Macro economic Essay Example | Topics and Well Written Essays - 1500 words

Macro economic - Essay Example Any central bank which achieves its inflation objective but damages output in a way unacceptable to the community will not keep its mandate for long. It is the recognition of this point which has produced a voluminous discussion and academic literature, which basically asks the question - central and basic prices (principally wages) will rise faster than this .There is, of course, also the very substantial danger that a rise in non-tradeable prices faster than the target inflation rate will trigger an asset boom, particularly in the classic non-traded asset of real estate property. There is also the issue that, compared with the situation before the capital inflow and appreciation of the exchange rate, interest rates will have to fall: we know that the extra capital inflows are putting on the exchange rate. Following the reasoning I have outlined so far, the proper response to this is to allow the exchange rate to appreciate. To the extent that this is a long-term or structural change, the inflation targeting framework would allow the appreciation to be reflected in inflation, to the extent that it meant that non-traded (domestic) prices would rise faster than the target. On most counts, this is o.k. - it is proper that relative price between tradeables and non-tradeables changes (in order to encourage the current account deficit that is the counterpart of the financial capital inflows). a) i ) The introduction of a lagged output gap in this equation is important for comparing inflation and price-level targeting. Conceptually, the lag will be introduced any time friction prevents instantaneous and complete adjustment of output to unexpected changes in the price level. The second equation explains monetary growth. In other words, what the central bank does. Here, they react to offset the output gap (but with a lag), but they do so imperfectly, John F. Muth (1961)

What is the true nature of war Essay Example | Topics and Well Written Essays - 750 words

What is the true nature of war - Essay Example In the words of Leo Tolstoy "In all history there is no war, which was not hatched by the governments, the governments alone, independent of the interests of the people, to whom war is always pernicious even when successful". Dictionary meaning of war encompasses "werra" which means confusion. War certainly generates confusion leading to the emergence of various social, economical, physical or mental issues that otherwise prove to bring disaster. It is an open conflict that two sides witness in approved format (McLaughlin). History witnesses that war is not new but it is an ancient episode which has taken a different arms and forms over the years. It was never a simple confrontation between people but it encompasses slaughtering and mutilation of those who were not the creator of war but naive onlookers. What is heroic about war and their heroes stumbling upon to magnificent deaths? The truth is not about glory but war is a conflict that brings about blood and gore. The motives of th e war could vary but the result is blood and grievances for the sufferers may it be the civil war of Libya or it is death of Osama bin Laden, the truth of war is that it has prevaricated human beings (McLaughlin).With the advent of new technologies war has taken advanced form, from simple arms to nuclear missiles and every war must end in a victory that has become the motive of the warriors as the opponent seem to be the most barbaric creatures of the planet. Thus, war gives an implication that humans are the enemies of humane. Victorious army rejoices or rather disgraces enemies to their utmost limits although there is a great economic loss to both the parties whether they lose or conquer, mental trauma to the sufferers, emotional loss or permanent disability, war has never generated happiness in people's mind except for a few instance where people got a saga of relief from the trauma or terror of the terrorism like the one that was done recently against Osama bin Laden by the US N avy SEALs. The value of war could never be estimated nor its implications be wiped off as there is no single funding agency that can relieve the sufferer from the emotional trauma. Still war occur to inflict obedience, enforce collaborations, set a quality on resilience and bravery. Promote as well as cultivate and endorse nationalism, ruined feeble and weak individuals, break up the misapprehension of primordial egalitarianism and stratified civilization or culture (The Social Value of War). In this manner war may display an evolution but promotion of slavery must be deserted. Ancient wars might have provided nations with strength and might but in today's scenario it interrupts cultural norms. Ancient era annihilated inferior people but the present era witnesses discriminating demolition of the paramount human reserves as they are aimed to prove supremacy over the other (The Social Value of War). The common man has to pay the value of the war in terms of biological, chemical as wel l as nuclear weapons. War is not so easy in present era as was in ancient times where there was only armed worriers now there are many unseen weapons which are capable of eradicating the survival of life on the planet. It is therefore war should never be glorified but it should be counted as the legal and authorized devastation that does not possess any ethical as well as social reforms rather it is a predicament that should never be encouraged (The Social Value of War). The economic loss that both the opponents suffer cannot be replenished. In the present scenario it is imperative to save all the energy for fighting against natural calamities rather than wasting upon provide evidence of "might" by means of war. According to William James, the classic problem of politics encompass: "How to sustain political unity and civic virtue in the absence of war or a credible threat". There could be only two solutions to this issue encompassing, either war or threat to procure and establish th eir power or "might". The epoch witnessed