politics were different compare to Lincoln. Washington Wanted to stay away from foreign countries because he did not want to get involved with another War. However, Washington created a national government, and secured America by...
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...Bangladesh Journal of Bioethics, 2011;2(2): 4-19 RIVERBANK EROSION DISPLACEES IN BANGLADESH: NEED FOR INSTITUTIONAL RESPONSE AND POLICY INTERVENTION MD Fakrul Islam, Ph.D, and A.N.M. Bazlur Rashid, Ph.D. 1. Professor, Department of Social works, University of Rajshahi, Bangladesh 2. University of Rajshahi, Bangladesh ABSTRACT: Environmental refugees are one of the most burning issues at this time throughout the world. Bangladesh, a riverine country, is suffering from acquit riverbank erosion which compels millions of her population to be displaced from their place of origin. As such, 283 locations, 85 towns and growth centers, along with 2400 kilometers of riverbank line in Bangladesh are vulnerable to erosion. The major rivers e.g., the Padma, the Jamuna, and the Meghna, erode several thousand hectares of floodplain making thousands of people landless and homeless every year. Along with the floodplain, Bangladesh loses several kilometers of roads, railways, and flood-control embankments annually. No other disaster is as disastrous as riverbank erosion and ‘Internally Displaced Populations’ (IDP) face many unavoidable problems at different stages of displacement. Displacement marginalized them in respect of livelihood patterns and psycho-physical troubles. Such forty million homeless people in Bangladesh are compelled to lead a floating life. Riverbank erosion plays a major role in socio-environmental changes. The displaced people of riverbank erosion experience substantial...
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...What policies can a government and central banks undertake to increase inflation in the Eurozone? One way in which governments and central banks could increase inflation is by the application of Quantitative easing. This would mean that AD would increase price and price levels raise, thus increasing levels of inflation. What QE is, is the banks buying government bonds or gilt’s from private sector companies, this will make the price of the gilts rise and making them a less attractive investment. Companies can then use the money to invest in other things. This will also raise money supply by lowering interest rates. This will lead to businesses being able to borrow at cheap, for these reasons quantitate easing will increase inflation. On the flip side QE is wholly dependent on the banks involved and the way in which they treat their customers, if for example a bank does no pass on the money that they are supplied with to the correct people than they are not going to benefit in a way that is satisfactory to shift out the AD curve and raise inflation. Furthermore this could damage confidence that is within the business or consumer and thus leave them with a Purchasing power parity. This will mean that consumers do not have the leverage to borrow at cheap rates and are unwilling to spend and build up unneeded debts. Monetary policy could be used as a way to raise inflation, by adjusting the interest rates in a country within the Eurozone you can inevitably change the entire...
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...10 businesses targeted by patent trolls. Inside Counsel.Breaking News, Retrieved from http://search.proquest.com/docview/1503758911?accountid=458 Common Sense Solutions to the Patent Troll Problem. (2011). Retrieved from http://www.patentprogress.org/patent-troll-reform/common-sense-solutions-to-the-patent-troll-problem/ Intellectual Property: The Assessment OXF REV ECON POLICY (2007) 23 (4): 529-540 LaFuze, W. L., & Ruble, R. R. (2007). Patent trolls. The IP Litigator : Devoted to Intellectual Property Litigation and Enforcement, 13(2), 31-36. Retrieved from http://search.proquest.com/docview/219970937?accountid=458 Lemley, M. A., & Melamed, A. (2013). MISSING THE FOREST FOR THE TROLLS. Columbia Law Review, 113(8), 2117-2189. Lu, J. ". (2012). The myths and facts of patent troll and excessive payment: Have nonpracticing entities (NPEs) been overcompensated? Business Economics, 47(4), 234-249. doi:http://dx.doi.org/10.1057/be.2012.26 Quinn, G. (2013). Patent Reform: Will Fee-Shifting Solve the Patent Troll Problem?. Retrieved from http://www.ipwatchdog.com/2013/12/18/patent-reform-will-fee-shifting-solve-the-patent-troll-problem/id=46854/ Reitzig, M., Henkel, J., & Heath, C. On sharks, trolls, and their patent prey—Unrealistic damage awards and firms’...
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...There hasn’t been a comparison about the shifting possession of religious power in Cambodia. By analysing the use of monks as political actors by the regimes and analysing the shift in religious power we can find out how both regimes used religion to establish a base of power in society. Additionally, this can learn us more about the different uses of religion by communist-inspired and western-inspired parties and it’s relation with the wider uses of Judeo-Christian secularism and laicism by respectively the United States and the Soviet Union. This essay tries to analyse the way in which the Sangha was used by the Republican and communist forces. The main question of this essay is: ‘How did the Republican Party (1970-1975) and the Khmer Rouge...
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...Abstract: baumbusch j., dahlke s. & phinney a. (2012) Nursing students' knowledge and beliefs about care of older adults in a shifting context of nursing education. Journal of Advanced Nursing 68(11), 2550-2558. Abstract Aim. To a report a study of improvements in students' knowledge and beliefs about nursing care of older adults following completion of an introductory course with integrated adult/older adult content. Background. Nursing schools are under pressure to provide accelerated programmes to meet growing workforce demands and provide students with the knowledge they require to care for an ageing population. Thus, stand-alone courses in gerontological nursing are being eliminated and integrated with general adult content. The effect of this approach remains poorly understood. Design. A one-group pretest-post-test design was used. Methods. Data were collected between September-December 2010. Students completed the Palmore Facts on Aging Quiz, the Perceptions of Caring for Older People Scale, and open-ended questions about their experiences before and after completing a course with integrated adult/older content. Results. Students' knowledge and beliefs about nursing care of older adults demonstrated an important improvement following completion of the course. Qualitative findings reflected three themes: relating to older people; neglect by the system; having time to learn. Conclusions. Findings from this study suggest that even when integrated with general adult content...
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