Reaction paper on David Cole Interviews Essay Example | Topics and Well Written Essays - 250 words

Reaction paper on David Cole Interviews - Essay Example I tried to remain objective while listening to the interview because ideas in my head were contradicting the facts presented by Mr. Cole. Over-all, the investigation presents a very strong argument and Cole has definitely created a big question in the minds of people like me. I asked the question to myself† What would I be telling my children about the Holocaust one day?† If pesticides were cyanide, then it could be unethical for argument sake but not entirely homicidal on the part of the Germans. I am completely perplexed about what happened during the Holocaust. Nevertheless, I would still recommend to fellow students to listen to this controversial interview. In a way, a person would learn how to think critically about the issue and make sensible judgment about the issue. One thing to remember though, make sure emotions are kept at bay. In short, I liked the interview because this is the most sensible thing I have ever watched.

Identify a research topic in your area of expertise( eg, warming of Essay

Identify a research topic in your area of expertise( eg, warming of neonates) and identify a middle range theory that would be applicable to support the research topic in your specialty area - Essay Example However, comfort is idiosyncratic and best identified by the patient (Peterson & Bredow, 2009). Kolcaba’s comfort theory would assist in this research by identifying the comfort desires, measures, health seeking patient conduct, comfort, intervening variables and institutional integrity (Peterson & Bredow, 2009). This theory acknowledges that the comfort needs of patients emanate from stressful health care conditions. Therefore, this theory would also guide in designing measures to satisfy the comfort needs (Peterson & Bredow, 2009). This would be achieved through patient factors that influence the discernment of comfort identified by the theory such as the age, attitude, past experience, support system, emotional state and finances. Additionally, the theory of comfort acknowledges that the comfort is an experience offered in the environmental, psychospiritual, sociocultural and physical contexts (Peterson & Bredow, 2009). The research would identify these contexts of life through applying this theory’s taxonomic structure. Additionally, this theory would assist in the research by defining the three types of comfort that can be offered to patients. The theory of comfort identifies such as relief, ease and

Track employee locations Essay Example for Free

Track employee locations Essay After the deployment of AD it will benefit the users in maintaining a better security with a single sign on user ID and password. It will also help the administrator in maintaining the system policies. EIS will be on top of the system and it will help in smooth functioning, better backup policies, disaster recovery, security etc. By the end of the development, an end user has created a custom information system geared to its own business and that of its customers. The reporting systems generated an EIS software is not only pleasing to look at but easy to use. It allows top-level executives who dont have time to hold weekly meetings or spend time developing complicated reports to get a window on the information they need to run their businesses effectively. The flexibility of EIS programs allows databases across the entire enterprise to be accessed from departments ranging from distribution to human resources. One of the latest developments in EIS software has been its ability to connect to the Internet. This allows executives of international companies to remotely access all databases across the entire organization by simply using a Web browser. Nearly all the industries middle and upper managers now have access to Executive Information Systems (EIS) that were once reserved for high corporate officials. The systems, which afford executives immediate access to needed information, have become ubiquitous throughout such areas as human resources, claims, and sales and marketing. While the majority of insurers use EIS for data-related activities, use EIS to track employee locations as well as other functions. Although Executive Information Systems were originally conceived as a means to give top corporate brass fingetrip access to up-to-date company information, the systems are being increasingly utilized by upper and middle managers as well. These sorts of capabilities historically have just been in the executive suites. Now companies are trying to get this information out to the front lines. The underwriters and sales force managers have it. Its much more front-line focused, he noted. Most companies use EIS to gather data in any number of areas including marketing, sales, claims or human resources. That information is then compiled into a single database from which relevant information can be retrieved. EIS is an especially useful tool for companies who want to focus on improving service levels and marketing while reducing costs. This is driving the need for EIS or decision support type systems. People are looking increasingly at process reengineering. They cant really improve things they cant measure. EIS systems allow them to measure. They can look at what their goals are what their key performance indicators are, and can manage them over time. Many company, use EIS to track employee locations, and also use the system to track specific information concerning sales and claims management. (Dyment, J. J. 1999, pages 20-26. ) Nearly all the industries middle and upper managers now have access to Executive Information Systems (EIS) that were once reserved for high corporate officials. The systems, which afford executives immediate access to needed information, have become ubiquitous throughout such areas as human resources, claims, and sales and marketing. While the majority of insurers use EIS for data-related activities, use EIS to track employee locations as well as other functions. (Eden, C. and Ackermann, F. (1992), pp53-77) The evolution in computerized information systems can be viewed from the viewpoint of the end user and the direction in which information is flowing. If we ask the question For whom is this new information system primarily being developed? we find that early systems were designed primarily for operating personnel generally to communicate among themselves. Only recently have the needs of the executive been addressed. Even in recently developed EIS the information flow is primarily tactical information taken from the operating levels and sent up the ladder to the executive. In the future we see more emphasis on strategic information and more information flow between executives and from the executive down to the operating level. (H. Watson, R. Rainer, and G. Houdeshel, 2002, page 34. ) The majority of information systems developed in the past have been primarily to support operational functions in the organization. Examples are accounting systems to help keep the books of the corporation, and personnel/ payroll systems to automate payroll processing and assist human resource personnel in maintenance of employee records. Of course senior managers sometimes receive reports from these systems but the reports are usually hard copy printouts of extensive amounts of data or summarized reports prepared by lower-level managers or staff. (Damodaran, A. 2001, page 5. ) Early EISs were primarily on-line management reporting systems which provided the same reports, but via a terminal or workstation, perhaps with some color graphics. The first generation of EISs really consisted of colorful computerized briefing books or report books with little value added when compared with their hard copy counterparts. Many of these rudimentary systems (some estimates range as high as 70 percent) were abandoned after several months of usage because of the high cost of the computerized system when compared with the same paper-based system. Other reasons cited for abandoning these systems are High maintenance cost, sometimes requiring one support person for every three executive users †¢ User interfaces not customized to the individual executives and therefore not appealing †¢ Canned systems which were not developed for the individual and therefore do not provide information really needed by the executive (Duncan, K.and K. Moores. 1999) The new generation of EISs currently entering the market still addresses information flow from the operating to the executive level; however, these systems are adding more value to the data, and they are beginning to address strategic, mission-critical information. Rather than simply providing senior executives an electronic report book with unassisted drill-down to layers of underlying canned data, these new systems provide automated analysis tools which help executives convert raw information into knowledge that can be acted upon (Watson, H.J. , R. K. Rainer, C. Koh 1998). Examples of these new analysis tools include monitors which automatically highlight data values that are outside of preset trigger points, and use of artificial intelligence (AI) technology to explain underlying information relationships. For example, the executive may turn on the system in the morning and begin to review information automatically downloaded to the system overnight. The EIS alerts him or her that the end-of-quarter financial results for Far East operations have just been transferred from overseas to the database. The executive chooses to review that information first, and a highlighted monitor brings to his/her attention total Far East operating expenses, which are much higher than planned. Rather than drilling down and aimlessly wandering around in massive amounts of underlying data, the new generation system allows the executive to ask, why are total Far East operating expenses so high?

Study on Monetary Policy and the Stock Market

Study on Monetary Policy and the Stock Market Monetary policy is the regulation of the interest rate and money supply of a country by its Central Bank or Federal Reserve in other to achieve the major economic goals which include price stability, full employment, economic growth etc.  Ã‚   The stock market on the other hand is often considered a primary indicator of a countrys economic strength and development as it is a major source of savings and income for most individuals. History has shown that the economy of any country reacts strongly to movements in stock prices and is replete with examples in which large swings in stock, housing and exchange rate markets coincided with prolonged booms and busts (Cecchetti, Genberg, Lipsky and Wadhwani, 2000). Recent happenings even confirm this as the latest economic recession was preceded by a crash in the stock market. As a result of the relationship between the stock market and the economy, it is very important to the Central bank that the stock market performs well as bad performance can seriously disrupt the economy. This is because the stock market serves as a primary source of income and retirement savings to many and movements in stock prices can have a major effect on the economy as it influences real activities such as consumption, investments, savings etc While some economists say that monetary policy decisions depend on stock price movements, some others believe that stock price movements depend on monetary policy decisions. In this paper, we analyze both sides of the coin by looking at how stock markets react to monetary policy and how monetary policy reacts to movements in stock markets. This research work is aimed at finding out which granger causes which using the Granger Causality test. We will also analyze the relationship between both interest rates and monetary policy and that between money supply and monetary policy. In section II, a thorough review of the relevant literature of the topic is carried out as we try to understand more about the relationship between monetary policy and the stock market and the effects of both components (money supply and interest rates) of monetary policy 0n the stock market. In the next section, we describe the variables and data set used in the study and the empirical model is developed. Results are presented and discussed in the next section. We conclude the paper in section V and suggestions for further studies are pointed out and policy implications are considered. REVIEW OF RELEVANT LITERATURE Monetary policy is one of the most effective tools a Central Bank has at its disposal (Maskay, 2007) and is used to achieve the macroeconomic goals set by the government. This is done by regulating the two components of monetary policy which are interest rates and money supply to maintain balance in the economy. The stock market is an important indicator of the wellbeing of the economy as stock prices reflect whether the economy is doing well or not. Movements in stock prices have a significant impact on the macroeconomy and are therefore likely to be an important factor in the determination of monetary policy (Rigobon and Sack, 2001). The stock market is a financial market where equities are bought and sold either as an IPO (Initial Public Offer) in the primary market or exchange of existing shares between interested parties in the secondary market. Although stocks are claims on real assets and researchers have found considerable evidence that monetary policy can affect real stock p rices in the short run (e.g Bernanke and Kuttner, 2005), monetary neutrality implies that monetary policy should not affect real stock prices in the long run (Bordo, Dueker and Wheelock, 2007). To understand the relationship between monetary policy and the stock market, we must first understand what monetary policy is. Lamont, Polk and Saa-Requejo (2001), Perez-Quiros and Timmerman (2000) among others use change in market interest rates or official rates as their measures of monetary policy. This measure of monetary policy, however, coincides with changes in business cycle conditions and other relevant economic variables. Christiano, Eichenbaum and Evans (1994) extracted monetary policy as the orthogonalized innovations from VAR models proposed by Campbell (1991) and Campbell and Ammer (1993). Research methodology based on this has shown that the response of US stocks returns to monetary policy shocks based on federal fun rates show that returns of large firms react less strongly than those of small firms (Thorbecke, 1997), that the overall policy for stock returns is quite low ( Patelis, 1997) and that international stock markets react to both to changes in their local mon etary policies and that of the United states ( Conover, Jensen and Johnson ( 1999). Monetary policy shocks that are extracted from structural VAR models or from changes in interest rates using monthly or quarterly data are likely to subject to the endogeneity problem i.e they are unlikely to be purely exogenous ( Ehrmann and Fratzscher, 2004). Another VAR-based method was used by Goto ad Valkanov (2000) to focus on the covariance between inflation and stock returns while Boyd, Jagan and Hu (2001) considered the linkages between policy and stock prices. Their analysis did not focus directly on monetary policy; rather it focused on markets response to employment news (Bernanke and Kuttner, 2005). In their own research paper, Ehrmann and Fratzscher (2004) find that SP 500 shows a strong effect of monetary policy on equity returns, that the effect of monetary policy is stronger in an environment of increased market uncertainty, that that negative surprises ( i.e monetary policy has tightened less and loosened more than expected) has larger effects on the stock market than positive surprises, that small firms are react more to policy shocks than large firms, that firms with low cash flows are affected more by US monetary shocks and that firms with poor ratings are more prone to monetary policy shocks than those with good ratings. They find that firms react more strongly when no change had been expected, when there is a directional change in the monetary policy stance and during periods of high market uncertainty. There has also been cross-sectional dimensions of the effect of monetary policy on the stock markets in literature though few. Hayo and Uhlenbruck (2000), Dedola and Lippi (2000), Peersman and Smets ( 2002), Ganley and Salmon (1997) etc are some economists who have analyzed this and overall, their findings show that the stock prices of firms in cyclical industries, capital-intensive industries and industries that are relatively open to trade are affected more strongly by monetary policy shocks (Ehrmann and Fratzscher, 2004). According to Bernanke and Kuttner (2005), changes in monetary policy are transmitted through the stock market via changes in the values of private portfolios (â‚ ¬Ã…“wealth effectâ‚ ¬?), changes in the cost of capital and by other mechanisms. In their paper, they analyzed the stock markets response to policy actions both in the aggregate and at the level of industrys portfolios and they also tried to understand the reasons for the stock markets response. Their findings show that monetary policy is, for the most part, not directly attributable to policys effects on the real interest rate instead it seems to come either through its effects on expected future excess returns or expected future dividends. While economists commonly associate restrictive/expansive monetary policy with higher/lower levels of economic activity, financial economists discuss various reasons why changes in the discount rate affect stock returns. (Durham, 2000) Changes in the discount rate affect the expectations of corporate profitability ( Waud, 1970) and discrete policy rate changes influence forecasts of market determined interest rates and the equity cost of capital ( Durham, 2000). Modigliani (1971), suggests that a decrease in interest rates boosts stock prices and therefore financial wealth and lifetime resources, which in turn raises consumption through the welfare effect. Mishkin (1977) on the other hand suggests that lower interest rates increase stock prices and therefore decrease the likelihood of financial distress, leading to increased consumer durable expenditure as consumer liquidity concerns abate (Durham, 2000). Tobins q is the equity market value of a firm divided by its book value. It can also be defined as the ratio of the market value of a firms existing shares to the replacement cost of the firms physical assets. Higher stock prices reduce the yield on stocks and reduce the cost of financing investment spending through equity issuance (Bosworth, 1975). Tobins q explains on e of the mechanisms through which movements in stock prices can affect the economy: the wealth channel. The other channels of monetary policy transmission include; the interest rate channel and the exchange rate channel. The wealth channel has the investment effect, wealth effects and balance sheet effects (www.oenb.at/en). Bernanke and Blinder (1992) and Kashyap, Stein and Wilcox (1993) show that a tightening of monetary policy has a very strong impact on firms that highly depend on banks loans to financing their investments as banks reduce their overall supply of credit. Deteriorating market conditions affect firms by also weakening their balance sheets as the present value of collateral falls with rising interest rates and that this effect can be stronger for some firms than for others (Bernanke and Gertler 1989, Kiyotaki and Moore 1997). These two arguments are based on information asymmetries as firms for which more information is publicly available may find it easier to collect loans when credit conditions become tighter (Gertler and Hubbard 1988, Gertler and Gilchrist 1994).Stock returns of small firms generally respond more to monetary policy than those of large firms ( Thorbecke 1997, Perez-Quiros and Timmermmann 2000). Some economists (Sprinkle (1964), Homa and Jaffee (1971), Hamburger and Kochin (1972)) in the early 1970,s alleged that past data on money supply could be used to predict future stock returns. These finding where not in line with the efficient market hypothesis which states that all available information should be reflected in current prices (Fama, 1970) meaning that anticipated information should not have any effect on current stock prices. Most economists believe that stock prices react differently to the anticipated and unanticipated effects of monetary policy ( Maskay, 2007). The Keynesian economists argue that there is a negative relationship between stock prices and money supply whereas real activity theorists argue that the relationship between the two variables is positive (Sellin, 2001). The Keynesian economists believe that a change in money supply or interest rates will affect stock prices only if the change in the money supply alters expectations about future monetary policy while the real activity economists argue that increase in money supply means that money demand is increasing in anticipation of increase in economic activity (Maskay, 2007). Another factor discussed by Sellin (2001) is the risk premium hypothesis proposed by Cornell i.e higher money supply indicates higher money demand and higher money demand suggests increased risk which leads investors to demand higher risk premiums for holding stocks making them less attractive. The real activity and risk premium hypothesis is combined by Bernanke and Kuttner (2005) who argue that the price of a stock is a function of the present value of future returns and the perceived risk in holding the stock. While advocates of the efficient market hypothesis hold that all available information is included in the price of a stock, the opponents argue otherwise and that stock prices can also be affected by unanticipated changes in money (Corrado and Jordan, 2005). The effect of anticipated and unanticipated changes in money supply on stock prices was analyzed by Sorensen (1982) who found out that unanticipated changes in money supply have a larger impact on the stock market than anticipated changes. Bernanke and Kuttner (2005) on the other hand analyze the impact of announced and unannounced changes in the federal funds rate and find that the stock market reacts more to unannounced changes than to announced changes in the federal funds rate which is also in line with the efficient market hypothesis. Studies by Husain and Mahmood (1999) have opposing results. They analyze the relationship between the money supply and changes (long run and short run) in stock market prices and find that chan ges in money supply causes changes in stock prices both in the short run and long run implying that the efficient market hypothesis does not always hold. Maskay(2007) analyzes the relationship between money supply and stock prices. He also seperates money supply into anticipated and unanticipated components and adds consumer confidence, real GDP and unemployment rate as control variables. The result from his analysis shows that there is a positive relationship between changes in the money supply and the stock prices thereby supporting the real activity the theorists. The result from his analysis on the effect of anticipated and unanticipated change in the money supply on stock market prices shows that anticipated changes in money supply matters more than unanticipated changes. This supports the critics of the efficient market hypothesis. According to Cecchetti, et al. (2000), macroeconomic performance can be improved if the central bank increases the short-term nominal interest rate in response to temporary â‚ ¬Ã…“bubble shocksâ‚ ¬? that raise the stock price index above the value implied by economic fundamentals. On the other hand, Bernanke and Gertler (2001) assumed in their research that the Central Bank cannot tell whether an increase in stock prices is driven by a bubble shock or a fundamental shock. This study will analyze both exogenous and endogenous components of the relationship between monetary policy and the stock market i.e the effect of monetary policy on the stock market and the the effect if any of the stock market on monetary policy decisions. This particular analysis will be done using the federal funds rate as a representative of monetary policy. We also follow the methodology used by Maskay (2007) closely as we try to find the effect of money supply on the stock market. Although Maskay used M2 as a measure of money supply, this study will separate money supply into M1 and M2 and analyze their relationship with the stock prices. Following from the theory and review of literature, this paper is aimed at answering the following questions: How do movements in the stock market affect monetary policy decisions on federal funds rates? How does monetary policy affect stock market prices? Do stock market prices react differently to the M1 and M2 components of money supply? RESEARCH METHODOLOGY The effect of stock market prices on monetary policy. In this section, I test for the relationship between monetary policy and stock prices using the Taylor rule. The Taylor rule is a monetary policy rule that stipulates how much the central bank would or should change the nominal interest rate in response to the divergence of actual inflation rates from target inflation rates and of actual GDP from potential GDP. The rule is written as; it = r*t + ÃŽÂ ² (à Ã¢â€š ¬ tâ‚ ¬Ã¢â‚¬Å" à Ã¢â€š ¬*t) +ÃŽÂ ³ (yt Ã…Â ·t)â‚ ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦.. (1) Where; it = target short-term nominal interest rate. r*t = assumed equilibrium real interest rate. à Ã¢â€š ¬t = the observed rate of inflation. à Ã¢â€š ¬*t = the desired rate of inflation. yt = the logarithm of real GDP. Ã…Â ·t = the potential output. But, to analyze the behavior of monetary policy, the following regression equation is estimated; it = ÃŽÂ ± + ÃŽÂ ²Et(à Ã¢â€š ¬ t+iâ‚ ¬Ã¢â‚¬Å" à Ã¢â€š ¬*t+i) +ÃŽÂ ³Et (yt+i+ Ã…Â ·t+i)+ÃŽÂ µt â‚ ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦..(2) Where: Et = the expected value conditional to information available at the time. A good conduct of monetary policy should have ÃŽÂ ² and ÃŽÂ ± each equal to 0.5 as suggested by John Taylor. To conduct our study, we use the following equation; it = ÃŽÂ ± + ÃŽÂ ²Et(à Ã¢â€š ¬ t+iâ‚ ¬Ã¢â‚¬Å" à Ã¢â€š ¬*t+i) +ÃŽÂ ³Et (yt+i+ Ã…Â ·t+i)+ˆ‘Π´k à Ã¢â‚¬ ¦t-k + ÃŽÂ µt ..(3) Because the monetary authorities target variables other than inflation and output deviations from the target (asset prices in this case) thereby making equation (2) mis-specified. A standard Taylor rule is well specified when the monetary authorities target only inflation and output deviations from the target. The addition to this variable is the lagged change in asset prices which is added in order to determine the relationship between monetary policy and stock prices. The data for the CPI (Consumer Price Index), real GDP (Gross Domestic Product) and the federal funds rate are obtained from the IMF Washington website while the data for SP 500 Index are obtained from the Federal Reserve Economic Data (FRED) of the Federal Reserve Bank of St Louis website; www.federalreserve.gov. The effect of monetary policy on stock market prices. In this section, we test whether movements in stock prices are sometimes dependent on monetary policy. This test is carried out by regressing the actual change in federal funds rates upon the SP 500 index. We us the following simple model for this purpose: SP500 = ÃŽÂ ²1 + ÃŽÂ ²2*actual change in federal funs rate + ÃŽÂ ²3*real GDP + ÃŽÂ ²4* unemployment rate. Real GDP and Unemployment rate are added as control variables. The data for real GDP is obtained from IMF, Washington while the data for unemployment rates in obtained from www.federalreserves.gov. We add GDP because it is an important determinant of the stock prices as most industries react to changes in the economy and do well as the economy does well and vice versa i.e they are procyclical in nature. When the GDP is low, the stock prices generally tend to be low, as the companys performance would be worse than before. A direct, positive relationship is expected between stock prices and the GDP. Unemployment rate is also used as a control variable in this model because it is one of the major factors that determines the demand for stocks thereby either driving the stock prices up or down. When the unemployment rate is high, demand for stock reduces as less people can afford to buy them and this subsequently drives down stock prices and vice versa. The unemployment rate is also a proxy for for overall aggregate demand in the economy ( Maskay, 2007) and when it is low, aggregate demand is high. We expect an inverse relationship between the unemployment rates and stock prices. The effect of M1 and M2 components of money supply on stock prices. In this section, we test the relationship between monetary policy and stock prices from the money supply angle of monetary policy. We use the M1 and M2 components of money supply for this analysis. This is done by first testing the relationship between the percentage change in M1 and the stock prices and then testing the relationship between M2 and the stock market. The simple empirical model used for this test is; SP500 = ÃŽÂ ²1 + ÃŽÂ ²2*%ˆâ€  M1 + ÃŽÂ ²3*Real GDP + ÃŽÂ ²4*Unemployment rateâ‚ ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦.. (1) SP500 = ÃŽÂ ² 1+ ÃŽÂ ²2*%ˆâ€  M2 + ÃŽÂ ²*3Real GDP + ÃŽÂ ²4*Unemployment rateâ‚ ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦Ã¢â€š ¬Ã‚ ¦.. (2) Unemployment rate and real GDP are also used here as control variables for the same reasons given above. The data on percentage change in M1 and M2 were obtained from Federal Reserve Economic Data from the website of the Federal Reserve Bank of St. Louis. We were able to get the monthly data of M1 and M2 and then got the quarterly averages to produce the quarterly data. DATA DESCRIPTION In this section, we define and describe the various data used in this study. We used quarterly data from 1990 to 2009. The variables used in this analysis include; The Federal Funds Rate; The federal funds rate is a monetary policy tool used by the Central Bank/Federal reserve of the country to regulate the economy. Economists believe it has an inverse relationship with stock prices as because when there is an upward movement in stock prices above the desirable level, the federal reserve increases (contractionary) the federal funds rate . This leads to a decrease in the amount of money demanded by individuals thereby causing a lower demand for stocks and pushing down stock prices. We obtained data on the federal funds rate from the website of the federal reserve bank of Louisiana. 2. The Consumer Price Index; A consumer price index (CPI) is an index that estimates the average price of consumer goods and services purchased by households. It is used in our study to calculate inflation. We do this using the eviews software (100 ÃÆ'— (cpi â‚ ¬Ã¢â‚¬Å" cpi ( -4)). We obtained the quarterly data on CPI from the website of the International Monetary fund in washington. The CPI has an inverse relationship with monetary policy actions. 3. Real Gross Domestic Product (Real GDP); This can be defined as a measure which adjusts for inflation and reflects the value of all goods and services produced in a given year, expressed in base year prices. Real GDP provides a more accurate figure as it accounts for changes in the price level. The quarterly data on Real GDP is obtained from the website of the International Monetary Fund, Washington. 4. SP 500; It is a capital weighted index of the prices of 500 large-cap common stocks actively traded in the United States. It is believed to have an inverse relationship with monetary policy as an expansionary (interest rate reduction) monetary policy leads to an upward movement of the sp500 index. The quarterly data for the sp500 is obtained from the federal reserve bank of Louisiana. 5. Unemployment Rate; The unemployment rate is used as one of the control variables. It is an important indicator of the wellbeing of an economy. The lower the unemployment rate, the higher the aggregate demand for stock thereby pushing up stock prices. The quarterly data on unemployment rate is obtained from the website of the Federal Reserve Bank of Louisiana. We get the quarterly data by finding quarterly averages from the monthly data provided. 6. Monetary aggregates â‚ ¬Ã¢â‚¬Å" M1 and M2; M1 is a monetary aggregate and it includes the transaction deposits of banks and cash in circulation and all other money equivalents that are easily convertible into cash while includes M1 plus short-term deposits in banks and 24-hour money market funds. Money supply has a positive relationship with stock prices because the higher the money supply, the higher the demand for stock which eventually increases stock prices. We split money supply into M1 and M2 to find out if they have the same relationship with stock prices. The quarterly data on percentage change in monetary aggregates is obtained from the website of the federal reserve bank of Louisiana. We also had to calculate the quarterly averages of the monthly data given. DATA ANALYSIS Model 1: The Taylor rule it = r*t + ÃŽÂ ² (à Ã¢â€š ¬ tâ‚ ¬Ã¢â‚¬Å" à Ã¢â€š ¬*t) +ÃŽÂ ³ (yt â‚ ¬Ã¢â‚¬Å" Ã…Â ·t)+ ÃŽÂ µt Dependent Variable: FED_FUNDS_RATE Method: Least Squares Date: 07/05/10 Time: 20:19 Sample(adjusted): 1991:1 2009:4 Included observations: 76 after adjusting endpoints Variable Coefficient Std. Error t-Statistic Prob. C 3.615513 1.220783 2.961634 0.0041 INFLATION 0.684264 0.156212 4.380348 0.0000 OUTPUT_GAP -1.42E-06 9.83E-07 -1.442803 0.1534 R-squared 0.249642 Mean dependent var 3.860658 Adjusted R-squared 0.229085 S.D. dependent var 1.686064 S.E. of regression 1.480394 Akaike info criterion 3.661167 Sum squared resid 159.9844 Schwarz criterion 3.753170 Log likelihood -136.1244 F-statistic 12.14348 Durbin-Watson stat 0.181830 Prob(F-statistic) 0.000028 The estimation results are; it =3.62 + 0.68(à Ã¢â€š ¬ tâ‚ ¬Ã¢â‚¬Å" à Ã¢â€š ¬*t) â‚ ¬Ã¢â‚¬Å" 1.42 (yt â‚ ¬Ã¢â‚¬Å" Ã…Â ·t) The coefficient associated to inflation is positive, 0.68, but is statistically significant with a p-value of 0.00. The coefficient associated with the output gap is negative (-1.42) and statistically significant. The estimated stabilizing rate of interest (c) is positive (3.61) and statistically significant. An R-squared of 0.25 means that we are only able to explain about 25% of the variability in the interest rate. The augmented taylor rule model: it = ÃŽÂ ± + ÃŽÂ ²Et(à Ã¢â€š ¬ t+iâ‚ ¬Ã¢â‚¬Å" à Ã¢â€š ¬*t+i) +ÃŽÂ ³Et (yt+i+ Ã…Â ·t+i)+ˆ‘Π´1 à Ã¢â‚¬ ¦t-1 + ÃŽÂ µt one lag Dependent Variable: FED_FUNDS_RATE Method: Least Squares Date: 07/05/10 Time: 21:30 Sample(adjusted): 1991:3 2009:4 Included observations: 74 after adjusting endpoints Variable Coefficient Std. Error t-Statistic Prob. C 8.298961 1.280893 6.479044 0.0000 INFLATION_F 0.548999 0.181198 3.029825 0.0034 OUTPUT_GAP_F -9.10E-06 1.51E-06 -6.041926 0.0000 S(-1) 4.24E-05 7.35E-06 5.775767 0.0000 R-squared 0.442430 Mean dependent var 3.809595 Adjusted R-squared 0.418534 S.D. dependent var 1.678852 S.E. of regression 1.280190 Akaike info criterion 3.384432 Sum squared resid 114.7220 Schwarz criterion 3.508976 Log likelihood -121.2240 F-statistic 18.51494 Durbin-Watson stat 0.214690 Prob(F-statistic) 0.000000 Interpretation: The estimated regression is; it = 8.30 + 0.55Et(à Ã¢â€š ¬ t+iâ‚ ¬Ã¢â‚¬Å" à Ã¢â€š ¬*t+i) -9.10Et (yt+i+ Ã…Â ·t+i)+4.24ˆ‘à Ã¢â‚¬ ¦t-k The coefficient associated to expected inflation is positive (0.55) but is statistically significant because it has a p-value of 0f 0.003, the coefficient associated with expected output gap is negative (-9.10) and is statistically significant (p-value = 0.000). The coefficient associated with the change in asset prices (lagged by 1 for better estimation) which is denoted by S (-1) is negative and it is statistically significant therefore we reject the null hypothesis. The measure of goodness of fit (R-square) is 0.44 meaning that we are able to explain about 44% of the variability in the interest rate Our model consistently overestimates the actual interest rate and the residuals do not seem to be independently and identically distributed. We therefore conduct some tests which include: 1. The Jacque-Bera test: This is a statistic that measures the difference of the skewness and kurtosis of the series with those from a normal distribution. By simply looking at the histogram, we can see that the distribution is roughly normal and the jarque-bera statistic of 0.58 shows that it is not statistically significant and we should accept the null hypothesis. The white test: This is used to test whether the errors are heteroskedastic or not. In the presence of heteroskedasticity, OLS estimates are consistent but efficient. White Heteroskedasticity Test: F-statistic 3.846209 Probability 0.000621 Obs*R-squared 25.97528 Probability 0.002062 Test Equation: Dependent Variable: RESID^2 Method: Least Squares Date: 07/06/10 Time: 00:41 Sample: 1991:3 2009:4 Included observations: 74 Variable Coefficient Std. Error t-Statistic Prob. C -35.28961 24.46199 -1.442630 0.1540 INFLATION_F -5.419657 3.008210 -1.801622 0.0763 INFLATION_F^2 0.307231 0.200286 1.533961 0.1300 INFLATION_F*OUTPUT_GAP_F 5.95E-06 2.83E-06 2.105586 0.0392 INFLATION_F*S(-1) -2.78E-05 1.73E-05 -1.603361 0.1138 OUTPUT_GAP_F 9.90E-05 5.34E-05 1.852558 0.0686 OUTPUT_GAP_F^2 -6.19E-11 2.74E-11 -2.257288 0.0274 OUTPUT_GAP_F*S(-1) 3.35E-10 1.43E-10 2.337290 0.0226 S(-1) -0.000309 0.000140 -2.205282 0.0310 S(-1)^2 -7.97E-11 5.33E-10 -0.149679 0.8815 R-squared 0.351017 Mean dependent var 1.550298 Adjusted R-squared 0.259754 S.D. dependent var 1.968439 S.E. of regression 1.693596 Akaike info criterion 4.016674 Sum squared resid 183.5692 Schwarz criterion 4.328034 Log likelihood -138.6169 F-statistic 3.846209 Durbin-Watson stat 0.580160 Prob(F-statistic) 0.000621 According to the two test statistics involved in the regression result, we can say that the distribution is statistically significant so we can reject null hypothesis. The Durbin-Watson test: This is used to test for serial correlation. Autocorrelated residuals means that OLS is no longer best, linear, unbiased estimators and that the standard errors computed using the OLS formula are not correct. The Durbin-Watson statistic of 0.214690 shows that there is positive serial correlation as DW Model 2: SP500 = ÃŽÂ ²1 + ÃŽÂ ²2 federal funds rate + ÃŽÂ ²3real GDP + ÃŽÂ ²4unemployment rate. The aim of this model is to determine if the federal funds rate has any impact on the stock market. Real GDP and unemployment rate are used as control variables for reasons given in the research methodology. Dependent Variable: SP500 Method: Least Squares Date: 07/06/10 Time: 01:38 Sample: 1990:1 2009:4 Included observations: 80 Variable Coefficient Std. Error t-Statistic Prob. C -115.7008 222.2313 -0.520632 0.6041 FED_FUNDS_RATE 0.990301 12.96436 0.076386 0.9393 REAL_GDP01 0.159538 0.010327 15.44916 0.0000 UNEMPLOYMENT_RATE -119.5674 17.42177 -6.863101 0.0000 R-squared 0.872734 Mean dependent var 924.0339 Adjusted R-squared 0.867710 S.D. dependent var 378.2205 S.E. of regression 137.5651 Akaike info criterion 12.73478 Sum squared resid 1438237. Schwarz criterion 12.85388 Log likelihood -505.3912 F-statistic 173.7244 Durbin-Watson stat 0.350064 Prob(F-statistic) 0.000000 Interpretation: The estimated regression is: sp500 =-115.78 + 0.99*actual change in federal funds rate + 0.16*real GDP â‚ ¬Ã¢â‚¬Å" 119.57* unemployment rate. The coefficient associated with the federal funds rate is negative and is not statistically significant. The coefficient associated with the real GDP is positive and is statistically significant while the coefficient associate

Comparing Kafkas Metamorphosis and The Stranger (The Outsider) :: comparison compare contrast essays

The Metamorphosis and The Stranger (The Outsider)  Ã‚   Existentialism is defined as a philosophical movement that human beings are completely free and responsible for their own actions.   Existentialists will try not to cause waves and remain completely uninvolved with anyone because they do not want to hurt anybody.  Ã‚   There is absolutely no such thing as an existentialist because he would have to be so uninvolved to the point where he would not be able to live at all.   Although the two stories: The Metamorphosis by Franz Kafka and The Stranger by Albert Camus are very different in approach, their endings are similar in that they both support the basics of existentialism.     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The biggest difference between the two characters: Gregor and Mersault is their physical form.   One has changed physically into a giant insect while the other remains a normal human being.   Another difference is the situation between the characters and their mothers.   Gregor wants to have a relationship with his mother but cannot because of his physical form.   Mersault’s mother is alive and well for part of the novel, but he does not want to take care of her or have anything to do with her.   The two characters are similar in the way that they do not believe in God and will both die lonely and abandoned.  Ã‚     Kafka creates a very lonely and abandoned world for Gregor Samsa in his short novel Metamorphosis.   Gregor is an existentialist character who mutates into a giant bug without reason and no longer has any control over his life.   He becomes completely uninvolved in the way that he does not talk or have any interaction with anyone inside or outside of the family.   He is dehumanized.   Gregor’s mother is disgusted by the looks of him and refuses to see or talk to him.   Gregor is now lonely and abandoned by his family, does not eat and eventually dies.  Ã‚     Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In the short novel The Stranger, Mersault is also an existentialistic character.   He does not wish to become involved with anyone, including God and his own mother and does not have any emotion what so-ever when she dies.   Although Mersault does not want to become involved with anyone, he also does not want to create waves, thus he cannot help but to say yes to a friend when he asks him for help.

Healing Health Care :: essays research papers

Healing Health Care Levi Pulkkinen Op-Ed Paper March 10, 1997   Ã‚  Ã‚  Ã‚  Ã‚  As Grant nears the end of his forty-fifth year old age begins to shed its ominous light over every aspect of his life. He has already watch four of his teeth rot out because, although he works nearly sixty hours a week, he cannot afford basic health care. As he enters the twilight years of his life, earlier than anyone should, he is faced with failing health and no way to pay the doctor bills. The fact that someone who has worked all their life may not be able to obtain adequate medical and dental care because of their station in life goes against all the ideals that have made America great.   Ã‚  Ã‚  Ã‚  Ã‚  As we enter into the twenty-first century we see new cures and treatments springing into our clinics and homes at an unprecedented rate. Only a fool would argue that these advances are not helping millions, but the costs inherent with these new remedies make them inaccessible to many Americans who would benefit greatly from them. From 1971 to 1991 the price of health related goods and services climbed 30 percent faster that of other goods, placing far out of the financial reach of the working class of this nation. It is time to consider a true national health-care system, in order to insure that everyone, not just the wealthy, can enjoy good health. As it stands, America is the only civilized country where access to basic health care depends on where one works and how much one is paid. For many well insured people there is debate about our nation ¹s stance on the separation between the individual and the state, but the fact of the mater is that if our friend Grant had been born five hundred miles to the North he would still have his teeth and a much brighter future.   Ã‚  Ã‚  Ã‚  Ã‚  In Canada, where they have had a national health insurance since 1967, a citizen is guaranteed treatment for any illness that may afflict him or her. In addition to keeping their people heather, and as a result happier, the Canadian system has kept costs minimal while research and development has continued at the same, if not faster, pace that we see here. Around the globe we can see the correlation between national health care systems and better quality of treatment. In Japan, they have countered the medical problems inherent with a crowded society through national health insurance, and as a result enjoy a extremely high quality of living. Even here we have harnessed some of the power of

Pineapple (Ananas comosus) Skin Extract Essay

Nowadays, people have using different herbal soap that are expensive and less effective. Our aims is to make an effective and cheaper herbal soap. Like pineapple skin , pineapple fruit has some active principles with important . Pineapple Skin has a benefits in making herbal soap because it has that properties that can make the skin look good and protects the skin. Statement of the Problem Main Problem: Does the pineapple skin soap more effective than the other commercial soap? Specific problem: Is the soap effective on skin? Will the soap has side effects like irrattion and others? Objectives This study mainly aimed to determine how useful pineapple skins are. The ideal outcome of this study can be achieved by obtaining the following specific objectives: Compare the pineapple skin to other ingredients used in other commercial soap Test the effectiveness of pineapple as a skin cleanser and moisturizer Hypothesis If pineapple skin is used as an ingredient in a soap, then there would be an effective cleanser as well as moisturizer in one soap Significance of The Study You can make a bathing soap with pineapple skin extract as a moisturizing soap. This plant is very common to our environment, and aside of its avaibility; it is easy to cultivate. It contains many components for moisturizing the skin. This study aims to produce an affordable herbal soap by making use of the natural properties of pineapple skin. And it also improves skin elastic, improve skin hydration, and remove damaged and dead cells and does not mix with chemicals that may damage our skin. It also have antifungal and purifying effect on the skin. Definition of Terms Bromelain – is an extract derived from the stems of pineapples. Manganese – a chemical element, designated by the symbol Mn. It has the atomic number 25. It is not found as a free element in nature; it is often found in combination with iron, and in many minerals. Chapter II: Review of Related Literature The high vitamin C and bromelain content of pineapple juice make it an effective acne treatment. Bromelain is an enzyme that softens skin and has been used for hundreds of years in South and Central America to fight inflammation and swelling. Raw pineapple is an excellent source of manganese and vitamin C . Applying vitamin C to the skin may have a beneficial effect because of its antioxidant properties. Correctly formulated vitamin C creams may protect against the aging effect of sunlight and reduce winkles, mainly from its stem, pineapple contains a proteilytic enzyme, bromelain, which breaks down protein. If having sufficientr bromelain content, raw pineapple juice may be used as a meat marinade and tenderizer. Pineapple enzymes can interfere with the preparation of some food, such as jellyland other gelatin-based dessert, but would be destroyed during cooking and canning. The quality of bromelain in the fruit probably not significant, being mostly in the inedible stack. Furthermore, an ingested enzyme like bromelain unlikely to survive intact the proteolytic process of digestion. Pineapple is crammed with vitamins but most of all a very skin friendly enzyme called Bromeliad. With these it fights the damaged done to your skin by free radicals, lifts dirt and dead skin cell. It hydrates and is also know to reduce age spots and fine lines and leaves the  skin supple and leaves you with a the softest skin pineapple or a pineapple facial mask can also be a powerful ally in your quest against acne. The high vitamins C and bromelain content of pineapple juice make it an effective acne treatment. Bromelain is an enzyme that soften skin and has been used for hundreds of year in South and Central America to fight inflammation and swelling.