Compare and Contrast the Response of Economic Policymakers to the Great Depression of the 1930’s and the Great Financial Crisis Today. Essay Example

Compare and Contrast the Response of Economic Policymakers to the Great Depression of the 1930’s and the Great Financial Crisis Today. Essay Example Compare and Contrast the Response of Economic Policymakers to the Great Depression of the 1930’s and the Great Financial Crisis Today. Essay Compare and Contrast the Response of Economic Policymakers to the Great Depression of the 1930’s and the Great Financial Crisis Today. Essay David Pattinson ‘Industrialisation, Imperialism and Globalisation: The World Economy since 1800’ Professor John Singleton Compare and contrast the response of economic policymakers to the Great Depression of the 1930’s and the Great Financial Crisis today. Essay 2 10/1/13 Word count: 2,299 The financial crisis that began in 2007-8 was the first time since the 1930’s that both the major European countries and the US had been involved in a financial crisis. In comparison, the disastrous 1931 banking crisis involved countries that accounted for 55. 6 per cent of world GDP, whereas the banking crisis of 2007-8 only involved countries that accounted for 33. 5 per cent of world GDP. Though, all the key economic variables fell at a faster rate during the first year of the later crisis. Keynes had argued in 1931 that ‘there is a possibility that when this crisis is looked back upon by the economic historian of the future it will be seen to mark one the major turning points. ’ Keynes was correct. As a result of the lessons that were learned, policy in response to the Great Financial Crisis has contrasted sharply with policy during the Great Depression era. I will examine how national policy responses and international co-operation have differed, as well as highlighting how in creating the Euro, policymakers have unwittingly replicated many of the structural weaknesses of the Gold Standard. I will also consider how policy in the recovery phase has so far compared to policy during the recovery from the Great Depression. The Great Depression was marked by bank failures. A total of 9,096 banks failed between 1930 and 1933 amounting to 2. 0% of GDP. Friedman and Schwartz highlight the failure to increase the money supply whilst liquidity was tight as the primary cause. Bordo and Landon-Lane provide econometric analysis using examiners’ reports on failed banks that support this argument. Epstein and Ferguson have suggested that Federal Reserve officials understood that monetary conditions were tight but believed that a contraction was a necessary corrective. The otion that governments should ‘let nature take its course’ formed a central pillar of the contemporary economic orthodoxy. However, other economic historians have pointed out that Federal officials believed that monetary policy was actually loose, due to them conflating low nominal interest rates with low real interest rates (which were high as a result of deflation). Wicker argues that Federal Reserve officials feared that o pen market purchases would renew gold outflow by bring into question the Federal Reserve’s commitment to maintaining gold convertibility. When faced with a policy choice the Federal Reserve always opted to support the Gold Standard. Rather than shore up the battered banking system, the Federal Reserve raised interest rates during late 1931 and the winter of 1932-3 to protect the dollar from speculation in order to halt gold losses. Regardless of the deficiencies of Federal Reserve policy, the US entered the 1930’s with a poorly regulated banking system that was undercapitalised and based on unit banking. Calomiris and Mason argue that eventually, banking collapse would have been inevitable. In general, economists argue that the depth of the downturn is explained by the monetary shocks interacting with the dramatic falls in demand (that emanated from the collapse in investment and consumption). Loss of income and uncertain employment conditions combined to undermine consumer spending, whilst there was little incentive to invest while prices were falling. Deflation also increased the burden of existing debt. Fiscal policy did not fill the gap in demand as belief in the Gold Standard and balanced budgets prevailed. A coherent theoretical justification for expansionary fiscal policy was absent from the contemporary economic discourse. Expansionary fiscal policy remained unused, even after states left the Gold Standard. In Europe, fears of inflation weighed heavy on the minds of policymakers. The dominant view in Washington was that over-production was responsible for the crisis. Consequently, the New Deal spending was funded by tax increases. Roosevelt concentrated on limiting competition, sharing work and promoting high wages in order to increase purchasing power. Cole and Ohanian argue that these policies undermined the recovery by raising real wages and unemployment. The consensus view is that, by subordinating monetary and fiscal policy towards maintaining gold parity, the Gold Standard transmitted the crisis to the rest of the world. The return to the Gold Standard, after the First World War, was unbalanced. Countries such as France and Belgium joined at exchange rates that were well below their 1913 levels which gave them a substantial competitive advantage. Conversely, after a deflationary squeeze, the UK re-joined at its 1913 exchange rates, leaving the sterling over-valued. The US and France exasperated the problem, by sterilising (so not to inflate the money supply) the gold that they accumulated (sixty per cent of the world’s gold supply by 1928). The lack of reserves forced many countries into further deflation. The world economy could only be kept going by the US economy continuing to absorb imports and provide international lending to cover gold shortages. By 1928, the US proved unwilling to do the latter and was eventually unable to do the former. During the depression, this austerity debilitated economies and resulted in banking collapses, notably in Germany and Austria. In response to the systemic threat posed by the imminent German banking collapse, the nations in a position to offer assistance acted unilaterally. President Hoover proposed a one year moratorium on reparations and war debt. The French, furious at the lack of consultation opposed the measure, believing that they lost more than they gained. Instead, they made an offer of help to the Germans that attached political conditions that made it impossible for the Germans to accept. Ultimately, international co-operation proved impossible as states that were able to help were unwilling to risk their own privileged positions. Between 1929 and 1932, the volume of world trade fell by 25%, about half of which was due to higher trade barriers. The Smoot-Hawley Act in 1930 is often cited as the genesis of protectionist policies, but Irwin points out that the protectionist avalanche did not begin until the world financial crisis struck in 1931. Irwin locates the incipience of this round of protectionism in the ‘open economy trilemma’ which limits countries to choosing two of three objectives: a fixed exchange rate, an independent monetary policy, and open trade policies. In attempting to marry membership of the Gold Standard with independent monetary policy, policymakers adopted protectionist measures. Countries that maintained gold parity such as France and Switzerland used import quotas on 50-60% of their imports. Whereas, the Sterling block countries which allowed their currencies to devalue, only used import quotas on 5-10% of their imports. In the wake of the financial meltdown, policymakers in the US attempted significant banking reform with the Emergency Banking Act in 1933 followed by the Banking Acts of 1933 and 1935. Deposit insurance was created, and it brought an end to bank runs. The Reconstruction Finance Corporation was formed to provide capital to banks. It was successful to the extent that it owned stock in nearly half of all commercial banks by March 1934. Investment and commercial banking were separated, though White has provided evidence that banks that engaged in both commercial and investment banking were better diversified and were less likely to fail than banks that specialised in just one area. Calomiris also sees the legislation as flawed, as it preserved unit banking, which was a major source of instability in the banking system. The Great Depression altered economic thinking and policy. Hannah and Temin argue that it led to an emphasis on correcting market failures through government intervention. Federal spending rose, and inter-state transfers became acceptable. Though, unlike the UK, there was no move to Keynesian demand management in the US. The Great Depression also left a legacy in terms of the macroeconomic trilemma. Controls on international capital movements remained with the return to pegged exchange rates under the Bretton Woods Agreement which allowed independent monetary policy. Economists such as Wray have seen the policy legacy of the Great Depression as having constrained the destabilising role played by finance. Moreover, it provided the framework for an unprecedented period of prosperity after the Second World War. In response to the Great Financial Crisis, policymakers have been largely cognisant of the lessons of the 1930’s. The Federal Reserve officials of the 1930’s argued that they could not increase credit by purchasing government securities as they were not eligible as collateral. In contrast, based on Bernanke’s view that banking collapse leads to a failure of the credit allocation mechanism, the Federal Reserve combining with the Treasury created a range of extensions to its discount window to encompass every kind of collateral in the hope of unblocking the credit markets. States co-ordinated massive injections of liquidity (double digits fractions of GDP in advanced economies). The Bank of England, the Bank of Japan and the Federal Reserve undertook large scale quantitative easing. Interest rates were reduced to almost zero in the US and Britain and to very low levels in Europe and elsewhere. Governments nationalised insolvent institutions deemed ‘too big to fail’ such as Freddie Mac and Fannie Mae in the United States, BNP Paribus in France and Northern Rock in Britain. Despite China’s minimal direct exposure to the financial crisis, its response to the downturn in demand has been sweeping. Focusing on developing infrastructure it undertook a stimulus package that amounted to 14% of GDP in 2008. Keen notes that the massive amount of government spending in 2010 meant that government debt was responsible for 12% of aggregate demand in contrast to only 1. % of aggregate demand between 1930 and 1932. Furthermore, unlike the 1930’s, governments have not tried to over-ride, the now much larger, automatic stabilisers. However, the experience of the 1930’s has not effectively militated upon the policy makers of the Eurozone, where a dramatic collapse in employment and living standards has mirrored the Great Depression. Like the Gold Standard, th e Euro was unbalanced from its inception as the weaker economies joined at a relatively high rate of exchange on the premise of avoiding inflation. The gap in competitiveness has widened due to Germany suppressing nominal wages much more effectively than the rest of the Eurozone. Easy credit provided to peripheral areas by German banks created markets for German exports and saddled those areas with debt. Monetary and fiscal policy has focused on creating an international currency to rival the dollar. Consequently, monetary policy has targeted inflation through low interest rates. As monetary policy is unitary, the peripheral economies are denied the opportunity to reflate their economies. Furthermore, unlike other major advanced economies since the crisis began, the Eurozone has required that Fiscal policy be placed under tight constraints via the Fiscal Stability Pact. The retrenching of the crisis on to sovereigns has exposed a central weakness of the Eurozone project. The ECB supports banks but lacks the power to support states. Similar to the deflation that was necessary under the Gold Standard, the peripheral economies of the Eurozone are locked into a mutually reinforcing cycle of debt and austerity. Having pursued national self-interest from the euro’s inception, Vines argues Germany is unwilling to provide the hegemonic leadership that its responsibilities in Europe require of it. Though, Lapavitas et al argue that abandoning fiscal discipline would be incompatible with the avowed aim of maintaining a currency that attempts to compete with the dollar. The value of the euro would probably fall, destroying the large Eurozone banks’ ability to operate internationally. If German policy has followed narrow self-interest to the detriment of others, it has not been alone. China has held down their exchange rates over a long period of time. It is widely estimated that Chinese currency is 30% to 40% overvalued. Martin Wolf of the Financial Times has asserted that Chinese interventions to keep the exchange rate down are tantamount analytically to trade protectionism. Judging by its reserves it has ‘†¦kept its exchange rate down to a degree unmatched in economic history. ’ States have also been quick to ‘ring-fence’ assets in their own jurisdiction. For example, the fear of the imminent collapse of the Icelandic banks led UK supervisors to resort to using the Anti-Terrorism, Crime and Security Act to ring fence Icelandic bank assets in the UK. Claessens et al point out that in general, national interventions have been uncoordinated and driven by pure national interest. However, the major international banks have co-ordinated massive injections of liquidity into the system at various points. Moreover, protectionism has not been a feature of the current crisis in the way that it was during the great depression. Research has shown that only 2% of falls in world trade in 2008-9, can be attributed to trade barriers. This can be primarily attributed to the system of flexible exchange rates, the lessons learnt from the great depression and the system of trade rules overseen the WTO. As of yet following the great financial crisis, there has not been significant banking reform. Attempts at co-ordinated international regulation have proved difficult. The former governor of the Bank of England Mervyn King attributes this to the heightened awareness that global banks are global in life and national in death. The draft proposals for the Basel III accords put forward some significant reforms which were ultimately watered down. Key elements such as a mandatory countercyclical capital buffer were omitted from the final agreement. Although the accords raised the minimum capital requirements, they are still held by many economists to be too low. Attempts at reform including the Dodds-Frank Act have not addressed the problem of ‘Too Big to Fail Banks’ (whose size necessitates that they be bailed out in the event of insolvency due to the systemic risk that they pose). A situation of moral hazard thereby exists where banks know they can engage in any risky behaviour they like. If anything should go wrong they know they will be bailed out by the state. In summary, the response to the Great Financial Crisis has differed from the Great Depression as a result of the increased understanding of macroeconomics. The scale of the policy response to the Great Financial Crisis would have been unthinkable during the Great Depression era. Despite the unprecedented response, the economic crisis that began with the financial crisis in 2007-8 is far from over and many problems remain. In the advanced economies, growth has been weak and fears of a triple dip recession persist. The Great Depression precipitated a reappraisal of policy by policymakers and resulted in considerable changes in policy. This has not happened so far to the same extent in response to the Great Financial Crisis. Many of the policy mistakes of the Great Depression have been avoided. The challenge now is to construct a macroeconomic framework that can aid the recovery and eventually facilitate a new period of economic expansion. The change in policies as a result of the Great Depression had some success in this respect. Banking regulation proved inadequate prior to both crises. In response to the Great Financial Crisis, this has yet to be rectified. This time policymakers will have to tackle the issue of ‘too big to fail’ banks. In the Eurozone, Germany has taken on the role of both the US and France during the Great Depression by failing to shore up weaker areas and by pursuing policies to the detriment of everybody else. During the Great Depression, the most important factor in the recovery was the abandonment of the Gold Standard. The countries that devalued in 1931 performed much better than those who had continued with exchange controls. The cost of reverting back to a national currency makes leaving the Euro and devaluing a less viable option for the Eurozone states. Bibliography Barrell, R. and Holland, D. ‘Monetary and Fiscal Responses to the Economic Downturn,’ National Institute Economic Review, No. 211, (Jan 2010) pp. 51-62. Bernanke, B. , ‘Nonmonetary Effects of the Financial Crises in the Propagation of the Great Depression,’ American Economic Review (June 1983), pp. 257-76. Bordo, M. and Landon-Lane, J. , ‘The banking panics in the United States in the 1930s: som e lessons for today,’ Oxford Review of Economic Policy, Vol. 26, No. 3, (2010), pp. 486–509. Calomiris, C. and Mason, J. , ‘Consequences of Bank Distress during the Great Depression,’ American Economic Review, Vol. 93, (2003a), pp. 937–47. Calomiris, C. , Monetary Policy and the Behavior of Banks: Lessons from the 1930s for the 2010s. 28th March 2011. Accessed: 16th December 2011. www. economics21. org/files/pdfs/in-depth /calomiris-spring-11. pdf Claessens, S. , Dell’Ariccia, G. , Igan, D. , and Laeven, L. , ‘Lessons and Policy Implications from the Global Financial Crisis,’ IMF Working Paper, No. 14 (2010). Cole, H. and Ohanian, L. , ‘New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis,’ Federal Reserve Bank of Minneapolis Research Department, Working Paper No. 597, (July 2000). Crafts, N. nd Fearon, P. , ‘Lessons from the 1930s Great Depression,’ Oxford Review of Economic Policy, Vol. 26, No. 3, (2010), pp. 285–317. Epstein, G. , and Ferguson, T. , ‘Monetary Policy, Loan Liquidation, and Industrial Conflict: The Federal Reserve and the Open Market Operations of 1932,’ Journal of Economic History (December 1984 ), pp. 957-83. Fishback, P. , ‘US Monetary and Fiscal Policy in the 1930s,’ Oxford Review of Economic Policy, Vol. 26, No. 3, (2010), pp. 385–413. Friedman, M. and Schwartz, A. , A Monetary History of the United States, 1867-1960’ (Princeton: Princeton University Press, 1963). Goldstein, M. , ‘Integrating Reform of Financial Regulation with Reform of the International Monetary System,’ Peterson Institute for International Economics, Working Paper No. 11-5 (February 2011). Irwin, D. , ‘Trade Policy Disaster: Lessons from the 1930’s’ (Cambridge: MIT Press, 2011). Kee, H. L. , Neagu, C. , and Nicita, A. , ‘Is Protectionism on the Rise? Assessing National Trade Policies during the Crisis of 2008,’ World Bank Policy Research Working Paper No. 5274, (2010). Keen, S. , Empirical and theoretical reasons why the GFC is not behind us. 13th June 2010. Accessed: 16th December 2011. debtdeflation. com/blogs/2010/06/13/empirical-and-theoretical-reasons-why-the-gfc-is-not-behind-us/ Keynes, J. M. , ‘An Economic Analysis of Unemployment,’ From Q. Wright (ed. ), Unemployment as a World Problem, (Chicago: University of Chicago Press, 1931). Lapavitsas, C. , Kaltenbrunner, A. , Lindo, D. , Michell, J. , Painceira, J. P. , Pires, E. , Powell, J. , Stenfors, J. , and Teles, N. , ‘Eurozone crisis: beggar thyself and thy neighbour,’ Journal of Balkan and Near Eastern Studies, Vol. 12, No. 4 (2010), pp. 321-373. Hannah, L. , and Temin, P. 2010), ‘Long-term Supply-side Implications of the Great Depression,’ Oxford Review of Economic Policy, Vol. 26, No. 3, pp. 561–80 Helleiner, E. and Pagliari, S. , ‘The End of an Era in International Financial Regulation? A Postcrisis Research Agenda,’ International Organization, Vol. 65, (Winter 2011), pp. 169–200 Vines, D. , ‘The Global Macroeconomic Crisis and G20 Macroeconomic Policy Coordination,’ The Journal of Applied Economic Research, Vol. 4, No. 2, (2010) pp. 157-175. Vines, D. , ‘Fiscal Policy in the Eurozone After the Crisis,’ Paper prepared for lunchtime talk at Macro Economy Research Conference on Fiscal Policy in he Post Crisis World, (Tokyo, 16 November, 2010). Wheelock, D. , ‘Monetary Policy in the Great Depression: What the Fed Did, and Why,’ Federal Reserve Bank of St. Louis Review, Vol. 74, No. 2, (March/April 1992) pp. 3-28. White, E. N. (1986), ‘Before the Glass–Steagall Act: An Analysis of the Investment-banking Activities of National Banks,’ Explorations in Economic History, Vol. 23, pp. 33–55. Wicker, E. , ‘Federal Reserve Monetary Policy, 1917-1933’ (Random House, 1966). Wolf, M. ,‘Why China’s Exchange Rate Policy Concerns Us,’ Financial Times (8th of December 2009) Wray, L. R. , ‘The rise and fall of money manager capitalism: a Minskian approach,’ Cambridge Journal of Economics, Vol. 33, (2009) pp. 807–828. Yu, Y. , China’s Policy Responses to the Global Financial Crisis, Richard Snape Lecture, Productivity Commission, Melbourne (25th November 2009). [ 1 ]. N. Crafts and P. Fearon, Lessons from the 1930s Great Depression, Oxford Review of Economic Policy, Vol. 26, No. 3, (2010), pp. 287 [ 2 ]. J. M. Keynes, ‘An Economic Analysis of Unemployment’, from Q. Wright (ed. , Unemployment as a World Problem, (Chicago: University of Chicago Press, 1931). [ 3 ]. C. Calomiris and J. Mason, Consequences of Bank Distress during the Great Depression, American Economic Review, Vol. 93, (2003a), pp. 937–47 [ 4 ]. M. Friedman and A. Schwartz, A Monetary History of the United States, 1867-1960, (Princeton: Princeton University Press, 1963) [ 5 ]. M. Bordo and J. Landon-Lane, The Banking Panics in the United States in the 1930s: Some Lessons for Today, Oxford Review of Economic Policy, Vol. 26, No. 3, (2010), pp. 486–509 [ 6 ]. G. Epstein and T. Ferguson, Monetary Policy, Loan Liquidation, and Industrial Conflict: The Federal Reserve and the Open Market Operations of 1932, Journal of Economic History (December 1984), pp. 957-83. [ 7 ]. P. Fishback, US Monetary and Fiscal Policy in the 1930s, Oxford Review of Economic Policy, Vol. 26, No. 3, (2010), p. 394. [ 8 ]. E. Wicker, Federal Reserve Monetary Policy, 1917-1933, (Random House, 1966) [ 9 ]. Crafts and Fearon, Lessons from the 1930s Great Depression, p. 292 [ 10 ]. Calomiris and Mason, Consequences of Bank Distress during the Great Depression, pp. 937–47 [ 11 ]. Crafts and Fearon, Lessons from the 1930s Great Depression, pp. 291-3 [ 12 ]. Fishback, US Monetary and Fiscal Policy in the 1930s, pp. 401-5 [ 13 ]. Cole and Ohanian, New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis, Federal Reserve Bank of Minneapolis Research Department, Working Paper No. 597, (July 2000), p. 41. [ 14 ]. Ibid. pp. 294-5 [ 15 ]. Crafts and Fearon, Lessons from the 1930s Great Depression, pp. 295 [ 16 ]. D. Irwin, Trade Policy Disaster: Lessons from the 1930’s, (Cambridge: MIT Press, 2011) Ch. 1 [ 17 ]. Ibid. , Ch. 4 [ 18 ]. Crafts and Fearon, Lessons from the 1930s Great Depression, pp. 304-5 [ 19 ]. E. White, Before the Glass–Steagall Act: An Analysis of the Investment-banking Activities of National Banks, Explorations in Economic History, Vol. 23, (1986), pp. 33–55. [ 20 ]. C. Calomiris, Monetary Policy and the Behavior of Banks: Lessons from the 1930s for the 2010s. 28th March 2011. Accessed: 16th December 2011. www. economics21. org/files/pdfs/in-depth /calomiris-spring-11. pdf [ 21 ]. L. Hannah and P. Temin, (2010), Long-term Supply-side Implications of the Great Depression, Oxford Review of Economic Policy, Vol. 26, No. , (2010), pp. 561–80 [ 22 ]. White, Before the Glass–Steagall Act: An Analysis of the Investment-banking Activities of National Banks, pp. 33–55. [ 23 ]. L. Wray, The Rise and Fall of Money Manager Capitalism: A Minskian Approach, Cambridge Journal of Economics, Vol. 33, (2009) pp. 813 [ 24 ]. Bernanke, B. , Nonmonetary Effects of the Financial Cr ises in the Propagation of the Great Depression, American Economic Review (June 1983), pp. 257-76. [ 25 ]. R. Barrell and D. Holland, Monetary and Fiscal Responses to the Economic Downturn, National Institute Economic Review, No. 211, (Jan 2010) p. 56 [ 26 ]. Y. Yu, China’s Policy Responses to the Global Financial Crisis, Richard Snape Lecture, Productivity Commission, Melbourne (25th November 2009) pp. 9-10 [ 27 ]. S. Keen, Empirical and theoretical reasons why the GFC is not behind us. 13th June 2010. Accessed: 16th December 2011 [ 28 ]. C. Lapavitsas et al, Eurozone crisis: beggar thyself and thy neighbour, Journal of Balkan and Near Eastern Studies, Vol. 12, No. 4 (2010), p. 367 [ 29 ]. D. Vines, Fiscal Policy in the Eurozone After the Crisis, Paper prepared for lunchtime talk at Macro Economy Research Conference on Fiscal Policy in the Post Crisis World, (Tokyo, 16 November, 2010). 30 ]. Lapavitsas et al, Eurozone crisis: beggar thyself and thy neighbour, p. 367 [ 31 ]. D. Vines, The Global Macroeconomic Crisis and G20 Macroeconomic Policy Coordination, The Journal of Applied Economic Research, Vol. 4, No. 2, (2010) pp. 157-175 [ 32 ]. M. Wolf, Why China’s Exchange Rate Policy Concerns Us, Financial Times (8th of December 2009) [ 33 ]. S. Claessens et al, Lessons and Policy Implications from the Global Financial Crisis, IMF Working Paper, No. 14 (2010) p. 16 [ 34 ]. L. Kee et al, Is Protectionism on the Rise? Assessing National Trade Policies during the Crisis of 2008, World Bank Policy Research Working Paper No. 5274, (2010), p. 3 [ 35 ]. E. Helleiner and S. Pagliari, The End of an Era in International Financial Regulation? A Postcrisis Research Agenda, International Organization, Vol. 65, (Winter 2011), p. 184 [ 36 ]. M. Goldstein, Integrating Reform of Financial Regulation with Reform of the International Monetary System, Peterson Institute for International Economics, Working Paper No. 11-5 (February 2011), pp. 5-7. [ 37 ]. Crafts and Fearon, Lessons from the 1930s Great Depression, pp. 311

Private Concert Assignment Example | Topics and Well Written Essays - 500 words

Private Concert - Assignment Example The other two pieces which were also stylistically different from all the other pieces included the piece on â€Å"Ancient memories† and â€Å"Waltz for Debby†. The Palestrina piece illustrates resolution and harmony because of its dominant, 7th chord. During the 16th century, the seventh chords got created in different part, but only three of them where the dissonant 7th was prepared and resolved. During this century, harmony was as a result of horizontal voice leading. It is similar to the full 7th chord on the 2nd degree in the Palestrina piece. The piece on â€Å"Waltz for Debby† was noticeable because of its slow beat and that there was a consonant through its entirety. An American Jazz Pianist called Bill Evans composed this piece in 1961. Throughout the piece, the trumpet, electric guitar and the saxophone were all used at different times to produce different melodies. There was an increased of the dynamics to a moderate level then to a softer level after making a decrescendo. The piece on â€Å"ancient memories† was played by Dr. Darryl White at the concert. When it began, there were dissonant tones. The tones were within the harmony similar to that of the piano and drums. Later, the piece changed to a more constant harmony to the end of the song. The melody of the piece could also be said to be happy and relaxing in other parts of the song. Perhaps it was because the tempo in the song changed and the notes made from the trumpet were held. There was drumming in the â€Å"Waltz for Debby† piece which was part of the music. Most notably, the texture of this piece remained almost the same throughout until its end. There was also the 1, 2, 3 pattern which was notable. In my view, the drumming made it easier for me to enjoy the piece. It also had a different genre than the other songs, which made it easier for me to remember it than other songs. The piece on â€Å"ancient memories† incorporated a lot of repetition. This led to different changes in the

Factor influencing the consumers' intention to purchase online the Essay - 2

Factor influencing the consumers' intention to purchase online the retail industry in Thailand perspective - Essay Example This research will begin with the statement that the methodology may refer to the approach and measures used to gather statistical data, and the calculations used to arrive at the specific results.   Walker in supporting this statement stated that methodologies allow researchers to retain the questions under investigation and may involve numerous methods of collecting data in targeting information from participants towards investigating how different elements relate in understanding the research question.   To meet this goal and accomplish the objective and aims of a research the methodology becomes the backbone of the entire investigation.   All calculations and investigations in a research have to apply the best methodology, such as having the correct data collection method in arriving at the appropriate result of the intention to carry out this research. The conceptual framework in this research can be derived from the literate review and other theories on consumer decision making, the attitude of individuals towards online shopping and the behavior of most consumers in online shops, e-marking configuration and the quality of the website. Consequently, the framework, in this case, aims at establishing the objectives of the research. The research will use a survey, which is a method of systematically collecting data using questionnaires. In this research, it would be easier to use online questionnaires on social sites such as Facebook, in personal emails or even in university emails. Burns noted that a descriptive survey in such a research may be more appropriate where a huge number of respondents will be identified and their frequencies in online shops counted. Such an approach will make it possible to determine the characteristics of consumer beliefs, behaviors and attitudes in such online shops. In this approach, theories used in the literature review will be tested and quantitative methods used to verify such theories. The survey design will also ma ke it possible to have responses from a huge number of consumer respondents at much shorter periods and at much lower costs. Such a method will be effective in determining factors that influence consumers in making a purchase decision.

Financial risk management Essay Example | Topics and Well Written Essays - 250 words

Financial risk management - Essay Example man Sachs bank saw its profits decline due significant losses being realized from large subprime write downs which were followed by mortgage crisis meaning beneficiaries were unable to pay. The short selling of subprime mortgage securities to Lehman Brothers is blamed to have worsened the financial crisis to the detriment of both institutions. As a result, the bank approached the federal government for a bailout under the troubled asset relief programme (TARP). Since the loan came with high interest rates and short repayment period, the bank’s financial condition worsened and become highly geared. In summary, Goldman Sachs financial crisis can be classified as threefold, that is, financial malpractices among traders and top executives in trading mortgage securities (operational risk), mortgage industry crisis/ risks and high financial leverage. Risk management theories that can be used to explain the crisis an offer insights into possible solutions are discussed hereunder. Weinberg (2007) noted that the bank relied on incomes from trading to maintain its profit growth which was risky. Therefore, the bank should have maintained a prudent model to monitor the value at risk (VaR) for securities being traded. VaR model shows the maximum estimated loss for a portfolio factoring market related risks at a given time horizon (Esch, Kieffer and Lopez, 2005). Capital Asset Pricing Model (CAPM) would also have helped the bank to understand the behavior of capital markets and possibilities of excess, negative and optimal return on a portfolio by analyzing the securities market line (Elton et al., 2010). Brownian motion model of financial risk management though highlights useful risk strategies useful under normal circumstances was found to fail in providing rational understanding of financial turmoil (Borma and Sharma, 2011). Boma, S. & Sharma, D. (2011). â€Å" How much trust should risk managers place on â€Å"Brownian Motions† of financial markets?† International Journal

Patient Safety & Risk Management Coursework Example | Topics and Well Written Essays - 1250 words

Patient Safety & Risk Management - Coursework Example The increasing use of evidenced based prevention strategies were also embraced to ensure these errors were prevented. However, concerns were later raised concerning this ‘no blame’ approach to new ways of indentifying and dealing with poorly performing health practitioners; stressing on responsibility and accountability. The idea of shifting from a blameworthy to blameless culture was also floated. Rather than viewing problems as systems problems, the culture of viewing them as accountability problems was able to reduce some of the problems such as low hand hygiene significantly, making surgeries safer (Wachter & Pronovost 2009, 1402). The article therefore elaborates how to strike an acceptable balance between errors caused by lack of accountability, and those that result from the system where such practitioners cannot be blamed for their occurrence. Wachter & Pronovost (2009, 1402) elaborates that the cost of failure to adhere to professionalism and enforcement of safe ty standards in United States accounts to about 4000 wrong-side surgeries. This is despite the fact that these errors may be preventable through strict adherence to Universal Protocol, which clearly outlines the correct surgery sites to be followed by all surgeons. Campbell, Chin & Voo (2007, 431) argues that over the past few decades, medical profession has evolved to come of age, in enhancing more ethical practice. The above patient safety document is an example of actions being taken to ensure this objective is met. However, the above large number of poor surgical cases portrays a weakness on effectiveness of these approaches. This implies doctors are employed in the medical fraternity due to their skills and academic qualifications, devoid of imparting and stressing adherence to standards as a norm or culture in the medical field. Though the article provides concerned efforts towards solving this problem such as enhancing hygiene and computerization of systems, the large numbers of unethical practices portray ignorance is live in the medical field. Marx argues the importance of stressing on a just culture which is blameless rather than trying to solve the problems of blameworthy acts (Wachter & Pronovost 2009, 1401). This can only be possible through strict ethical practices that are well integrated within the medical profession from early training stages. Rather than finding ways to improve the hand hygiene problem, this weakness can be narrowed down to lack of ethics and professionalism in the medical fraternity. The issue of systems is a pertinent issue in the medical fraternity. For example, Wachter & Pronovost (2009, 1402) argue that in order to create safer activities, the medical fraternity is looking towards other industries to learn how these safety mechanisms, are implemented. To support this, the idea that a pilot who ignores the slightest use of checklist in the aviation industry cannot be allowed to fly, is floated as the best example. This is a good proposal as it deals with strict code of conduct in a profession, which forms a culture in such operations.. Patient welfare is central in the medical field. Brockopp & Eich (2007, 163) argue that in the current highly technologically advanced settings in the

Why do nurses eat their young Term Paper Example | Topics and Well Written Essays - 1250 words

Why do nurses eat their young - Term Paper Example Nurses who are older and who have more experience have the reputation on shunning the younger nurses away, making life difficult for them, in other words ‘eating’ them. For which reason, the younger nurses often experience great difficulty in starting their practice. Some of them often even end up leaving the profession altogether. This paper shall discuss and resolve issues on the question: why do nurses eat their young? This question is being answered in the hope of establishing a comprehensive and academic answer to this query and in the hope of improving the transition for younger nurses into the practice. Review of literature Various studies have been carried out on nurses eating their young. For purposes of this discussion, this practice shall also be referred to as horizontal violence among nurses. In a paper by Woelfe and McCaffrey (2007), the authors set out to evaluate if horizontal violence in the workplace is present in nursing and if it is, its relationship to patient care. This study was carried out as a literature review of articles published from 2003 and 2004 from nursing research databases. This study revealed that horizontal violence does exist in nursing today (Woelfe and McCaffrey, 2007). The study revealed that horizontal violence exists in the current context and it affects most areas of the nursing practice. In instances when tension is elevated in patient care areas, the nursing staff is often not likely to be at their best performance and the quality of their patient care is compromised. In a similar study by Oztunc (2007), the author set out to evaluate the incidents of verbal abuse encountered by nurses in the workplace. Data was gathered in about 290 hospital nurses in Turkey. The study soon established that most nurses faced verbal abuse. It also confirmed that there is a need to implement urgent and continuous plans in addressing verbal abuse in the workplace and in the adoption of zero tolerance (Oztunc, 2007). In ef fect, this study highlighted the alarming increase in violence between nurses which mostly registers as verbal abuse and bullying in the workplace. In a paper by Johnson (2009), the authors evaluated the nursing literature on workplace bullying in order to establish a better understanding of these incidents in the workplace. The CINAHL, PubMed, Pro Quest, and EBSCO databases were searched. This study revealed that workplace bullying is not just a simple contract between two individuals. This is also a complicated incident which can be understood by evaluating social and organizational factors (Johnson, 2009). Bullying has been known to affect the physical and psychological issues of victims, including their work performance. It also impacts on organizations due to their decreased productivity, increased sick time, and reduced quality of work (Johnson, 2009). The incidence of workplace violence and bullying in the nursing profession was also discussed by Hutchinson, et.al. (2006), th e authors discussed that workplace bullying is a significant issue in the nursing profession. It is often described in terms of oppressed group behavior. The oppressed group theory has set forth only minimal understanding of this phenomenon in nursing. This theory is said to place too much of an emphasis on bullying as a phenomenon in nursing, not one which is common in other professions as well (Hutchinson, et.al., 2006). Alternative methods of understanding this phenomenon have instead been suggested by other theorists in order to understand nursing workplace bullying. Saunders, et.al., (2007) discussed that various attempts at defining

Patient Safety & Risk Management Coursework Example | Topics and Well Written Essays - 1250 words

Patient Safety & Risk Management - Coursework Example The increasing use of evidenced based prevention strategies were also embraced to ensure these errors were prevented. However, concerns were later raised concerning this ‘no blame’ approach to new ways of indentifying and dealing with poorly performing health practitioners; stressing on responsibility and accountability. The idea of shifting from a blameworthy to blameless culture was also floated. Rather than viewing problems as systems problems, the culture of viewing them as accountability problems was able to reduce some of the problems such as low hand hygiene significantly, making surgeries safer (Wachter & Pronovost 2009, 1402). The article therefore elaborates how to strike an acceptable balance between errors caused by lack of accountability, and those that result from the system where such practitioners cannot be blamed for their occurrence. Wachter & Pronovost (2009, 1402) elaborates that the cost of failure to adhere to professionalism and enforcement of safe ty standards in United States accounts to about 4000 wrong-side surgeries. This is despite the fact that these errors may be preventable through strict adherence to Universal Protocol, which clearly outlines the correct surgery sites to be followed by all surgeons. Campbell, Chin & Voo (2007, 431) argues that over the past few decades, medical profession has evolved to come of age, in enhancing more ethical practice. The above patient safety document is an example of actions being taken to ensure this objective is met. However, the above large number of poor surgical cases portrays a weakness on effectiveness of these approaches. This implies doctors are employed in the medical fraternity due to their skills and academic qualifications, devoid of imparting and stressing adherence to standards as a norm or culture in the medical field. Though the article provides concerned efforts towards solving this problem such as enhancing hygiene and computerization of systems, the large numbers of unethical practices portray ignorance is live in the medical field. Marx argues the importance of stressing on a just culture which is blameless rather than trying to solve the problems of blameworthy acts (Wachter & Pronovost 2009, 1401). This can only be possible through strict ethical practices that are well integrated within the medical profession from early training stages. Rather than finding ways to improve the hand hygiene problem, this weakness can be narrowed down to lack of ethics and professionalism in the medical fraternity. The issue of systems is a pertinent issue in the medical fraternity. For example, Wachter & Pronovost (2009, 1402) argue that in order to create safer activities, the medical fraternity is looking towards other industries to learn how these safety mechanisms, are implemented. To support this, the idea that a pilot who ignores the slightest use of checklist in the aviation industry cannot be allowed to fly, is floated as the best example. This is a good proposal as it deals with strict code of conduct in a profession, which forms a culture in such operations.. Patient welfare is central in the medical field. Brockopp & Eich (2007, 163) argue that in the current highly technologically advanced settings in the