Intermediate targets Essay Example | Topics and Well Written Essays - 1000 words

Intermediate targets - Essay Example One of the most quoted examples of an indirect target is the money supply in an economy. Federal Reserve cannot destroy the old dollars neither it can throw a batch of new ones in the market (in practice, the Fed has all the authority to print new dollars and increase the money supply directly but it is most likely and the assumption here is that it wont do the same) (Bofinger, Reischle & Schachter, 2001). Therefore, in order to increase or decrease the money supply in the market, the process is to alter the interest rates of the economy and open market operations of buying or selling bonds. Low interest rates coupled with the Fed’s attempt to buy the bonds in the market would increase the money supply in the market since people would take their money out of their banks to search for other investment alternatives, which can create higher returns. Furthermore, the individuals who previously had bonds now hold their asset in a form liquid form thus increasing the overall money s upply in the market (Solow & Taylor, 1999; Bofinger, Reischle & Schachter, 2001) Unemployment is also an intermediate target of monetary policy. Despite the fact that this is not the goal of monetary policy under all monetary policy but it is a major goal for most of them. In order to decrease unemployment, the monetary policy experts would try to decrease the interest rates, which would in return boost the investment from the side of the general public. More investment would lead to more job opportunities and more job opportunities, thus, reducing the overall level of unemployment (Bofinger, Reischle & Schachter, 2001). Furthermore, with decreasing interest rates, the inflation is likely to go up which would give an incentive for the producers to produce more and earn greater profits in nominal terms. This motivates the producers to further increase the output and productivity, which leads to more employment opportunities (Solow & Taylor, 1999). Inflation Targeting In most of the s tates and countries where monetary policy exists, one of its prime targets is to target inflation and keep the same under the desired range, by either causing an increase or decrease in it. Since interest rate is the main tool of monetary policy for Central Bank, the inverse relationship of interest rates and inflation rates makes it clear for the general public that what the Central Bank is trying to do with the inflation (Walsh, 2003). For example, if the inflation is above the desired or targeted level and the Federal Reserve wants to bring it down, the idea would be to raise the interest rates so that the inflation rates could drop down (Gali, 2008). Therefore, according to its definition, inflation targeting refers to the process used the Federal Reserve with which the Fed estimates, plans and set a target for future inflation and with the help of monetary policy tools makes an attempt to accomplish the same. People in the economy also get to know this target so that they could plan their savings, wages, incomes, and others in line of that future level of inflation. Almost all the developing and developed countries in the world actively use inflation targeting since it helps in the smoothing of economic operations in the country (Bofinger, Reischle & Schachter, 2001). Inflation targeting, which is being used by many emerging economies of the world, if successfully anchored, leads to great benefits. First,

IRB Essay Example | Topics and Well Written Essays - 2000 words

IRB - Essay Example The researcher is interested in carrying out the interviews of 50 females belonging to various ethnic groups, age-groups, socioeconomic status and areas of the city, though African American will dominate as the universe for the present study. The universe will be comprised of the women who have undergone any type of crime at least once in their life, out of which a sample of 50 women with the age range 25 to 50 will be selected. Interview schedule will be applied as a tool for data collection. Being the vast topic containing ethnic and gender discrimination elements, the researcher is interested in conducting the research in the culturally diversified city of New York, USA. 1- Universe: As the researcher is the student of the New York University, he aims to select the white, yellow, brown and black female population of New York. The researcher is interested in conducting the interviews of fifty females to find out the results and concluding the problem. 2- Sampling: The researcher intends to apply quota/non-probability sampling to represent different ethnic groups and socioeconomic classes of the society. The research will be comprised of females from middle and lower classes, who have undergone any type of criminal assault. Four ethnic groups will be the respondents, though the majority of them will consist of black female respondents. The study will be focused on two types of victims. The first category belongs to the females who are the victims of the crimes committed by the strangers. On the other hand, the second category will be comprised of the women affected and cheated by their own relations and kinsmen. 3- Tool for Data Collection: Interview-schedule will be applied as a research tool to gather the data from the respondents. Interview schedule will be consisted of twenty nine questions and will be divided into three parts. First part will be about the general enquiry including the questions related to age, socioeconomic