Zero Inflation Essays - Inflation, Monetary Policy,

Zero Inflation Introduction Hyper inflation has plagued most of the world's developing countries over the past decades. Countries in the industrialised world, too, have at times duelled with dangerously high inflation rates in the post WWII era. With varying degrees of success, all have employed great efforts to bring their inflation rates within acceptable limits. Generally, a moderate rate of inflation has been the ultimate goal. More recently, however, a few countries have pursued policies that strive to eradicate inflation altogether through complete price stability. This has proven to be a contentious enterprise, which clearly indicates that there is still no universally accepted solution to the inflation problem. Indeed, there is not even an agreed consensus regarding the source of inflation itself. The monetarist perception that the root of inflation is solely the excessive creation of money remains. So too does the belief that inflation originates in the labour market. And amongst a variety of others, t he opinion that inflation ?serves the critical social purpose of resolving incompatible demands by different groups? is also strong. This last, and more widely accepted, case shows that the problem is hardly a technical one; but rather a political one. It highlights the now unquestionable fact that politics and inflation are inextricably linked. And as with all inherently political issues, consensus is difficult, if not impossible, to achieve. But, political characteristics do provide flexibility. In some countries, high rates of inflation have clearly been compatible with rapid economic growth and fast rising standards of living. In such cases, it is quite reasonable to suggest that higher rates of inflation are acceptable--perhaps even necessary. In this setting, it is by no means clear that pursing a policy to stop moderate inflation is either required, or in the best interests of the mass of the population at all. While inflation guarantees that some will gain at the expense of others, the redistributions of income and wealth which do take place can, on normal value grounds, be quite desirable. In other circumstances, it may be quite desirable to place strict controls on inflation, or strive to keep it at ?zero' level. Policies aimed at virtual price stability have been in use by central banks in Europe, New Zealand, and Canada over the past few years. Such policies have been particularly focused in Canada. As noted by Pierre Fortin, ?the only objective the Bank of Canada has pursued since 1989 has been to establish and maintain the inflation rate at ?zero level', which it sees as a CPI inflation rate that is clearly below two percent? (italic added). To the surprise of many, it has been incredibly successful, achieving its objective several years before schedule. Although separated by only a few percentage points, Canada's policy is a sharp contrast to the moderate and balanced approach used in the U.S. ?Since 1989 the Federal Reserve has been satisfied with achieving an inflation rate of around 3 percent. In setting the interest rate, it has continued to pay explicit attention to real economic growth and employment, with the result that the U.S. unemployment rate is currently in the 5 to 6 percent range.? Based on this statistic alone, it can be argued that the more moderate U.S. approach has enjoyed greater success than the deflation oriented policy pursued by the Bank of Canada: Canada continues to be burdened with a higher rate of unemployment. Yet, it continues to believe that the unemployment costs of low inflation are ?transitory and small' . The directors of most European Central Banks also continue to support this dogma. Clearly, the credibility of the ?classical idea that the Phillips trade off between inflation and unemployment dis appears in the long run? is still very high throughout the world. But, in Canada, as in most of Europe, the waiting continues. This is not to suggest that the waiting game has been silent and entirely pleasant. Indeed, the relative lack (or lag!) of success of zero inflation policies and strict price controls has spurred much heated debate. As a case in point, more people are curious why Canada has exclusively focused on inflation cutting and turned a blind eye to the more balanced, and arguably more successful, approach adopted by the U.S.. Is

I shall obey, my Lord Essays

I shall obey, my Lord Essays I shall obey, my Lord Paper I shall obey, my Lord Paper An exploration of Shakespeares portrayal of women in Hamlet Although not as fully realised as the main male characters, the female characters in Hamlet play an absolutely crucial part in developing the deep running themes in the play, and prompting fundamental questions about human psychology for the audience. Hamlets relationships with the two women in the play are complicated and turbulent. The cold rejection of Hamlet by his childhood love, Ophelia, and the disloyalty and gross, publicised sexual activity of his over-sensual mother, conspire to produce misogynous feeling in Hamlet. Hamlet often expresses his thoughts and feelings, conscious and unconscious, through imagery. In Act II scene ii, he describes fortune as a strumpet, or whore. This comment hints at his misogyny, but these feelings can perhaps be best illustrated by his exasperated cry, Frailty, thy name is woman. The female characters in the play can be interpreted as either manipulative, using those around them to gain for themselves, or manipulated, being pushed around by those in more powerful positions. Certainly in a patriarchal society like the one described in Hamlet, (or indeed the society in which Shakespeare lived), women had very little independent power, and therefore had no choice but to use the men around them if they wanted any influence whatsoever. Perhaps Gertrudes relationship with Claudius is an example of this. Ophelia seems to be a submissive, weak character who has retained a childlike innocence and naivety; Polonius calls her a green girl, (where green means inexperienced and immature). She demonstrates what an Elizabethan audience would have deemed an admirable loyalty to her father, Polonius, whose thumb she is well and truly under. She is very much influenced by him, and also by her brother Laertes, indeed, at their wishes, she spurns Hamlet, showing a distinct lack of loyalty to her lover, and little of the passion or determination of a Juliet. Ophelia has relied on men for guidance since the death of her mother when she was an infant, and in the absence of the three dominant men in her life, (Hamlet in England, Laertes in France and Polonius dead), Ophelia is lost. This combined with her guilt at rejecting Hamlet, which she sees as the direct cause of his insanity, and the subsequent death of her father, causes her to become insane also. As Anne Barton puts it, in William Shakespeare Four Tragedies, Ophelia doesnt commit suicide; when she accidentally falls into the stream she simply yields to the current as she always has done in life. This epitomises Ophelias primarily submissive temperament. It could be argued that Ophelia in fact plays the part of manipulator, as opposed to the manipulated. Perhaps she rejects Hamlet to please her father, but with a selfish motive, to further her own cause in some way. In Act III scene i, she joins the plot to discover the cause of Hamlets madness, and in doing so deceives him, saying that her father is at home, when in fact he is hidden behind the arras, eavesdropping on the conversation. It could also be argued that Ophelia did in fact commit suicide, as a last act of attempted revenge on Hamlet for withdrawing his love from her. Whether or not she is manipulative, she seems impassionate in her love towards Hamlet. She heeds her father and brother and fails to fight for her relationship with him, indeed when Polonius warns against involvement with the prince, Ophelia is typically compliant, replying merely, I shall obey, my Lord. To Hamlet and the audience it may seem as if Ophelia is unloving and cruelly rejecting, but perhaps she does love Hamlet, but only as far as her childlike capacity allows, without the passion and conviction of a more mature, independent character. Ophelia confuses Hamlet. When he cries, Get thee to a nunnery, he perhaps cannot decide whether she is as chaste and virginal as she seems or in fact as whorish and sexually motivated as his mother. If she is what she seems, the world of lust, murder and incest is no place for her, but if she is like Gertrude, perhaps nunnery in its other sense, i. e. brothel, is a more appropriate place for her. Shakespeares creation of Ophelia as a weak and childlike character, with a distinct lack of heroism, is necessary. Shakespeare did not want to place great emphasis on the love story; if Hamlet had been madly in love with Ophelia, it might have interfered with the main storyline. She had to be a subordinate character, unequal to Hamlet in spirit or intelligence; otherwise she would have been more inspiring and able to help Hamlet. This is demonstrated when, under her fathers advice, she ends her blossoming relationship with Hamlet without question hardly the actions of a Cleopatra or a Portia.