Germany hyperinflation Essay Essays

Germany hyperinflation Essay Essays Germany hyperinflation Essay Essay Germany hyperinflation Essay Essay In 1923. Germany experienced hyperinflation which about ruined the nation’s Mark. At the clip of this happening. Germany emerged from the first World War as a also-ran in more ways that one: Not merely did the state lose the war. but the application of Treaty of Versailles crippled the German economic system. The reverberations of England’s demands of war compensation from Germany led to the latter country’s turn with hyperinflation. Even as the American Dollar presently faces a devaluation. though non on the graduated table of 1923 Germany. the American Federal Reserve Board should be wary of its current pecuniary policy and zero rising prices methods. Hyperinflation refers to rising prices that rises rapidly due to lift in monetary values because of the rapid diminution in the value of a nation’s currency. There are assorted ways to specify the oncoming of hyperinflation. : As stated at Wikipedia. Philip Cagan claims an economic system possibly confronting hyperinflation in four ways: First. if a nation’s people choose to deprive from their nation’s pecuniary currency. choosing to put in other nation’s assets. for illustration ; 2nd. if the nation’s people see pecuniary sums in a foreign currency more stable than of the local currency ; 3rd. recognition gross revenues occur at monetary values that compensate for the doomed of currency value ; and 4th involvement rates. monetary values. and rewards are linked to the monetary value index and the cumulative rise of rising prices over a three twelvemonth period peers or surpasses the 100 per centum grade ( â€Å"Hyperinflation† ) . In the twelvemonth 1923 in Germany. rising prices hit 3. 25 * 10^6 per month. affecting monetary values that doubled every two yearss. Harmonizing to Wikipedia. most economic experts province. hyperinflation occurs with â€Å"an inflationary rhythm without a inclination towards equilibrium† ( â€Å"Hyperinflation† ) . There are marks of a state heading towards hyperinflation such as a period of uncheck rise in money supply. political and/or societal agitation. and/or wars or the consequences of wars. This latter class proves evident with Germany in the wake of World War I. Even as Germany made reparations in conformity with the Treaty of Versailles. the British demands led to stultifying effects on the German economic system. The â€Å"London Ultimatum† in May 1921 demanded reparations in gold to be paid in one-year installments of 2. 000. 000. 000 gold Markss plus 26 per centum of the value of Germany’s exports. 3 Before the ultimatum. the Mark â€Å"was comparatively stable at about 60 Marks per US dollar during the first half of 1921† ( â€Å"Hyperinflation† ) . Guttman stipulates that even as Germany made its first payment to the British in in August 1921 ( 21-26 ) . The seeds were planted for the rapid devaluation of the German currency which fell to less than one tierce of a cent by November 1921 about 330 Marks per US Dollar. The entire reparations demanded was far more than the entire German gold or foreign exchange. . The Germans printed more currency to cover its debt and at higher denominations. The Germans attempted to purchase foreign exchange with exchequer measures and commercial debt. but this unwittingly led to a quicker devaluation of the nation’s currency. More marks of hyperinflation appeared in Germany in the resulting old ages. Early on in 1922. the Mark temporarily stabilized at about 320 Marks per Dollar along with international reparation conferences. Unfortunately. nevertheless. these conferences offered no solution to Germany’s sufferings. and by December 1922. the value of the Mark dropped to 8000 Marks per Dollar. The cost of populating index was 41 in June 1922 roses to 685 in December. In January of the undermentioned twelvemonth. Gallic and Belgian military personnels that occupied the Ruhr vale in Germany demanded that reparations be paid in goods like coal since â€Å"the Mark was practically worthless† ( â€Å"Hyperinflation† ) . Reparations. accounted for one tierce of the German shortage from 1920 to 1923 ( Bresciani-Turroni. 93 ) . Germany printed ( see wikipedia ) The rising prices peaked in November 1923 when the authorities introduced the Rentenmark to replace the named Papiermark. The German authorities backed the Rentenmark with monies obtained from mortgaged lands and industrial goods. When the German people accepted this Rentermark. which had a fixed value. the rising prices ended. Another state that is perchance on the route to hyperinflation is the United States. Earlier in 2008. the Federal Reserve tried to bolster the dollar by take downing involvement rates and by harmonizing to Peter Schiff‘s â€Å"Dollar Bears: The route to hyper-inflation. † for illustration â€Å"switching out $ 200 billion dollars of exchequer debt for potentially worthless mortgage-backed securities. † The securities are considered worthless because no private equity house would even touch them. Paper dollars are Federal Reserve Note doing them the liabilities of the Fed. When the Fed puts new notes into circulation it does so by purchasing assets. normally U. S. exchequers. which it so holds on its balance sheet to countervail that liability. Schiff noted. â€Å"By trading exchequers for mortgages. the Fed efficaciously alters the digest of its balance sheet and the backup of its notes. † Schiff observed that â€Å"backing paper money with mortgages isn’t new. The Gallic tried it in the eighteenth century. and it [ led ] to hyperinflation. † Assignats. the currency which the French used in 1790 to help in funding the country’s revolution attempts. were backed by mortgages on confiscated church belongingss. The job was that the revolutionists continuously printed Assignats. despite deprecating the value of their ain currency. As Schiff stated. â€Å"By 1799 the currency was wholly worthless. † To avoid the possible hazard of investing in mortgage securities. the Fed could prosecute is zero rising prices policy utilizing the Keysenian macroeconomics theoretical account. Under this theoretical account the cardinal bank would keep a zero per centum nominal involvement rate. The intent is to promote investing in the economic system by doing capital purchases more enticing. Harmonizing to the pro-zero rising prices side in Rebecca Hellerstein‘s article â€Å"The Impact of Inflation. † â€Å"zero rising prices allow consumers and houses to compose simpler contracts and do long-run programs for retirement or future investing with less concern. † The statement. in the contrary. about the costs acquiring to this point would outweigh the benefits. Economic end product would be lost. Unemployment would lift. Workers would see lost in wage. because of Hellerstein provinces in her article. â€Å"Firms use rising prices to ‘cover’ accommodations in existent rewards. † Besides. retired persons wouldn’t see the cost of populating accommodations that that would have with a low to chair involvement rate due to zero rising prices. Furthermore. zero rising prices could take to deflation. and terrible deflation could take to high involvement rates with falling nominal monetary values. Germany. at the terminal of World War I went through a major economic crisis with hyperinflation because of rapid devaluation of its currency. Germany was unable to adequately run into the signifier of reparation of its war debt with England. This led the state to devaluate its ain currency to run into its demands. Because of this devaluation the Germans had to do other reparations in industrial goods like coal. America with its current rising prices and chases of a pecuniary policy that resembles what the Gallic pursued in the 1790s could take to hyperinflation. An option in the signifier of zero rising prices seems a proper class to some economic experts. but to the people themselves. the costs of making this point may be exceeded by the costs. WORKS CITED Bresciani-Turroni. Constantino. The Economics of Inflation. London: George Allen A ; Unwin. 1937. Cagan. Phillp. â€Å"The Monetary Dynamics of Hyperinflation. † in Milton Friedman ( Editor ) . Studies in the Quantity Theory of Money. Chicago: University of Chicago Press 1956. Guttman. William. The Great Inflation. London: Gordon A ; Cremonesi. 1975. Hellenstein. Rebecca. â€Å"The Impact of Inflation. † Regional Review Winter 1997. Federal Reserve Bank of Boston. Boston MA. 4 May 2008 lt ; hypertext transfer protocol: //209. 85. 173. 104/search? q=cache: Ihqt79CzCR0J: World Wide Web. Bos. frb. org/economic/nerr/r r1997/winter/hell97_1. htm+zero+inflation+policy A ; hl=en A ; ct=clnk A ; cd=1 A ; gl=us gt ; . Hyperinflation. Wikipedia 28 April 2008. Wikipedia Foundation. Inc. . lt ; hypertext transfer protocol: //en. wikipedia. org/wiki/Hyperinflation gt ; . Schiff. Peter. â€Å"Dollar Bear: The Road to hyper-inflation. † Today’s Financial News 1 5 March 2008. TodaysFinancialNews. LLC. St. Paul MN. 4 May 2008 lt ; hypertext transfer protocol: //www. todaysfinancialnews. com/us-stocks-and-markets/dollar-bear- hyperinflation/ gt ; .

Changes In History

Changes In History Essay In the historical process there have been many changes for the advancement of society. Greece, Europe, and Italy all went through radical changes. Their new styles and remarkable advances led them through the Classical and Renaissance periods. Greece was referred to as Classical Greece during the period of Greek history between 500 B.C.E and 338 B.C.E. This was considered to be a time of brilliant achievement. The Greek culture was certainly changed over this time. The History of the Persian Wars was a work that was considered the first piece if real history in Western Civilization. Many great historians came out of Greece during this time period. Thucydides was one of these great historians. One of his greatest achievements was the History of the Peloponnesian War. Another point to be made about Thucydides was his insight into the human condition. He stated, It will be enough for me, however, if those who want to understand clearly the events which happened in the past and which (human nature being what it is) will, at some time or another, and in much the same ways, be repeated in the future. Other changes came about in Greece during this time. The Greeks introduced drama. The origins remain to be unclear, but historians believe that it was developed from religious rituals. Tragedy was also intended to educate individuals as well as entertain them. Greek tragedies dealt with problems such as the nature of good and evil, the conflict between spiritual values, and the demands of the state or family, the nature of the divine forces, and the nature of human beings. The arts were also going through changes during the Classical Greece period. The standards established by the Greeks were dominated throughout the Western world. Classical Greek art usually portrayed human beings as the subjects and represented them as objects of great beauty.Greece was not the only place that went through changes. Europe went through a Renaissance period, or a rebirth of learning. Education was provided for the clergy and government officials. The strong will for learning led to a revival among the people. Compared to Greece, Europe did not undergo as many changes; education and the revival of classical studies were the mo st important. There was an attempt to assimilate and preserve Latin and early Christian culture. Monks were required to copy manuscripts. The practice of scriptoria was introduced during this time. Scriptoria, or writing rooms, were where monks copied the works of Christianity. The time period that was mostly associated with the idea of the rebirth was the Italian Renaissance. Some of the greatest advocates of the Renaissance culture were the popes. Pope Julius II patrolled the culture because he wanted to tear down the old basilica of Saint Peter and begin the construction of the new one in the Christendom.The Renaissance was also an age of recovery from the fourteenth century. Many practices were changed during the Renaissance period including literature, printing, education, and art. One of the greatest works was the Divine Comedy by Dante, which was about the souls progression into salvation. Another great author was Geoffrey Chaucer, who wrote Canterbury Tales. This was a collection of stories about a group of pilgrims on their way to the tomb of Saint Thomas of Canterbury. Printing also flourished during this time. The newest development was moveable type, and because of this rapid change Johannes Gutenburg published the first book.Printing then became one of the largest industries in Europe. The humanist movement had a profound impact on education. They produced secondary schools based on their educational theory.A treatise titled Concerning Character was established during this time, stressing the importance of liberal arts. Finally one of Italys greatest changes came with art. During this time Leonardo da Vinci was thriving. The works of da Vinci, Raphael, and Michaelangelo dominated the High Renaissance. Leonardo represented a transitional figure into the shift to the High Renaissance. One of his most famous works was The Last Supper. Raphael tried to achieve an ideal of beauty in his work. He is well known for his Frescoes in the Vatican Palace. Michaelangelo was a man of all trades. Neopolatonism influenced him. This was evident in his figures in the Sistine Chapel.Changes and rebirth are evident in the Italian, Greek, and European cultures, although more prominent in some areas. Rebirth for many meant a new beginning and a new life. This flourishing time gave the p eople a feeling of great hope for what lied ahead. READ: Will this work EssayWords/ Pages : 800 / 24

ECE 4332 ELECTR OOPTIC DEVICES AND SYSTEMS Assignment

ECE 4332 ELECTR OOPTIC DEVICES AND SYSTEMS - Assignment Example Accompanying the evolution from copper wire or wireless connection to lightwave networks is the proliferation of new optical devices. Discoveries in optical transmitters, amplifiers, frequency converters, filters and multiplexers enable ways to generate, condition, and detect light. The study of wave interactions with periodic structures has yielded convenient methods of analysis and the results have been extended to gratings in wavelengths such as those in distributed feedback lasers, acousto-optic modulators and filters, and other diffracted waveguide devices. The fiber Bragg gratings is readily analyzed by coupled mode and transfer matrixes analysis. the two modes of the waveguide Bragg grating are the counter propagating waves in the fiber which are coupled through the grating reflection. In the absence of the grating, the spatial dependence of the polarization currents for the forward wave are proportional to. Perturbations by a grating having spatial period Ù ¨ create new sidebands that result in wave coupling i.e. exp( jÃŽ ²z)cos(2Ï€z/Ù ¨) = Â ½{exp[j(ÃŽ ²-2Ï€/Ù ¨)z]+exp[j(ÃŽ ²+2Ï€/Ù ¨)z]} and mode coupling to the backward coupling wave. Exp[-jÃŽ ²z] described by the first term on the right-hand side, occurs when -ÃŽ ²~(ÃŽ ²-2Ï€/Ù ¨). T hen the forward propagating wave is reflected (coupled) into the backward propagating wave. Coupled mode equations are readily derived upon substitution by the grating refractive index function into the wave equation +[]2E(Ù ¤)=0 where Ù ¤=koz is the normalized axial dimension and n(Ù ¤)/no=1+ÏÆ'(Ù ¤)+2h(Ù ¤)cos[2Ù ¤+2Ç ¿(Ù ¤)]. Here, no is the effective index of the propagating waves, and k0=Ù ¤onok is the nominal Bragg wave number, for constant Ç ¿, the Bragg wavelength is ÃŽ »bragg=2Ï€n0/k0. Change in the local average refractive index is defined by ÏÆ', the peak-to-peak index variation is 4h and corresponds to grating

Compensation Case Study Example | Topics and Well Written Essays - 1000 words - 2

Compensation - Case Study Example Majority of accountants are bachelor’s degree holders while product managers are masters graduates. Moreover, most managers have a higher experience of between 10-15 years while accountants have only an average experience of 2-5 and 5-10 years. Stock options are offered by firms as means of compensation for lower salaries. Given the above mentioned jobs, companies do not include stock options as benefits on top of the salaries offered. This is because the salaries offered by the organizations are high enough for the professions. The job descriptions vary for the different professions. Accountant III is responsible for preparation of balance sheets, profit and loss accounts and preparation of other financial reports in the organization. Other tasks include analysis of business trends for costs, revenues, obligations and commitments. The financial analyst is responsible for compiling necessary financial information for an organization. Some of the important information includes preparation of analyses of revenues and expenses projections, reports and presentations to the firm. He/she is also required to prepare financial reports of organizations including forecasting and reconciliation of internal accounts. Product manager in a bank is on the contrary responsible for marketing products of the bank and ensuring that the bank makes profits. These job descriptions are what I expected and once I attain the required credentials, I would apply for the job (Dundon & Rollinson, 2007). The comparison of the compensation at salary.com for the professions with local/regional compensation reveals that the compensation offered by the local career office are lower than the compensation offered by salary.com. The reason for this could be due to lower responsibilities for jobs at the regional level, demotions, working in small companies compared to large multinationals and jobs being offered at the

Trade Gap Defies Expectations :: essays research papers

Abstract Most economist view trade as an integral part of the free market system. The United States economy is currently running a trade deficit, an excess of imports over exports. The U.S. trade deficit widened much more than expected in June. The whole topic of trade must be viewed from a total picture, not just a segment or portion of the issue. This paper will analyze the current position of the trade deficit and some of the factors that have caused the gap to expand. Trade Gap Defies Expectations Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Most economist view trade as an integral part of the free market system. â€Å"Trade allows specialization and division of labor and thereby promotes technological growth† (Colander, 2004, p. 414). The United States economy is currently running a trade deficit, an excess of imports over exports. This shortage is currently being financed by the selling of assets such as stocks, bonds, and real estate. The balance of trade has been in a deficit position since the 1970s and will probably continue in this direction for quite some time, â€Å"since the assets of the United States total many trillions of dollars† (Colander, 2004, p. 416). This paper will analyze the current position of the trade deficit and some of the factors that have caused the gap to expand. Trade Deficit   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"The U.S. trade deficit widened much more than expected in June† (Reuters, 2004). This increase was due to a large drop in exports, the largest in three years, and a record level of imports. In fact, exports fell 4.3% which represents the largest decline since September, 2001. During this same time period, imports climbed 3.3%. This increase is partly due to the run-up in oil prices – the highest since March, 1982. Not only did prices increase, but the quantity of crude imported rose as well.   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"The primary trading partners of the United States are Canada, Mexico, the European Union, and the Pacific Rim countries† (Colander, 2004, p. 415). The numbers from the June report showed that the U.S. trade gap with Mexico reached a new record and is on tract to break last year’s record numbers. Another country in which the trade gap has widened is China. The exports to China eased while imports climbed to an all-time high. This relationship is much more politically sensitive. In fact, â€Å"U.S. manufactures and labor groups complain that Beijing’s policy of holding the value of its currency steady against the dollar has given it an unfair trade advantage† (Reuters, 2004).

Fire Safety Case Analysis

TO: Mike Carey – Vice President of Marketing FROM: Cristian Oana – Marketing Consultant DATE: 28/01/2001 SUBJECT: Pricing strategy of future FSI product line. Purpose and Overview Please review the following sections based on your current pricing strategy and market research as well as future recommendations. The report contains a SWOT analysis that will highlight the need for a switch in pricing strategy from the current Value Based pricing to Price leadership. FSI is the only manufacturer of the HERO line product having only one competitor (Guardian) which currently holds a market share of 42%.This fact underlines our company standing as an Oligopoly and allows us to lead the way in price determination. Summary of Past and Current Situations Self-contained breathing apparatus systems are worn by fire and rescue personnel in hazardous situations where smoke, poisonous gas or low levels of oxygen inhibit search and rescue operations. FSI has been the leading provider of the digital breathing apparatus system since 1990 holding a consistent price of 1485$ per unit. Almost 100% of FSI’s business is conducted with U.S. fire and rescue departments that belong to regional purchasing organizations. Contracts are one year in length with the exception of the California Region. In 2001 FSI increased the price by 5% to increase revenue. In 1995 Guardian introduced their own product line-up and managed to capture up to 42% market share. Their current cost is 1500$/unit. The challenges FSI currently faces is weather a further increase in price will keep its current market share despite competition and maximise revenues for the future.An appropriate pricing strategy must be chosen to ensure the HERO lines’ life cycle. Based on the items highlighted in bold in the following SWOT analysis, a price leadership strategy is recommended. SWOT Analysis STRENGTHS * Unique product line that uses reliable digital equipment. * Fire Safety Inc. has a very wel l established brand name in the domestic market * Fire Safety Inc. provides the highest quality equipment at an affordable 1560$/ unit. * Increased sales despite 5% price increase * Since Fire Safety Inc. s very successful in the domestic market it established financial resources to possibly expand to foreign markets * Current market situations indicate an Oligopolistic environment * Product is familiar to US consumers – identified need for future equipment as stated by law| WEAKNESSES * The established ten year market perception for the price of the product. * No significant product line changes or updates which the competition may take advantage of. * No patent protection which may yield more emerging competition in the future. * HERO – brand name is not well known outside the domestic market. Company’s variable cost per unit of $560 may be high. | OPPORTUNITIES * New standards require fire and rescue departments to convert to digital technology. * Opportuniti es for gaining market further share and profit maximization. * Opportunities to achieve higher level of profit * New product innovations that can be incorporated into existing product line * Opportunity to expand to other foreign markets * Extending contracts to 3 years across the US to guarantee constant sales. | THREATS * Guardian has a manufacturing cost advantage compared to FSI that resulting from sophisticated production equipment.. FSI may experience loss of market share due to only one year contracts. * Loss of profitability due to increased prices. * Difficulty in gaining market share from competitors. * Guardian is offering a very similar product at a similar price| Assumptions on Which the Strategy is Based a. The market will remain an oligopoly. b. FSI will remain the leader of digital breathing apparatus systems. c. The National Institute of Occupational Safety and Health will not change legislation regarding safety in the near future. d. Guardian may increase pricing a s well due to FSI’s price increase. e.The state of limited competition will be retained for the following year. f. Proven reliability and results may capture further market share despite price increase. Pricing Strategies That Emerge From SWOT Fire Safety Inc. has a very well established brand name in the domestic market holding a leading market share of 58%. FSI estimates that the market will grow by 44% in 2002. For the past 11 years, the HERO lineup has enjoyed increased sales year to year by providing top of the line Digital Breathing Apparatus Systems. Currently, FSI is the leading manufacturer and distributor of these systems.Despite the 5% increase in price for 2001, sales have increased showing no signs of market response. Our competition has their product line set at a slightly lower price (1500$/unit) which indicates a clear weakness in an established market led by our company. Price leadership â€Å"An observation made of oligopolistic business behaviour in which one company, usually the dominant competitor among several, leads the way in determining prices, the others soon following. The context is a state of limited competition, in which a market is shared by a small number of producers or sellers. This pricing strategy is perfect for FSI, having only one competitor and a successful sales record. Summary and Request for Action A further price increase is recommended for 2002 taking into account the above highlighted facts. There is no reason to believe that FSI’s market share will drop and based on the previous year’s sales adding $3,548,625 to the bottom line it is a clear indication that a Price Leadership strategy is crucial to the company’s success. In an Oligopolistic environment, it is the ideal choice.

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