Abuse of Power Andrew Jackson and the India free essay sample

The removal of the Native Americans was to be voluntary, but it was nothing of the sort. In 1829, President Jackson stated to Congress about the Indian removal that, This emigration should be voluntary, for it would be as cruel as unjust to compel he aborigines to abandon the graves of their fathers, and seek a home in a distant land. What he said and what he did were on the contrary. The reason for President Jacksons removal of the Native Americans was that many saw the Native Americans as uncivilized nations unable to adjust into the American culture. He repudiated his previous statement to Congress and said, Doubtless, it will be painful for them to leave the graves of their forefathers, but what do they do more than our ancestors did or our children are now doing? Author Alfred A.Cave did an outstanding job on explaining the details and deceit of President Andrew Jackson and the government in regards to the Indian Removal Act of 1830. We will write a custom essay sample on Abuse of Power: Andrew Jackson and the India or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It was apparent that the author was for the Native Americans and did not agree with the Indian Removal Act of 1 830 and how it transpired. He portrayed that the President felt that the Native Americans were a threat to the government security.

How Drugs Affect The Economy Essays - Substance Abuse, Free Essays

How Drugs Affect The Economy Essays - Substance Abuse, Free Essays How Drugs Affect The Economy The word drug is defined as any substance other than food that can affect the way your mind and body work. There are hundreds of different drugs, each with its particular effect on the bodys nervous system. For instance, narcotics are a series of drugs that affect the mind, causing mental changes. The United States Government will not allow new drugs to be prescribed by a doctor or sold by a pharmacist until the drug has been thoroughly tested and proven to be medically safe. These tests take as long as years to be approved for public use. Unstable drugs, referred to on the streets as Crack, PCP, Ice, LSD, Speed, and many others, are made up of several chemical substances which are produced illegally under poor circumstances. Unstable drugs are responsible for killing thousands of young people each year, those who escape death are sometimes confined to a mental institution. (http://netunlimited.net/cdapnc) . The topic of drug abuse prevention is a big one among the leaders in America. Kids as young as eleven years old experimenting with drugs. Signs to look for, for people getting into drugs, according to the D.A.R.E. Manual are dramatic changes in behavior, signs of physical deterioration, identification with drug culture, signs of paraphernalia, dramatic changes in school performance, these are only a few. We are taught as children to avoid danger, though it does not always come through in the end. And the sad thing is that the people who suffer from these killers (drugs) place them in their own bodies. The end result is the same. So what is the difference? (http://saynonow.org). Drugs are effecting the economy and America. I think we need to make a stand now, because the kids of America today, do not need this. We are the leaders of tomorrow. Drugs are affecting us by changing our feelings, thoughts, and emotions. If I was high right now, I couldnt write this paper. The economy is being effected as we speak because of substance abuse. People are spending their hard-earned money on Ice, Crack, LSD, and Dope!?! The money spent on drugs is less money for taxes to pay for the building of better schools, or making of better roads, money not being spent on helping a child, or even buying videocassette tapes. This takes us to the word opportunity cost, which means that the real cost of a product is not the amount of money spent, but the things that cannot be bought because money is spent. Now let me tell you this, when youre dealing with drugs, there is opportunity cost going on there. Lets relate to the younger generation: Youre walking down the street, its a beautiful Saturday afternoon, and theres a big anniversary date that night with your girlfriend. You see a guy you recognize and he offers you marijuana for $100.00. You accept the deal thinking nothing of it. Later that night the bill comes in at the Italian restaurant, that same restaurant wher e you had your first date at, and the bill comes out to $95.41. Now, the money you spent on drugs for Sunday would have bought you the meal, but instead you have to stay after and wash dishes to work off the money. I guess what Im trying to say in this paper, about how drugs affect the economy, is that the biggest stab is at the younger generation. I think we are the people of the new millenium. Being these people we do not need drugs to ruin the things that we will bring to the economy. Especially the things we bring that will make us the best for the next thousand years.

Financial Reporting Essay Example | Topics and Well Written Essays - 2500 words - 2

Financial Reporting - Essay Example Here the items are specific and these are compared over a specific accounting period. This method can further be classified into two sub categories, namely absolute dollar and percentage comparison (Edmund, et.al., 2006). b) Vertical Analysis: The vertical analysis on the other hand is when the analysts use separate figures to one specific figure of a financial report. This comparison is generally performed in percentages. Here unlike the horizontal analysis, the analyst use one certain item and compare several different items with it, in the same accounting period. This is generally used to gather enough data to build a trend. This method is also divided into two main styles, income statement analysis and balance sheet analysis (Edmund, et.al., 2006). Narrative reports in annual reports are a very useful tool. These often cover a number of different aspects of the annual report. The narrative reports have been taking up higher portions of the annual reports. It has been noted by Deloitte research that these take up as much as 54% of the total annual reports (Reed, 2008). The role of the narrative reports is very clear, it is mainly present in the annual reports to provide the readers with a clear knowledge of the history of the company, a brief analysis of the changes made in the year, future plans of the company and also the illustrations and photographs that are relevant. This forms a source of information for the readers and to some extent can be considered to be a monologue. The role is to provide for a complete overview of the company. In terms of the analysing the financial statements, these reports provide the analysers with straight forward information. It includes a five to ten years of financial summary which proves to be very beneficial especially if the analyser aims at gaining comparative information over a few years of historical data of the company (Bear,

Ralphs vs. Albertson Essay Example | Topics and Well Written Essays - 500 words

Ralphs vs. Albertson - Essay Example Ralph is headquartering in Cincinnati Ohio. Later Ralph was acquired by Kroger from Fred Meyers. The reason behind the success story of Ralph is that the founder believed in two philosophies and his innovation. He value priced top quality product and costumer comes first service intention. And his innovative approach to traditional handling of fresh produce brought accolades by all the customers. Albertson took lead and developed to leaps and bounds their approach to customer service. Albertson stores efficiently utilize their capital assets in developing their stores. This also includes establishing new stores in new neighborhood. Albertson stores were very innovative and were specifically designed to perfectly fit in the neighborhood. Albertson stores approach of new projects was very advanced and was based on teamwork; generation of new ideas and the most important was implementation of best practice. Compared to Ralph Albertson stores use its capital and non capital assets in a m anner that it should again fetch income. Albertson leased out its surplus properties that fetch a decent income and some of the properties are even sold at a higher price than acquired. Albertson stores earn higher profits as compared to Ralph.

PR Campaign Essay Example | Topics and Well Written Essays - 1000 words

PR Campaign - Essay Example Customers reverse the flow of consumer promotions by either soliciting promotions directly from marketers through intermediaries, PR has been traditionally pushed to consumers by marketers. But customers can now click on press releases that interest them, and request promotional information from manufacturers. PR is pulled by customers and is customerinitiated.. Customers can design and configure their own products, using their imagination and tools provided by marketers. The site's notepad lets would-be buyers scribble and save ideas about products as they browse. In traditional industrial firms, the new offerings often originated in the engineering department, and marketing would be given the task of selling the offerings after the design had been completed (Chitty et al 2005). PR messages will help McBride Financial to inform professionals who are purchasing either primary or secondary residenc and people who are guaranteed capable of paying the mortgage amortization about products and unique propositions available from McBride. More progressive firms have reversed this process, and the marketing department transmits the "voice of the customer" to the organization before the development begins. However, this marketing-led process still assumes a sequential process for designing offers and messages. Consumers make purchase decisions based on what they know about a brand, rather than on what they remember from press releases. Whereas explicit ad recall reflects what people can remember about information stated in an ad, advertisers are interested in what people know about their brand. Implicit measures of memory are useful in this regard. Implicit measures solicit what people know without making reference to the origins of their knowledge. For example, brand recall is an implicit measure because people are asked to tell what they know about a brand. The impact of exposure on brand recall is a more appropriate measure of the learning prompted by PR than is ad recall because brand recall is a reflection of what people know rather than what they can remember. While brand recall and top-of-mind awareness are useful indicators of what people know about a brand, advertisers are generally most interested in consumers' dispositions toward a brand as a result of advertising exposures. To some extent, these measures of learning are useful in making inferences about dispositions. For example, enhancing top-of-mind recall frequently is found to increase preference for a brand. However, because this measure is of limited diagnostic value in efforts to enhance brand purchase, measures specifically designed to reflect people's dispositions are considered (Chitty et al 2005). For McBride Financial, ethical considerations involve communication in the proper way with potential target audiences and fair information. Because many people perceive right and wrong from different angles, the objective of the company in the area of ethical and moral standards must be to establish what it will and will not tolerate. Once the level of integrity has been established, then the areas of vulnerability must be examined and limits established in each of these areas. Since not detecting or overlooking violations weakens the fear of punishment, a system of inspection must be

Stock Market and Macroeconomic Variables in India

Stock Market and Macroeconomic Variables in India Chapter I: INTRODUCTION Overview Investment is dependent on human behavior. Keynes (1936) elaborates which sort of behavior humans adopt while investing particularly in capital market. Usually people get in use with their â€Å"animal feelings† and â€Å"flock mentality†. Economic and social and political environment also affects the opinion of people and they force them to think several times before investing. This is the reason one cannot forget the fact that the value of economic activities and information nourished to the market is vital. Here we are going to discuss the tendency of animal spirit in India. The propensity of animal spirit in India is very much high-flying. The major reason for this is that only 2% of the population of India participates in such activities. The medium to get knowledge of market and accuracy in information is not available easily. This forces people to act as per their nature rather than their logic. The core theme of this analysis is the study of interrelation betwee n real economic variables and capital market variables. The significance of this relationship has got marvelous recognition in the past due to roller-coaster ride of the BSE. A few academics also claim that it is not greatly shored up by the financial basics. To determine the character of these basics in studying the stock prices, different people have done different researches. Amidst of these thoughts, some fundamentalists have tailored theory of Efficient Market Hypothesis (EMH). This theory was further extended by Fama in 1971 to narrow and categorize such business centers on the foundation of their response and data nourished to them in feeble, partially built and well-built markets. Another theory which is Popular Model Theory shows a different perspective in general. This theory explains the qualitative clarification of price which shows that most of the people proceed inappropriately to the information which they get and easily accessible information is not included in stock market price as Efficient Market Hypothesis verifies which is also much analogous to Keynes model. These days, everyone in the world is running after word money (finance). Nothing is possible without money and economy and other financial operations including growth of this whole world are also dependent on the same. Without finance, no one can turn the wheel of economy at 360 degree, because each and every transaction needs money at its core. Amadou (2007). In the past, there was a system in use, which is barter system. To avoid its complications, ‘money- component of finance was introduced and as then, money has been the most precious thing of the world. It has become a need for every individual to fulfill the requirements. Money is the core object needed to establish a business. The most valuable source of this sort of money is the post laissez-faireization period is stock markets. In todays world, each and every individual can witness the appearance and acceptance of the capital markets in the period of Globalization. This is considered to be highly regarded as an award f or the globalization years to under developed regions to enlarge and reinforce their nitty-gritty as their financial crisis is gratified to an extent by these stock markets. Capital markets are also considered to be a profitable platform for firms to get financing for their new or forthcoming projects and moreover for people as a prospect to invest with chances of risk but huge profits. The establishment of such capital market is the most important aspect for companies and individuals. It is also a valuable state of the prerequisite of economy on the degree required in a contemporary varied economy. The subsistence of such markets persuades the existence of such arguments shaped in the hoisting of money can be transmitted. Current Situation â€Å"Thus if the ‘animal spirits are dimmed and the spontaneous optimism falters, leaving us to depend on nothing but a mathematical expectation, enterprise will fade and die;-though fears of loss may have basis no more reasonable than hopes of profit had before. . . . . . . But individual initiative will be adequate only when reasonable calculation is supplemented and supported by animal spirits. . . . . . . .† Keynes (1936). In the above quote, Keynes (1936) has very bluntly and accurately explained the reasons undercover of the current situation along with the entire humankind is getting exaggerated in our day in 1936 merely in one of his leading models. A few economists have also accepted in an extremely enjoyable method which it is not the object that the worth of our productivity has decreased or lowered but just only the animal feelings are fainted and what we were expecting is that the value of our capital market has boosted is wrong in comparison with the primordial epoch and regard as added rise in actual value improbable. And every financial system requires such â€Å"animal spirits† or the positive behavior along with the estimated threats and reserves to became visible and outshine and development. Since her independence, India was following the socialistic outline for growth, but after the 1990s financial crisis, India had to make some strict financial improvements as proposed by World Bank. The most vital factors of that package were financial liberalization. This financial change cemented a new way for India to boost its economy and make developments and gave India impulsive environment to the financial markets specifically in language of BSE BSE which is supposed to be solitary of the major components of Indias fiscal hike. These days, capital markets has considered to be the most valuable source to transform domestic savings to upcoming productive projects and provides a chance to the country to develop. Brigham (2008) According to a survey conducted in India, around two percent of the general populace is directly caught up in capital markets but when anything happens to such financial markets, it is the whole population which get affected, which clearly shows the correlation, impact and importance of these capital institutions and actual economy not only on the ground intensity but also bottomless within the main rank. In these days, newspapers are bombarded with such sort of news and major newspapers also issue supplement for financial news. Due to such releases, there is a little doubt that the macroeconomic news which is vital to capital market will be affected. In recent years, the whole financial market of the world had crashed and with the recession in capital market, a gap has been established which lead to decrease real economic fundamentals. Consequently, it also boosts the value of this study because the focal point of this downturn is considered to be the capital markets and if we consider it the other way, a nation can become economically strong by considering such markets. So, it can easily be said by any person that it seems to be that the stock prices will go up and would result in the formation of some talented analysts of upcoming values of macroeconomic pointers similar to productivity growth and price increases. If one takes this thoughts then this would definitely result in arose of two more questions that what will make the market create hyper boom and incorporation of capital market with other marketplaces. Agrawal (2008) The most suitable reply to be given to the earliest query is that the flow of information rise which has crowded the market, for instance, media (commerce news channels). Another rebellion that shocked the market is Information Technology. The shortage of skilled people in IT in the US has also become highly required after stocks due to their fantastic dough take home power. The other question which is creating a fuss is regarding the connection of such capital markets with the actual financial system. Different analysts have also studied regarding this theory and worked on this linkage. Ando and Modigliani (1963) developed a theory called life cycle theory which is based on the linkage between stock prices and actual spending. The theory talks about the individuals decisions and states that people mark their expenditure verdicts on the conventional life span earning, division of which might be detained in capital connecting to capital cost variation to variation in using up expenditure. Beck Levine (2001 2008) In the same manner, the linkage between capital costs and investment spending is supported by q theory. The q theory is designed by James Tobin (1969) to analyze the effect of stock prices on investment spending, where q stand for fraction of total retail worth of comapnies to the substitute value of their on hand capital market at recent stock prices. In addition, we had also discussed EMH model. With this research we have concluded that none of these theories fit into the actual and recent image of stock markets. Some fit partially but no one is perfectly related. To analyze such issues, there should be more research to be done on this for better understanding and the below paragraph communicates it in an improved way. â€Å"We should not conclude from this that everything depends on the waves of irrational psychology. On the contrary, the state of long-term expectation is often steady, and, even when it is not, the other factors exert their compensating effects. We are merely reminding ourselves that human decisions affecting the future, whether personal or political or economic, cant depend on strict mathematical expectation, since the basis for making such calculation does not exist, and that it is not innate urge to activity which makes the wheels go round, our rational selves choosing between the alternatives as best we are able, calculating where we can, but often falling back for our motive on whim or sentiment or chance.† Keynes (1936). Structure of the Dissertation This study is stepped into five chapters and this is to be pointed that the register worth has been taken from all the factors. The first chapter thoroughly gives the overview of the current situation. The second chapter is based on the literatures related to our study. The third chapter comprises of a bunch of points and statistics and method considered in this analysis. The fourth chapter will explain the estimations and result analysis. Chapter five exemplifies the results, policy insinuations and boundaries of this analysis effort. Research Questions What is the relationship between stock market and macroeconomic variables in India? Is there an informal relationship between capital market and real economy? What is the influence of investment on financial health of India? CHAPTER II: LITERATURE REVIEW Introduction The word economics has emerged to be the most powerful word. Each and every individual is running after money and always try to earn as much as the one can within the shortest possible span. Without finance, no one can imagine running any sort of business and it has become an essential which runs the businesses and all the major features begin and finish at it. In recent world, the quickest and trouble-free way to earn money for new and challenging projects is to publicize or to enter into the stock markets where a little investment can make the wise firms accelerate and helps these firms to become giants amongst the other big names. Chauvet (2009) There are around two percent of the entire inhabitants in India which is caught up in stock markets but the whole population in India gets affected either directly or indirectly if anything good or bad occurs in such markets. This clearly shows that Capital Markets and Actual Economy both have strong and vital link on not just only the les ser stage but also on the higher stage. A number of studies and researches have been done in this regard but the outcomes are vague. The reason for this is that most of the researchers have found a tough bilateral linkage among capital markets and actual economy. On the other hand some researches have entirely rejected this analysis that stock markets and real economy are correlated. To study more deeply we can distribute numerous theories in 3 schools of thoughts on the ground of the literature review: first school of thought says that there is no linkage between capital market and real financial factors. The second school of thought has analyzed that there is an informal link among stock market and macro economic variable. The last one which is third school of thought promulgates an unclear belief that there is a relation between the two but not positively in both short and long run. Pindyck (2004) This research is comprised of some on hand literature which has been reviewed relating to the above problems. Below we have discussed the overall findings of different researchers. First School of Thought Chowhan, P.K. et al. (2000) The first school of thought attempted to obtain reasons for hurly-burly in capital market in small period in India considering BSE as the major indicator. In the period from 2008-2000, capital markets in India had shown irregular and unstable activities which does not go with the information provided to them. Due to the severe up and down in the stock prices, the investor confidence resulted in turmoil in the markets. The school of thought tried to explain that what could be the actual causes at the back of instability and what made Efficient Market Hypothesis (EMH) by Fama cant explain the reason. The researchers attempted to find out the reason of such huge rise in BSE stock value. On October 2008, BSE was at 2761 and in February 2000 it went at 6000, which shows 117% appraisal in just 15 months, which is not powerfully maintained by basic financial factors in this era because Indian economy boosted just only 5.9% in 2009-2000. On the other hand, the cor porate profit raised by 32%while the accumulated growth rate for industrial production during Apr-Dec 2009 was reported to be 6.2%. The rate of inflation in September 2008 was 8.8% while in 2009-2000 it has also jumped down to 2.9%. This research shows that long run financial factors such fluctuations in stock prices. Indias GDP in addition did not prove any hike in the past years. Not only India was affected with this situation but also other countries as well. The economists found some reasons to create a boost in Indian stock markets, they are: Information hike; IT impact; Internet fable; Feedback outcome; Cultural alteration. Another economist Sarkar, P. (2007) states that if there exists any significant correlation between growth and capital accretion, they have to use yearly information on numerous financial factors like, insignificant and actual share price, capital market turnover, companies which are stock market members, fixed stock structure and enlargement of actual GDP and production results. Despite, all the researchers tell the same thing from 2000-1951 till 2005, there are no correlation actual and capital market variables neither in short nor in long run. In addition, Sarkar also researched new movements and came to a conclusion that most of the financial variables are unstable and comprised of an upswing movement in mid 1970s. The tactics used in this thesis to get the best possible results is Unit Root tests. These tests are used to obtain a fixed and worthy degeneration analysis. Besides these studies, OLS and MLE approaches are also utilized for determining the sequence of auto-linkage of the remaining and handling with it. To estimate long-term and short-term relationships in a better manner, ECM and Autoregressive Distributed Lag (ADRL) respectively are used in this thesis. Shiller, R. (1990), an economist of University of Yale, had researched and tried to compare the normal meager compound Capital Price Index from 1871-2000. He concluded that the capital price instability is not compared by the profits. Second School of Thought In 2001, Black tried to elaborate the interlinkage between the U.S. capital costs and real economic variables. Black gathered 54 year periodical data and along with it used VAR model supported by hypothetical structure to study relationship between capital prices and macro financial variables. With the lime light on actual results and considering current value approach, Black found that the basic price-output ratio and the basic capital price in the light of various suppositions relating to time variation of income, and to contrast such values to the real data. Black studies 3 situations, in the first one, he initiated supposing that the individuals expect fixed return as being the wealth holder and then support this supposition by first, permitting the undisruptive rate to differ in due course and next the risk payment to be time changeable. Although there is a variation in models results, most mean that the capital market has comparatively been overestimated in comparison with its value expected from growth rates. According to reports, the ratio of stock market capitalization with GDP has boosted to be thrice as compared to last twenty five years in the US. From this figure, in mid 1970s less than 30% and in 1990s it was 80%. The point which is to be noted here is that it does not only seem that the capital market has risen in 1990s but its link with the actual finances has turned out to be well-built and due to which it got accredited. As per the records, capital market has been associated with actual financial variables by numerous tech niques, out of which one of them is asset costing perception in which Arbitrage Pricing Theory is second-hand as structure to analyze the impacts of actual economic measures on capital costs concentrating on the question that will the risk allied with a few real financial variables is replicated in probable asset takings. On the other hand, there also exists expenditure-CAPM study of expenditure which deliberates on a particular real factor power. There are other researches also conducted to analyze the relation between capital prices and investment when stock prices hide the actual economy which can be doled out with. In recent times, a lot of researches have aroused analyzing the mutual linkage between capital worth and actual financial factors with VAR models as the structure, devoid of any particular hypothetical formation. Bulmash (2003) has done a very distinctive analysis to elaborate the interaction between company investments and stock markets. He also studied that how investments affect stock markets and vice versa. This theory also reflects how investments respond faster than customers in capital markets. In his previous researches, Bulmash showed that what makes one capital market to get boosted just by the difference in returns of economies. And finally results in unity of this income fetch the stock into association in the long term. It has also been proved that what makes these stock markets covert into analysts of the future financial flows. It has also showed the linkage between capital investment markets and actual financial variables through a system that value of capital market will boost when: Firms increase their investment to enlarge their operations which will increase the GDP. With the increase in capital, actual capital also amplifies because buyers also raise their expenses which accelerate GDP. Such points will result in worth formation which will lead to real economy. Third School of Thought A renowned economist, Mustafa in 2007 has done an analysis on the linkage between capital market and actual financial market in Pakistan. For his study, he took a number of economic variables like, per capita GDP, productivity growth and capital market liquidity, volume of capital market highlighting the financial Market. He took up co-amalgamation and Error Correction Model method to set up the pragmatic link, if any among the two from 1980-2004. The probable outcomes points that the activities in the capital market of Pakistan elaborate the per capita GDP and productivity growth for small period only. On the other side, financial growth variables elaborates capital market factors in nearby as well as in long term which shows that the enlargement of capital market relies on by and large development of economy in Pakistan. The economy of Pakistan had not been affected by the acceleration in Karachi Stock Exchange which signifies that the elevated instability is not out of the ordinary of the up-and-coming stock markets. The previous theories related to this subject used stock prices as capital market movement sign and utilization, price rises, industrial output, financial flow, rate of interest as real financial factor. Mustafas theory is quite different from others work because the variables are different as used by others. The analyst have come to a conclusion on the basis of empirical results that in Pakistan the stock mark et is way behind and it needs to develop to be vital in the economy of Pakistan with the help of other financial institutions. In any nations economic growth, capital markets play an important role but capital market is inactive in the growth of a nation unless it is in its emergent stage. Another big name amongst economists is Hussain, F (2010). He also studied about the linkage among stock price and actual economy of Pakistan. He gathered data from 1959 till 2004 or 2005. After getting data, he distributed it in 2 halves, which are pre and post liberalization and with the help of this activity he analyzed the linkage between stock price and actual economy by applying different econometric tactics like ECM, Engle-Granger co- integrating regressions and Augmented Dickey Fuller (ADF) Unit Root tests. The delay period was decided in all the cases on the foundation of the two, i.e., Final Prediction Error and Akaike Information Criteria (AIC). By applying such techniques Hussain examined that there exists long term linkage between capital worth and actual financial factors. On the subject of the causal section, he has brought into being unilateral grounds from actual market to stock costs. This highlights that the stock markets in Pakistan are yet in a developing stage. They have not got developed to influence the actual variables of economy and because of that they cannot be considered as most important sign of the monetary activity. It means that Government of Pakistan can utilize actual sector to power the capital market. Another study observes that in India, the incorporation between Foreign Exchange and Stock market in liberalization period. The researchers tried their level best to find out the link flanked by Foreign Exchange and Stock market by using goods market approach and portfolio balance approach. To narrow the research, they have used a number of econometric techniques Grangers causality test in VAR structure, which is supported by F-Test to test this theory; and to examine such chains for immobility, ADF Unit Root Test is useful. One more econometric test is applied which is Gwekes Measures for the degree of business center amalgamation. But the point is that this study gave new outcomes which are totally different. The previous examinations reveal that there exists an informal linkage among income in foreign exchange and stock markets. While as per the final analysis, there is a high extent of assimilation among foreign exchange and capital markets and there is still two dimensional as w ell as simultaneous informal linkages between foreign exchange and stock markets. Figlewski (2001) Out of one of the many various kinds of papers written by Brenner, M., et al. (2010) have studied the nearby prevision and reaction of U.S. stocks, treasury bonds, and commercial bond places to the initial public announcement of major macroeconomic bulletin on employment, inflation, and interest rates. Four essential set of queries have been examined under this study. These are listed below: Whether these traded assets in the markets are more responsive to instability prior to release of these public announcements or less impulsive in nature afterwards? Are various asset class influenced in a different way by these public announcements? Is the prevailing degree of correlation between various assets being affected by these macroeconomic announcements? Do the influences of such public announcements occur solely due to their unanticipated mechanism or is the reaction happening in congruence to the predictable information? In response to the above stated queries, they have under taken a number of day to day, incessantly compounded surplus waiting-phase profits on the three major asset categories, namely; stocks, reserves bonds, and shared bonds. Koutsoyiannis (2004) What differentiates this research in contrast to the prior researches of its various types is the investigation of impact of major macroeconomic news on the cooperative allocation of returns in three different financial souks. Surveys and potential data have also been used to dig out the unforeseen mechanism of this information. Furthermore affect of these news bulletins on both the profits generated out of the three categories of assets, as well as their instability and connection is also a part of the analysis. To understand the flexibility of univariate GARCH model instead of containing the intricacy of the multivariate GARCH model, Dynamic Conditional Correlation (DCC) model by Engle (2002) has been taken under study. In view of this research they have come up to the conclusion that the information pertaining to the macroeconomic bulletins is considered to have a rather statistically momentous and economically considerable influence over the financial markets of US. Also this significant impact differs to a great extent across asset categories. Therefore it analyzes a multifaceted picture of interaction between the returns on asset in propinquity of public announcements or bulletins. In short a powerful correlation exists amid the actual economy and money markets of the U.S. With the help of a bivariate GARCH framework, Sarkar, A., et al. (2009), have been able to analyze whether the possibility of positive provisional relationship exists among capital profits and spending or not, even though the existence of absolute correlation is not evident in the case of G7 countries. A monthly statistics of approximately forty years have been considered for the United States and for other countries, quarterly data has been taken into consideration. They have witnessed strong evidence with respect to the existence of positive and considerable uncertain link among advancement in spending increase and capital profits. The hypothesis could not be verified and have been disregarded incase of 6 of the G7 countries as the correlation appears to be constant in nature for them. In relation to the above they have reached to a conclusion which proposes that the response of the policy incase when the stock markets performance is signifying better results than expected, may need to have a stronger policy than the usual. But when the market conditions turn out to be on the extreme that is either in a positive condition or a negative one, additional effects on the policy shouldnt have an impact by them.In this manner they have worked hard to establish a signifying linkage among capital market and actual economy and what effect does the capital market has on the actual economy. Another economist, Chauvet, M. (2009), has compiled his work upon establishing an active linkage among capital market variations and the trade cycle. It is of the believe that the movements in the stock market is being reflected by the various positions held up by the participants of the market on the basis of their assessment pertaining to the present condition of the economy. With the help of the on hand financial variables, in this thesis, the researcher has tried to explore the likelihood of envisaging the key rotating spots of the business series. A model has been proposed by Chauvet (2009) that facilitates in generating the predicted key rotating spots of the business series with the help of the trade cycle factor. It also assists in anticipating these predicted turning points pertaining to the trade cycle with the help of the stock market factor. The author; Chauvet, M. (2009) also suggests in this paper, an indicator of the stock market named as the stock market indicator (SM I). With the help of various series of financials, the stock market indicator (SMI) financially assists in the anticipation of essential rotating spots of the business series better in comparison to its individual components. This indicates that the SMI model is by far a better alternative to be used as a tool in anticipating the essential turning points of the trade cycle. Besides that, SMI can also be evaluated by the month end, which highlights the latest information for that particular month of the year. In contrast the CLI model only highlights information pertaining to the preceding month. Therefore the underlying structure suggested by Chauvet, M. (2009), is utilized to study and explore the characteristics of the stock market activities in predicting the trade cycles, particularly the beginning of the recession as a result of which it establishes a strong correlation and one way causal relationship between stock market and the real economy. Monthly data has been taken into c onsideration by the author from 1954-1994, in studying the economic and financial variables. The name of the economic variables used is: industrial production, manufacturing and trade sales from 1982, non-agricultural civilian employment, and the sum of individual income minus the transfer of payments from 1987. The author has taken into account a number of other variables for the stock market factor, these variables reveal general facts and figures pertaining to the current situation of the financial environment, for example; the amendments in the SP 500 PE ratio, surplus stock returns, 3-month Treasury bill rate and SP 500 dividend yield. A two state Markov process has to b followed by each of the factors discussed above. These factors depict various phases of the trade cycle. All of the factors are of the permission to change asynchronously in due course of time. Brenner, M., et al. (2010) throughout writing this paper have analyzed and examined the deep seated roots that are linked to the financial markets and the real economy. They have also examined the first public news pertaining to information of US macro economy to the short term anticipation and reaction of US stock, Treasury and Corporate Bond. The focus has been primarily placed upon studying the influence of these announcements on not just only on the different levels of those asset returns, but also upon the unpredictability and cooperative changes of those asset returns. The procedure of how the price arrangement takes place in relation to the macroeconomic news for the three major segments of the market that is stocks, government bonds and corporate bonds nad has also been explored by them. While carrying out the research on the underlying variables they have come across 4 important issues: In relation to the first release of the announcements, what impact would these announcements have on the asset returns and the volatility of these asset returns? Does the affect of these announcements differ in their impact in different ways for the various asset classes? Is the current degree of correlation that exists between different asset classes are significantly affected by this news? Is the reaction to the predicted information or the unexpected components of these news driving the impact created by these news releases? Having the flexibility of univariate GARCH model as opposed to the complex nature of the multivariate GARCH specifications, DCC Stock Market and Macroeconomic Variables in India Stock Market and Macroeconomic Variables in India Chapter I: INTRODUCTION Overview Investment is dependent on human behavior. Keynes (1936) elaborates which sort of behavior humans adopt while investing particularly in capital market. Usually people get in use with their â€Å"animal feelings† and â€Å"flock mentality†. Economic and social and political environment also affects the opinion of people and they force them to think several times before investing. This is the reason one cannot forget the fact that the value of economic activities and information nourished to the market is vital. Here we are going to discuss the tendency of animal spirit in India. The propensity of animal spirit in India is very much high-flying. The major reason for this is that only 2% of the population of India participates in such activities. The medium to get knowledge of market and accuracy in information is not available easily. This forces people to act as per their nature rather than their logic. The core theme of this analysis is the study of interrelation betwee n real economic variables and capital market variables. The significance of this relationship has got marvelous recognition in the past due to roller-coaster ride of the BSE. A few academics also claim that it is not greatly shored up by the financial basics. To determine the character of these basics in studying the stock prices, different people have done different researches. Amidst of these thoughts, some fundamentalists have tailored theory of Efficient Market Hypothesis (EMH). This theory was further extended by Fama in 1971 to narrow and categorize such business centers on the foundation of their response and data nourished to them in feeble, partially built and well-built markets. Another theory which is Popular Model Theory shows a different perspective in general. This theory explains the qualitative clarification of price which shows that most of the people proceed inappropriately to the information which they get and easily accessible information is not included in stock market price as Efficient Market Hypothesis verifies which is also much analogous to Keynes model. These days, everyone in the world is running after word money (finance). Nothing is possible without money and economy and other financial operations including growth of this whole world are also dependent on the same. Without finance, no one can turn the wheel of economy at 360 degree, because each and every transaction needs money at its core. Amadou (2007). In the past, there was a system in use, which is barter system. To avoid its complications, ‘money- component of finance was introduced and as then, money has been the most precious thing of the world. It has become a need for every individual to fulfill the requirements. Money is the core object needed to establish a business. The most valuable source of this sort of money is the post laissez-faireization period is stock markets. In todays world, each and every individual can witness the appearance and acceptance of the capital markets in the period of Globalization. This is considered to be highly regarded as an award f or the globalization years to under developed regions to enlarge and reinforce their nitty-gritty as their financial crisis is gratified to an extent by these stock markets. Capital markets are also considered to be a profitable platform for firms to get financing for their new or forthcoming projects and moreover for people as a prospect to invest with chances of risk but huge profits. The establishment of such capital market is the most important aspect for companies and individuals. It is also a valuable state of the prerequisite of economy on the degree required in a contemporary varied economy. The subsistence of such markets persuades the existence of such arguments shaped in the hoisting of money can be transmitted. Current Situation â€Å"Thus if the ‘animal spirits are dimmed and the spontaneous optimism falters, leaving us to depend on nothing but a mathematical expectation, enterprise will fade and die;-though fears of loss may have basis no more reasonable than hopes of profit had before. . . . . . . But individual initiative will be adequate only when reasonable calculation is supplemented and supported by animal spirits. . . . . . . .† Keynes (1936). In the above quote, Keynes (1936) has very bluntly and accurately explained the reasons undercover of the current situation along with the entire humankind is getting exaggerated in our day in 1936 merely in one of his leading models. A few economists have also accepted in an extremely enjoyable method which it is not the object that the worth of our productivity has decreased or lowered but just only the animal feelings are fainted and what we were expecting is that the value of our capital market has boosted is wrong in comparison with the primordial epoch and regard as added rise in actual value improbable. And every financial system requires such â€Å"animal spirits† or the positive behavior along with the estimated threats and reserves to became visible and outshine and development. Since her independence, India was following the socialistic outline for growth, but after the 1990s financial crisis, India had to make some strict financial improvements as proposed by World Bank. The most vital factors of that package were financial liberalization. This financial change cemented a new way for India to boost its economy and make developments and gave India impulsive environment to the financial markets specifically in language of BSE BSE which is supposed to be solitary of the major components of Indias fiscal hike. These days, capital markets has considered to be the most valuable source to transform domestic savings to upcoming productive projects and provides a chance to the country to develop. Brigham (2008) According to a survey conducted in India, around two percent of the general populace is directly caught up in capital markets but when anything happens to such financial markets, it is the whole population which get affected, which clearly shows the correlation, impact and importance of these capital institutions and actual economy not only on the ground intensity but also bottomless within the main rank. In these days, newspapers are bombarded with such sort of news and major newspapers also issue supplement for financial news. Due to such releases, there is a little doubt that the macroeconomic news which is vital to capital market will be affected. In recent years, the whole financial market of the world had crashed and with the recession in capital market, a gap has been established which lead to decrease real economic fundamentals. Consequently, it also boosts the value of this study because the focal point of this downturn is considered to be the capital markets and if we consider it the other way, a nation can become economically strong by considering such markets. So, it can easily be said by any person that it seems to be that the stock prices will go up and would result in the formation of some talented analysts of upcoming values of macroeconomic pointers similar to productivity growth and price increases. If one takes this thoughts then this would definitely result in arose of two more questions that what will make the market create hyper boom and incorporation of capital market with other marketplaces. Agrawal (2008) The most suitable reply to be given to the earliest query is that the flow of information rise which has crowded the market, for instance, media (commerce news channels). Another rebellion that shocked the market is Information Technology. The shortage of skilled people in IT in the US has also become highly required after stocks due to their fantastic dough take home power. The other question which is creating a fuss is regarding the connection of such capital markets with the actual financial system. Different analysts have also studied regarding this theory and worked on this linkage. Ando and Modigliani (1963) developed a theory called life cycle theory which is based on the linkage between stock prices and actual spending. The theory talks about the individuals decisions and states that people mark their expenditure verdicts on the conventional life span earning, division of which might be detained in capital connecting to capital cost variation to variation in using up expenditure. Beck Levine (2001 2008) In the same manner, the linkage between capital costs and investment spending is supported by q theory. The q theory is designed by James Tobin (1969) to analyze the effect of stock prices on investment spending, where q stand for fraction of total retail worth of comapnies to the substitute value of their on hand capital market at recent stock prices. In addition, we had also discussed EMH model. With this research we have concluded that none of these theories fit into the actual and recent image of stock markets. Some fit partially but no one is perfectly related. To analyze such issues, there should be more research to be done on this for better understanding and the below paragraph communicates it in an improved way. â€Å"We should not conclude from this that everything depends on the waves of irrational psychology. On the contrary, the state of long-term expectation is often steady, and, even when it is not, the other factors exert their compensating effects. We are merely reminding ourselves that human decisions affecting the future, whether personal or political or economic, cant depend on strict mathematical expectation, since the basis for making such calculation does not exist, and that it is not innate urge to activity which makes the wheels go round, our rational selves choosing between the alternatives as best we are able, calculating where we can, but often falling back for our motive on whim or sentiment or chance.† Keynes (1936). Structure of the Dissertation This study is stepped into five chapters and this is to be pointed that the register worth has been taken from all the factors. The first chapter thoroughly gives the overview of the current situation. The second chapter is based on the literatures related to our study. The third chapter comprises of a bunch of points and statistics and method considered in this analysis. The fourth chapter will explain the estimations and result analysis. Chapter five exemplifies the results, policy insinuations and boundaries of this analysis effort. Research Questions What is the relationship between stock market and macroeconomic variables in India? Is there an informal relationship between capital market and real economy? What is the influence of investment on financial health of India? CHAPTER II: LITERATURE REVIEW Introduction The word economics has emerged to be the most powerful word. Each and every individual is running after money and always try to earn as much as the one can within the shortest possible span. Without finance, no one can imagine running any sort of business and it has become an essential which runs the businesses and all the major features begin and finish at it. In recent world, the quickest and trouble-free way to earn money for new and challenging projects is to publicize or to enter into the stock markets where a little investment can make the wise firms accelerate and helps these firms to become giants amongst the other big names. Chauvet (2009) There are around two percent of the entire inhabitants in India which is caught up in stock markets but the whole population in India gets affected either directly or indirectly if anything good or bad occurs in such markets. This clearly shows that Capital Markets and Actual Economy both have strong and vital link on not just only the les ser stage but also on the higher stage. A number of studies and researches have been done in this regard but the outcomes are vague. The reason for this is that most of the researchers have found a tough bilateral linkage among capital markets and actual economy. On the other hand some researches have entirely rejected this analysis that stock markets and real economy are correlated. To study more deeply we can distribute numerous theories in 3 schools of thoughts on the ground of the literature review: first school of thought says that there is no linkage between capital market and real financial factors. The second school of thought has analyzed that there is an informal link among stock market and macro economic variable. The last one which is third school of thought promulgates an unclear belief that there is a relation between the two but not positively in both short and long run. Pindyck (2004) This research is comprised of some on hand literature which has been reviewed relating to the above problems. Below we have discussed the overall findings of different researchers. First School of Thought Chowhan, P.K. et al. (2000) The first school of thought attempted to obtain reasons for hurly-burly in capital market in small period in India considering BSE as the major indicator. In the period from 2008-2000, capital markets in India had shown irregular and unstable activities which does not go with the information provided to them. Due to the severe up and down in the stock prices, the investor confidence resulted in turmoil in the markets. The school of thought tried to explain that what could be the actual causes at the back of instability and what made Efficient Market Hypothesis (EMH) by Fama cant explain the reason. The researchers attempted to find out the reason of such huge rise in BSE stock value. On October 2008, BSE was at 2761 and in February 2000 it went at 6000, which shows 117% appraisal in just 15 months, which is not powerfully maintained by basic financial factors in this era because Indian economy boosted just only 5.9% in 2009-2000. On the other hand, the cor porate profit raised by 32%while the accumulated growth rate for industrial production during Apr-Dec 2009 was reported to be 6.2%. The rate of inflation in September 2008 was 8.8% while in 2009-2000 it has also jumped down to 2.9%. This research shows that long run financial factors such fluctuations in stock prices. Indias GDP in addition did not prove any hike in the past years. Not only India was affected with this situation but also other countries as well. The economists found some reasons to create a boost in Indian stock markets, they are: Information hike; IT impact; Internet fable; Feedback outcome; Cultural alteration. Another economist Sarkar, P. (2007) states that if there exists any significant correlation between growth and capital accretion, they have to use yearly information on numerous financial factors like, insignificant and actual share price, capital market turnover, companies which are stock market members, fixed stock structure and enlargement of actual GDP and production results. Despite, all the researchers tell the same thing from 2000-1951 till 2005, there are no correlation actual and capital market variables neither in short nor in long run. In addition, Sarkar also researched new movements and came to a conclusion that most of the financial variables are unstable and comprised of an upswing movement in mid 1970s. The tactics used in this thesis to get the best possible results is Unit Root tests. These tests are used to obtain a fixed and worthy degeneration analysis. Besides these studies, OLS and MLE approaches are also utilized for determining the sequence of auto-linkage of the remaining and handling with it. To estimate long-term and short-term relationships in a better manner, ECM and Autoregressive Distributed Lag (ADRL) respectively are used in this thesis. Shiller, R. (1990), an economist of University of Yale, had researched and tried to compare the normal meager compound Capital Price Index from 1871-2000. He concluded that the capital price instability is not compared by the profits. Second School of Thought In 2001, Black tried to elaborate the interlinkage between the U.S. capital costs and real economic variables. Black gathered 54 year periodical data and along with it used VAR model supported by hypothetical structure to study relationship between capital prices and macro financial variables. With the lime light on actual results and considering current value approach, Black found that the basic price-output ratio and the basic capital price in the light of various suppositions relating to time variation of income, and to contrast such values to the real data. Black studies 3 situations, in the first one, he initiated supposing that the individuals expect fixed return as being the wealth holder and then support this supposition by first, permitting the undisruptive rate to differ in due course and next the risk payment to be time changeable. Although there is a variation in models results, most mean that the capital market has comparatively been overestimated in comparison with its value expected from growth rates. According to reports, the ratio of stock market capitalization with GDP has boosted to be thrice as compared to last twenty five years in the US. From this figure, in mid 1970s less than 30% and in 1990s it was 80%. The point which is to be noted here is that it does not only seem that the capital market has risen in 1990s but its link with the actual finances has turned out to be well-built and due to which it got accredited. As per the records, capital market has been associated with actual financial variables by numerous tech niques, out of which one of them is asset costing perception in which Arbitrage Pricing Theory is second-hand as structure to analyze the impacts of actual economic measures on capital costs concentrating on the question that will the risk allied with a few real financial variables is replicated in probable asset takings. On the other hand, there also exists expenditure-CAPM study of expenditure which deliberates on a particular real factor power. There are other researches also conducted to analyze the relation between capital prices and investment when stock prices hide the actual economy which can be doled out with. In recent times, a lot of researches have aroused analyzing the mutual linkage between capital worth and actual financial factors with VAR models as the structure, devoid of any particular hypothetical formation. Bulmash (2003) has done a very distinctive analysis to elaborate the interaction between company investments and stock markets. He also studied that how investments affect stock markets and vice versa. This theory also reflects how investments respond faster than customers in capital markets. In his previous researches, Bulmash showed that what makes one capital market to get boosted just by the difference in returns of economies. And finally results in unity of this income fetch the stock into association in the long term. It has also been proved that what makes these stock markets covert into analysts of the future financial flows. It has also showed the linkage between capital investment markets and actual financial variables through a system that value of capital market will boost when: Firms increase their investment to enlarge their operations which will increase the GDP. With the increase in capital, actual capital also amplifies because buyers also raise their expenses which accelerate GDP. Such points will result in worth formation which will lead to real economy. Third School of Thought A renowned economist, Mustafa in 2007 has done an analysis on the linkage between capital market and actual financial market in Pakistan. For his study, he took a number of economic variables like, per capita GDP, productivity growth and capital market liquidity, volume of capital market highlighting the financial Market. He took up co-amalgamation and Error Correction Model method to set up the pragmatic link, if any among the two from 1980-2004. The probable outcomes points that the activities in the capital market of Pakistan elaborate the per capita GDP and productivity growth for small period only. On the other side, financial growth variables elaborates capital market factors in nearby as well as in long term which shows that the enlargement of capital market relies on by and large development of economy in Pakistan. The economy of Pakistan had not been affected by the acceleration in Karachi Stock Exchange which signifies that the elevated instability is not out of the ordinary of the up-and-coming stock markets. The previous theories related to this subject used stock prices as capital market movement sign and utilization, price rises, industrial output, financial flow, rate of interest as real financial factor. Mustafas theory is quite different from others work because the variables are different as used by others. The analyst have come to a conclusion on the basis of empirical results that in Pakistan the stock mark et is way behind and it needs to develop to be vital in the economy of Pakistan with the help of other financial institutions. In any nations economic growth, capital markets play an important role but capital market is inactive in the growth of a nation unless it is in its emergent stage. Another big name amongst economists is Hussain, F (2010). He also studied about the linkage among stock price and actual economy of Pakistan. He gathered data from 1959 till 2004 or 2005. After getting data, he distributed it in 2 halves, which are pre and post liberalization and with the help of this activity he analyzed the linkage between stock price and actual economy by applying different econometric tactics like ECM, Engle-Granger co- integrating regressions and Augmented Dickey Fuller (ADF) Unit Root tests. The delay period was decided in all the cases on the foundation of the two, i.e., Final Prediction Error and Akaike Information Criteria (AIC). By applying such techniques Hussain examined that there exists long term linkage between capital worth and actual financial factors. On the subject of the causal section, he has brought into being unilateral grounds from actual market to stock costs. This highlights that the stock markets in Pakistan are yet in a developing stage. They have not got developed to influence the actual variables of economy and because of that they cannot be considered as most important sign of the monetary activity. It means that Government of Pakistan can utilize actual sector to power the capital market. Another study observes that in India, the incorporation between Foreign Exchange and Stock market in liberalization period. The researchers tried their level best to find out the link flanked by Foreign Exchange and Stock market by using goods market approach and portfolio balance approach. To narrow the research, they have used a number of econometric techniques Grangers causality test in VAR structure, which is supported by F-Test to test this theory; and to examine such chains for immobility, ADF Unit Root Test is useful. One more econometric test is applied which is Gwekes Measures for the degree of business center amalgamation. But the point is that this study gave new outcomes which are totally different. The previous examinations reveal that there exists an informal linkage among income in foreign exchange and stock markets. While as per the final analysis, there is a high extent of assimilation among foreign exchange and capital markets and there is still two dimensional as w ell as simultaneous informal linkages between foreign exchange and stock markets. Figlewski (2001) Out of one of the many various kinds of papers written by Brenner, M., et al. (2010) have studied the nearby prevision and reaction of U.S. stocks, treasury bonds, and commercial bond places to the initial public announcement of major macroeconomic bulletin on employment, inflation, and interest rates. Four essential set of queries have been examined under this study. These are listed below: Whether these traded assets in the markets are more responsive to instability prior to release of these public announcements or less impulsive in nature afterwards? Are various asset class influenced in a different way by these public announcements? Is the prevailing degree of correlation between various assets being affected by these macroeconomic announcements? Do the influences of such public announcements occur solely due to their unanticipated mechanism or is the reaction happening in congruence to the predictable information? In response to the above stated queries, they have under taken a number of day to day, incessantly compounded surplus waiting-phase profits on the three major asset categories, namely; stocks, reserves bonds, and shared bonds. Koutsoyiannis (2004) What differentiates this research in contrast to the prior researches of its various types is the investigation of impact of major macroeconomic news on the cooperative allocation of returns in three different financial souks. Surveys and potential data have also been used to dig out the unforeseen mechanism of this information. Furthermore affect of these news bulletins on both the profits generated out of the three categories of assets, as well as their instability and connection is also a part of the analysis. To understand the flexibility of univariate GARCH model instead of containing the intricacy of the multivariate GARCH model, Dynamic Conditional Correlation (DCC) model by Engle (2002) has been taken under study. In view of this research they have come up to the conclusion that the information pertaining to the macroeconomic bulletins is considered to have a rather statistically momentous and economically considerable influence over the financial markets of US. Also this significant impact differs to a great extent across asset categories. Therefore it analyzes a multifaceted picture of interaction between the returns on asset in propinquity of public announcements or bulletins. In short a powerful correlation exists amid the actual economy and money markets of the U.S. With the help of a bivariate GARCH framework, Sarkar, A., et al. (2009), have been able to analyze whether the possibility of positive provisional relationship exists among capital profits and spending or not, even though the existence of absolute correlation is not evident in the case of G7 countries. A monthly statistics of approximately forty years have been considered for the United States and for other countries, quarterly data has been taken into consideration. They have witnessed strong evidence with respect to the existence of positive and considerable uncertain link among advancement in spending increase and capital profits. The hypothesis could not be verified and have been disregarded incase of 6 of the G7 countries as the correlation appears to be constant in nature for them. In relation to the above they have reached to a conclusion which proposes that the response of the policy incase when the stock markets performance is signifying better results than expected, may need to have a stronger policy than the usual. But when the market conditions turn out to be on the extreme that is either in a positive condition or a negative one, additional effects on the policy shouldnt have an impact by them.In this manner they have worked hard to establish a signifying linkage among capital market and actual economy and what effect does the capital market has on the actual economy. Another economist, Chauvet, M. (2009), has compiled his work upon establishing an active linkage among capital market variations and the trade cycle. It is of the believe that the movements in the stock market is being reflected by the various positions held up by the participants of the market on the basis of their assessment pertaining to the present condition of the economy. With the help of the on hand financial variables, in this thesis, the researcher has tried to explore the likelihood of envisaging the key rotating spots of the business series. A model has been proposed by Chauvet (2009) that facilitates in generating the predicted key rotating spots of the business series with the help of the trade cycle factor. It also assists in anticipating these predicted turning points pertaining to the trade cycle with the help of the stock market factor. The author; Chauvet, M. (2009) also suggests in this paper, an indicator of the stock market named as the stock market indicator (SM I). With the help of various series of financials, the stock market indicator (SMI) financially assists in the anticipation of essential rotating spots of the business series better in comparison to its individual components. This indicates that the SMI model is by far a better alternative to be used as a tool in anticipating the essential turning points of the trade cycle. Besides that, SMI can also be evaluated by the month end, which highlights the latest information for that particular month of the year. In contrast the CLI model only highlights information pertaining to the preceding month. Therefore the underlying structure suggested by Chauvet, M. (2009), is utilized to study and explore the characteristics of the stock market activities in predicting the trade cycles, particularly the beginning of the recession as a result of which it establishes a strong correlation and one way causal relationship between stock market and the real economy. Monthly data has been taken into c onsideration by the author from 1954-1994, in studying the economic and financial variables. The name of the economic variables used is: industrial production, manufacturing and trade sales from 1982, non-agricultural civilian employment, and the sum of individual income minus the transfer of payments from 1987. The author has taken into account a number of other variables for the stock market factor, these variables reveal general facts and figures pertaining to the current situation of the financial environment, for example; the amendments in the SP 500 PE ratio, surplus stock returns, 3-month Treasury bill rate and SP 500 dividend yield. A two state Markov process has to b followed by each of the factors discussed above. These factors depict various phases of the trade cycle. All of the factors are of the permission to change asynchronously in due course of time. Brenner, M., et al. (2010) throughout writing this paper have analyzed and examined the deep seated roots that are linked to the financial markets and the real economy. They have also examined the first public news pertaining to information of US macro economy to the short term anticipation and reaction of US stock, Treasury and Corporate Bond. The focus has been primarily placed upon studying the influence of these announcements on not just only on the different levels of those asset returns, but also upon the unpredictability and cooperative changes of those asset returns. The procedure of how the price arrangement takes place in relation to the macroeconomic news for the three major segments of the market that is stocks, government bonds and corporate bonds nad has also been explored by them. While carrying out the research on the underlying variables they have come across 4 important issues: In relation to the first release of the announcements, what impact would these announcements have on the asset returns and the volatility of these asset returns? Does the affect of these announcements differ in their impact in different ways for the various asset classes? Is the current degree of correlation that exists between different asset classes are significantly affected by this news? Is the reaction to the predicted information or the unexpected components of these news driving the impact created by these news releases? Having the flexibility of univariate GARCH model as opposed to the complex nature of the multivariate GARCH specifications, DCC

Personal Narrative - Finding Truth in Prayer :: Personal Narrative

Personal Narrative- Finding Truth in Prayer Glory, God stared me in the face. A man, my savior stood at the curtain. â€Å"Are you planning to pray?† he inquired. I blinked twice, â€Å"Um... yes?† Praying isn’t my ‘thing,’ but I figured â€Å"When in Vatican City...† I stepped past the man and into Enlightenment. Behind the curtain a room heavy with relics awaited. People stood, sat in the corners; heads down and hands clasped the room was immobile. Satan himself could not stir a soul. I took my place in the pew furthest from the front in a dark corner. Mindlessly I closed my eyes, hands and tilted my head. â€Å"Ask God for three things† my stepmother whispered in my ear. I opened my eyes. The room was remarkably bright. Angels flew above my head. How could I have never noticed before? And the altar before me rang with a holy, resonant sound. And this sound, this deep hum filled my mind, almost deafening any insecurities that I could ever find. This projection left me feeling whole, left me feeling safe and secure. I was ready, I closed my eyes. Just like Robert Frost’s â€Å"Mending Wall.† It occurred to me that when you wall something out (God), you’re also walling something in (the very glimmer that one day I’d have faith). I chose to break down that wall. But what to ask for? Here I am in what has to be one of the holiest places I will ever encounter and I’m gearing to pray. I don’t pray. What do I want? â€Å"Truth.† I heard myself whisper. Yes, the word flowed right out of me. An eternal flame had been lit, and I felt remarkably warm. I could not contain myself, I continued to whisper â€Å"I want to find the truth. Any and all truth, and somehow find its’ beauty.† Sure it wasn’t exactly three things that I had asked from him, but I figured if I put this one on hold, he’d be sure to listen another day. Bombarded, my mind filled with a million thoughts and ideas. I felt like I could see through any problem solely because I’m meant to. I knew what I wanted - the mere idea swallowed me. There is truth, and a faith that will liberate me. And my job, my mission is find it’s beauty. To chisel away the inconsistencies and fallacies of life until I’m left with nothing polished or refined, only the raw truth.

Legal Study Guide Essay

* | ChemoCorp, Inc., makes and sells pesticides. If a substance is identified as harmful and the harm is imminent, the Environmental Protection Agency canAnswer| | | | Correct Answer:| b. conduct an inspection of ChemoCorp’s plant.| | * Question 2 | | | Fabio makes a living by farming near Gastric Combustibles, Inc., which has discharged pollutants into the area’s air and water. In a suit by Fabio for an injunction against Gastric on the ground of nuisance, the court is most likely to rule in Gastric’s favor ifAnswer| | | | | | | Correct Answer:| c. Gastric’s operation is the core of the local economy.| | | | | * Question 3 | | | Fried Food, Inc., operates a commercial frying plant, discharging pollutants into the air. Greg reports the violations to the Environmental Protection Agency. GregAnswer| | | | | | | Correct Answer:| b. may be paid up to $10,000.| | | | | * Question 4 | | | Congress enacts air quality legislation. To implement and enforce this law, as is typical of other environmental statutes and regulations, the federal government will most likely rely onAnswer| | | | | Selected Answer:| a. all levels of government.| Correct Answer:| a. all levels of government.| | | | | * Question 5 1 out of 1 points | | | Industrial Solvents, Inc., averages $15,000 profit per day before deciding to ignore air pollution standards, after which the average is $30,000. Industrial Solvents is subject to a fine ofAnswer| | | | | | | Correct Answer:| a. $30,000 per day.| | | | | * Question 6 | | | Quickly Motor Company makes the Rock, a new model of sport utility vehicle, and sells it at the market’s lowest price. The Rock does not, however, satisfy federal emission standards and Quickly fails to maintain relevant, required records. The Environmental Protection Agency may assessAnswer| | | | | | | Correct Answer:| a. civil penalties, additional fines, and criminal penalties.| | | | | * Question 7 | | | Under the Marine Protection, Research, and Sanctuaries Act (the Ocean Dumping Act), Bayside Chemical Company may dump its chemical waste into the oceanAnswer| | | | | | | Correct Answer:| b. not at all.| | | | | * Question 8 | | | Truckers Storage Depot, a private company, wants to build a warehouse on private land. For this action, an environmental impact statement isAnswer| | | | | | | Correct Answer:| c. unnecessary.| | | | | * Question 9 | | | Consolidated Trucking Company transports radioactive materials. Darla suffers from cancer. To succeed in a suit against Consolidated on the ground of strict liability, Darla must show that her injury was caused byAnswer| | | | | | | Correct Answer:| d. Consolidated’s operation.| | | | | * Question 10 | | | Fruitful Garden Company makes and sells pesticides. For the pesticides to remain on the market, the acceptable level of risk to people of developing cancer from exposure to the products isAnswer| | | | | | | Correct Answer:| a. one-in-a-million.|

A Mid Summer Nights Dream Film Analysis Essays - Free Essays

A Mid Summer Night's Dream Film Analysis Essays - Free Essays A Mid Summer Night's Dream Film Analysis A Mid Summer Night's Dream Film Analysis A Mid summer Night's Dream is another entry into Shakespeare's recent rebirth on film. Michael Hoffman's film dose not stay true to the text, but he must take liberties to allow for this classic story to be entertaining to today's audience. In this essay I will discuss the differences between the text vision and the film vision of this story from the historical setting, the time placement, Hoffman's personal adaptations, and finally Hoffman's character adaptations. In Michael Hoffman's film of William Shakespeare's a Midsummer Night's Dream, Hoffman has made some changes to the location and historical aspects of the play. Shakespeare drew upon classical mythology, English literature, English folklore and contemporary English life. So Hoffman had to try his best to update it to today's views on mythology, folklore, and life. Hoffman's film is set in Italy, instead of Greece like in the text. Hoffman may have chosen Italy instead of Greece, because Italy overall has a universal romantic feel to it. Also Hoffman may have chosen Italy because it is much more well know to the general moviegoers. Unlike today, in Shakespeare's time Greece was the center of classical history, and would be know to most of the people of his day. Hoffman did include a Greek theme when he invented the town of Monte Athena located in Tuscany. The town is made-up but still connects the text with Hoffman's film. For the parts of the movie that would be filmed in the woods, they had the filming done indoors at a studio. They would need room to maneuver people and cameras, so the real outdoors would not do. The director would not have to deal with the weather, or having enough sun light. Also the indoor setting in allowed the fairies to observe the morals, in a believable setting. So now that I have show you the setting of the film, let me show you how time was a factor in Hoffman film. In Michael Hoffman's film the play took place in the turn of the century. Telling the story using the costumes of Shakespeare's day would have alienated the viewer of the film. Also modern clothes would jar the mood, so the actors were costumed in clothes of the 1900's. The turn of the century was far enough back to support romance views yet close enough so that the suits and dresses looked something like our clothes, and would feel comfortable to us. Unlike other films that copied the plot of Shakespeare's work, but did not use Shakespearean language. For example, the film 10 things I hate about you that is a modern version of Shakespeare's Taming of the Shrews. Hoffman's film follows the Shakespearean format, just like the last few Shakespearean films: Othello, Much Ado about Nothing, etc. In a historical context it was the middle of the suffrage movement. So the woman of the time were more independent then in Shakespeare's day. Also in Michael Hoffman's film the used bicycles as a form of transporting. The bicycle was a new invention that would allow anyone the freedom of movement. It was a liberating experience that was expressed by the main charters in the film. So now that I have shown you how time was a factor in Hoffman's film. Let me show you how Hoffman adapted the play to his liking. In Michael Hoffman's adaptation of the play many of the long speeches were shortened or left out. It is possible that Hoffman had to get the film in a two-hour time frame that most modern film fit into. Any longer and filmgoers would get bored, and restless. Usually large audiences see ether the film version or the stage version of A Mid Summer Night Dream. While the film is seen on the screen, the play is seen in real time, live. Although in the feel version Hoffman had the ability to use special effects to display he view on how the magic would look like, instead of walking off stage. Hoffman added a character of Nick Bottom's wife. She had only a few lines, in which all were in Italian. Also Nick Bottom's wife

buy custom And Tango Makes Three Essay Sample

buy custom And Tango Makes Three Essay Sample And Tango Makes Three An Analysis of the And Tango Makes Three Essay The childrens book, And Tango Makes Three is about a pair of Chinstrap Penguins called Silo and Roy whose home is in New Yorks Central Park Zoo. Written by Peter Parnell and Justin Richardson, it is a true story covering six years of the lives of the penguin pair. The story begins when the two penguins formed a couple and were given a fertilized egg to nurture. They duly did their duty until Tango - a baby penguin - was hatched. However, as this And Tango Makes Three essay will demonstrate, the book caused a considerable amount of controversy. In 2006, for example, the American Library Association received close to 550 formal requests for the book to be removed from libraries (Suhr 7). One of the most convincing representations for removing the book related to the fact the penguins were both male and their pairing was of a homosexual nature (Mitrano 14). From a critical examination of the book, however, it comes across to the reader that homosexual activity is something that simply h appens and does not represent the opinions of homophobes. Moreover, the accusations of the book being immoral were based on the fact that Silo and Roy share the same nest and sleep in it together. Yet it is unlikely that the targeted readers children aged four years to eight will associate this with sexual behavior.

Foreclosure Crisis and Cities Essay Example | Topics and Well Written Essays - 500 words

Foreclosure Crisis and Cities - Essay Example At the beginning of 2008, with the weakening of US economy and losing of jobs, these defaults became millions and many Americans with plain-vanilla prime mortgages were also in trouble for making the repayment. Some borrowers were compelled to give up the repayment, finding that they had paid inflated prices for houses while others were in trouble by borrowing against the equity in their homes. According to Federal Reserve, more than $1.1 trillion of equities were withdrawn in 2007-08. Even the borrowers who have stable jobs started to see these negative equities as reason for stopping the payments and by the beginning of 2009, one-sixth of the homeowners found default borrowers, culminating the foreclosure crisis (Immerdeck, 2009). A large number of foreclosed dwellings all around the country were left vacant when the owners just walked away from the properties as they were unable to repay the loans. These empty dwellings created blight and contributed to the deterioration of neighb orhood. This resulted in the drop of property value and increase of crimes.

Language and heteronormativity Essay Example | Topics and Well Written Essays - 1000 words

Language and heteronormativity - Essay Example What naturally can be derived from this is that the stereotyped images of women are simply the â€Å"approved typifications† of our society, which are even considered as appropriate and positive. While other information and communication channels like television news or films have within them a strong parallel stream of thought trying to break free from these stereotypical images, in advertising, they are rare. This could be a phenomenon that can be attributed to the fact that at any cost, an advertiser cannot afford to fail because he/she has a product to sell. Hence conforming to society's stereotypes becomes a necessity rather than chance. The advertisement that is being discussed in this essay is the television commercial of Era laundry detergent.( http://youtu.be/Leey5GZe-Ws ). This advertisement has many layers of gender stereotyping within it and the most evident one is the broad association of laundry washing with female gender (Era laundry detergent). This is an age o ld stereotype in itself. Human culture in different civilisations has been adamently sticking to the notion that it is the job of women to wash laundry and hence all detergent advertisements show women doing the laundry in a domestic ambience. The first frame of the advertisement, in which a woman is seen standing near a washing machine in the wash area of the house, has already made the suggestion that the place of a woman is in such an ambiance (Era laundry detergent). Goffman has called visuals (photographs and television videos, especially), the â€Å"a community's ritual idiom something like what a written text is for students of its spoken language† (27). When the woman starts talking, the viewer comes to know that she is not washing her clothes alone but her husband's shirt also (Era laundry detergent). What she says is that she is able to clean even the tough stains on her husband's shirt using this detergent (Era laundry detergent). The visuals that follow are expect ed by the makers of this film to be funny and meaningful, as the viewer sees the woman shown in the beginning of the advertisement, doing household chores like toasting bread and disposing kitchen waste, as if she is the heroine of an action movie (Era laundry detergent). Along with these visuals, the viewers listen to her telling that she is busy, and she is tough and the implied meaning here is also that she enjoys her domestic work, she is proud of the way she manages it and also she has no complaints about life (Era laundry detergent). The punchline of this advertisement in the end is â€Å"tough detergent for tough moms† (Era laundry detergent). This statement asserts that the woman the viewer sees in this commercial has only one single identity- the identity of a mom (Era laundry detergent). It is as if she is born to become a mom and nothing else. Yet, the mention about the husband's shirt in the beginning of the commercial also implies that she is also a wife and when she hands over a packet of lunch to her daughter who seems to be leaving for school, the mother image is reinforced (Era laundry detergent). In this manner, this commercial limits a woman's identity to just being a wife and a mother (Era laundry detergent). The clothes of the husband shown in the commercial are white. Everyone knows that keeping white clothes clean and spotless is the most difficult laundry task. Everybody also know that because of this, a