Use tables or graphs to illustrate the price stability performance of Japan Essays

Use tables or graphs to illustrate the price stability performance of Japan Essays Use tables or graphs to illustrate the price stability performance of Japan Essay Use tables or graphs to illustrate the price stability performance of Japan Essay Japans economic slump, which began with a stock market crash in 1989, now lies in its fourth recession in ten years. The Asian banking and financial crisis has had a profound effect on this, the second largest economy in the world. Japanese under performing banks are carrying Yen150 trillion ($1.3 trillion) of bad loans. State-run corporations are dragging productivity down, unemployment is rising and Japanese consumer confidence remains low. Macroeconomic policy is proving highly unstable as Japans illness that of deflation remains predominant. Price stability is defined as the sustained absence of both inflation and deflation. (Mc Aleese: p.294, 2001). Further economic agents can make decisions regarding economic activity without being concerned about the fluctuation of the general price level. Along with effective fiscal policy, the control of government spending, low unemployment levels, controlled interest rates and hence inflation rates, macroeconomic policy is maintained. The most serious aspect of Japans economic sickness is deflation. Japans paralysis, where ineffective control measures have had many negative results, will now be discussed. Price Stability: Price stability, or rather instability in Japans case, is characterised by the prolonged presence of deflation. The stock market is hovering around a 19 year low. The Nikkei 225, the most commonly used Share Price Index, had stood at 14 times the Dow through the 1980s. However in February 2002 it dropped below the Dow Jones Industrial for the first time since 1957. Japans persistent decline in the general price level is again indicated by the Consumer Price Index. Prices have shown a 1% fall per annum. These falling price levels have increased real debt burdens. National debt stands at over 130% of GDP (www.economist.com). Also Japans banks are chronically weak and burdened by duff loans of Yen37 trillion, about 7% of GDP. So Japanese banks have been left carrying excess bad loans, forcing them to cut lending. Together with depressed consumer spending it has proved impossible for the Bank of Japan to deliver the negative real interest rates that the economy needs to revive demand. Interest rates in Japan stand at virtually 0%. However most companies are not investing but paying down their debts (mentioned above). This adverse impact on investment is also due to the fact that real long-term interest rates in Japan have reached high percentages. The fact that interest rates stand at zero has kept inefficient firms afloat and delayed restructuring. This has contradicted Japans bust advantage. Structural adjustment and creative destruction can prove positive outcomes of negative fluctuations. However, rigid labour and product markets, along with the Japanese keiretsu relationship have hindered the weeding out of inefficient firms. Simultaneously, low interest rates have led to low inflation rates (-0.6% in 2001). This has reflected weak demand and thus the economic slowdown. These supply-side factors, such as the intensification of global competition and deregulation, have put additional downward pressure on prices. This is contributing to the high debt ratio and subsequent price destruction. This bout of recession and deflation has not only had negative impact on CPI, share prices, investment and inflation but also on property prices. Since 1991, commercial property prices have dropped by an average of 84% in Japans six biggest cities (www.economist.com). Housing demand has also collapsed since 1996. Analysis: It remains evident that Japans economy lies in uncertainty, where consistent unstable price performance has given rise to the lost decade. Its current situation comprises of internal factors (e.g. buyer uncertainty) and external factors (e.g. the U.S. current bubble burst). These counter-cyclical variables have had the following negative effect the decrease in economic activity in Japan has led to the increased unemployment rate (+5.3%), bankruptcies, non-performance loans etc. Analysing Japans current prolonged crisis, it becomes evident that it displays attributes of Keynesian economics. The existing shifts in aggregate demand, the low rate of investment and price rigidities, all clearly display this. Price stability is an indispensable prerequisite to ensure sustainable development of the economy (Masaru Hayami, Governor Bank of Japan). 77 year-old Mr. Hayami however has failed so far to deliver such a position. This political paralysis, where political resistance to reform is demonstrated, is hindering Japans recovery. Again, the current Japanese Prime Minister, Junichiro Koizumi (elected April 2001), who unveiled a series of economic reforms has met with little success against this rigid political system, resistant to reform. Furthermore his termination of Makiko Tanaka (his Foreign Minister) in January 2002, along with his lack of co-operation with Economics Minister, Heizo Takenaka, has left Japan still in search of a cure. Is there Evidence of Inflation or Deflation in Japan at the moment? What problems might be associated with very low inflation or deflation? Deflation is defined as the persistent decline in the general price level of goods and services1. The most common measure of inflation statistics is the Consumer Price Index (CPI). In Japan, this has fallen at a rate of about 1% since 1999. If the GDP Deflator is used this deflationary trend can be traced back to 1995. The difference between potential and actual GDP is called the output gap. This is another indicator of price stability (or instability). Price stability is defined as the sustained absence of deflation (falling prices) and inflation (rising prices). It is fundamental to the second pillar of the new consensus, macroeconomic stability. Therefore policy makers welcome disinflation and low inflation. Owing to the bias2 in constructing CPI indices, an inflation rate of 0-2% has become acceptable. There are certain costs of changing prices regardless of whether these are due to high inflation or deflation. There is a loss in efficiency as menu costs and shoe leather costs are incurred. Additionally, the necessary fiscal and monetary policies required to attain stability are costly. More specifically, why is deflation problematic? Initially, falling prices seem like a good thing and people feel as if they have more money in their pockets to spend. Even those on a fixed income, (state pensions, social welfare) benefit from an increase in real income. In spite of all this, the far-reaching contagion effects of deflation mean it is a phenomenon to be avoided. Rather than spending more on the goods, which they can now afford, a continuous fall in prices means that consumer and investor spending actually slows down. Consumers and businesses are reluctant to buy goods, which they expect to drop in value in the near future. Such speculation curbs investment and saving increases. In an effort to encourage borrowing for investment, nominal interest rates fall and approach zero. Since the nominal interest rate is the opportunity cost of holding money, savings further increase. This fall in investment demand and activity retards economic growth. Furthermore, since the nominal interest rate cannot fall below zero, the real interest rate will always be positive. In times of deflation, the burden of debt therefore increases. It would seem that lenders gain and borrowers lose. The problem for lenders occurs when debt rises too high and borrowers cannot afford repayments. Banks who earn profits through loan repayments cannot attract big borrowers. T his type of debt deflation is the main problem in the Japanese economy today but is also reminiscent of the Great Depression in the 1930s. In times of low economic growth, it is typical to lower the currency value thereby making exports more attractive to foreign investors. However, the low nominal interest rates induced by deflation have caused foreign demand for the Yen to rise. The Yen remains strong and exports remain relatively expensive. On the whole, wages are accepted to be ratchet. This means that even if prices are falling, the nominal wage rate will not fall. Higher debt repayments and squeezed profits mean that the pressure on companies to cut costs is twofold. This leads to a Darwinian shake-out as companies see job cuts as the only option to save on costs. Deflation is clearly at the root of Japans failing economy. Policy makers must now look to the formulation and implementation of an effective plan to fight deflation if there is any hope of a recovery.

The partisan battle in policymaking within the U.S Congress Essay

The partisan battle in policymaking within the U.S Congress - Essay Example The US Congress consist of the House of Representatives and the Senate both of whom are required to agree for the passage of laws in the US. (Schiller, 2000) The general powers of Congress are contained in Article 1, Section 8 of the US Constitution, although several amendments have added to Congressional powers. (US Constitution, Article 1, Section 8) These powers include but are not limited to the power to regulate commerce, impose taxes, make laws, levy punishments in respect of unlawful conduct, declare wars, establish post offices, regulate the value of currencies, regulate laws for the acquisition of water and land, support and maintain the military, to declare a state of emergency and to discipline the military. (US Constitution, Article 1, Section 8) The US Constitution requires that in order for either the House of Representatives or the Senate to conduct business a quorum is present. (US Constitution) A majority vote is required to indorse a cause of action and since Congress is typically comprised of two parties, the Democrats and the Republicans the vote is usually controlled by the controlling party with the result that partisanship determines policymaking rather than ideology. Roger Scully and Samuel Patterson argue that during the 80’s and 90’s American politics developed into more â€Å"deeply entrenched partisan divisions†. (Scully and Patterson, 2001, 131-155) With the two party politics that characterizes American governance it is hardly surprising that policymaking is often split along partisan lines. (Soss and Canon, 1995, 253-174) Author Ronald Brownstein refers to recent developments in Washington as â€Å"hyperpartisanship† (Brownstein, 2007, 8) According to Brownstein partisanship functions to divide the parties and only heightens disagreements not only among Congress but in â€Å"American life.† (Brownstein, 2007, 9) Put another way, parties

Entry to a new market Research Paper Example | Topics and Well Written Essays - 2000 words

Entry to a new market - Research Paper Example Making an entry into the existing automobile Indian market should be carefully approached. For example, a company should consider whether to enter into the market through a joint venture, or opening up a subsidiary of the organization as part of the mother branch. The company should be aware of the pros and cons of all the available options and how much they would cost. Entry Modes into the market Foreign direct Investment One of the advantages of a foreign direct investment mode of operation is that the organization would have a large proportion of direct control of the firm that it sets up in India. A foreign direct investment would allow the American company to gain a high tax exemption. The Government of India is bound to view the foreign direct investment as an opportunity that will increase the country’s income through labor provision to its nationals.. A foreign direct investment often includes transferring labor, funds and new technology to the target market (Iyer 272) . A foreign direct investment might involve purchasing of an already existing organization or starting up of a new one. A foreign direct investment into India will require an input of large resources by the automobile company. The resources will go into putting up the organization and marketing services. However, the organization would gain a better understanding of the customer needs and how to reach their target market audience. Joint Venture The organization might also consider a joint venture entry into the Indian market. A joint venture with an automobile company would be strategic if the CEO decides to invest a minimal amount of money into the venture in India. The American automobile company would ideally invest half the money while the India co-venture investor would invest the other half. Both investors would learn from each other for the good of the organization. The Indian investor would guide the American automobile investor on issues such as Indian tax system, best labo r sources, best location, cultural awareness and distribution lines. A joint venture would be highly recommended when the two merging companies have the same kinds of business strategies that they would want to achieve. In order for the joint venture to succeed, both the organizations should be clear on their strategic goals and objectives, and the timelines within which they hope to achieve them. The joint venture organizations should also clarify on the duties and responsibilities of the different personnel that they both bring in to the organization. There are critical issues that might arise in the running of joint ventures (Tsang 218). The companies might have proprietary information that they might be afraid of sharing. Secret business ideas take a lot of resources to develop. Therefore, none of the organizations would take the resources invested lightly. One or both of the organizations’ employees might also develop apathy at the expense of the other joint venture part ner’s employees. If the duration of the organization was unclear, disputes might arise on how and when the company should be closed down. There might also be cultural disputes between the two companies in the joint venture. Each of the companies in the automobile joint venture might want to get the best of the partnership while what they put in is not equal to what they want to gain. Licensing Licensing for the automobile organization would require the organization to license an organization

Anti-discriminatory practices Essay Example for Free

Anti-discriminatory practices Essay The purpose of this essay is to evaluate the impact of discriminatory practice on work with children and investigate the ways in which the needs of children can be met through a range of anti-discriminatory practices. What is discriminatory and Anti-discriminatory Practice? There are many different definitions of the above that can be used: Any prejudice view or diverse treatment because of race, colour, creed, or national origin (www. surestart. gov. uk) is seen as discriminatory practice along withAccording to Lindon (2004 p128) Discrimination means behaving in an unfair way towards a person because of the way we have judged them. There are two types of discrimination: Direct discrimination: This is treating someone unfairly compared to someone else in the same or similar circumstances; it could be as a result of their sex, race, marital status, disability, or age for example. Indirect discrimination: This when you are discriminated against in general because of a generalization that has been made without taking in each persons situation into account. In order to challenge discrimination several laws, code of conducts and policies are in place. Discriminating against someone can be in the forms of labelling, stereotyping and oppression and all must be challenged immediately. (Miche. V 2004:128) Anti-discriminatory practice will ensure that everyone has the same rights regardless of things such as family background, appearance, lifestyle, gender, race or medical history. (Tassoni et al. 2000:11) In order to promote equality and anti discrimination early educators must follow relevant legislation, curriculum frameworks and official guidance.

Isadora Duncans New Dance Essay -- Essays Papers

Isadora Duncan's New Dance At the end of the 19th century, ballet was the most prominent form of dance. However, to Isadora Duncan, "ballet was the old order that needed to be overthrown, an embodied symbol of all that was wrong with oversymbolized 19th century living" (Daly 26). Duncan believed that the over-technical, over-standardization of ballet was not what dance should be about. Her vision of dance was one of emotions, ideas, social betterment, and the complete involvement of the body, mind, and soul (26). With these ideas in mind, she began to create a new form of dance; what she referred to as the "new dance" (23), and what is now known as modern dance. In creating this new dance, she was inspired by composers such as Beethoven, Nietzsche, and Wagner, writers like Walt Whitman, scientists Darwin and Haeckel, her Irish grandmother, and ancient Greek culture, as well as the spirit of America and its people (Duncan 48, 54). It was a combination of these influences that helped her to create the most expressive, soulful dance known today. Isadora Duncan was born in 1878 in San Francisco, CA. Her mother believed it was exceedingly important to surround Isadora and her siblings with art, music, Shakespeare, and poetry. This was Isadora's awakening to the arts (Terry 9). She trained in ballet as a young girl and was exposed to Delsartean principles that influenced her greatly later in life (12). In 1896, Isadora and her mother traveled to Chicago to further Isadora’s budding career. While there, she met Augustin Daly who then took her to New York and gave her roles in theater productions such as A Midsummer Night's Dream where she was first recognized by the press (25). While in New York she trained with ball... ...imed to suggest a particular character rather than an ideal type" (Daly 132). Duncan wrote extensively about dance, society, and art. She was part of the "lyrical left," a group of people who tried to spur cultural and political change. They "sought to fuse life and art, the personal and the political" (181). This political involvement and social criticism was especially evident towards the end of her career, whereas earlier in her career she focused more on issues having to deal with dance and children (179). Duncan had many beliefs on society, art, and the government, which she made sure to express clearly to her patrons. Overall, Isadora Duncan was an amazing and revolutionary person. She discovered intense emotions and a strong spirituality within herself, within her soul. She transformed her discoveries into a dance in order to share it with the world.

Balancing Work and Family

Balancing Work and Family Managing work and family life can become quite a challenge even for the best family managers. Some families are more likely to balance their work and family based on traditional roles. However, some families are more expected to divide their work in term of the modern family type. A lot of families have difficulties to handle and balance both work and family equally while they choose household chores as the first primary choice, so they will observe with less opportunity outside work.Both traditional and modern family types always have different perspectives on how to handle the challenges of balancing work and family life. The most important thing that a first couple in the interview believes is having good preparation, intentionality, and decision-making with high demands to support their children and family. A woman of first couple has traditional roles of taking care of the home and children, she would define her family as two or more people who share th eir kindness, share happy and sad moment together, share values, share their trusts, and share consideration and helpfulness.Based on some of the challenges that she encountered in balancing work and family early on in their relationship, both of them tend to work hard and seek for a stable income and career with high demands for managing the family. The most complex decision-making faced by the couple is when to become parents if this in their plans. When they decide to have children, she also decides to quit her job as her responsible to take care of the children and to complete the household chores while her husband tends to give stable financial and moral support.In contrast, the most significant key to creating and maintaining the right position between work and family for a second couple of the interview is to arrange and share their housework by negotiating equal division of labor in term of the modern family type. Moreover, one problem for her as a workingwoman is the prover bial second shift. She often finds herself working double time to perform other household chores in addition to working full-time outside home.However, her husband often gives some helps and he does not tend to follow the traditional roles. She also believes a family is defined as two or more people who share responsibility for decisions, share values and goals, and have commitment to one another over time. To balance their work and family for the future planning to have children, they would inquire more special considerations helped them arrive at decision with enough income and stable income. Condition of work also does not interfere much with taking care of the child.

About George and Lennie in the novel Of Mice and Men - Free Essay Example

Sample details Pages: 4 Words: 1324 Downloads: 1 Date added: 2019/06/10 Category Literature Essay Level High school Tags: Of Mice And Men Essay Did you like this example? Have you ever cared about somebody so much that you would do anything to keep them safe? Sometimes, in order to do this you need to sacrifice things you want in life. Even if you could you live an easier and happier life without that person, you decide to stay by their side because you care about them. The character George Milton in the novel Of Mice and Men by John Steinbeck, perfectly demonstrates this action with his friend and partner, Lennie Smalls. Don’t waste time! Our writers will create an original "About George and Lennie in the novel Of Mice and Men" essay for you Create order In this story, George and Lennie are migrant workers during the Great Depression who find a ranch to work on in California. George has been taking care of Lennie for a long time, ever since Lenniers Aunt Clara passed away, George has always been by his side because he knows that there is no way Lennie can even last a week by himself. Lennie isnt a bright character and he can get into a lot of trouble which makes it even harder for George to want to stay with him. There have been many times when George has thought about how easy his life would be without Lennie, but he knows that keeping Lennie safe is the right thing to do so he will do the best he can keeping Lennie safe and out of trouble at the ranch. George is protective, kind-hearted, and quick-witted because he knows that Lennie is not capable of surviving by himself. George and Lennie decide to take a break from walking to the ranch where they are planning to work at and lay down on the sand. Steinbeck writes, ?God, youre a lot of trouble, said George, ?I could live so easy and so nice if I didnt have you on my tail. I could live so easy and maybe have a girl. (9). George makes a statement that he could such a better life if he didnt have to take care of a troublemaker like Lennie all the time. Although this quote may seem like George dislikes Lennie and doesnt want anything to do with him, George really does cares about him because he sacrifices those wants to stick by Lenniers side. The manner George uses in this quote shows that Lennie isnt a person someone would like to take care of. The phrase George uses, I could live so easy and so nice if I didnt have you on my tail. can also help us determine that Lennie is holding George back from what he wants to do and achieve in life. This is a key quote in determining Georgers personality because it shows that George would rather stay with somebody he really cares about than obtaining his wants in life. This is evident because George could have left Lennie a long time ago if he wanted and he didnt have to take care of him after Lenniers Aunt Clara past away. However, Georgers decision to take care of Lennie shows how his kind-hearted personality comes to play. Later in the same scene, George continues to talk to Lennie about how life would be like for him without Lennie and then Lennie tells George that he could go away and live by himself if George didnt want him. George immediately responds with, ?No look! I was jus foolin, Lennie. ?Cause I want you to stay with me. Trouble with mice is you always kill ?em. He paused. ?Tell you what Ill do, Lennie. First chance I get Ill give you a pup. Maybe you wouldnt kill it. Thatd be better than mice. And you could pet it harder. (14). George instantly regrets what he said to Lennie about living a better life without him because he realizes that saying this is hurtful to Lennie and George even tells Lennie that hell find him a pup to make up for what he previously said. This quote shows that George clearly cares about Lennie and wants him to stay with George because not only is Lennie a phenomenal worker, but he is also a true friend to George and without Lennie, George would end up lonelier. By pro mising Lennie a pup, shows that George wants to make Lennie happy and bring him more joy because he works hard and yet Lennie isnt a bright character, he is still human and deserves love and joy. All in all, George may act harsh on Lennie at times, but it is only to keep Lennie safe and out of trouble and deep inside George still loves Lennie even though he may be a troublemaker, which shows his kind-hearted personality. In addition to Georgers kind-hearted personality, he is also a quick-witted character as demonstrated through his careful and effective decision making. When Whit, a rancher, invites George to come in town for a night to Susyrs place, George declines the offer. George states, ?Me an Lenniers rollin up a stake, said George, ?I might go in an set and have a shot, but I aint puttin out no two and a half. (52). George suggests that he might go but he wont spend much money because he knows that since Lennie and him are saving money up for bigger things like their dream farm, it wouldnt be smart for George to waste a lot of money at a ?whore house. George effectively analyzes this situation that Whit has put him in, and uses his careful thinking to make the right decision which evidently shows his quick-witted character. Not only does George decline the offer, but he does so with the thought of Lennie and their hard work they both of them put in to raise the money in mind when coming up wi th a decision. This quote can also tell us that George cares about the more important things in life and doesnt care to much about the little things in life. Furthermore, George has tunnel vision on working hard to live a better life and not letting the lesser important things get to him. Near the end of the story, George decides to shoot Lennie by the Salinas River where Lennie ran to after he murdered Curleyrs wife. Steinbeck writes, And George raised the gun and steadied it, and he brought the muzzle of it close to the back of Lenniers head. The hand shook violently, but his face set and his hand steadied. He pulled the trigger. The crash of the shot rolled up the hills and rolled down again. Lennie jarred, and then settled slowly forward to the sand, and he lay without quivering. (103-104). Steinbeck describes how George shoots Lennie in the back of the head with a luger that he confiscated from Carlson, and the reaction of Lenniers lifeless body to the shot. Not only does George make the decision to shoot Lennie, but he does so with the luger aimed in the back of Lenniers head. This is done so the victim doesnt feel any pain and this is very similar to what Carlson did with Candyrs dog. George realized that the reason he wants to kill Lennie himself is because he doesnt want Lennie to die painfully to Curley, so in order to inflict little to no pain to Lennie, George uses what Carlson did and aims for the back of the head. It is evident that Lennie didnt feel any pain because after the shot, Lennie slowly starts to lay down without quivering. To add, this decision that George made to kill Lennie with a sto len luger shows that George knew this is how he wanted it to end and he took the time to plan out this event so it would go exactly how he wanted it to, thus resembling his quick-witted character because if he didnt kill Lennie then the other ranchers would of done so with even more pain and showing no mercy. This decision was definitely not easy for George to make, but it was the right choice to make.