Tenets of Neoclassical Economy

The objective of this academic essay is to discuss the main tenets of neoclassical economic liberalism, explain whether less developed countries should entirely depend on developed countries not and give the reasons. According to Schumpeter (1954), the classical school of economics was developed in the 1750 and lasted as the mainstream of economic thought until the late 1800.Adam Smith’s Wealth of Nation book published in 1776 can be used as the formal beginning of classical economics but it actually evolved over a period of time and was influenced by Mercantilist doctrines, Physiocracy, the enlightenment, classical liberalism and the early stages of the industrial revolution. Adam Smith is recognized as the originator of classical economic. John Stuart Mill a British philosopher 1806-1873 is often regarded as the synthesizer of the school.While Adam Smith would be regarded as the originator and leader of the school, David Ricardo 1772-1823 should be credited with establishing the form and methods of school. Neoclassical economic liberalism is based on principles of namely free competition, a self-regulating market economy, and low or no taxes on income and property, while sharing with other forms of liberalism â€Å"a belief in progress, the essential goodness of the human race, and the autonomy of the individual and standing for the protection of political and civil liberties.Liberalism has long history rooted in the theories of liberal political thought. It focuses mainly on the individuals rights. It attaches a lot of value to personal freedom be it political or economical. It strives to limit the state’s influence in the economic and social life of society. Liberal theorists believe that economic life should not be interfered by constitutional and legal rights to run all the national or public services. Economic life should be let flourish on its own without interference by the state.Therefore, the cornerstone or the most important thought o f liberalism are free trade and free competition (Schumpeter 1954). Neo-classicists see the market for organising economic activities and individuals and companies are rewarded for their efficiency. The market is seen to be at the centre for economic growth and not the state. In other words, Neoclassical seek to understand economic development in terms of the market behaviour of individual actors and therefore can be described as essentially individualistic (Downs 1957).Economics is a science that studies human behaviour as a relationship between ends and scarce means that have alternatives uses. Neoclassical economics pursues this study by means of supply and demand models that determine prices based on the subjective preference for determining prices in order to escape from the so called objective value theory of classical economics, according to which the value of goods could be established by reference to some basic commodity or the labour input required to produce a good.Neo-cl assicists hoped that by throwing away objective values, economics could be placed on a more scientific basis as an essentially descriptive and predictive theory of human behaviour (Thirlwall, 2006). Neoclassical economics can be understood in terms of both its subject matter and its method. The subject matter of economics deals with variables such as incomes and prices, and aggregates like gross national product, employment levels and inflation rate.The methods offer a way to think about large number interactions within markets, although in principle the range of social institutions can be extended to include politics. The characteristic feature or main tenets of the neoclassical method are instrumental rationality, methodological individualism, economic self interest, equilibrium analysis and the use of mathematical techniques (Riker, 1982). With instrumental rationality entails that agents are supposed rational in a broad sense that their behaviour can explained in term of their p references.Preferences are assumed to be determined by the individuals’ desires and beliefs and well ordered with regard to outcomes. For many purposes, preferences can remain specified only up to certain abstract structural features, such as consistency, completeness and complexity. The latter requirement forms the basis of relative price analytics focused on behavioural effects of changes in the relative prices of different objects of value. More specifically, rational individuals are assumed to respond to any increase in the price of a good by consuming less of it.This simple relative price proposition turns to be surprisingly powerful in predicting behaviour in economic setting and includes specifically the basis of institutional analysis: Institutions yield different social outcomes because they alter the incentives that agents face (Buchanan, 1975). In principle, individuals’ preference could have any content whatsoever: agents could be benevolent or could be dri ven by group interests or a desire to comply with group norms. But in practice , there is a strong tendency to ascribe predominantly self interested motives o individuals and to rely more on institutional mechanism that bend interests to the service of duty than on individuals inherent sense of dutifulness. Accordingly, the first question economists are likely to ask of institutions is what economic incentives they give rise to. Equally, when individuals agents interact, neo-classicists generally assumes that each agent maximizes his or her own well being, considered apart from the well being of the other agents with whom he or she interacts.According to Downs (1957) in the resultant interplay among rival interests, neoclassical economists tend to conceptualize stable social outcomes as form of â€Å"equilibria,† in which the strength of the various contenders are in balance. Furthermore, analysis proceed by examining changes in external circumstances that would alter the str ength of different forces and thereby induce all to change their behaviour in particular directions.The external circumstances in question include policy change by government and changes in broader institutional arrangements though there is an issue as to how far government action should be regarded as external to the social system. Buchanan (1975) argues that the distinct feature of the neoclassical approach to economics can be usefully illustrated with reference to classical economics, in particular to Adams Smith’s metaphor of the invisible hand.Smith’s metaphor express the idea that, under certain conditions, the behaviour of agents who act in their own interests can also ultimately promote the public interest. Smith claimed specifically that the freely operating market under the system of natural liberty would constitute such an invisible hand process. Although agents are assumed to be neither particularly benevolent nor cooperate by nature, the exchange processes that the free market were seen to mobilize vast benefits from large scale human cooperation that are individually not attainable.The neoclassical version of the claim is embodied in the so called fundamental theorems of welfare economics, which asserts that all perfectly competitive equilibria are Pareto optimal, and all Pareto-optimal points are equilibria of a perfectly competitive market under some initial distinction of goods. Pareto optimally is defined as the situation in which all possible mutually beneficial moves have been made. Interestingly, the neoclassical version of this result follows David Ricardo’s formulation in which gains from exchange arise from exploiting natural differences among agents according to principle of ompetitive advantage. In Adam Smith’s version by contrast, the gains from exchange arise not merely from natural difference but from gains from specialisation (Buchanan 1975). There is however, a more significant limitation to fundamenta l theorem of welfare economics. The theorems are restricted in their scope to private goods that are excludable. Markets cannot guarantee the optimal provision of public goods and collective consumption goods. Under plausible conditions, non excludable goods such as defence or law and order and non patentable discoveries may not be provided at all.Even accepting the limited normative reach of paretian concepts, therefore, markets cannot reliably deliver much that is required for their successful operation, such as a secure system of property rights and many goods that are important for human flourishing, such as public health measures or plausible theories about the working of the economy (Thirlwall, 2006). Furthermore, Pareto–optimal outcomes are not necessarily just. Pareto-optimality is consistent with slavery if slaves cannot purchase their own freedom.It is also consistent with very large disparities in income levels. Although the fundamental theorem of welfare economics state that any Pareto-optimal outcome can be realized by a suitable initial redistribution of goods, perfectly competitive markets remain themselves neutral with regard to distributive issues. In other words, the neoclassical defence of perfectly competitive markets can offer only a partial foundation for a comprehensive theory of cooperation, because the normative basis of evaluation that the neoclassical approach offers is too thin.Political philosophers such as Robert Nozick (1974) and David Gauthier (1986), for example, have taken this lack of normative justification as a starting point to embed markets into broader theories of social and economic cooperation that balance efficiency considerations with concerns for justice. Nevertheless, the neoclassical analysis of markets carries important normative implications. First, the analysis demonstrates that the benefits available from human cooperation are considerable.Neoclassical economics depicts social interaction as potentially â€Å"positive sum. † Beyond enjoyed by some individuals need not imply a loss to other and can lead to additional gains. Second, in mobilizing the mutual benefits available, there is a significant task of coordination among individual participation, a task that markets perform well for private excludable goods. Third, in part, markets work well in this coordination role, because they induce predominantly self-interested persons to serve others’ interests.It might be said that markets economize on benevolence, which tends to be a scarce good for many human interactions. Finally, the neoclassical account help to identify cases of market failure cases in which markets cannot guarantee optimal outcome (Emrah, 2008). Less developed countries cannot depend entirely on the notion of neoclassical economic liberalism or markets mechanism to the extent developed countries. This is because most markets in developing countries are characterised with widespread imperfection.One e xample is lack of information and existence of uncertainty that most individual producers face. Most producers in developing countries are generally unsure about the size of local markets, the existence of other producers and the availability of inputs both domestic and imported. Therefore in such a situation profit-utility maximising may be based on incorrect information and in the end lead to inefficient allocation of resources. (Todaro and Smith, 2009) Under such circumstance, the government may perhaps intervene to provide information by guiding producers and consumers.Therefore it can be analysed that, although free market economies have been successful in developed economies, it cannot be so in developing countries and the only recourse is the model of the mixed economy or social market economy. According to Thirlwall (1989), the true benefits of free market outputs may not be reflected in the prices because of the presence of substantial externalities. A number of goods may h ave high social value that is not reflected in their market prices.Because of market distortion or imperfections, the prices may not reflect marginal cost and many social goods and services such as health and education may not be produced at all or offered at a low price even free because markets are incomplete and private sectors have no incentives to produce them. In addition there is no guarantee that market mechanism will distribute resources equitably. Therefore, the government usually has the responsibility to provide them. Todaro and Smith (2009) further argue that although markets may ensure efficient allocation of resources, it can also lead to high levels of income inequalities.Over dependence on market may not improve the distribution of income but it worsen it. Due to these kinds of market failures, different developmental experts and economist have argued in the past that there must be government intervention in the development process and adopt various forms of plannin g models to allocate resources. In some countries resource allocation or planning is managed by bureaucrats and not by consumers. The government plan how resources are allocated across different sectors of the economy (Thirlwall, 1989). In conclusion, the welfare role of the state is retained in a social market economy which cares for the poor.In cases where the poor countries are striving towards a free market economy, there should be certain segments controlled by the state but with prevalence of free enterprise such that efficiency is restored and the country moves towards economic prosperity. Free market economy under centralized political control is the most effective way for distributing resources. BIBLIOGRAPHY Aydinonat, N. Emrah. (2008) The Invisible Hand in Economics: How Economists Explain Unintended Social Consequences: Routledge, New York. Buchanan, J. M. (1975). TheLlimits Of Liberty :University of Chicago Press, Chicago: Downs, A. 1957). An Economic Theory of Democracy . Harper, New York: Gauthier, D. P. (1986), Morals by Agreement: Clarendon Press, Oxford, UK. Nozick, R. (1974), Anarchy, State, And Utopia: Blackwell,Oxford, UK. Riker, W. H. (1982), Liberalism against populism: A confrontation between the theory of democracy and the theory of social choice: Freeman, San Francisco. Schumpeter, Joseph A. (1954), History of Economic Analysis: Oxford University Press, New York. Thirlwall, P. A (2006), 8th ed Growth And Development; Macmillan, London. Todaro, M and S. Smith (2009) Economic Development : Dorling, New Delhi.

Environmental Effects of Fast-Food Essay

The primary goal What Is Organic Agriculture? of organic agriculture is to optimize the health A and productivity of interdependent According to the National Organic Standards Board (NOSB) of the United States Department of Agriculture (USDA), organic agriculture is â€Å"an ecological production management system that promotes and enhances biodiversity, biological cycles, and soil biological activity. It is based on minimal use of off-farm inputs and on communities of management practices that restore, maintain, or enhance ecological harmony. The soil life, plants, rimary goal of organic agriculture is to optimize the health and productivity of animals, and people. interdependent communities of soil life, plants, animals, and people. † (NOSB, 2003) Though the term â€Å"organic† is defined by law (see â€Å"Legal† section on pages 3 and 4), the terms â€Å"natural† and â€Å"eco-friendly† are not. Labels that contain those terms may imply some organic methods were used in the production of the foodstuff but do not guarantee complete adherence to organic practices as defined by a law. Some products marketed as â€Å"natural† may have been produced with synthetic or manufactured products (those not onsidered to be â€Å"organic†), such as â€Å"natural beef. Farming without tion statistics in the United States the use of petroleum-based chemicals (USDA-ERS, 2002). This census, conductare young people (fertilizers and pesticides) was the sole ed in 2002, identified U. S. farmers who and college-educated option for farmers until after World War reported 2. 5 million acres of land II. The war brought with it technologies dedicated to organic production. This consumers. that were useful to agricultural producfigure probably under-represents current tion. For example, ammonium nitrate production because many organic farmused for munitions during World War II ers produce their products organically, volved into ammonium nitrate fer tilizer; but sell less than $15,000 per year and are exempt organophosphate nerve gas production led to the from inspection (see â€Å"Organic Certification†), or do development of powerful insecticides. These technot label their product as organic and, in general, nical advances since World War II have resulted in are direct marketing to a local customer. In 1999, significant economic benefits as well as environIowa farmers reported 150,000 acres of organic mental and social detriments. Organic agriculture cropland to the Iowa Department of Agriculture and seeks to use those advances that consistently yield Land Stewardship (IDALS) survey. This increase in benefits, such as new varieties of crops, precision organic acreage in Iowa represents a doubling from agriculture technologies, and more efficient the previous year and a sixfold increase since 1996. machinery, while discarding those methods that The U. S. organic industry continues to grow at have led to negative impacts on society and the a rate of 20 percent annually. Industry estimates environment, such as pesticide pollution and insect placed it at $10 billion in 2001. The organic industry pest resistance. Organic farming is considered a s a consumer-driven market. According to industry systems approach, where interactions between surveys, the largest purchasers of organic products components (crops, animals, insects, soil) are as are young people and college-educated consumers. important as the whole farm itself. Today we are faced with the unique opportunity to Instead of using synthetic fertilizers, organic take advantage of a growing market demand and farmers use crop rotations, cover crops, and comuse the technologies developed over the past 50 post to maintain or enhance soil fertility. Also, years. More and more farmers are interested in nstead of using synthetic pesticides, organic the profitability and environmental benefits that farmers employ biological, cultural, and physical organic systems yield. methods to limit pest expansion and increase populations of beneficial insects. Geneticallymodified organisms (GMOs), such as herbicideresistant seeds and plants, as well as product ingredients, such as GM-lecithin, are disallowed in organic agriculture because they constitute synthetic inputs and pose unknown risks (see GMO discussion opposite).

All that you need to know about Colloidal System

All that you need to know about Colloidal System A hetrogenius mixture in which solute particles are larger than molucules or ions but cannot be seen by naked eye is called colloidal solution. (Also, called colloidal dispersion, colloidal suspension.) An intimate mixture of two substances, one of which, called the dispersed phase (or colloid), is uniformly distributed in a finely divided state through the second substance, called the dispersion medium (or dispersing medium). The dispersion medium may be a gas, a liquid, or a solid and the dispersed phase may also be any of these, with the exception of one gas in another. A system of liquid or solid particlescolloidally dispersed in a gas is called an aerosol. A system of solid substance or water-insoluble liquid colloidally dispersed in liquid water is called a hydrosol. There is no sharp line of demarcation between true solutions and colloidal systems or between mere suspensions and colloidal systems. When the particles of the dispersed phase are smaller than about 10-3 ÃŽ ¼m in diameter, the system begins to assume the properties of a true solution; when the particles dispersed are much greater than 1 ÃŽ ¼m, separation of the dispersed phase from the dispersing medium becomes so rapid that the system is best regarded as a suspension. According to the latter criterion, natural clouds in the atmosphere should not be termed aerosols; however, since many cloud forms apparently exhibit characteristics of tr ue colloidal suspensions, this strict physico-chemical definition is often disregarded for purposes of convenient and helpful analogy. Condensation nuclei and many artificial smokes may be regarded as aerosols. The dispersion medium may be a gas, a liquid, or a solid. Smoke is composed of a solid dispersed in gas. Milk is a liquid dispersed in liquid. Pumic stone is a gas dispersed in solids. There are two forms of colloidal syatems. 1. Sol: A system composed of non-viscous colloidal solution is called sol. For example, milk. 2. Gel: A system composed of viscous colloidal solution is called gel. For example butter. The colloidal system can be classified into two general classes on the basis of their affinty for liquids:  · Lyophilic System: The system in which dispersed phase and liquid dispersion medium attaract each other is called lyophilic system.  · Lyophobic System: The system in which the dispersed phase and liquid dispersion phase repel each other is called lyophobic system. Types of Colloidal Dispersions Dispersed phase and dispersion medium can be solid, liquid or gas. Depending upon the state of dispersed phase and dispersion medium, eight different types of colloidal dispersions can exist. Eight Different Types of Colloidal Dispersions are: Foam Solid foam Liquid Aerosol Emulsions Gels Solid Aerosol Sol (Colloidal suspension) Solid sol (Solid suspension) It is important to note that when one gas is mixed with another gas, a homogeneous mixture is formed i.e. gases are completely miscible into each other. Colloidal dispersions are heterogeneous in nature and gas dispersed in another gaseous medium does not form colloidal system. When the dispersion medium is gas, the solution is called Aerosol and when the dispersion medium is liquid, the colloidal dispersion is known as Sol. Sols can further be classified into different types depending upon the liquid used.  · Properties of Colloidal System The colloidal system shows following properties. Adsorption: The tendency of molecules and ions to adhere to the surface of certain solids or liquids is called adsorption. Colloidal particles show a high tendency of adsorption. Thus, colloidal syatem provide a large surface area of adsorption of molecules and ions. Brownian Movements: Robert Brown in1927 observed that colloidal particles show random dancing movements. These movements were named Brownian movements. Tyndall Effect: The colloidal partcles scatter light. Ths is called Tyndall Effect. The path of light appears as a cone. It is known as Tyndall cone. This property helps to detect the presence of colloidal partcles. Precipitation: The additions of an electrolytr remove the electrical double layer present around the colloidal particles. As a result, the dispersed particles of a colloidal suspension will aggregate and precipitate. Electrical Properties: All colloidal particles carry same electric charge. This charge may be positive or negative. There is a adsorption of free ions in the dispersion medium. It produces an eletrical double layer around the colloidal particles. The electric charges on the colloidal particles stablize the colloidal system. Filtration: The colloidal particles cannot pass through a parchment membrance. This property of colloidal dispersions is used to separate them from true solution by a process called dialysis. Phase Reversal: The sol and gel form of colloidal system can be interchanged due to change in certain conditions. Certain lyophilic sols form gel undre certain conditions. For example, aqueous agar sols are cooled. It forms a jelly—like gel. The conversion of a sol to a gel is called gelation. If a gel of gelation or agar is heated, it will convert back to a sol. This process is known as solution. The property of colloidal dispersions is called phase reversal. 8. Surface Charge The most important characteristic of colloidal systems is surface charge on the particles. Keep in mind that a â€Å"particle† is a group of bonded atoms or molecules. Charged particles repel each other, overcoming the tendency to aggregate (the attraction force) and remaining dispersed. Particle size plays a major role in the capacity to bear a charge, and the colloidal size range is set by this capacity. In manufactured systems, the charge can be greatly increased over what might occur natu rally. Within the range, the smaller the particle, the greater the surface and the greater the charge that can be applied in manufacture. Only heterogeneous, highly dispersed colloidal systems, containing the smallest possible particles, have a well-developed surface area. Given a constant voltage applied to the system, particle charge is not automatically increased as the substance is made finer, but total charge in the system will increase. Already coarse particles will tend to fall out even if they have received an electrical charge like the smaller particles, because gravity will have a greater influence than the electrical forces which maintain the dispersion. Metallic particles have a great affinity for each other at the atomic level. They are magnetically attracted to each other and want to bond. But the magnetism of metals does not create an added difficulty of attraction against maintaining a colloidal system because of the superior capacity of metals to hold a charge. Given a constant particle size, the higher the concentration in a solution, the more likely the attraction force will overcome the repelling charge, creating larger masses. At some point, the mass will precipitate out due to gravitation. At lesser concentrations, the attraction force is insufficient for precipitative particle bonding, and groups are light enough that gravitation will not pull them out of solution. This is an ideal colloidal system. Biological Significance of Colloidal Systems 33333333333 Manufacturing Colloids and Systems At least five methods were used to manufacture colloids before 1938, including: (1) Grind, (2) Wave, (3) Liquid, (4) Chemical, (5) Electrical. For medical or health purposes, the FDA now allows both the grind and electrical manufacturing techniques to be used. Of these two methods, however, the electro-colloidal process is generally considered to be far superior. (The chemical method, described below, is restricted to industrial or commercial applications.) With the grind method, the inorganic or organic particles are usually no finer than four one-hundred-thousandths of an inch, or about one micron, which is outside the upper end of the ideal size range by a factor of 10. Such particles may or may not be electrically charged. Even if a charge is present, the size of the particles may be great enough that the repelling forces are unable to overcome the pull of gravity. Thus, particles will tend to settle to the bottom of the solution, and much of the effectiveness of the colloidal sy stem will be lost. While some sols owe their stability to particle size, charge and high dispersion, others employ a mechanical stabilizer added to the medium. Such stabilizers include gelatin, glycoproteins, and starch, among other things, which increase solution viscosity and cause the particles to settle much more slowly. The downside to this is that stabilizers tend to block the effects of the colloids, and the particles will still eventually settle if the solution is allowed to stand long enough. If the inorganic or organic particles are within the size range of 1 to 100 nm and are uniformly charged, no stabilizer is required to maintain suspension indefinitely in deionized water, as long as no disruptive influence intrudes. Thus, the integrity and power of a colloidal system is a factor of the interplay among size, charge, concentration, and interaction between particle and medium. It should be mentioned that shape is also a factor. In recent years, the chemical process has been widely employed to replace the inferior grind method, because it provides a convenient shortcut to the more difficult electro- colloidal process. But it also has drawbacks, one of which is the difficulty in getting the chemicals (acids) back out of the colloidal solution. Consequently, traces of the chemicals are frequently left in solution, which can cause unwanted effects, especially in nutritional/medical applications. After studying the health benefits of various forms of colloidal silver, Dr. Leonard Keene Hirschberg, A.M.M.D. (Johns Hopkins) concluded, â€Å"There are two principal ways of producing metallic colloids, viz., chemical and physical (electrical). The two methods yield widely different results, and from a therapeutic point of view I need only deal with the electric colloid metals, since only these present the necessary homogeneity, minuteness of granules, purity, and stability.† A simple illustration will suggest the immense power potential of a colloidal system. The total surface of a one-inch cube of iron is six square inches. By colloidal chemistry, the cube can be divided into particles having a total surface area in the range of 800,000,000 square inches, all expressing electrical energy. The total surface area of the particles in a quarter teaspoon is greater than that of a football field. The Ultimate Colloid The highest quality colloidal systems are produced by the electro-colloidal method, meaning the inorganic or organic particles and (usually) water have been completely â€Å"colloided.† This is simultaneous dispersion and bonding by a current sent through the combination. This is the only method that will create a true colloidal system by manufacture. Products that are simple mixtures of metal and liquid cannot possess nearly the potential of electrocolloids, and are therefore of questionable value. The proper electrical process allows inorganic or organic particles that are well within the colloidal size range to be drawn off an ingot. Animated by Brownian movement, they are able to remain in suspension in a liquid medium almost indefinitely. (Because many nutrients are best transported through the body in water, the best medium to use for ingested nutritional products is pure, de-ionized water.) All other things being equal, the number of particles varies inversely according to the cube of the size change, so if size is reduced 50 percent, overall number is multiplied by eight. This is a mathematical proof, and is determined by actual count using an electron microscope and by atomic absorption. Obviously, ideal size is element dependent. Size is controlled by frequency, amperage and micro-meshes, among other things. The ultimate colloidal sol contains ultra-fine and ultra-light particles in the range of 0.015-0.005 microns in diameter, and they will remain suspended in de-ionized water without need of any other ingredient. There is no visible accumulation of inorganic or organic particles either in the solution or settled on the bottom. Products that show visible particles in the solution or at the bottom of the container indicate that the particles are either too large or have not received the proper electrical charge. The metallic particles in a sol may vary in concentration, but more is not necessarily better, unless we have correspondingly smaller particles. In fact, the reverse is usually true- less is better, and in essence, less is more, functionally speaking, because as noted earlier, the higher the concentration in a solution, the more likely the attraction force will overcome the repelling charge. But even before this happens, effectiveness is reduced. The highest quality colloid will have a certain maximum number of particles. They will be of the minimum possible size, and ideally no more than a â€Å"handful† of atoms hooked together per molecule of water utilized, and in a negatively charged state. This will prevent further aggregation at that size.

Keynesian Stabilization Policy Essay Example | Topics and Well Written Essays - 1750 words

Keynesian Stabilization Policy - Essay Example John Maynard Keynes grew up in and attended Cambridge. He was a prominent member of the Bloomsbury Group, which was a literary group in London which, among other things, espoused socialist and interventionist solutions to economic and social problems. Keynes' experience during and after World War II in the Treasury helped to form his ideas about pricing, demand and monetary policy. He predicted the hyperinflation in Germany as a result of the unrealistic demands of the Versailles Treaty of 1919. Keynes supported the theory of "pump priming" during the depression of the 1930's, which was formalized in his magnum opus of 1936, The General Theory of Employment, Interest and Money (Keynes). One can view Keynes' formative years as a response to the realities of post-war Europe, a stagnating English economy, and subsequent Depression throughout the world. He saw that government's relatively small role in the economy could be increased if governments overcame their short-term resistance to increasing debt in peacetime. He saw the Great Depression reduce overall output in the world by 50% from 1929 to 1932 (Sachs). Contrary to subsequent accounts, the 1920's was not a period of uninterrupted prosperity in Europe. Sustained growth started only in 1925, and was cut short four years later. According to Kindleberger: Recovery from the First World War was hindered in Europe by the loss of the cream of its youth and the relative setback to its position owing to the stimulus to economic growth in the dominions, Japan and the United States2. Thus Keynes' entire adult career saw only a short period of nearly full employment, preceded and followed by periods of stagflation and outright depression. The respective governments' response to the economies' poor performance was fiscal restraint which, in Keynes' view, was clearly not working. The Fundamentals of Classic Keynesian Theory Keynes claimed that demand buoyed economies. Central to his theory was that demand from both the private and the public sector was essentially the same. To the extent that the private sector did not provide demand, the public sector could increase demand in order to keep the economy humming. Keynes felt that inflation was not a major problem unless the economy approached "full" employment, which was a much higher number than attributed by most economists at the time. Keynes' theories included three basic tenets: 1. Aggregate demand is composed of government and private demand. Both stimulate the economy when they increase. Aggregate demand is not inflationary unless it increases at a time when the economy is fully-employed. 2. Changes in demand do not affect prices, at least in the short term. Their main effect is on output and employment. Prices do not change readily-particularly in the case of wages-to accommodate demand. 3. Since wages respond slowly (both up and down), unemployment acts as a "balancing" mechanism. That

Discourse, Field-Configuring Events, and Change In Organizations Shell Essay

Discourse, Field-Configuring Events, and Change In Organizations Shell - Essay Example In an attempt to determine the safest and environmentally friendly way to dispose its spar, the company considered to dispose its Brent Spar by sinking it in 6000 feet of Atlantic water. This move was undetermined since the disposal could possibly contaminate other seawater thereby leading to human and environmental dangers (Wheeler et.al, 2009, p. 19). Intentionally, the company ignored critical assumptions made by environmentalist regarding the disposal of this waste. The company was therefore faced with an environmental problem allegation mainly from Greenpeace. This includes regular oil spills, drainage of harmful water into a canal and emission of dangerous gases from the pump. Crime and unemployment were external ethical issues that faced the oil industry. It is cited that the Nigerian government did not utilize the profit earned from the company in infrastructural development and other economic activities that tend to improve economic growth. Instead, the government channels these funds to finance political party’s activities. Unemployment created insecurity within the nation. The government and the system of public officials were cited as the most corrupt in the globe. This was due to misappropriation of government funds, thereby increasing crime in the country. The Nigerian government has the largest number of shares in the company formed collaborations with other industries thereby diluting company’s operations. In this perspective, this strategy was against the will of other shareholders. Considering the initial attempts to take over the company, any collaboration made between the company and United State oil companies placed the company at risk, but the Nigerian government did not put into consideration the decisions of other shareholders when initiating this partnership. It therefore sets up joint ventures with other multinational oil companies (Wheeler et.al, 2009, p. 34). After negotiation and a long debate on proposed

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Radio Broadcasting industry - Research Paper Example iHeartMedia Inc., which is the main competitor for Cumulus Media Inc., focuses on radio broadcasting while owning over eight hundred and fifty full power AM and FM stations in the US, which makes it the biggest owner of radio stations. Furthermore, the company has leased two channels on the Sirius and XM satellite radio while expanding its online presence via the iHeartRadio platform and specializing in outdoor advertising via its subsidiary, the Clear Channel Outdoor Holdings Inc. The tag, clear channel, originated from AM broadcasting and referred to a channel whereby only a single station transmits. In US, clear channel stations boast of exclusive rights to the frequencies their possess in a huge part of the continent during the night time when AM signals can travel further as a result of skywave. The new title of the company is designed to symbolize its rising digital business. At the beginning of 2014, the company announced that it was fostering a marketing partnership with SFX Entertainment, which was to enable the two companies to collaborate as far as electronic dance music content is concerned. This content is designed for its terrestrial and digital radio outlets such as Beatport top twenty countdown, a countrywide talent show as well as an original live music series that is comprised of two concerts. This partnership is supposed to expand on the EDM-oriented outlets of the iHeartMedia, additionally; the company’s staffs believe that the agreement would be instrumental in the provision of a higher degree of national exposure to the present and upcoming EDM artists. Another company that competes with Cumulus Media Inc is Sirius XM Holdings that provides two satellite radio services that operate in the US; XM Satellite and Sirius Satellite Radio. It further has a subsidiary in Canada referred to as Sirius XM Canada that provides Sirius and XM

Banking policy in Burma Essay Example | Topics and Well Written Essays - 1500 words

Banking policy in Burma - Essay Example The indigenous banks of Burma were not started, until after the county’s independence in 1948.The banks that started operations in Burma during the colonial times, targeted the export trade of rice. They centralized their operations around Rangoon, engaging mainly in Chettiar lending, except a few like Dawson’s bank, which exited Burma after the 1942 invasion by the Japanese (Econ 335 a). Remarkable in the philosophical and the ideological banking profile of colonial Burma, are the exchange banks, which initiated western banking services at Burma. These exchange banks trace their origins to the trading firms of Burma, which mediated the commercial dealings of Burma with the outside world – throughout the nineteenth century. These firms include the Wallace Brothers, which was a remarkable example of the transition from being merchants, towards assuming the role of merchant bankers. By the end of the 19th century, the traders and the merchants that had operated as banks across the British Empire, either converted or left business for international banks. Most of these banks were headquartered at London, including Lloyds Bank and the National Bank of India (Econ 335 a). Most of the banks did not engage in the service of the entire population, particularly the countryside, but focused on the financing of rice trade, among a few other commodities at Rangoon. The finances of these banks were mostly outsourced from outside Burma, particularly London; the banks, later diversified towards the collection of deposits from European professionals, managers, and Burmese and Indian traders. The banking sector of colonial Burma was characterized by trade finance and the sale of bills of exchange. The bill of exchange is among the finance tools that revolutionized international trade during the nineteenth century; the instrument allowed exporters to receive the value of their exports, immediately after the sale of the exports, and in the local currency. The service was offered by exchange banks, which marked a reduction in the risks borne by exporters and importers; it also increased their access to credit. The bills of exchange were a short-term credit instrument, ordinarily 60 days, and not longer than 90 days. Banking institutions like the British banks, concentrated in the provision of financial services, and funding to businesses, particularly European as well as the colonial administration and its agencies. For instance, the Imperial bank offered wholesale financing to Chettairs, thus was an import financier of the Burmese agricultural sector. Despite the dominance of British banks, non-British exchange banks like Citibank started their operations in Asia, during 1812. The bank started its operations at Rangoon in 1919. For example, some Chinese banks arrived into Burma, immediately after the completion of Burma Road, in 1938 targeting the upcoming opportunities (Econ 335 a). There was the rise of Burmese banks, including  "U Rai Gyaw Thoo and Dawson’s Bank†. Dawson’s Bank was started in 1905, with the role of assisting Burmese agricultural players, so that they could free their lands from Indian-money-tenders. The local banks sought closeness to the farmers, so that they would ensure that they would get cheap credit, and, so that the banks would ensure that they used the money for the specified purpose. U Rai Gyaw Thoo was among the first Burmese-operated and owned bank, which grew out of shipping, trading and money lending. There