Why living in the city is better than living in the country Essay

Why living in the city is better than living in the country - Essay Example Humans are naturally social creatures—we like to enjoy the company of not just our immediate family, but our closest friends. The human race has been this was for centuries as this need for social interaction is in our genetic makeup. Living in the city provides for these social needs because there are always many people around who are willing to have a conversation. Social interaction is good for the emotional side of people because it gives them an outlet to express themselves in front of their peers. On the other hand, many people who live in the countryside often experience feelings of loneliness and isolation because there are very few people around. Additionally, living in the city provides intellectual stimulation as we are constantly surrounded by information. Wherever we go we are bombarded with news items and stories that spark our interest. This is in no way a bad thing because it is like nutrition for our minds—we have to think about the information being presented to us and how to process it. Controversial information may bring about debate, which further stimulates our minds because of the extra thinking power required. Many people who live in the country do not have the same opportunities to be exposed to the same volume of information and thus do not become critical thinkers. Finally, living in a city allows people access to the latest that modern technology has to offer. Technology in the city is generally more advanced than it is in the countryside for the primary reason that there better infrastructure in place to handle modern technological needs. We now live in a world where we almost solely depend on technology to get by in our daily lives. It was not that long ago when the Internet did not really exist—imagine trying to anything without the use of the Internet today. Those who live in the countryside do not have access to the same kinds of technology simply because they live in such remote areas. There are many

Research Methods ONLINE DISCUSSION BOARD ASSIGNMENT Essay

Research Methods ONLINE DISCUSSION BOARD ASSIGNMENT - Essay Example I do not feel that society today would accept unethical conduct as compared to what the Roman Empire might have found acceptable since our standards of ethics have developed considerably with time. However, it does seem more likely that we have found better means of hiding our ethical flaws as compared to the ancient Romans. I would feel very negatively about it since it would be nothing less than ratting on a friend or a colleague which is considered to be against the norms of society. However, the extent of the misconduct and the duties placed on me by the guidelines of the organization would certainly cause me to follow them to the letter in terms of reporting such misconduct to the proper authorities. The proper authorities in all of the cases mentioned in the question remain immediate supervisors or supervisory bodies that judge the working and conduct of senior members of the institute. It would be difficult to precisely categorize people in the study since it is unknown how much beer would be given to them and the individual physiology of the participants might react differently to the same dose. Additionally, the things that they consume before the experiment would also impact their impairment due to alcohol and it would become difficult to measure what affect the alcohol in the beer had on their driving abilities. Random selection in this case would be inappropriate since the people in the experiment would be consuming beer which may create cultural or personal issues for the participants. As chief researcher, I would advice the company president to change the parameters of the experiment or to conduct the experiment with will adults who know what they are being offered and can understand the impact the beer could have on them. The position comes with a move to a completely different culture therefore; the first

Paul’s Teachings Essay Example for Free

Paul’s Teachings Essay 1. Essay on the Epistle to the Galatians The New Testament Book Epistle to the Galatians is ascribed by the Catholic Church to St. Paul but now believed to be written by early Christian missionary Paul of Tarsus to the early Christian communities in Galatia, then a Roman province. It was an intensely personal letter wherein Paul primarily tackled the circumcision issue during those early days of Christianity. The issue of circumcising Gentile converts, considered to be culturally offensive to Romans, was then being hotly debated. In the Epistle, Paul cautions against the introduction of Jewish practices, such as circumcision, into the community of Christians. The circumcision debate written in Galatians was important for St. Paul because he wanted to point out to the Gentiles that the prescriptions that regulated the day-to-day lives of the Jews under the Law of Moses are meant to lead men to salvation through Christ. Some Galatian converts or Judaizers at that time insisted that observance of the Law, including circumcision, abstinence and certain ritual purifications, was prerequisite to being good or perfect Christians. During the Old Testament, circumcision served as a mans public pledge to the complete observance of Mosaic Law. In Pauls argument against circumcision, he mentions Old Testament figures such as Abraham, Isaac, Ishmael, Sarah and Hagar in order to explain and illustrate what it means to follow Gods advice ( 4:21, Galatians). Using the story of the birth of Isaac and Ishmael, Paul stresses that Christians should genuinely believe and follow all of Gods advise, not only religious traditions but more so, following the examples of Christ. In addressing the circumcision issue in the Epistle, Paul thereby explains that by itself, the Mosaic Law had no power to save because salvation needs individual faith and the grace of Jesus. 2. Essay on the Books of Timothy I, Timothy II and Titus The New Testament Books First Epistle to Timothy, Second Epistle to Timothy and Epistle to Titus are three Pastoral Epistles attributed to St. Paul but now believed to be from Paul of Tarsus. They are collectively termed as the Pastoral Epistles chiefly because the letters are addressed to pastors or heads of the early Church regarding proper handling of the ministry. Together, the Epistles instruct the Bishop Timothy and the Christian worker Titus on the general principles regarding community order and faith. Specifically, the greater part of the Timothy I is devoted to instructions on the proper ordering of Christian community life for it to function smoothly. It also admonishes Timothy on the duties of the bishops and deacons in terms of preaching, praying in public and care for the Church members. Timothy II, on the other stresses the faithful dispensing of the responsibilities by church leaders and provides encouragement to the Bishop. The Pastoral Epistles talk of the proper conduct of both men and women; proper behavior when inside the Church; respect for old and young people; treatment of elderly and rules for the enrollment of widows and other prescriptions for good and Christian behavior. They also talk of how to remain steadfast in faith by rejecting false teachings and safeguarding the truths in the Church. Such is a suggestion of the pressures against and the corresponding struggles to strengthen the faith within the community. The administrative activities, especially as found in Timothy I tell us that the early Church then was already, or at least beginning to be, structured and orderly and made up of united members. This is seen, for one, in the discussion on the selection of church leaders. These three Epistles definitely communicate to us the difficulties of the early Church. The part in Timothy II wherein Paul exhorted the Bishop to be patient in the face of persecution is best illustrates the serious problems they encountered. The recommendations in the Timothy I and Titus regarding the kind of character needed for the leaders of the Church suggest the earnest efforts to build and fortify what we know now to be a heavily challenged Church back then. In gist, Timothy I and II and Titus portray the picture of the Christian community during the incipient period of the Church. The Books show that times were hard but that the early Christians, herein guided by Paul, mustered their faith and effort for the ministry.

The Atlantic Charter Churchill And Roosevelt Legendary Meeting History Essay

The Atlantic Charter Churchill And Roosevelt Legendary Meeting History Essay August 8, 1941, the crew of Britains newest battleship HMS Prince of Wales was cleaving her way at top-speed through the unrelenting heavy seas of the Atlantic to Placentia Bay, Newfoundland. Onboard this ship is British Prime Minister Sir Winston Churchill, who had made the voyage across the Atlantic where President Roosevelt eagerly awaited the onset of discussions fateful to the outcome of the Second World War. On August 9, 1941, President Roosevelt and Prime Minister Churchill met onboard the American cruiser U.S.S. Augusta anchored off the coast of Newfoundland. The discussion between the two leaders at the meeting would result in a joint declaration called the Atlantic Charter. It promptly created a critical alliance which supported Britain in its fight against the Nazi Regime. Subsequently the agreement established post-war goals for World War II and laid the groundwork for future international peacekeeping organizations. Two years prior to the beginning of World War II in the spring of 1938, German speakers living in the Sudetenland region of Czechoslovakia began favoring for closer ties with Germany. Hitler began to support those requests and favored reclaiming the Sudetenland. He had recently annexed Austria into Germany and the conquest of Czechoslovakia was the next step in his plan of creating a greater Germany (Sep 30, 1938). Prime Minister Neville Chamberlain was intent on averting war, although the Czechoslovak government hoped that Britain and France would offer assistance in the event of a German invasion (Sep 30, 1938). Chamberlain traveled twice to Germany to offer Hitler favorable agreements, but the German chancellor kept increasing his demands (Sep 30, 1938). International tension increased when Hitler began demanding the Sudetenland in Czechoslovakia be under the control of the German government. In an attempt to resolve the crisis, Chamberlain met with the leaders of Germany, France, and Italy in Munich to discuss the terms of handling the Sudetenland. Within the early morning hours of September 30, 1938 Adolf Hitler of Germany, Benito Mussolini of Italy, Èduoard Daladier of France, and Neville Chamberlain of Britain signed the Munich Pact, which sealed the fate of Czechoslovakia, virtually handing it over to Germany in the name of peace (Sep 30, 1938). The Munich Pact sacrificed the autonomy of Czechoslovakia on the pedestal of a very short peace term (Sep 30, 1938). The peace of the world only lasted eleven months before Hitler seized the rest of Czechoslovakia in March of 1939 (Friedrich). In response to Hitlers violation of the Munich Agreement, Britain signed with Poland the Polish-British Common Defense Pact, which guaranteed the integrity of the Polish state. Chamberlains decision to sign Poland after the dismemberment of the Czechoslovak state meant Britain, along with France were committed to protecting a nation where they had no common borders (Invasion of Poland). Reacting to the Anglo-Polish alliance, Hitler negotiated the German-Soviet Pact of August 1939, which made Poland partitioned between the two powers, enabled Germany to invade Poland without Soviet intervention (Invasion of Poland). On September 1, 1939, Germany invaded Poland and later on September 17, 1939, the Soviet Union invaded the eastern part of the coun try. Britain and France, standing by their guarantee declared war against Germany September 3, 1939 (Invasion of Poland). This was the beginning of World War II. The Phony War was the label given to the period of time between September 1939 and 1940 when Britain and France had not fought in combat. For several months, German troops sat and waited while French forces held their defenses (The Finest Hour). The Phony War would come to an end on April 9, 1940 when Hitler began a successful attack on Denmark and Norway. Then on May 10, German troops launched a blitzkrieg attack on the Netherlands, Belgium, and Luxembourg. The German army was quickly advancing across Europe and would soon cross the line of fortifications that protected France. On June 10, 1940, Hitlers armies swept throughout the region of France with Frances defeat only a matter of time, the country fell under Nazi control on June 22 (The Finest Hour). After the fall of France, Prime Minister Churchill faced the possibility of invasion coming from France, across the English Channel. Churchill amassed the British navy to stand between Hitler and England. In an attempt to demolish the Royal navy, Hitler turned to the Luftwaffe, Germanys air force, to destroy Brittans air defenses. The intense attack called the Battle of Britain would continue for three months where day after day as many as a thousand German airplanes dropped bombs within the city of London and Britain (The Finest hour). By the end of 1941, Britain had experienced a shortage of war materials that they were unable to pay for and was fatigued by the constant air raids from the Germans. Churchill, in favor for an alliance with the U.S., tried to communicate with Roosevelt to facilitate the sending of military supplies over to Britain (The Finest hour). Bounded by the Neutrality Act of 1939, the U.S. was not permitted to release arms to any warring country unless on cash and carry terms (Decker and Chiei 2). Without antagonizing the isolationist who wanted to keep the U.S out of international affairs, Roosevelt constructed the Lend-Lease Act, a bill that empowered the president to sell, transfer title to, lend, lease, or dispose of [articles of defense to] the government of any country the President deems vital to the defense of the United States. The Lend-Lease Act provided the British with planes, tanks, guns, artillery, and ammunition without them paying for it. Bypassing the legislation would prove c ritical to sustaining U.S. allies and would be necessary for continued preparation for what appeared to be the inevitable involvement of the U.S. in WWII (Decker and Chiei 2). Throughout 1940 and 1941, Churchill attempted to win the confidence of Americans by demonstrating his trust in them. Roosevelts presidential advisors Averell Harriman and Harry Hopkins were invited by Churchill to meet Britains highest military leaders (The Finest Hour). Broad- ranging talks would consolidate policy during the meetings (Robbins). Outlining his views on strategy to win the American alliance in the war, Churchill reassured his guests that the Japanese would not enter the war until they were sure that we were beaten. They did not want to fight the United States and the British Empire together (qtd. in The Finest Hour). The roaring advance of Hitlers Nazi army had widened the war rapidly and Hitlers attack on Russia had created the need for a Roosevelt-Churchill summit meeting (Robbins). Roosevelt planned for a meeting between the two leaders that was privately held off the coast of Newfoundland. The President objective for the meeting was to cement relations with Britai n and to discuss terms on the Lend-Lease Act. Churchills objective was to draw the U.S. into WWII and secure more help for the British (Behind Closed Doors). Boarding the British battleship HMS Prince of Wales on August 4, 1941, Churchill proceeded on his voyage to meet with the President. Cruising through malignant waters of the Atlantic Ocean filled with enemy submarines and raiders shrugged off the dangers and continued to toil away at official papers and increasing Roosevelts support for the war (Robbins). Churchills departure was kept at utmost secrecy to outmaneuver Hitlers Kriegsmarine. While Churchills whereabouts were kept hidden, however, because the Americans were still at peace, presidential locations were fully located. The White House told the nation that Roosevelt was enjoying a fishing holiday onboard the Presidential yacht Potomac. Once Roosevelt left the surveillance of the nation, he joined the U.S.S Augusta and continued his voyage to Placentia Bay under the shield of planes and destroyers (Robbins). The destiny of the world would depend on the effectiveness of the policies agreed by Winston and Churchill. After the attack on Russia by the Germans on June 22, 1941, Churchill immediately aligned with the Russians and arranged the signing of a pact to provide possible aid. On August 9, 1941, Churchill met Roosevelt onboard the U.S.S. Augusta, anchored off the coast of Newfoundland in Placentia Bay. This would mark the beginning of high-level collaborations that would continue until the end of the war (The Finest Hour). During the meeting at Newfoundland, there was a discussion on a strategy to block the anticipated military moves of Hitler and Mussolini. Those present at the meeting felt that combined American and British staff had enough to outwit the axis dictators, though a round table alliance was scarcely the type of structure Hitler was likely to employ with Rome and Tokyo (Robbins). Future moves for the war were coordinated at the meeting to ensure that Hitlers despotism was destroyed. The issue of the Far East and Japan had to be taken care of, also including the issue of Vichy France and the best means of keeping the French battleships out of German hands (Robbins). The stature of the meeting was manifest in the way the two leaders came together for Sunday service on the battleship Prince of Wales. A symbolic moment at war took place when military leaders and sailors of both nations mingles together to sing hymns that Churchill had selected (The finest Hour). On the last day of the meeting Roosevelt and Churchill issued the Atlantic Charter, which expressed a commitment to the principles of self governance and freedom for every country, called for the destruction of the Nazi tyranny, and looked forward to free trade, cooperation, and peace among all nations. The post-war goals the leaders discussed became points laid out in the charter that were for the betterment of the world: (1) Countries shall not seek territorial gain, (2) If the citizens or governing government do not approve of territorial gain, then there shall be none, (3) The rights of people should be respected and not deprived from them, (4) Economic prosperity and trade should Endeavour between the two countries, (5) Collaboration between nations of improved labor standards, economic prosperity, and social security, (6) After WWII, hopes to see established worldwide peace and people have the freedom of speech, (7) If such peace is achieved, then people should be able to be fr ee to move around the world without intervention, (8) All the nations of the world should abandon the use of weapons. (Atlantic Charter). In London September 24, 1941, the delegate of the ten allied nations including the Soviet Union proclaimed allegiance to the Atlantic Charter. U.S. neutrality ended December 7, 1941 when Japan attacked Pearl Harbor. Hitler declared war and the U.S. inevitably entered WWII, along with its allies Britain and Russia. During WWII, although Roosevelt, Churchill, and Stalin were allies, tensions arose between the great three leaders. The glue that held the Anglo-American-Soviet alliance together during the war was the determination to defeat Nazi Germany, fascist Italy, and Japans military government reaching for control of East Asia (Uneasy Allies). The leaders held discreet aims for their respective countries that were in conflict with each other, though by temporary muting their differences they allowed their alliance to survive. Debate arose concerning from the first point of the Atlantic Charter; Countries shall not seek territorial gain. A key issue was Roosevelts mistrust of Britains imperial ambitions. The question was asked Would Britain give up its Nations of Commonwealth in order to comply with the standard of the charter?. Britain had imperialistic motives and Roosevelt did not agree with them, he saw the charter as a solution to end it (BBC). Declarations two and four of the charter lai d the foundations for granting of independence to Britains colonial empire which began as early as 1947. Meanwhile another territorial issue was brewing with one of the Allies. Stalins ideological post-war degrees about control over nations increased tensions between himself and Churchill. At the Teheran meeting, Churchill and Stalin made percentage agreements over how much each nation school control Europe. An agreement was never reached and this has proved to have cause strained tensions against the Soviet Union for attempting to spread communist rule around Eastern Europe (Uneasy Allies). Today, we see proof of the Atlantic Charters lasting impact when people of free nations try and collaborate to try to rescue those victimized by tyrants. The goals laid out by President Roosevelt and Winston Churchill at that diplomatic meeting in August 1941 has laid the foundation of peacekeeping organizations, that strive to keep at equal human rights. Organizations such as the U.N and NATO have sprung from the principles of the charter, created nearly six decades ago, its intent still worthwhile today. The alliance forged at Placentia Bay between two great leaders would prove to be successful in defeating the Nazi Regime and keeping worldwide peace.

E. M. Forster :: essays research papers

Many aspects of writing catch a reader's attention and keep one interested in a book. E. M. Forster put many of these aspects in his books making them well written and quite interesting. He combined great characters, a decent story line, and his prolific knowledge of writing to make his books readable and enjoyable. E. M. Forster was born on January 1, 1879, in London, England. After an education at Tonbridge School and King's College, Cambridge, he spent a year traveling in Europe. On his return, he taught at the Working Men's College and established the Independent Review, a journal that supported the progressive wing of the Liberal Party. Forster later became a member of the Bloomsbury Group that discussed literary and artistic issues. He published his first novel, Where Angels Fear to Trend, in 1905. He wrote many other novels including Longest Journey, Howard's End, and A Room with a View. As a pacifist Forster wouldn't fight in the First World War, instead he worked for the International Red Cross. Two years later Forster moved to India where he worked as a personal secretary for Mahaharajah of Dewas. This resulted in his novel, A Passage to India. When he returned to England he wrote many critiques and articles but never wrote any more novels. E. M. Forster died on June 7, 1970. Many critics are split on E. M. Forster's writings, although most things written are positive and they all seem to agree on the same things. His use of characters and their development and his story lines all seem to be the same and have the same theme. All the characters in his books seem to contain the same elements. They are exempt from poverty, hunger, lust, and hate. They seem to have almost perfect characteristics and are never poor. None of his characters are portrayed in a relation to society; and all must choose between good and evil. ( XXXXX, #2). These characters seem less significant in themselves and more in an allegorical aspect that varies in complexity. XXXXX says, A fascination exerted by characters who grip our minds; a wit and beauty present in an always limped style; a passionate involvement with life in all its variety; a view of existence alive to its comic incongruities and to it's tragic implications; and a steady adherence to human values which compel administration... such are leading aspects of Forster's work that continually line up.

Roots Of Individualism In Euro Essay -- essays research papers

Roots of Individualism in Europe   Ã‚  Ã‚  Ã‚  Ã‚  During the Middle Ages, independent thought was viewed disdainfully. Almost any idea deviating from the status quo, largely determined by the Roman Catholic Church, was condemned as heresy. One convicted of such a grievous offense was often excommunicated or killed, either by means of a proper execution or by a hostile mob. However, with the decline of the Middle Ages, the conditions arose for the birth of individualism—the development of which can be traced through the Renaissance, the Reformation, and the rise of capitalism. Individualism was a radical ideological revolution that forever altered the face of Europe and the rest of the world.   Ã‚  Ã‚  Ã‚  Ã‚  The beginning of individualism’s gradual evolution was first manifested in the Renaissance Era. The Renaissance was a ripe time ready for change. The weakening role of the Catholic Church led to an increase in power for the masses. Corruption plagued Church officials and many sought theological respite elsewhere. The reemphasis of ancient Greek and Roman texts proffered alternatives for many to satisfy their religious needs. This helped contribute to the abolishment of the Church’s imposition of its absolute truth and its claim to ultimate authority. As the church lost power, so did the political units. The bonds between church and state began to erode. Feudalism declined, hence giving rise to new political opportunity. The noble class no longer held a monopoly on the valued positions in society. Rather, one was able to pursue wealth and fame through various endeavors ranging from artist to soldier.   Ã‚  Ã‚  Ã‚  Ã‚  The most empowering change of this era was the dominance of a secular attitude and the decline of church absolutism. This secular viewpoint altered man’s reason for existence from an otherworldly quest to an intimate, immediate appreciation for that which exists on earth. Humanism is a primary source of individualism. Pico della Mirandola’s â€Å"Oration on the Dignity of Man† captures the essence of the humanist movement. He writes that God gave man the ability to make of himself what he wills. Although man is capable of depraved acts, he also possesses the profundity to distinguish him as a holy being. Pico praises the goodness of mankind when he writes, â€Å"man is rightly called and judged a great miracle ... ...the birth of capitalism liberated the goals and means of work. Capitalism allowed individuals to own and manage their own business and reflected the secular mind frame derived from the Renaissance Era. The individual is the unit on which capitalism is based. Bonds between merchants was based on free competition rather that the need to trade. This liberating system of economy allows rise for the individual to direct his own business.   Ã‚  Ã‚  Ã‚  Ã‚  Individualism developed with the gradual transfer of power from large establishments to the individual and his rights and opportunities as a member of society. The importance and power of the individual was not fully realized until ideas were transformed through the Renaissance, the Reformation, and the rise of capitalism. These movements helped Europe realize the latent potential within an individual. Until such progressive movements occurred, the individual was neglected. Today, one man can cause the downfall of a hundred because of his individual power—this is directly related to many of the changes that begun in the fourteenth century. In fact without such transformations, the world would not stand as we know it today.

Financial Markets Assignment

FINANCIAL MARKETS & INSTITUTIONS ASSIGNMENT 1. Explain how interest rates decline following major Fed purchases of mortgage-backed securities. The FED implements quantitative easing by buying financial assets of longer maturity, e. g. , mortgage-backed securities, from commercial banks and other private institutions in order to inject a pre-determined quantity of money into the economy. This is a means of stimulating the economy and lowering longer-term interest rates further out on the yield curve; quantitative easing increases the excess reserves of the banks, and raises the prices of the financial assets bought, which lowers their yield.Graphically, this can be explained with the aid of Figure below. The supply of money is shifted from point 1 to the right (MS1 to MS2) and, all else equal, the new equilibrium point (with aggregate money demand curve) is at point 2, where the interest rate is lower. i i1 i2 AD1 MS1 MS2 Quantity of Money 2. What could be the implications of lower in terest rates for households and businesses? By implanting the policy of purchasing mortgage-backed securities, the FED has set its sight on increasing consumption and investment, which will ultimately increase employment.As described in question one Bernanke’s policy decreased interest rates to new record lows, encouraging borrowing for both businesses and households. The ability to borrow money at more attractive rates stimulates investment in durable consumer goods, such as automobiles, and in operational necessities such as buildings and capital equipment for businesses. Indeed, after the implementation of the policy mortgage applications increased significantly.Because of low interest rates households and businesses as investors could shift their preference away from bonds and into stocks. According to frbsf. org, the increase in stock trading volume has the effect of raising the value of existing stock portfolios, which in turn stimulates consumer and spending across the country due to the psychological effects of rapid capital appreciation. Lower interest rates can have negative effects on the value of the local currency compared to other currencies.As foreign investors dump their local-denominated investments in favor of more profitable currencies, exchange rates can shift to the detriment of the local currency. The weakening of the local currency serves to increase the attractiveness of local goods to foreign purchasers, which has the effect of boosting exports and international sales. All of the factors mentioned above have the combined effect of increasing productive output, or GDP, and increasing employment across a wide range of industries.As individuals, businesses and foreign investors are encouraged to spend more due to increased access to capital, higher portfolio valuations and weaker currency values, businesses in nearly every sector experience an increase in sales, often requiring them to grow their operations and employ additional la bor. However, there are some negative implications from this policy. Without a strong commitment to control inflation over the long run, the risk of higher inflation is one potential implication of experiencing real interest rates below the economy’s natural interest rate.Low interest rates provide a powerful incentive to spend rather than save. In the short term, this may not matter much, but over a longer period, low interest rates penalize savers and those who rely heavily on interest income. If short-term interest rates are low relatively to long-term rates, households and firms may overinvest in long-term assets, such as Treasury securities. If interest rates rise unexpectedly, the value of those assets will fall (bond prices and yields move in opposite directions), exposing investors to substantial losses.Finally, low short-term interest rates reduce the profitability of money market funds, which are key providers of short-term credit for many (large) firms, e. g. the c ommercial paper market. 3. Explain the Fed’s policy dilemma and try to rationalize why unemployment in the US is stubbornly high while inflation is low. Based on the theory of the Philip’s curve diagram we notice that there is an inverse relationship between inflation and unemployment. Stated simply the lower the unemployment in an economy the higher the rate of inflation.Philip’s Curve Inflation Unemployment The explanation of the inverse relationship between inflation and unemployment is based on two assumptions. The first has to do with the fact that as unemployment rises there is no room for workers and labor unions to demand an increase so a wage inflation that would increase the prices of the final products cannot occur. Secondly high unemployment is a reflection of the decline in economic output and indicates an economy’s slowdown. Therefore competition among firms in recession will lead the prices at lower levels.But this is not the case currently in the US since we observe high unemployment and low inflation. The FED is concerned about the unemployment rate and in an effort to stimulate the economy and improve the labor market conditions it started implementing the quantitative easing policy. So the FED purchased MBS, helped banks to rebuilt their balance sheets, contributed into maintaining price stability, preserved interest rates near zero for more than three years, and prevented the economy from slipping into greater recession. Despite all these efforts the situation in the labor market did not improve.Apparently the fact that unemployment is still very high depicts the limitations of the monetary policy. The low business confidence, policy uncertainty, and the government’s reluctance to act are beyond the FED’s capacity. What is more the infinite use of the quantitative easing may produce undesirable effects in the long run such as stagflation. The only optimal solution under these circumstances is the co ordination of the FED’s monetary policy with the government’s fiscal policy plan that could boost the society’s confidence. . Do you think that another round of quantitative easing (QE) by the Fed would help stimulate the US economy? Please explain. The FED declared that the use of QE will be aggressively continued until the economy is improved. The cash injections into the economy helped interest rates to remain at low levels. Consequently everyone wins from this decision in the short run; homeowners can borrow at historical low levels of interest rate, corporations can also take advantage of this act and invest, consumption increased and also the banks increased their profits and the stocks record a growth. So as long as the QE is active in the short run everyone is a winner. But in the long run things become vague. First of all historical evidence shows that despite the fact that interest rates may be at levels near zero it remains uncertain whether this wil l be the incentive to boost the actual economy. Secondly the fact that consumers will have more money to spend but fewer goods to buy might lead to a hyper inflation.Furthermore by repeating the use of QE is very possible to lead to a liquidity trap, unless the economy finds ways to stimulate production. Last but not least the FED’s decision to inject cash into the economy by purchasing MBS is questionable; Mortgage backed securities entail the risk of defaulting once again as they did in the real estate crisis and that would cost the Americans a lot more money repeating the history that started back in the September of 2001. To sum up the use of QE is indeed very effective but only in the short run.Short periods of economic recession can be avoided by stimulating the economy temporarily through cash injections but to maintain growth on the real economy we need to improve labor market conditions, productivity, innovation and bolster the economy’s confidence. So a combi nation of fiscal and monetary policy is the only way to prevent an economy from collapsing, and also is this is the only way to avoid a possible systemic risk that will negatively affect all the institutions and individuals. . How is a loose Fed monetary policy in the US affecting fundamentals (such as inflation, asset and commodity prices) in other countries? What does that imply about global monetary policy? Since the dollar is the vehicle currency in the global economy almost every country is tied to its value and everyone is affected by the monetary decisions of the FED. By the QE, the supply of dollars is increased and consequently the dollar depreciates against foreign currencies.This means that America’s exports will increase and on the contrary the imports will decrease. So countries trading with the US fear about the capital inflows and the possible inflation on commodities. On the other hand the FED support that there can be no further inflation since the global eco nomy is in recession. Moreover countries experiencing huge capital inflows resulting in inflation can implement fiscal policy, such as imposing taxes, in order to contain the effects of foreign capital inflows which push up local stock prices and the currency itself.Every country should focus on its own monetary policy adjusting it to the problems that may experience. For example the US chose to inject more money in the economy. The results of such a decision are low interest rates, more exports but always with the risk of inflation. On the other hand a country experiencing high inflation might limit the money supply, increasing the interest rates with the risk of experiencing a decline in exports.