Wednesday, October 16, 2019
Discuss the film A SEPARATION - Assignment Example One of the ethical dilemmas illustrated on the film is about minor understandings and confusion that lead to separation of a husband known as Nader and his wife Simin. The main reason for the coupleÃ¢â¬â¢s misunderstanding is the decision of Simin to leave Iran. The film writer depicts that the couple has been married for fourteen years but the living condition in Iran leads Simin to make a decision of leaving. Her main objective is to go in a place where she can manage to offer a better education and life for their eleven years daughter. However, Nader does not support her wifeÃ¢â¬â¢s decision because he wants to stay in Iran and cater for his eighty years old ailing father. Another issue related to ethical dilemma that the film writer illustrates is dispute dissolution. The couple is unable to solve their disputes and disagreement involved in their marriage. This leads to Simin in filing for a divorce. The family court judges rules that the coupleÃ¢â¬â¢s disagreement does not weigh enough to consider divorce as the final option. However, Simin had already made her decision and finally moves out. Another ethical dilemma relates to the issue of poverty in the society. The film writer depicts that Razieh moves to work for Nader even without her husbandÃ¢â¬â¢s permission, as recommended in the society. The film also illustrates various circumstances of emotional upheavals. One of these instances is during the separation of Nader and Simin. The later is mainly concerned of their childÃ¢â¬â¢s future life and this creates a difficult moment in her thoughts to the point of making a firm decision of leaving. Nader also depicts to have emotional upheavals in the fact that he has to balance his ailing fatherÃ¢â¬â¢s life to the well-being of his family. Eventually, he makes a decision of staying back with his father rather than moving. The film writer also demonstrates NaderÃ¢â¬â¢s daughter, Termer experiencing emotional upheavals because of her parentÃ¢â¬â¢s divorce. She loses the
Humes Theory of Sense Impressions - Essay Example He states that we do not experience the world but instead only experience our sense impressions (what he terms as secondary qualities). However, for us to experience these secondary qualities there must be an existence of primary qualities from which they are derived from (Passer et al 118). Otherwise, his argument would make no sense as it would claim that the sense impressions we experience pop up from nowhere in particular and into being. In order for sense impression to exist, there must be the existence of a source from which these impressions are derived from (Passer et al 120). Ã The source itself must also possess primary qualities and thus this is proof that there is actually a world out there with objects that have primary qualities (Passer et al 125). The sense impressions that we experience can also be argued to be as a result of the t\interpretation of the true impressions that they are derived from and in order for this to happen there must be an existence of a Ã¢â¬Å"selfÃ¢â¬ which is responsible for the interpretation (Passer et al 127). In conclusion, it can be said by making the argument for the existence of sense impressions, this theory by default creates room for the argument of the existence of objects with primary qualities. Ã Francis Bacon was a famous philosopher who was also involved in politics during his time and came up with a theory he referred to as Idols of the mind. These were the various traps laid down by conventional thinking that prevented individuals from seeking out the truth in a subject and induced them into being comfortable with the information that has already been presented to them by various sources within the society (Jackson 52).
Tuesday, October 15, 2019
Issue facing texas - Research Paper Example A part from education, there are some other issues that must also be addressed in Texas. These issues involve poverty, budget and tax payment. These issues have been there for long time but there are current reforms that have been put in place in orders to control these challenges. Education policy (university & colleges) There have been many challenges that are affecting the education sector in Texas. Some have been there for long while others have been caused by the current legislation and the type of education system that have been put in place. One of the major issues facing Texas colleges and university education is the lack of funds for both the students and the schools. The cost of colleges and universities are very high in Texas. This blocks many students from pursuing there postsecondary schools courses. In the past, the cost of colleges was average. Many parents were able to take their children for high education. This dream has been erased by the rise of school fees. Recen tly, college costs have risen at a very high rate. This rise has even exceeded the rate at which inflation goes up. Parents and students now feel they are being exploited by the government due to the rise in school fees. Some cannot afford to pay all the fees and their children are forced to drop out of college. This rise of education fees has been caused by Texas failure to pay taxes. There has been a big hole in Texas budget that has forced the tax payersÃ¢â¬â¢ lot money in trying to reduce the budget deficits ("Challenges Facing Career and Technical Education"). This issue of rise in school fees has been dealt with to some extent. There are some policies that have been put in place in order to reduce the rise in school fees. These measures also help parents and students raise enough money for high education. One of the measures that have been put in place includes giving financial aids to the students who are studying in colleges and universities. This aid is made effective by giving loans to the students. These loans are given through private financial institutions or federal government. These institutions include education tax credits, state loans, work-study programs and federal grants. These loans help many students in colleges. Those who are in the two-year community colleges can also benefit from the loans. They will be able to give back to the society after completing college. The loan is also available for those who are going for five years in their high education. Most of the students who are going for four years have high chances of getting these loans as compared to those who are going for two years. This is because the four-year courses are known to cost more money than the two-year courses ("Challenges Facing Career and Technical Education"). From my opinion, this policy of giving financial aid to students is very important. It helps many students whose dreams were to study in colleges and universities. It is also very essential for students who come from poor families. When these students complete their education, they will be able to help the other members of their families. This means that the financial aid important will help the whole society. K-12 Education There many issues that is associated with K-12 education in Texas. Some of the issues are caused by larger number of students in the lower grade schools. This large population in
Racism in America (the zeitgeist) around year 1890-1920 based on the book Give Me Liberty, by Foner (chapter 17, 18, and 19 only) - Essay Example Black and white people resided nearby on lands as well as agricultural estates and physical segregation developed contact involving neighbors sporadic. On the other hand, liberated color citizens, situated mainly in northern and southern municipalities as well as metropolis, suffered isolation in different sorts. When the High Court made judgment in Dread Scott versus Strafford (1858) that Black Americans werenÃ¢â¬â¢t American people, whites from the north isolated black people from civic transport seats as well as banned their entrance, except for employees, from nearly all lodges with food outlets. When permitted into lecture hall as well as theaters, black people sat in separate parts; they as well attended isolated schools. Nearly all churches, as well, got segregated (Washington 4). Rebuilding subsequent to the civil fighting caused severe problems to white primacy and isolation, particularly within the Southern part where the majority Black Americans continued to reside. The slavery abolition during 1866 after which approval of the 14th modification (1869) followed which extended nationality as well as same law protection to Black Americans moreover within decades just following the Civil fighting isolation reduced. However the chances of black people using together public transportation as well as shared housing with white people grew in the time subsequent to 1866. Black people received right to use public vehicles as well as railway transport on the basis of integration. Definitely, numerous transport corporations preferred integration since they didnÃ¢â¬â¢t desire a danger losing business with blacks Black American gained entrance to unified public accommodation. Enactment through Parliament of public Privileges Act (1876), which banned racial favoritism within public housing, offers proof concerning sustained existence of racism as well as the call for
Weather and Monsoon Season Essay The winds can knock down trees and even do some damage to peoples houses or buildings windows may be broken and trees may fall on houses. The floods also cause people serious problems. People may be walking down the street, wading through waist-deep water. The floods from the extreme rain can spread bacteria as well. The dirty water that hundreds of other people have been wading through can be a good breeding ground for harmful bacteria and it helps spread deadly diseases. Mosquitoes breed in water, so there might be an over-population of mosquitoes that can carry diseases, as well. Despite the dangers that monsoons bring, they can still provide clean drinking water. With all of the benefits that they bring to India, they still have disadvantages but the monsoon is actually looked forward to in Indian communities. All the good that the monsoons do for them has caused the people of India to create holidays, festivals and other celebrations to welcome the monsoon season. Some of the celebrations that the people of India have are called Teej and Adiperukku. Teej celebrates the onset of the monsoon season, and all of the good that it brings to the people of India. Adiperukku, which is a different type of celebration, is meant to celebrate the life-giving water that the monsoon season brings. Those are just two of the many festivals that the people of India celebrate to welcome in the sacred monsoon season. The seasonal changes in weather are so important to the people of India, the agriculture and the animals, that their lives depend on monsoons. Although monsoons are generally the most severe in India, there are still many other places in the world that experience the pouring rain and the damaging winds of monsoons mostly countries in southern Asia, like India.
Foreign exchange market Essay Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. It is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by loweringinterest rates in the hope that easy credit will entice businesses into expanding. Contractionary policy is intended to slow inflation in order to avoid the resulting distortions and deterioration of asset values. Monetary policy, to a great extent, is the management of expectations. Monetary policy rests on the relationship between the rates of interest in an economy, that is, the price at which money can be borrowed, and the total supply of money. Monetary policy uses a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other currencies and unemployment. Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authority has the ability to alter the money supply and thus influence the interest rate (to achieve policy goals). The beginning of monetary policy as such comes from the late 19th century, where it was used to maintain the gold standard. General Monetary policy is the process by which the government, central bank, or monetary authority of a country controls (i) the supply of money, (ii) availability of money, and (iii) cost of money or rate of interest to attain a set of objectives oriented towards the growth and stability of the economy. Monetary theory provides insight into how to craft optimal monetary policy. Monetary policy rests on the relationship between the rates of interest in an economy, that is the price at which money can be borrowed, and the total supply of money. Monetary policy uses a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other currencies and unemployment. Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authority has the ability to alter the money supply and thus influence the interest rate (to achieve policy goals). It is important for policymakers to make credible announcements. If private agents (consumers and firms) believe that policymakers are committed to lowering inflation, they will anticipate future prices to be lower than otherwise (how those expectations are formed is an entirely different matter; compare for instance rational expectations with adaptive expectations). If an employee expects prices to be high in the future, he or she will draw up a wage contract with a high wage to match these prices. Hence, the expectation of lower wages is reflected in wage-setting behavior between employees and employers (lower wages since prices are expected to be lower) and since wages are in fact lower there is no demand pull inflation because employees are receiving a smaller wage and there is no cost push inflation because employers are paying out less in wages. 2. What is a Central Bank? A central bank, reserve bank, or monetary authority is an institution that manages a states currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the amount of money in the nation, and usually also prints the national currency, which usually serves as the nations legal tender. Examples include the European Central Bank (ECB) and the Federal Reserve of the United States. The primary function of a central bank is to manage the nations money supply (monetary policy), through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis. Central banks usually also have supervisory powers, intended to prevent bank runs and to reduce the risk that commercial banks and other financial institutions engage in reckless or fraudulent behavior. Central banks in most developed nations are institutionally designed to be independent from political interference. THE BANGKO SENTRAL NG PILIPINAS The Bangko Sentral ng Pilipinas (English: Central Bank of the Philippines; Spanish: Banco Central de Filipinas; commonly abbreviated as BSP in both Filipino and English), is the central bank of the Philippines. It was established on July 3, 1993, pursuant to the provision of Republic Act 7653 or the New Central Bank Act of 1993. History In 1900, the First Philippine Commission passed Act No. 52, which placed all banks under the Bureau of the Treasury and authorizing the Insular Treasurer to supervise and examine banks and all banking activity. In 1929, the Department of Finance, through the Bureau of Banking, took over bank supervision. By 1933, a group of Filipinos had conceptualized a central bank for the Philippine Islands. It came up with the rudiments of a bill for the establishment of a central bank after a careful study of the economic provisions of the HareÃ¢â¬âHawesÃ¢â¬âCutting Act, which would grant Philippine independence after 12 years, but reserving military and naval bases for the United States and imposing tariffs and quotas on Philippine exports. However, the HareÃ¢â¬âHawesÃ¢â¬âCutting Act would be rejected by the Senate of the Philippines at the urging of Manuel L. Quezon. This Senate then advocated a new bill that won President Franklin D. Roosevelts support; this would be the TydingsÃ¢â¬âMcDuffie Act, which would grant Philippine independence on July 4, 1946. During the Commonwealth Period, discussions continued regarding the idea of a Philippine central bank that would promote price stability and economic growth. The countrys monetary system then was administered by the Department of Finance and the National Treasury, and the Philippine peso was on the exchange standard using the United States dollar, which was backed by 100 percent gold reserve, as the standard currency. As required by the TydingsÃ¢â¬âMcDuffie Act, the National Assembly of the Philippines in 1939 passed a law establishing a central bank. As it was a monetary law, it required the approval of the President of the United States; Franklin D. Roosevelt did not give his. A second law was passed in 1944 under the Japanese-controlledSecond Republic, but the arrival of American liberation forces in 1945 aborted its implementation. Shortly after President Manuel Roxas assumed office in 1946, he instructed then-Finance Secretary Miguel Cuaderno, Sr. to draw up a charter for a central bank. The establishment of a monetary authority became imperative a year later as a result of the findings of the Joint Philippine-American Finance Commission chaired by Cuaderno. The Commission, which studied Philippine financial, monetary, and fiscal problems in 1947, recommended a shift from the dollar exchange standard to a managed currency system. A central bank was necessary to implement the proposed shift to the new system. Roxas then created the Central Bank Council to prepare the charter of a proposed monetary authority. It was submitted to Congress in February 1948. By June of the same year, the newly proclaimed President Elpidio Quirino, who succeeded President Roxas, affixed his signature on Republic Act (RA) No. 265, the Central Bank Act of 1948.On January 3, 1949, the Central Bank of the Philippines was formally inaugurated with Miguel Cuaderno, Sr. as the first governor. The main duties and responsibilities of the Central Bank were to promote economic development and maintain internal and external monetary stability. 3. What are the Types of Monetary Policy? In practice, to implement any type of monetary policy the main tool used is modifying the amount of base money in circulation. The monetary authority does this by buying or selling financial assets (usually government obligations). These open market operations change either the amount of money or its liquidity (if less liquid forms of money are bought or sold). The multiplier effect of fractional reserve banking amplifies the effects of these actions. Constant market transactions by the monetary authority modify the supply of currency and this impacts other market variables such as short term interest rates and the exchange rate. The distinction between the various types of monetary policy lies primarily with the set of instruments and target variables that are used by the monetary authority to achieve their goals. Monetary Policy: Target Market Variable: Long Term Objective: Inflation Targeting Interest rate on overnight debt A given rate of change in the CPI Price Level Targeting Interest rate on overnight debt A specific CPI number Monetary Aggregates The growth in money supply A given rate of change in the CPI Fixed Exchange Rate The spot price of the currency The spot price of the currency Gold Standard The spot price of gold Low inflation as measured by the gold price Mixed Policy Usually interest rates Usually unemployment + CPI change The different types of policy are also called monetary regimes, in parallel to exchange rate regimes. A fixed exchange rate is also an exchange rate regime; The Gold standard results in a relatively fixed regime towards the currency of other countries on the gold standard and a floating regime towards those that are not. Targeting inflation, the price level or other monetary aggregates implies floating exchange rate unless the management of the relevant foreign currencies is tracking exactly the same variables. In economics, an expansionary fiscal policy includes higher spending and tax cuts, that encourage economic growth. In turn, an expansionary monetary policy is one that seeks to increase the size of the money supply. Conversely, contractionary monetary policy seeks to reduce the size of the money supply. In most nations, monetary policy is controlled by either a central bank or a finance ministry. In most nations, monetary policy is controlled by either a central bank or a finance ministry. Neoclassical and Keynesian economics significantly differ on the effects and effectiveness of monetary policy on influencing the real economy; there is no clear consensus on how monetary policy affects real economic variables (aggregate output or income, employment). Both economic schools accept that monetary policy affects monetary variables (price levels, interest rates). Inflation targeting Under this policy approach the target is to keep inflation, under a particular definition such as Consumer Price Index, within a desired range. The inflation target is achieved through periodic adjustments to the Central Bank interest rate target. The interest rate used is generally the interbank rate at which banks lend to each other overnight for cash flow purposes. Depending on the country this particular interest rate might be called the cash rate or something similar. The interest rate target is maintained for a specific duration using open market operations. Typically the duration that the interest rate target is kept constant will vary between months and years. This interest rate target is usually reviewed on a monthly or quarterly basis by a policy committee. Changes to the interest rate target are made in response to various market indicators in an attempt to forecast economic trends and in so doing keep the market on track towards achieving the defined inflation target. For example, one simple method of inflation targeting called the Taylor rule adjusts the interest rate in response to changes in the inflation rate and the output gap. The rule was proposedÃ by John B. Taylor of Stanford University. The inflation targeting approach to monetary policy approach was pioneered in New Zealand. It has been used inAustralia, Brazil, Canada, Chile, Colombia, the Czech Republic, Hungary, New Zealand, Norway, Iceland, India,Philippines, Poland, Sweden, South Africa, Turkey, and the United Kingdom. Price level targeting Price level targeting is a monetary policy that is similar to inflation targeting except that CPI growth in one year over or under the long term price level target is offset in subsequent years such that a targeted price-level is reached over time, e.g. five years, giving more certainty about future price increases to consumers. Under inflation targeting what happened in the immediate past years is not taken into account or adjusted for in the current and future years. Uncertainty in price levels can create uncertainty around price and wage setting activity for firms and workers, and undermines any information that can be gained from relative prices, as it is more difficult for firms to determine if a change in the price of a good or service is because of inflation or other factors, such as an increase in the efficiency of factors of production, if inflation is high and volatile. An increase in inflation also leads to a decrease in the demand for money, as it reduces the incentive to hold money and increases transaction and shoe leather costs. Monetary aggregates In the 1980s, several countries used an approach based on a constant growth in the money supply. This approach was refined to include different classes of money and credit (M0, M1 etc.). In the USA this approach to monetary policy was discontinued with the selection of Alan Greenspan as Fed Chairman. This approach is also sometimes called monetarism. While most monetary policy focuses on a price signal of one form or another, this approach is focused on monetary quantities. As these quantities could have a role on the economy and business cycles depending on the households risk aversion level, money is sometimes explicitly added in the central banks reaction function. Fixed exchange rate This policy is based on maintaining a fixed exchange rate with a foreign currency. There are varying degrees of fixed exchange rates, which can be ranked in relation to how rigid the fixed exchange rate is with the anchor nation. Under a system of fiat fixed rates, the local government or monetary authority declares a fixed exchange rate but does not actively buy or sell currency to maintain the rate. Instead, the rate is enforced by non-convertibility measures (e.g. capital controls, import/export licenses, etc.). In this case there is a black market exchange rate where the currency trades at its market/unofficial rate. Under a system of fixed-convertibility, currency is bought and sold by the central bank or monetary authority on a daily basis to achieve the target exchange rate. This target rate may be a fixed level or a fixed band within which the exchange rate may fluctuate until the monetary authority intervenes to buy or sell as necessary to maintain the exchange rate within the band. (In this case, the fixed exchange rate with a fixed level can be seen as a special case of the fixed exchange rate with bands where the bands are set to zero.) Under a system of fixed exchange rates maintained by a currency board every unit of local currency must be backed by a unit of foreign currency (correcting for the exchange rate). This ensures that the local monetary base does not inflate without being backed by hard currency and eliminates any worries about a run on the local currency by those wishing to convert the local currency to the hard (anchor) currency. Under dollarization, foreign currency (usually the US dollar, hence the term dollarization) is used freely as the medium of exchange either exclusively or in parallel with local currency. This outcome can come about because the local population has lost all faith in the local currency, or it may also be a policy of the government (usually to rein in inflation and import credible monetary policy). These policies often abdicate monetary policy to the foreign monetary authority or government as monetary policy in the pegging nation must align with monetary policy in the anchor nation to maintain the exchange rate. The degree to which local monetary policy becomes dependent on the anchor nation depends on factors such as capital mobility, openness, credit channels and other economic factors. Gold standard The gold standard is a system under which the price of the national currency is measured in units of gold bars and is kept constant by the governments promise to buy or sell gold at a fixed price in terms of the base currency. The gold standard might be regarded as a special case of fixed exchange rate policy, or as a special type of commodity price level targeting. Today this type of monetary policy is no longer used by any country, although the gold standard was widely used across the world between the mid-19th century through 1971. Its major advantages were simplicity and transparency. The gold standard was abandoned during the Great Depression, as countries sought to reinvigorate their economies by increasing their money supply. The Bretton Woods system, which was a modified gold standard, replaced it in the aftermath of World War II. However, this system too broke down during the Nixon shock of 1971. The gold standard induces deflation, as the economy usually grows faster than the supply of gold. When an economy grows faster than its money supply, the same amount of money is used to execute a larger number of transactions. The only way to make this possible is to lower the nominal cost of each transaction, which means that prices of goods and services fall, and each unit of money increases in value. Absent precautionary measures, deflation would tend to increase the ratio of the real value of nominal debts to physical assets over time. For example, during deflation, nominal debt and the monthly nominal cost of a fixed-rate home mortgage stays the same, even while the dollar value of the house falls, and the value of the dollars required to pay the mortgage goes up. Economists generally consider such deflation to be a major disadvantage of the gold standard. Unsustainable (i.e. excessive) deflation can cause problems during recessions and crisis lengthening the amount of time an economy spends in recession. William Jennings Bryan rose to national prominence when he built his historic (though unsuccessful) 1896 presidential campaign around the argument that deflation caused by the gold standard made it harder for everyday citizens to start new businesses, expand their farms, or build new homes. 4. What are the Monetary Policy tools? Monetary policy uses three main tactical approaches to maintain monetary stability: The first tactic manages the money supply. This mainly involves buying government bonds (expanding the money supply) or selling them (contracting the money supply). In the Federal Reserve System, these are known as open market operations, because the central bank buys and sells government bonds in public markets. Most of the government bonds bought and sold through open market operations are short-term government bondsbought and sold from Federal Reserve System member banks and from large financial institutions. When the central bank disburses or collects payment for these bonds, it alters the amount of money in the economy while simultaneously affecting the price (and thereby the yield) of short-term government bonds. The change in the amount of money in the economy in turn affects interbank interest rates. The second tactic manages money demand. Demand for money, like demand for most things, is sensitive to price. For money, the price is the interest rates charged to borrowers. Setting banking-system lending or interest rates (such as the US overnight bank lending rate, the federal funds discount Rate, and the London Interbank Offer Rate, or Libor) in order to manage money demand is a major tool used by central banks. Ordinarily, a central bank conducts monetary policy by raising or lowering its interest rate target for the interbank interest rate. If the nominal interest rate is at or very near zero, the central bank cannot lower it further. Such a situation, called a liquidity trap, can occur, for example, during deflation or when inflation is very low. The third tactic involves managing risk within the banking system. Banking systems use fractional reserve banking to encourage the use of money for investment and expanding economic activity. Banks must keep banking reserves on hand to handle actual cash needs, but they can lend an amount equal to several times their actual reserves. The money lent out by banks increases the money supply, and too much money (whether lent or printed) will lead to inflation. Central banks manage systemic risks by maintaining a balance between expansionary economic activity through bank lending and control of inflation through reserve requirements. 5. What is Fiscal Policy? Fiscal policy is a type of economical intervention where the government injects its policies into an economy in order to either expand the economyÃ¢â¬â¢s growth or to contract it. By changing the levels of spending and taxation, a government can directly or indirectly affect the aggregate demand, which is the total amount of goods and services in an economy. One thing to remember concerning fiscal policy is that a recession is generally defined as a time period of at least two quarters of consecutive reduction in growth. It may take time to even recognize whether or not there is a recession. With fiscal policy, there will be certain levels of lag time in which conditions will deteriorate before being recognized. At the same time, fiscal policy takes time to implement due to legislative and administrative processes, and those same policies will take time to show results after implementation. Consumers can also react to these policies positively or negatively. Most consumers would have a positive reaction per say to a policy that lowers taxes, while some will have an issue with a government spending more which will increase the burden of debt on nations citizens. Nevertheless, fiscal policy is a type of intervention that can help to control the direction of an economy. Deciding if and when it should be used will certainly continue to be debated. In economics and political science, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are changes in the level and composition of taxation and government spending in various sectors. These changes can affect the following macroeconomic variables in an economy: Aggregate demand and the level of economic activity; The distribution of income; The pattern of resource allocation within the sector and relative to the private sector. Fiscal policy refers to the use of the government budget to influence economic activity. 6. What are the Types of Fiscal Policy? Expansionary Fiscal Policy When an economy is in a recession, expansionary fiscal policy is in order. Typically this type of fiscal policy results in increased government spending and/or lower taxes. A recession results in a recessionary gap Ã¢â¬â meaning that aggregate demand (ie, GDP) is at a level lower than it would be in a full employment situation. In order to close this gap, a government will typically increase their spending which will directly increase the aggregate demand curve (since government spending creates demand for goods and services). At the same time, the government may choose to cut taxes, which will indirectly affect the aggregate demand curve by allowing for consumers to have more money at their disposal to consume and invest. The actions of this expansionary fiscal policy would result in a shift of the aggregate demand curve to the right, which would result closing the recessionary gap and helping an economy grow. Contractionary Fiscal Policy Contractionary fiscal policy is essentially the opposite of expansionary fiscal policy. When an economy is in a state where growth is at a rate that is getting out of control (causing inflation and asset bubbles), contractionary fiscal policy can be used to rein it in to a more sustainable level. If an economy is growing too fast or for example, if unemployment is too low, an inflationary gap will form. In order to eliminate this inflationary gap a government may reduce government spending and increase taxes. A decrease in spending by the government will directly decrease aggregate demand curve by reducing government demand for goods and services. Increases in tax levels will also slow growth, as consumers will have less money to consume and invest, thereby indirectly reducing the aggregate demand curve. Considerations Economic fluctuations independent of policy actions by government often affect the level of tax revenues, forcing elected officials to alter fiscal policy. For example, economic recessions reduce output and employment, resulting in reduced revenue for government coffers. This often forces policy makers to consider contractionary measures, such as increasing revenues by raising taxes or cutting government spending. 7. What are the Components/Instruments of Fiscal Policy? Taxation Taxation is one of the two primary instruments of fiscal policy. When the government increases or decreases taxes, it increases or decreases the amount of money consumers have to spend which can have a significant impact on the direction of the overall economy. A decrease in taxation tends to put more money into the hands of consumers, which can lead to increased spending. Increased spending tends to lead to higher revenues for businesses, which can allow them to expand and hire more workers. Cutting taxes is a common fiscal policy measure to encourage economic growth. Government Spending Government spending is the other main instrument of fiscal policy. The expenditures of the government can promote economic activity and create jobs. For example, if the government funds a project to build a high-speed train across the country, the funds that go into the project could go toward hiring workers which could reduce unemployment and inject money into the economy. Higher levels of government spending tend to promote employment and economic growth. Considerations The government uses fiscal policy to promote economic growth, low unemployment and to stabilize the economy. During period of low economic growth, the government tends to cut taxes and may increase spending in an attempt to spark growth. During periods of high economic growth, the government may increase taxes and cut spending to ensure that the economy doesnt grow too quickly which can result in undesirable effects like high inflation. 8. What are the Stances of Fiscal Policy? The three main stances of fiscal policy are: Neutral fiscal policy is usually undertaken when an economy is in equilibrium. Government spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on the level of economic activity. Expansionary fiscal policy involves government spending exceeding tax revenue, and is usually undertaken during recessions. Contractionary fiscal policy occurs when government spending is lower than tax revenue, and is usually undertaken to pay down government debt. However, these definitions can be misleading because, even with no changes in spending or tax laws at all, cyclic fluctuations of the economy cause cyclic fluctuations of tax revenues and of some types of government spending, altering the deficit situation; these are not considered to be policy changes. Therefore, for purposes of the above definitions, government spending and tax revenue are normally replaced by cyclically adjusted government spending and cyclically adjusted tax revenue. Thus, for example, a government budget that is balanced over the course of the business cycle is considered to represent a neutral fiscal policy stance. 1. Methods of funding Governments spend money on a wide variety of things, from the military and police to services like education and healthcare, as well as transfer payments such as welfare benefits. This expenditure can be funded in a number of different ways: Taxation Seignior age, the benefit from printing money Borrowing money from the population or from abroad Consumption of fiscal reserves Sale of fixed assets (e.g., land) 2. Borrowing A fiscal deficit is often funded by issuing bonds, like treasury bills or consols and gilt-edged securities. These pay interest, either for a fixed period or indefinitely. If the interest and capital requirements are too large, a nation may default on its debts, usually to foreign creditors. Public debt or borrowing refers to the government borrowing from the public. 3. Consuming prior surpluses A fiscal surplus is often saved for future use, and may be invested in either local currency or any financial instrument that may be traded later once resources are needed; notice, additional debt is not needed. For this to happen, the marginal propensity to save needs to be strictly positive. Economic effects of fiscal policy Governments use fiscal policy to influence the level of aggregate demand in the economy, in an effort to achieve economic objectives of price stability, full employment, and economic growth. Keynesian economics suggests that increasing government spending and decreasing tax rates are the best ways to stimulate aggregate demand, and decreasing spending increasing taxes after the economic boom begins. Keynesians argue this method be used in times of recession or low economic activity as an essential tool for building the framework for strong economic growth and working towards full employment. In theory, the resulting deficits would be paid for by an expanded economy during the boom that would follow; this was the reasoning behind the New Deal. Governments can use a budget surplus to do two things: to slow the pace of strong economic growth, and to stabilize prices when inflation is too high. Keynesian theory posits that removing spending from the economy will reduce levels of aggregate demand and contract the economy, thus stabilizing prices. But economists still debate the effectiveness of fiscal stimulus. The argument mostly centers on crowding out: whether government borrowing leads to higher interest rates that may offset the simulative impact of spending. When the government runs a budget deficit, funds will need to come from public borrowing (the issue of government bonds), overseas borrowing, or monetizing the debt. When governments fund a deficit with the issuing of government bonds, interest rates can increase across the market, because government borrowing creates higher demand for credit in the financial markets. This causes a lower aggregate demand for goods and services, contrary to the objective of a fiscal stimulus. Neoclassical economists generally emphasize crowding out while Keynesians argue that fiscal policy can still be effective especially in a liquidity trap where, they argue, crowding out is minimal. 9. What are the Functions of Fiscal Policy? Allocation The first major function of fiscal policy is to determine exactly how funds will be allocated. This is closely related to the issues of taxation and spending, because the allocation of funds depends upon the collection of taxes and the government using that revenue for specific purposes. The national budget determines how funds are allocated. This means that a specific amount of funds is set aside for purposes specifically laid out by the government. This has a direct economic impact on the country. Distribution Whereas allocation determines how much will be set aside and for what purpose, the distribution function of fiscal policy is to determine more specifically how those funds will be distributed throughout each segment of the economy. For instance, the government might allocate $1 billion toward social welfare programs, but $100 million could be distributed to food stamp programs, while another $250 million is distributed among low-cost housing authority agencies. Distribution provides the specific explanation of what allocation was intended for in the first place. Stabilization Stabilization is another important function of fiscal policy in that the purpose of budgeting is to provide stable economic growth. Without some restraints on spending, the economic growth of the nation could become unstable, resulting in periods of unrestrained growth and contraction. While many might frown upon governmental restraint of growth, the stock market crash of 1929 made it clear that unfettered growth could have serious consequences. The cyclical nature of the market means that unrestrained growth cannot continue for an indefinite period. When growth periods end, they are followed by contraction in the form of recessions or prolonged recessions known as depressions. Fiscal policy is designed to anticipate and mitigate the effects of such economic lulls. Development The fourth major function of fiscal policy is that of development. Development seems to indicate economic growth, and that is, in fact, its overall purpose. However, fiscal policy is far more complicated than determining how much the government will tax citizens one year and then determining how that money will be spent. True economic growth occurs when various projects are financed and carried out using borrowed funds. This stems from the the belief that the private sector cannot grow the economy by itself. Instead, some government input and influence are needed. Borrowing funds for this economic growth is one way in which the government brings about development. This economic model developed by John Maynard Keynes has been adopted in various forms since the World War II era. 10. What is the Fiscal Policy in the Philippines? Fiscal policy refers to the measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Fiscal measures are frequently used in tandem with monetary policy to achieve certain goals. In the Philippines, this is characterized by continuous and increasing levels of debt and budget deficits, though there have been improvements in the last few years. The Philippine governmentÃ¢â¬â¢s main sources of revenue are taxes, with some non-tax revenue also being collected. To finance fiscal deficit and debt, the Philippines rely on both domestic and external sources. Fiscal policy during the Marcos administration was primarily focused on indirect tax collection and on government spending on economic services and infrastructure development. The administration inherited a large fiscal deficit from the previous administration, but managed to reduce fiscal imbalance and improve tax collection through the introduction of the 1986 Tax Reform Program and the value added tax. The Ramos experienced budget surpluses due to substantial gains from the massive sale of government assets and strong foreign investment in its early years. However, the implementation of the 1997 Comprehensive Tax Reform Program and the onset of the Asian financial crisis resulted to a deteriorating fiscal position in the succeeding years and administrations. The Estrada administration faced a large fiscal deficit due to the decrease in tax effort and the repayment of the Ramos administrationÃ¢â¬â¢s debt to contractors and suppliers. During the Arroyo administration, the Expanded Value Added Tax Law was enacted, national debt-to-GDP ratio peaked, and under spending on public infrastructure and other capital expenditures was observed. History of Philippine Fiscal Policy Marcos Administration (1981-1985) The tax system under the Marcos administration was generally regressive as it was heavily dependent on indirect. Indirect taxes and international trade taxes accounted for about 35% of total tax revenue, while direct taxes only accounted for 25%. Government expenditure for economic services peaked during this period, focusing mainly on infrastructure development, with about 33% of the budget spent on capital outlays. In response to the higher global interest rates and to the depreciation of the peso, the government became increasingly reliant on domestic financing to finance fiscal deficit. The government also started liberalizing tariff policy during this period by enacting the initial Tariff Reform Program, which narrowed the tariff structure from a range of 100%-0% to 50%-10%, and the Import Liberalization Program, which aimed at reducing or eliminating tariffs and realigning indirect taxes. Aquino Administration (1986-1992) Faced with problems inherited from the previous administration, the most important of which being the large fiscal deficit heightened by the low tax effort due to a weak tax system, Aquino enacted the 1986 Tax Reform Program (TRP). The aim of the TRP was to Ã¢â¬Å"simplify the tax system, make revenues more responsive to economic activity, promote horizontal equity and promote growth by correcting existing taxes that impaired business incentivesÃ¢â¬ . One of the major reforms enacted under the program was the introduction of the Value Added Tax (VAT), which was set at 10%. The 1986 tax reform program resulted in reduced fiscal imbalance and higher tax effort in the succeeding years, peaking in 1997, before the enactment of the 1997 Comprehensive Tax Reform Program (CTRP). The share of non-tax revenues during this period soared due to the sale of sequestered assets of President Marcos and his cronies (totalling to about Ã¢â ±20 billion), the initial efforts to deregulate the oil i ndustry and thrust towards the privatization of state enterprises. Public debt servicing and interest payments as a percent of the budget peaked during this period as government focused on making up for the debt incurred by the Marcos administration. Another important reform enacted during the Aquino administration was the passage of the 1991 Local Government Code which enabled fiscal decentralization. This increased the taxing and spending powers to local governments in effect increasing local government resources. Ramos Administration (1993-1998) The Ramos administration had budget surpluses for four of its six years in power. The government benefited from the massive sale of government assets (totalling to about Ã¢â ±70 billion, the biggest among the administrations) and continued to benefit from the 1986 TRP. The administration invested heavily on the power sector as the country was beset by power outages. The government utilized its emergency powers to fast-track the construction of power projects and established contracts with independent power plants. This period also experienced a real estate boom and strong foreign direct investment to the country during the early years of the administration, in effect overvaluing the peso. However, with the onset of the Asian financial crisis, the peso depreciated by almost 40%. The Ramos administration relied heavily on external borrowing to finance its fiscal deficit but quickly switched to domestic dependence on the onset of the Asian financial crisis. The administration has been accused of resorting to Ã¢â¬Å"budget trickeryÃ¢â¬ during the crisis: balancing assets through the sales of assets, building up accounts payable and delaying payment of government premium to social security holders. In 1997, the Comprehensive Tax Reform Program (CTRP) was enacted. Republic Act (RA) 8184 and RA 8240, which were implemented under the program, were estimated to yield additional taxes of around Ã¢â ±7.4 billion; however, a decline in tax effort during the succeeding periods was observed after the CTRP was implemented. This was attributed to the unfavorable economic climate created by the Asian fiscal crisis and the poor implementation of the provisions of the reform. A sharp decrease in international trade tax contribution to GDP was also observed as a consequence of the trade liberalization and globalization efforts in the 1990s, more prominently, the establishment of the ASEAN Free Trade Agreement (AFTA) and membership to the World Trade Organization (WTO) and t he Asia-Pacific Economic Cooperation (APEC). The Ramos administration also provided additional incentives to export-oriented firms, the most prominent among these being RA 7227 which was instrumental to the success of the Subic Bay Freeport Zone. Estrada Administration (1999-2000) President Estrada, who assumed office at the height of the Asian financial crisis, faced a large fiscal deficit, which was mainly attributed to the sharp deterioration in the tax effort (as a result of the 1997 CTRP: increased tax incentives, narrowing of VAT base and lowering of tariff walls) and higher interest payments given the sharp depreciation of the peso during the crisis. The administration also had to pay P60 billion worth of accounts payables left unpaid by the Ramos administration to contractors and suppliers. Public spending focused on social services, with spending on basic education reaching its peak. To finance the fiscal deficit, Estrada created a balance between domestic and foreign borrowing. Arroyo Administration (2002-2009) The Arroyo administrationÃ¢â¬â¢s poor fiscal position was attributed to weakening tax effort (still resulting from the 1997 CTRP) and rising debt servicing costs (due to peso depreciation). Large fiscal deficits and heavy losses for monitored government corporations were observed during this period. National debt-to-GDP ratio reached an all-time high during the Arroyo administration, averaging at 69.2%. Investment in public infrastructure (at only 1.9% of GDP), expenditure for economic services, health spending and education spending all hit an historic-low during the Arroyo administration. The government responded to its poor fiscal position by under-spending in public infrastructure and social overhead capital (education and health care), thus sacrificing the economyÃ¢â¬â¢s long-term growth. In 2005, RA 9337 was enacted, the most significant amendments of which were the removal of electricity and petroleum VAT exemptions and the increase in the VAT rate from 10% to 12%.
Monday, October 14, 2019
Movie Analysis Of The Others Film Studies Essay The Others is a film written and directed by Alejandro Amenabar. This supernatural thriller was produced in 2002, and like most films of its genre, it combines suspense, shock and unexplainable events into a truly spine tingling production. There are many aspects of fear, and the techniques used to set a chilling moment vary largely. However Amenabar believes that, leaving something to the imagination is the essence of real horror. This is achieved in the film The Others by using many presentational devices. During the opening sequence a very peculiar atmosphere is produced, slightly nervy images are shown of people looking distraught; however this contrasts with the soft cheerful melody in the background. This contrast makes the music very eerie, due to the natural feeling of something isnt right, which builds suspense because you dont understand whats wrong. The first image shown in this sequence depicts the creation of the world; the image is very open due to it being the start of life and freedom, the image is also well lit. The other images are very different, there images shown are; two children huddled on a stairway, somebody locking a door, a scared girl pointing into the dark, a dark figure reaching out to a petrified boy, a broken toy angel and a secluded house. These images create unease, the poor lighting mainly focuses on the people making them looked trapped by the unknowing dark, and this is also achieved by the picture of the secluded house also seemingly trapped by the f og. The people also look like their looking at something and coupled with the moving light which seems almost to search the images, gives the impression theres more in the images then we can see. This and also the title, The Others, gives us the impression that the people in this film are trapped with other unknown supernatural beings, giving the viewer a feeling of insecurity. Right from the beginning of the film tension is built, the opening sequence finishes and the music stops. The silence lacks any atmosphere, giving us the impression nothing is going to happen, and then suddenly it jumps to a shot of grace screaming. This shock makes the audience jump, also making them suspect more shocks. However the first three scenes lack these, making the tension increase, and as the pace of the music increases, the audience are on the edge of the seats suspecting the worst. They start to imagine what they believe is going to happen, fearing it. But they are dealt with continuous anti climaxes, but the tension builds as they all know something is going to happen soon, then when the music stops and all seems calm they are dealt with a shock when they least aspect it. The first scene also gives our first look of the outside of the house. Its looks very isolated, and with the additional fog surrounding all, the large house almost seems like a prison. This feeling is completed in scene two when the servants meet the children. Grace starts to lock all the doors, Amenabar also adds to the feeling of imprisonment by reducing the light significantly by making the servants shut the curtains. This creates anxiety and due to the strong character of grace the audience may start to fear for the unmet children. We start to feel anxious to meet the children, Amenabar uses this to create unease. The music stops and unexpectedly an eerie chanting starts, at this point we dont know what to expect and the camera pans around to behind the servants so we cant see what the servant can, this creates even more tension. Furthermore, a major way Amenabar creates tension and suspense is via the use of lighting. The setting of the film is encaged in darkness; this is due to the children being photosensitive. However this darkness creates uncertainty for the characters and the audience inhibiting what they can see happening. This senses of unease increases as the characters become more suspicious of the others in their house. The use of light is especially apparent in a scene I will refer to for the purpose of this essay, the bedroom scene. In this scene both Anne and Nicholas are in bed, suddenly Anne wakes up Nicholas complaining that Victor had been messing with the curtains. However during this scene, due to the lighting, only the childrens faces are visible. This makes the audience ponder the question if there really is someone by the curtains. In this scene, Amenabar deliberately makes the scene uncertain allowing it to be interoperated in two different ways; this is particularly evident when Anne is talking to Victor. This is achieved by the use of camera angles, both the audience and Nicholas can hear a strange voice, but due to the camera showing only the back of Anne, we cant tell if she is putting it on her not. Additionally when Nicholas believes Anne is just trying to scare him, she tells Victor to touch his cheek. As this is happening, the director uses background music to build up tension. Furthermore the camera zooms into Nicholas face so the audience is unaware of what is happening in the room. Suddenly there are numerous unsettling sounds such as banging footsteps; this combined with the climaxing music increases the tension. As the tension is at a peak silence echoes, and a mysterious hand reaches out for Nicholass face. Nicholas erupts into hysteric screams, this stuns the audience. In addition, sound is also used to create suspense. This is especially effective in the scene I will refer to as the piano scene. The scene starts with grace sat on the stairs, crying in the darkness of a candle. However faint music suddenly becomes audible, so grace goes to investigate. Tension is built for the audience as they can see the apprehension and fear Grace has of what she will find as she creeps down the stairs clutching a shotgun. The music leads her to the piano room, and as she reaches for the door handle the door creaks open and the music suddenly stops. However every door in her house is usually locked, this strange change gives the audience a feeling that there is something wrong. As Grace inspects the room, the director again plays music giving the audience the impression something is there. However as the music dies, the audience are dealt with an anticlimax. Grace leaves the room, and as the camera starts to zoom in on the door it suddenly slams shut while an eer ie scream can be heard. Due to the audiences tension being released as grace realises there is nothing in the room, this creates an expected shock. Grace, who fell to the floor, stands up and tries to open the door in fright, however it is now locked. When the summoned house keeper unlocks the door, the room is scanned by the camera, but there is nothing to be seen but a previously closed piano gleaming in the moon light. Grace is physically shocked; this can be seen as she brings her hands to her chest. Another notable effect regarding lighting in this scene is that, at the beginning Graces face is extremely orange. This saturated look looks remarkably like old photos, which is relevant as the audience will later find out that she is in fact deceased. Lastly, these effects are also apparent in the Grave Scene. In this scene, camera techniques are used very efficiently. The main method used is a technique called crosscutting; this is where the camera shot switches between scenes, it is used to show things happening at the same time. This technique creates suspense because it allows the audience to gather information the characters dont know. This technique can also increase the urgency of a scene. This is applied to this scene as, Nicholas and Anne go looking for their father. Lost within the fog, often used in horror films to present something being hidden, they find some gravestones. As she reads their inscriptions, her facial expressions clearly show the feeling of shocked and fear. However the scene suddenly cuts to Grace, who also goes through the same emotions as she discovers a picture of her servants, sat dead. The scene then cuts back to the children, as Anne stands speechless the servants miraculously appear. As Anne shou ts at Nicholas to run the camera pans onto him. Here the director uses another technique; he switches the focus between the foreground and the background. At first Nicholas can be seen clearly with the servants not in focus in the distance, however these switch so the servants can be seen clearly and Nicholas instead is not in focus. This creates a great amount of suspense, this because this effect gives the impression that the servants are getting considerably closer, where as Nicholas is yet to move. As Anne and Nicholas finally run away, the scene once again cuts to Grace who is distraughtly looking for her children, here the two split scenes merge as the kids run into her. The climaxing music also adds to the tension in the scene. In conclusion Alejandro Amenabar uses various presentational devices to create suspense during the film. These include the use of lighting, camera angles and sound. However unlike most modern films of this genre special effects arent really used, but this does not affect the overall apprehension created during the film. Tension is created in every scene using a wide variety of techniques, therefore I believe that Alejandro Amenabar creates suspense effectively, making The Others a great film to watch.