Why Deflation Doesnt Happen During a Recession

Why Deflation Doesn't Happen During a Recession When there is economic expansion, demand seems to outpace supply, particularly for goods and services that take time and major capital to increase supply. As a result, prices generally rise (or there is at least price pressure), particularly for goods and services that cannot rapidly meet the increased demand, such as housing in urban centers (relatively fixed supply), and advanced education (takes time to expand/build new schools). This doesnt apply to cars because automotive plants can gear up pretty quickly. Conversely, when there is an economic contraction (i.e. recession), supply initially outpaces demand. This would suggest that there would be downward pressure on prices, but prices for most goods and services dont go down and neither do wages.  Why do prices and wages appear to be sticky in a downward direction? For wages, corporate/human culture offer up a simple explanation: people do not like to give pay cuts... managers tend to lay off before they give pay cuts (though there exist some exceptions). That said, this doesnt explain why prices dont go down for most goods and services. In  Why Does Money Have Value, we saw that changes in the level of prices (inflation) were due to a combination of the following four factors: The supply of money goes up.The supply of goods goes down.Demand for money goes down.Demand for goods goes up. In a boom, we would expect that the demand for goods to rise faster than the supply. All else being equal, we would expect factor 4 to outweigh factor 2 and the level of prices to rise. Since deflation is the opposite of inflation, deflation is due to a combination of the following four factors: The supply of money goes down.The supply of goods goes up.Demand for money goes up.Demand for goods goes down. We would expect the demand for goods to decline faster than the supply, so factor 4 should outweigh factor 2, so all else being equal we should expect the level of prices to fall. In  A Beginners Guide to Economic Indicators we saw that measures of inflation such as the Implicit Price Deflator for GDP are pro-cyclical coincident economic indicators, so the inflation rate is high during booms and low during recessions. The information above shows that the inflation rate should be higher in booms than in bursts, but why is the inflation rate still positive in recessions? Different Situations, Different Results The answer is that all else is not equal. The money supply is constantly expanding, so the economy has a consistent inflationary pressure given by factor 1. The Federal Reserve has a table listing the M1, M2, and M3 money supply. From Recession? Depression? we saw that during the worst recession America has experienced since World War II, from November 1973 to March 1975, real GDP fell by 4.9 percent. This would have caused deflation, except that the money supply rose rapidly during this period, with the seasonally adjusted M2 rising 16.5% and the seasonally adjusted M3 rising 24.4%. Data from Economagic shows that the Consumer Price Index rose 14.68% during this severe recession. A recessionary period with a high inflation rate is known as stagflation, a concept made famous by Milton Friedman. While inflation rates are generally lower during recessions, we can still experience high levels of inflation through the growth of the money supply. So the key point here is that while the inflation rate rises during a boom and falls during a recession, it generally does not go below zero due to a consistently increasing money supply.   In addition, there may be consumer psychology-related factors that prevent prices from decreasing during a recession- more specifically, firms may be reluctant to decrease prices if they feel like customers will get upset when they increase prices back to their original levels at a later point in time.

How To Answer “Why Do You Want To Work Here”

How To Answer â€Å"Why Do You Want To Work Here† This question comes up in so many job interviews. Surprisingly, most people are unprepared to answer it well. Think of this question as another valuable opportunity to show you’ve done your homework on a company, and to show that your ideals and goals are in lockstep with those of the company you’re interviewing with. Don’t just blather on about how they value whatever their mission statement says they value, or praise whatever company culture you’ve been able to glean from their brochures. Have something distinctive to say.Try these strategies and you’ll be in much better shape.1. Word of MouthHave you heard from current or past employees? Now might be the time to mention that you’ve got several contacts who worked there in the past, or friends of friends who work there now. It’s fine to say that you’ve received glowing reports; it makes your interviewer feel good, and it shows you did a bit of sleuthing around!2. Social MediaD oes this company have a particularly winning social media platform? Consider mentioning their engaging use of Facebook, or their badass presence on Twitter. This also shows that you’re engaged,   and with it  enough to be all up on social media.3. CommonalityIf you’ve done your digging and found contacts you know who work there on LinkedIn, for example, and you’ve noticed a particular pattern- something that most employees of that company seem to have in common- then mention it! Show that you’ve taken the time to figure out what the common thread is and then explain how you fit right in with it.4. LeadershipIt’s obviously good to speak favorably about the product or service the company puts out, but it’s even better to comment on their leadership- either within the industry or globally. Talk about their community involvement or philanthropy.5. UniquenessAcknowledge first and foremost what makes the company so unique. Show that youâ€℠¢ve looked into them enough to really understand what it is they’re going for- then compliment them on their success. All the while showing how their uniqueness matches yours perfectly!6. Its Past/FutureTalk about the company’s origins and past achievements†¦ or fast forward to show how well you can think ahead and envision the company’s goals being realized in an ever-changing industry. Show that you’re already invested in the future of the company.7. Get PersonalIf all else fails, tie your appreciation of the company to some aspect of yourself. Be as specific as possible. Have you had a personal interaction with anyone at the company? Now’s the time to start chatting about that. Remember, there’s no right way to answer this, only a few extra bonus points you can score if you answer it well.

Free Essays on Henry Vaughns The Waterfall

to show the reader how the waterfall is a metaphor for a person’s life, containing many highs and lows. The tone of this poem is relaxed. While reading the poem I feel at ease, as if I am somewhere in the woods by a stream with a waterfall. This seems to be the intended effect, as Vaughn wishes to create a comfort level for the reader. I feel as though this helps the reader to consider the poem as a whole, making it easier to see how the early stages develop the later stages of the poem. The poem is separated into two sections by an empty line. The first section contains twelve lines, all of which contain iambic feet. However the number of feet varies in a specific pattern. The first two lines of the poem are in pentameter, followed by two lines in dimeter, two more lines in pentameter, four lines in dimeter, and finally two lines in pentameter. This pattern gives a visual affect to the reader. Because of the varied length of each line, the poem appears to be in the shape of a river with rapids, as it approaches the drop of a waterfall. The second section of the poem is written in iambic foot, with the number of feet varying somewhat. This section of the poem visually falls strait down the page, as a waterfall would look falling off of a cliff. As the poem continues the waterfall turns into a stream, flowing calmly, and steadily. The steady meter that Vaughn uses strengthens this effect. The entire poem in itself is an apostrophe, as the speaker is speaking to and asking questions of the waterfall, which obviously cannot answer. In addition one can interpret this poem as an ambiguity, in which the waterfall is an extended metaphor for the life of a person. The first section of the poem can be interpreted to represent one’s childhood and adolescent... Free Essays on Henry Vaughn's The Waterfall Free Essays on Henry Vaughn's The Waterfall Growing Old in Henry Vaughn’s â€Å"The Waterfall† Henry Vaughn’s â€Å"The Waterfall† is a very insightful poem that carries a deep message. The speaker uses Vaughn’s words to show the reader how the waterfall is a metaphor for a person’s life, containing many highs and lows. The tone of this poem is relaxed. While reading the poem I feel at ease, as if I am somewhere in the woods by a stream with a waterfall. This seems to be the intended effect, as Vaughn wishes to create a comfort level for the reader. I feel as though this helps the reader to consider the poem as a whole, making it easier to see how the early stages develop the later stages of the poem. The poem is separated into two sections by an empty line. The first section contains twelve lines, all of which contain iambic feet. However the number of feet varies in a specific pattern. The first two lines of the poem are in pentameter, followed by two lines in dimeter, two more lines in pentameter, four lines in dimeter, and finally two lines in pentameter. This pattern gives a visual affect to the reader. Because of the varied length of each line, the poem appears to be in the shape of a river with rapids, as it approaches the drop of a waterfall. The second section of the poem is written in iambic foot, with the number of feet varying somewhat. This section of the poem visually falls strait down the page, as a waterfall would look falling off of a cliff. As the poem continues the waterfall turns into a stream, flowing calmly, and steadily. The steady meter that Vaughn uses strengthens this effect. The entire poem in itself is an apostrophe, as the speaker is speaking to and asking questions of the waterfall, which obviously cannot answer. In addition one can interpret this poem as an ambiguity, in which the waterfall is an extended metaphor for the life of a person. The first section of the poem can be interpreted to represent one’s childhood and adolescent...

One mans terrorist is another mans freedom fighter Essay

One mans terrorist is another mans freedom fighter - Essay Example This essay discusses that careful analysis of Islamic law as manifested in the Cairo Declaration on Human Rights would tend to reveal that it is impossible to invoke human rights principles under a system where what is given primacy is the stability of the state, the maintenance of culture and tradition and the binding force of religion. In the United States, for instance, though we see wanton violations of due process and human rights committed by the Bush administration, the grand majesty of the law may at least be invoked to seek redress and to call policies wrong or reprehensible. This paper makes a conclusion that with that said, there are still positive changes to look forward to. The mere fact that the CDHR was entered into by the Islamic states means that there is at least recognition of the need to adhere to a basic human rights framework and that states may no longer act with impunity and expect no censure from the international community. Certainly, there should also be mo ves to actively pursue human rights offenders and punish human rights violations – whether large or small scale. There is a great ethical and moral imperative to exhume the past if only to serve as lessons for the future. In addition, through vigilance and continuous lobbying and sowing the seeds through human rights education, we make it possible to envision a future where human rights are protected, diversity is celebrated and every individual is allowed to blossom to his or her fullest potential. Â  ... The converse of that, of course, is that far too many leaders justify brazen acts of oppression and injustice as a cultural norm and should thus fall outside the scrutiny of the international community. How indeed does one balance these competing interests The concept of human rights is by no means of recent vintage. It is used primarily to define relationships between the citizens and the State, by constituting a check on the awesome power of the State and by enabling human beings to flourish to their fullest potential free from oppression, strife, hunger and discrimination. A thriving and robust democracy, it is often said, can only be achieved when basic human rights are preserved. Cherished principles like press freedom, religious freedom, diversity and pluralism are indispensable requirements of a democratic society. It is difficult, if not altogether impossible, to argue against the validity of these principles. The various conflicts and revolutions in the world have shaped the concept of human rights as we know it. In the last two hundred and fifty years, we see the clamor for human rights as the clamor of a world and of the various peoples inside it for equality and freedom. Starting with the French and American revolutions towards the latter part of the eighteenth century, it is this very notion of human rights that has led colonized states and revolutionary movements to assert their voices and fight for their freedoms against oppressive and despotic governments - from the Tiananmen Square uprising in China to the struggle of the East Timorese against Indonesian occupation. When the United Nations was created in 1948 by a world still reeling from the ravages of the Second World War and intent on healing the wounds

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

Ideology - Essay Example Of course, by its manifestations in every aspect of the material world including social structure and gender roles, ideology comes to have a material existence of its own (165). When I express 'my own thoughts' in 'my own words' I am greatly circumscribed by ideological norms about what I can express and how I can express it: whether to a single listener or to a global audience. By making visible the powerful influences on communication (the material relations between author and recipient; the choice of form and style as historically determined), the study of ideology enables a piece of communication to be viewed as a product of the status quo with which it dialectically engages. Language - whether verbal or nonverbal - is a system of symbols which are given meaning by mutual agreement. There is no universal physical reality to the representation of a particular entity by the word 'dog.' In the case of onomatopoeic words there is some auditory similarity between the represented sound and the representing word: e.g. 'bow wow' is a loose mimicry of a dog barking. But the vast majority of signifiers: words (me), signs (the exclamation point) and symbols (the Mitsubishi logo) are pure symbols: the signification is perfectly non-representative. The most sophisticated forms of communication are purely symbolic: the oldest known script, Sumerian hieroglyphics, began with representative drawings which became more and more stylised and symbolic. Of course, the non-universality of symbols is not obvious: when we learn a language we agree that 'dog' indicates a particular entity in the real world and that the purely arbitrary collection of symbols 'dog' is associated w ith particular ways of moving our articulators and producing sound. Is language then, artificial Noam Chomsky suggests that human beings are born with the inherent ability to imbibe language; and this ability seems to be universal. People can learn new languages well into late life and babies can acquire multiple languages simultaneously and apparently effortlessly. It is not language that is artificial but the particular significations (signifier-signified relationships) of any given language. This kind of artificiality typifies ideology or any of its components, for example the ascription of certain human qualities to inanimate entities (the rose as a symbol of love suggests something about the culture that accepts such a symbol). Any given communication, whether interpersonal or mass-scale, can then be viewed as an iceberg, with the bulk of meaning residing under the level of consciousness. A rose with its petals being torn off by the wind evokes strong emotions not attributable to the mere sensation of watching a flower being disassembled. The ro se is not 'saying' anything new; rather, its very presence and conditions call forth a predictable set of responses: to quote Barthes: "it comes and seeks me out in order to oblige me to acknowledge the body of intentions which have motivated it and arranged it there as the signal of an individual history, as a confidence and a complicity" (Mythologies 48). The tremendous importance of

The Importance of Culture for Managing and Controlling the workforce Literature review

The Importance of Culture for Managing and Controlling the workforce - Literature review Example Undeniable changes are taking place in the workforce mainly due to globalisation and changing composition of national populations of individual countries. National population composition is changing as a result of increased immigration and cumulative effects of high birth rates among minority groups. Apparently, this is reflected in the workforce (Inceoglu, 2002, p. 37). Globalisation has made both small and large companies face competition resulting from overseas companies at home while at the same time confronting the need to be competitive in the foreign markets. In order to prevail from the competition, organisations require adopting new ways of carrying out business, with sensitivity towards the needs of diverse cultural practices. Businesses have to struggle for the best gifts they can find, as well as look for ways to obtain the best from workers they currently have. Most of these employees will be situated at different nations as many firms move to a worldwide way of conducti ng business. As a result, culture becomes important in managing and controlling the workforce. People from different cultures bring forth diversity, which refers to the ways in which people differ, not just the more common aspects like ethnicity and gender (Idea group publishing, 2005, p 580). Literature review Organisations exist on the productivity and output of employee interaction with clients and customers. A company with productive workers is able to offer better customer service that result in more income. Employees’ productivity and customer relations and interactions are influenced by how workers feel about their work. Such emotions are heavily dependent on the culture in the workplace. Sandra Collins (2009, p 30) defines culture as the system of shared values, beliefs, norms, language and social institutions, which steer the daily lives of a group of people. Culture may be collectivist or individualist, reflecting on the extent to which people value their associatio n with the group against their independence as individual. Collectivist cultures value the group above an individual whilst an individualist culture places personal independence above the group. Western Europe, United States and Canada countries have an individualist culture while South American and Asian countries embrace a collectivist culture. Both collectivist and individualist have different approaches towards conflict. Collectivists tend to avoid conflict and prefer harmony, whilst individualists do not enjoy conflict, though they are less likely to stay away from it. Culture builds an atmosphere in which human resources work and establish their value and worth in the company, their opportunities within the organisation as well as their opinion of their management team. The culture could also be measured in terms of conflict resolution policies, language, dress code and industry. Communications also varies with culture, with some opting for direct communication while others em brace indirect style. Cultures that adopt indirect communication usually have relational exchanges before involvement into the business. Such cultures tend to be context-dependent since an immense deal of the message’s meaning lie in the context of the communication. Cultures also differ in terms of time interpretation, with some placing value on multitasking, and others opting for doing one thing at a time. The management is able to build models

Leading a turnaround Essay Example | Topics and Well Written Essays - 250 words

Leading a turnaround - Essay Example Another change made was to reinvest savings back into the business; this had the knock-on effect of raising the company’s EPS. However, perhaps the most successful change was to instill a new corporate culture that respected leadership; this was important if Loren was going to be able to pick the company up because he needed respect of his subordinates. After five years of Loren in charge, the company’s reputation and value grew enormously, with double-digit earnings growth year-on-year. In January of 2005, Loren stepped as CEO of the company and handed over the reins to Steven Alesio (this was planned for two years before it actually took place). For the few months following that move, Loren remained as chairman; he stepped down from this role in May of 2005 and was replaced once again by Steven Alesio. With the company heading in the right direction, it was the right time for Loren to retire and leave the company in the capable hands of someone who he has specifically chosen for the