The Fed And Interest Rates Essays (1094 words) - Monetary Policy

The Fed and Interest Rates Dave Pettit of The Wall Street Journal writes a daily column that appears inside the first page of the journal's Money & Investment section. If the headlines of Mr. Pettit's daily column are any accurate record of economic concerns and current issues in the business world, the late weeks of March and the early weeks of April in 1994 were intensely concerned with interest rates. To quote, "Industrials Edge Up 4.32 Points Amid Caution on Interest Rates," and "Industrials Track On 13.53 Points Despite Interest-Rate Concerns." Why such a concern with interest rates? A week before, in the last week of March, the Fed had pushed up the short-term rates. This being the first increase in almost five years, it caused quite a stir. When the Fed decides the economy is growing at too quick a pace, or inflation is getting out of hand, it can take actions to slow spending and decrease the money supply. This corresponding with the money equation MV = PY, by lowering both M and V, P and Y can stabilize if they are increasing too rapidly. The Fed does this by selling securities on the open market. This, in turn, reduces bank's reserves and forces the interest rate to rise so the banks can afford to make loans. People seeing these rises in rates will tend to sell their low interest assets, in order to acquire additional money, they tend move toward higher yielding accounts, also further increasing the rate. Soon this small change by the Fed affects all aspects of business, from the price level to interest rates on credit cards. Rises and falls in the interest rate can reflect many changes in an economy. When the economy is in a recession and needs a type of stimulus package, the Fed may attempt to decrease the interest rates to encourage growth and spending in the markets. This was the case from 1989 until last month, during which the nation's economy was generally considered to be in a slight to moderate recession. During this period the Fed tried to keep interest rates low to facilitate growth and spending in hard times. However, when inflation is increasing too quickly and the economy is gaining strength, the Fed will attempt to raise rates, as it did late last March. This can be considered a sign that we are pulling out of the recession, or atleast it seems the Fed feels the recession of the early nineties is ending. Directly after the Fed's actions, the stock market was a mess. The Dow took huge dips, falling as much as 50 points a day. Although no one knows exactly what influences the market, the increase in interest rates played a major role in this craziness. Mr. Pettit's column on March 25th highlights, "Industrials Slide 48.37," Mr. Pettit attributes a large portion of the market's "tailspin" at this time to, "Rising interest rates at home." It is certainly no coincidence that these two events happened at the same time. Alan Greenspan, the current chairman of the Fed comes under great attack and praise with every move the Fed makes. He is, in a sense, the embodiment of the Fed. He has been in charge of the Fed since 1987. Some economists blame him for the recession of the early nineties. His influence on the interest rates as chairman of the Fed is monumental. It is his combined job as the Fed to steer the economy in a balanced manner that does not yield too much to inflation and to keep growth steady. Predictably, most economists are back seat drivers when it comes to watching the actions of Allen Greenspan, and they tend to feel they could much more successfully manage the economy than he. Many also agree with his tactics, so it is a two way street on which the chairman is forced to drive. It seems that not only the analysts are in disagreement of how the fed should operate, but interestingly enough, the internal policy makers seem to also disagree on what stance the Fed should take. Some of the internal policy makers are interested in making a more substantial increase now, while others opt for a more conservative approach, where the market can be tested for both good and bad influences from the rate increases. Allen Greenspan is one of this more conservative group, and it is he is critisized by some for the irradic behavior in the stock market as of late. The equilibrium that the Fed

Dogs And Cats Essays - Cats, Cat, Animal Communication, Dog, Claw

Dogs And Cats Essays - Cats, Cat, Animal Communication, Dog, Claw Dogs and Cats I am going to compare and contrast the similarities and differences between dogs and cats. The similarities are innumerable, yet this holds true with the differences as well. First, we shall discuss the similarities that these two creatures share. One of the most obvious similarities between these two animals is that they both have hair. When a creature has hair, it belongs to the mammal kingdom. This means that they give birth to their young. They also drink milk when they are babies. Another similarity that these animals share is that they are domesticated animals kept as pets. They also require love and affection from their owner. If you show love and affection toward these animals, they will show it back. Another thing that is the same in both of them is that when you pet them, not only does it relieve stress, it gets dog or cat hair every where. They both give birth to multiple offspring at one time, which must be very hard on the mother. Now that I am finished with my explanation of ;the similarities between dogs and cats, I will now discuss with you the differences between these two majestic animals. One of the main differences is that of their species. The cats belong to the family of felines. Dogs, on the other hand, are canines. Another difference is that dogs are pack animals, which means you should spend lots of time with your dog so that it doesn?t get lonely. Cats are loners, meaning they can spend allot of time alone without getting lonely. Another big difference is the sounds that they make. A dog goes woof, bark, growl, or howl. A cat, on the other hand, goes meow and purr. Another difference is their social status, and how they determine their ranks. Cats don?t have any. The determining factor in dogs is the tail. When a cat holds it?s tail up, it means it is happy, but in dogs, how high they hold their tail is how they determine ranks. If one dog meets another dog, and one holds it tail up, it is the one of the higher social class. Another difference is that cats are nocturnal, meaning they go out at night. Dogs, however, are day animals. Another very obvious difference between dogs and cats is that dogs are usually bigger than cats. Cats are usually scared of dogs, and the dogs usually chase the cats. Dogs are also somewhat smarter than cats in the area of verbal command. For example, you can call your dog by name and usually it will come to you, unlike a cat. Also, you can train dogs to do tricks when commanded. Some of the most commonly seen tricks in dogs are role over, fetch, shake hands, sit down, lay down, and play dead. I have never seen a cat do any of these things, and I doubt that I ever will get an opportunity to see a cat preform even one of these tricks. Another difference between cats and dogs is that cats hunt mice, birds, rabbits, and many other types of rodents. A dog will maybe catch a bird, but I have never seen a dog catch a rodent. Here is the reason most people have cats, other than the reason that they are cute, is to catch mice and other rodents. Cats and dogs also hunt in different ways. A dog hunt directly, and when it catches its prey, it kills it immediately. A cat, on the other hand, likes to play with its food, tease it is another way someone described a cat hunting. For example, when a cat sees a mouse, it will pounce on it, then usually claw or bite it, then let it go. It will then pounce on it again, and let it go. Cats will do this for about a half hour before it finally eats its prey. Another difference is their paws and claws. While both of their paws are padded, cats are padded so that they can be stealthy. Their claws are different in the are of sharpness, among other things. Another difference in claws is th at a cats are retractable, while a dog?s aren?t. For

Impact of Telephone Technology on Society Research Paper

Impact of Telephone Technology on Society - Research Paper Example Specifically, the upsurge in 3G connections, sustained by the production of the current data-enabled devices which permit mobile internet connectivity, caused a huge growth in mobile data use. Currently, an examination of the economic influence of this technological transformation has been restricted by data availability. However, Van (2012) used VNI Index data of Cisco for 14 nations to investigate this concern and he found a strong relationship existed between economic growth and mobile data usage per 3G connection. Van also asserts that doubling the use of mobile data causes the GDP per capita to increase by 0.5 percentage points. Although the effects of telephone have fully been realized in developed markets, telephone technology continues to offer strongly assist developing markets. Issa, Isaias & Kommers (2013) who measured the influence of ‘simple’ telephone penetration on Total Factor Productivity of a nation – a parameter of economic productivity which al ways reflects the technological dynamism of an economy – found out that an increase of 10% in telephone penetration upsurges Total Factor Productivity by 4.2% in long run. Telephone technologies add considerably to GDP growth. It is projected that the technology will occasion a 1.8% GDP growth in UK and 24.9% GDP growth in Egypt across 2010-2020. Again, Issa, Isaias & Kommers (2013) claim that the impact will be great in developing nations. They claim that the impact of increasing phone subscriptions, across 10 nations.