...Alisa Ali Dr. Jennifer Gliere Introduction to Music 5 December 2016 Final Project: Journey’s “Don’t Stop Believing” Journey is an American rock and roll band that was formed in 1973. It consists of guitarist and backing vocalist Neal Schon, bass player and backing vocalist Ross Valory, keyboard player and backing vocalist Jonathan Cain, drummer Steve Smith, and finally the leading vocalist Arnel Pineda (The Band). The band’s first album was released in 1975 but it was not a big hit. The following seven albums were not so lucky either. “After 1978, when big-voiced, feather-haired lead singer Steve Perry joined Journey, the group became a dominant force in what’s sometimes derisively referred to as “corporate rock”” (Murray). Hence, many contend that the band only became famous when Perry joined. However, it was only their eighth album, 1981’s Escape, which gave the band its popularity with its three top hits: “Who’s Crying Now”, “Don’t Stop Believing”, and “Open Arms”. Their next album, known as 1983's Frontiers, heightened their popularity even further and received number 2 on the album charts. The band was even given a contract with NFL Films for a documentary on the group members. The band broke up in 1984 and it wasn’t until 1995 that they reunited again. Additionally, the lead singer was replaced in 1998 and again in 2006 (Smith). Hence, this band was not a very stable one. However, they still had hope and were determined to make the band a success. The hit “Don’t Stop...
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...Response to Trilemma or Dilemma ? In today’s economics, government effects by policies, exchange rate and capital mobility are key factors of today’s macroeconomics. Today’s economists are also discussing that situation deliberately to show the importance of that to the world. For instance, if we discuss the centre countries’ monetary policies, we can easily show that in the international trade monetary policy becomes more valuable for them than other countries. In addition to this, floating exchange rate regimes and sustainability of exchange rate are further important discussions to focus. Therefore, monetary policies and their effects on world are strictly connected each other which can be easily analysed thus far. In my response paper, I will give the analysis of the two paper; Helene Rey’s Dilemma not Trilemma: The Global Financial Cycle and Monetary Policy Independence (2013) and Obsfeltd, Shambaugh and Taylor’s The Trilemma in History: Tradeoffs among Exchange Rates, Monetary Policies and Capital Mobility (2004). Firstly, I will give the summary of this two papers and secondly, argue and compare two papers. At final, I will discuss the important points at my point of view. Summary of two papers; Dilemma and Trilemma First of all, “impossible trinity” aka “trilemma” had a great impact in macroeconomics. So many economists are still discussing its importance and writing papers about its importance. In Obstfeld, Shambaugh and Taylor’s paper (2004), they analyse the...
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...Preliminary draft: please do not quote or cite India’s Trilemma: Financial Liberalization, Exchange Rates and Monetary Policy∗ August 22, 2010 Michael M. Hutchison Department of Economics University of California Santa Cruz, CA 95064 USA Rajeswari Sengupta Department of Economics University of California Santa Cruz, CA 95064 USA Nirvikar Singh Department of Economics University of California Santa Cruz, CA 95064 Abstract A key challenge for macroeconomic policy in open economies is how to simultaneously manage exchange rates, interest rates and capital account openness—the trilemma. This paper calculates a trilemma index for India and investigates its evolution over time. We find that financial integration has increased markedly after the mid-2000s, with corresponding limitations on monetary independence and exchange rate stability. This tradeoff has been mitigated, however, with the rise of international reserves as a partially independent instrument of macroeconomic policy. In addition, we confirm that the weighted sum of the three indexes adds up to a constant, validating the notion that a rise in one trilemma variable should be traded-off with a drop of the weighted sum of the other two. Finally, we consider the implications of changes in the trilemma index for macroeconomic outcomes. We find some evidence that greater financial integration and corresponding loss of monetary autonomy and exchange rate stability has influenced inflation and inflation volatility...
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...Chapter 8 The Policy Trilemma in Open Economies Chapters 6 and 7 discussed the choice of an exchange rate regime as a monetary policy instrument, and examined the advantages and disadvantages of pursuing fixed versus floating exchange rate regimes under perfect capital mobility. Under each regime, we considered the effectiveness of fiscal policy, effectiveness of conventional monetary policy (ability to influence domestic short term interest rates), and exchange rate stability. We found that, although only a credible fixed exchange rate regime achieves bilateral exchange rate stability, no single exchange rate regime entirely dominates the other in terms of the effectiveness of monetary and fiscal policies. These findings suggest that the choice of an exchange rate regime presents genuine tradeoffs for policy makers, and it is time to discuss several factors that would guide such a choice in practice. In reality, hard pegs and floats represent the two idealized extremes of a spectrum of exchange rate regimes. Within that spectrum, there is a variety of options available to policy makers, but these options require additional policy instruments. One such policy instrument is capital controls, which affect the incentives underlying international capital mobility. So, in this chapter we discuss the form and consequences of these capital controls as a policy instrument. Given that capital controls constitute a third policy instrument, it is useful conceptualize policy choices using three intermediate...
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...Journal of International Money and Finance xxx (2014) 1e24 Contents lists available at ScienceDirect Journal of International Money and Finance journal homepage: www.elsevier.com/locate/jimf Living with the trilemma constraint: Relative trilemma policy divergence, crises, and output losses for developing countries Joshua Aizenman a, 1, Hiro Ito b, * a b University of Southern California and the NBER, University Park, Los Angeles, CA 90089-0043, USA Department of Economics, Portland State University, 1721 SW Broadway, Portland, OR 97201, USA a b s t r a c t JEL classification: F31 F36 F41 O24 Keywords: Impossible trinity International reserves Financial liberalization Financial crisis Exchange rate regime This paper investigates the potential impacts of the degree of divergence in open macroeconomic policies in the context of the trilemma hypothesis. Using an index that measures the relative policy divergence among the three trilemma policy choices, namely monetary independence, exchange rate stability, and financial openness, we find that emerging market countries have adopted trilemma policy combinations with the least degree of relative policy divergence in the last 15 years. We find that a developing or emerging market country with a higher degree of relative policy divergence is more likely to experience a currency or debt crisis. However, a developing or emerging market country with a higher degree of relative policy divergence...
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...Horns of a trilemma How can emerging economies protect themselves from the rich world’s monetary policy? Source: The Economist Aug 31st 2013 SINCE the beginning of May the Indian rupee has plunged by 23% against the dollar. The Turkish lira fell by 15% in that time, and the Indonesian rupiah by 16%. Headlines warn of a replay of the Asian crisis of the late 1990s. Complaints from emerging-market officials that rich-world monetary experiments are to blame for the trouble look like sour grapes. But new research presented to the world’s top central bankers at their recent gathering in Jackson Hole suggests they may have a point. At issue is how the flood (and ebb) of foreign capital affects economies. The traditional rule has been that countries face a “trilemma”: they must choose between free capital flows, a fixed exchange rate and an autonomous (independent) monetary policy. “The impossible trinity” sounds like new-age theology (religious truth) but simply posits (presents) that an economy can choose at most two of these three. An economy open to free movement of capital can keep a fixed exchange rate, for example, only by subjugating monetary-policy goals to its defence—by raising interest rates sharply, say, when capital outflows put downward pressure on the currency. Yet the trilemma also implies that an economy can enjoy both free capital flows and an independent monetary policy, so long as it gives up worrying about its exchange rate. Emerging-market leaders...
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...bulk/spam folders if you can't find our mail. * Loading… Close * Favorited! You could add some tags too Have an opinion? Make a quick comment as well. Cancel * Edit your favorites Cancel * Send to your Group / Event Add your message Cancel × Like this presentation? 0 comments Embed Video Subscribe to comments Post Comment Edit your comment Cancel Speaker Notes on slide 1 Writing Sample - Ocean Energy Research Paper - Document Transcript 1. Ocean Energy: A Solution for America’s Energy Problem Adam Sherwin America’s energy future can be described as a “trilemma.”1 The challenge of meeting the country’s energy demands requires consideration of three central problems: national security and reliability costs, financial costs, and environmental costs.2 Solving this “trilemma” requires solutions that take into account each of these factors. While there are no easy solutions, ocean energy is one way of helping America with its energy problem. Ocean energy has enormous potential as an energy source. Experts estimate that the ocean could generate up to two terawatts of electricity, which would equivalent...
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...The Shell Global Scenarios to 2025 The future business environment: trends, trade-offs and choices © Shell International Limited (SIL), 2005. Permission should be sought from SIL before any part of this publication is reproduced, stored in a retrieval system or transmitted by any other means. Agreement will normally be given, provided that the source is acknowledged. The information contained in this publication is, to the best of our knowledge, true and accurate although the forward looking statements herein are by their nature subject to risk factors which may affect the outcome of the matters covered. Opinions from independent experts are presented as their own views in separate inserts with their approval. None of Shell International The companies in which Royal Dutch Petroleum Company and The “Shell” Transport and Trading Company, p.l.c. directly or indirectly own investments are separate and distinct entities. The expressions “Royal Dutch/Shell Group” and “Group” are used to refer to the companies of the Royal Dutch/Shell Group as a whole. The words “Shell”, “we”, “us” and “our” are used in some places to refer to the Group and in others to an individual Shell company or companies where no particular purpose is served by identifying the specific company or companies. Limited, its affiliates and their respective officers, employees and agents represents the accuracy or completeness of the information set forth herein and none of the foregoing shall be liable for...
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...Trinity” Has the “Managed Float” approach worked for Trinidad and Tobago? The Impossible Trinity: Managed Float in Trinidad and Tobago International economics holds the hypothesis that it’s impossible for a country to simultaneously execute: 1. A fixed exchange rate 2. Free capital movement and, 3. An independent monetary policy This trilemma or “Impossible Trinity” as it is commonly referred to, is one of those aspects of the nature of things, like scarcity and asymmetric information that makes life difficult. Specifically, the trilemma means that a country can follow only two of the three aforementioned policies at once. To keep exchange rates fixed, the central bank must either restrict capital flows or give up its control over the domestic money supply, interest rates, and price level. This means that a country must make difficult decisions about which variables it wants to control and which it wants to give up to outside forces. The four major international monetary regimes; specie standards, managed fixed exchange rate, free float and managed float differ, so to speak, in their solution to the trilemma. This paper focuses however, on the managed float as it relate to the Trinidad and Tobago economy. The managed float exchange rate system A managed float exchange rate system is an international financial arrangement, whereby central banks intervene only periodically, not necessarily to support a country's currency, but rather to stabilize volatile...
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...Abstract This paper shall discuss the Gold Standard, the Bretton Woods System and the European Exchange Rate Mechanism with a view to analysing their respective advantages and disadvantages; along with the circumstances surrounding their emergence and failure. Through this lens the author intends to draw comparisons between the current EMU and the Gold Standard and any implications these similarities have Introduction A prerequisite to any discussion on this topic is an understanding of certain classical and neo-classical analytical frameworks. Therefore section one will briefly present and explain the logic of Hume’s Mechanism and the ‘Impossible Trinity.’ Section Two outlines a chronological history of various exchange rate mechanisms along with their corresponding successes and failures. Section three draws parallels between the Gold Standard and the European Monetary Union and discusses the consequences of these similarities. Section One: Analytical Frameworks Hume’s Mechanism: This theory combines aspects of the purchasing power parity and interest rate parity conditions. It states that as the monetary base (M) increases domestic prices trend upwards. This induces a nation to import more goods than it exports, creating a current account deficit. This deficit gradually causes gold to leave the system, causing prices to revert back to their original levels- producing a balanced current account. This process in the goods markets is far slower than the complimentary...
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...ISAS Working Paper No. 85 – Date: 7 September 2009 469A Bukit Timah Road #07-01, Tower Block, Singapore 259770 Tel: 6516 6179 / 6516 4239 Fax: 6776 7505 / 6314 5447 Email: isassec@nus.edu.sg Website: www.isas.nus.edu.sg An Economic Analysis of Bangladesh’s Foreign Exchange Reserves M. Shahidul Islam 1 Executive Summary Following the rapid accumulation of foreign exchange reserves in recent months, there has been a growing interest in Bangladesh on the alternative uses of its reserves. However, different reserves adequacy measures based on global best practices confirm that its reserves holding is not markedly higher than what is required. The country’s reserves stand higher than the adequate level only when one considers the current account aspects of reserves benchmark which is perhaps appropriate for the country as its financial system is still autarkic. The dynamics in its balance of payments account also supports the fact. The paper highlights the fact that Bangladesh’s reserves build-up is the result of an ‘investment drought’ in the country. This is partly due to its underdeveloped financial systems, and partly due to other structural problems in the economy – entailing difficulties in properly channelling national savings to investments. As the Bangladesh central bank’s sterilised intervention increases, so will its cost of reserves accumulation. The reason is the interest rate arbitrage between Bangladesh and the United States. The United States government securities...
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...theories and techniques for investments and asset pricing. The main topics covered are: portfolio theory, pricing models, market efficiency, fixed income investment, forwards and futures, and options. Canvas: Course materials such as lecture notes, required homework assignments, worked solutions to problems, and other useful information will be available on the course web page at Canvas: https://myelms.umd.edu/ Course Materials The following textbook is required and will be used throughout the course: Investments, by Zvi Bodie, Alex Kane and Alan J. Marcus, 9th Edition, published by McGraw Hill. Henceforth this book will be referred to as BKM. We will cover three cases in this course. Case #1 Markov's Trilemma (No. UVA-F-1341) http://store.darden.virginia.edu/markovs-trilemma Case #2 Dimensional Fund Advisors, 2002, HBS (No. 203-026) http://hbr.org/product/dimensional-fund-advisers-2002/an/203026-PDF-ENG Case #3 Ito’s Dilemma (No. UV2481) http://hbr.org/product/ito-s-dilemma/an/UV2481-PDF-ENG I will post class slides and handouts during the course on Canvas. Course...
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...Will political globalization inevitably follow economic globalization? BY Gonçalo Jóia Martins Student number 12859 Abstract: The essay intends to prove that political globalization and a system of global governance is inevitable. First, it starts by showing how economic globalization led countries to be more dependent on each other than ever. This is demonstrated by the growing cross-border interdependence due to economic trade and also by the proliferation of global players that require global cooperation between nations. Those factors inevitably lead to the necessity of global institutions of governance. The thesis is supported by answering to the Rodrick Trilemma using the influence of important globalization actors like multinational companies that help to shape the society towards a global mentality what will also push for political globalization. I end up concluding that although difficult political globalization is feasible and if taken into account all the factors I mention it will inevitably happen. Submitted to Professor Miguel Homem Ferreira of Tutorial Class TAB29 on 19/03/2015 10 years ago in China Yan Xuetong gave a lecture about globalization to a group of college sophomores for about 3 hours. At the end, before he took questions, he asked to the group of students: “What does globalization mean”? Someone answered "free trade". He laughed, saying that was the typical American answer. He then proceeded to explain that what globalization really means...
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...Short answer The main macroeconomic cause of gfc US households actually reduced their savings from 2000. The household savings rate in the US actually became negative! Graphs ppt People save more when higher IR, Spend more when low IR 1. Monetary policy (low short term IR) The literature has identified a number of channels through which monetary policy might have contributed to the build-up in financial imbalances. Most of these are thought to have worked through policy rates that were kept low for too long.8 Loose monetary policy (a low short-term rate) may have i) reduced the cost of wholesale funding for intermediaries, leading those intermediaries to build-up leverage ii) may more generally have caused banks to take more risks, including credit and liquidity risks (iii) may have increased the supply of and demand for credit (mortgages), causing asset (house) prices to rise 2. Global imbalances ( low long term IR) Rising global imbalances are associated with a greater spread of current account positions across countries and larger net flows of capital between countries. global excess of desired savings relative to desired investment—a “savings glut(과잉)”— had reduced long term rates globally, including in the United States.(significant increase of supply of saving cause a low ir), it argued that high capital inflows were an important reason of low IR from 2003- 2007 High capital inflows in turn (i) can reduce the cost of wholesale funding for domestic...
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...Monetary policy alone cannot save Indian economy Main Limitations of the Monetary Policy adopted by the Reserve Bank of India 1. Huge Budgetary Deficits : RBI makes every possible attempt to control inflation and to balance money supply in the market. However Central Government's huge budgetary deficits have made monetary policy ineffective. Huge budgetary deficits have resulted in excessive monetary growth. 2. Coverage Of Only Commercial Banks : Instruments of monetary policy cover only commercial banks so inflationary pressures caused by banking finance can be controlled by RBI, but in India, inflation also results from deficit financing and scarcity of goods on which RBI may not have any control. 3. Problem Of Management Of Banks And Financial Institutions : The monetary policy can succeed to control inflation and to bring overall development only when the management of banks and Financial institutions are efficient and dedicated. Many officials of banks and financial institutions are corrupt and inefficient which leads to financial scams in this way overall economy is affected. 4. Unorganised Money Market : Presence of unorganised sector of money market is one of the main obstacle in effective working of the monetary policy. As RBI has no power over the unorganised sector of money market, its monetary policy becomes less effective. 5. Less Accountability: At present time, the goals of monetary policy in India, are not set out in specific terms and...
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