Macroeconomic Transmission Mechanism Essay Example for Free

Macroeconomic Transmission Mechanism Essay Macroeconomic Transmission Mechanism of International Oil Price Rise: The Indian Situation In this Article, an effort has been made to trace the impact of an increase in international oil prices on Indian economy outlining the various transmission mechanisms. These transmission mechanisms take into account some of the important macroeconomic relationships, as relevant to the Indian context, and the administered nature of domestic oil price in India. The three broad channels through which the international oil prices impact the macroeconomy are identified as the (a) Import channel, (b) Price channel and (c) The fiscal channel. (a) A rise in international price of oil will translate to higher import bill for oil for the net oil importing countries like India (see, Table 1 and 2). Under the reasonable assumption of low price elasticity of demand for oil, ceteris paribus, the trade balance will worsen due to an increase in international oil price. Rise in inflation due to increase in oil prices means that the growth in real GDP is even lower. The compression in aggregate domestic demand dampens growth. In figure 1, the import channel is indicated by the link from international oil prices to current account balance to nominal GDP. Although managed float, the nominal exchange rate in India is observed to be determined solely by the capital account and not by the current account in the present Indian context. The second order adjustment to higher import bill and worsened trade balance occurs only through contraction in aggregate demand and decline in imports and it does not occur through movements in exchange rate (depreciation). Finally, it is expected that the slowdown in economic growth would subsequently reduce the demand for imports which, in turn, would partially mitigate the adverse impact of high international oil prices on trade balance. (b) The price channel links the international prices to domestic inflation. For a typical developing country like India facing an oil price hike in the international market, an unhindered pass-through of oil price increase leads to a jump in the general price level on account of direct use of oil at higher prices plus increase in costs of production of final goods using oil as an input. Modelling the passthrough of oil prices through an input-output system, Jha and Mundle (1987) estimated that in India if the administered prices of crude oil, gas and petroleum products increase by 7 percent, the overall WPI increases by 1 percent (i.e. the total elasticity to be 0.14). Recently the Reserve Bank of India (2011) has estimated that every 10 percent increase in global crude prices, if fully passed through to domestic prices, could have a direct impact of 1 percentage point increase in overall WPI inflation and the total impact could be about 2 percentage points over time as input cost increases translate to higher output prices across sectors. Greater the share of fuel in total consumption basket, larger would be the influence of international commodity prices on inflation. (see, Table 2 for other empirical studies relating to India) In India, a large proportion of the international oil price increase has traditionally been absorbed by the government (and shared with public sector oil producing and retailing companies). The objectives for regulation of price of oil have been three-fold: (a) To protect the domestic economy from volatility in international oil prices ; . (b) To provide merit goods to all households, e.g., clean cooking fuels like LPG, natu ral gas and kerosene to replace use of biomass-based fuels such as firewood and dung; and (c) To protect poor consumers so that they may obtain kerosene (through PDS) and LPG at affordable rates. In the recent years, there has been a change in the oil pricing policy with a move towards market determined oil prices. The extent of price regulation varies across products in the oil basket, with minimum control existing for petrol and very little pass-through for LPG and kerosene. The domestic price of oil is administered, which is essentially a policy decision, and thereby determines the degree of pass-through of the change in international prices to domestic oil prices. In figure 1, the price channel is indicated by the link from international oil prices to increase in administered prices to WPI inflation. (c) The third channel of transmission of oil price shock considered here is the fiscal channel. In the absence of a complete pass-through, an international oil price Increase will raise the subsidy on oil and therefore the revenue expenditure of the government. Furthermore, in India, the oil prices are subsidised, but they also generate substantial tax revenues both for the centre and the states because of an increase in ad valorem tax collections on oil and petroleum products that would have to be netted out to arrive at the net addition to oil subsidy given by the government.

The Effective Use of Symbols in Nathaniel Hawthornes The Scarlet Lette

The Effective Use of Symbols in Nathaniel Hawthorne's The Scarlet Letter Webster defined "symbol" with these words: "Something concrete that represents or suggests another thing that cannot in itself be pictured." This concept has been particularly applied to literature and used by writers throughout history. Nathaniel Hawthorne's The Scarlet Letter uses multitudes of symbols in such a manner. One of the most prominent, and most complicated, of such symbols is the scarlet letter "A". The scarlet letter "A" is a symbol of a daughter's connection to her mother, isolation, and the devil and its associations. The scarlet letter represents Pearl's emotional attachment to Hester. For instance, Pearl is as deeply affectionate to the letter as she is to her mother. In chapter ten, Pearl takes "a handful of [burrs], [and she arranged] them along the lines of the scarlet letter." In this instance, Pearl is showing her fondness for her mother by decorating her letter - as if the letter itself were a medium between the two. Additionally, Pearl views the letter and her mother as equals. During chapter fourteen, Hester decides to remove her letter while in the forest. Thus, Pearl is reluctant to approach her. Hester, realizing what is wrong, says, "Pearl misses that which she has always seen me wear." After she returns the letter her bosom, "Pearl kissed [Hester's] brow and both cheeks ... but ... Pearl put up her mouth, and kissed the scarlet letter too. (Hawthorne)" Because of the fact that Pearl equates the letter to her mother, the letter is as deep a symbol of motherly connection as Hester is herself. In addition to emotional attachment, the scarlet letter represents isolation. Whoever wears the letter will be feared by so... ...references to the devil and Hell make it clear that the letter is indeed infernal. The scarlet letter "A", the most intricate symbol in the novel, is extremely diverse as its meanings strongly contrast. Often times, these meanings of the symbol are directly stated, but they are frequently indirect as well. The symbol's meaning can also be expressed through a variety of methods such as character dialogue, narrative, or allusions through imagery. Despite the differences between maternal love, estrangement, and avernal entities, the letter is still able to encompass these concepts into its symbolism. Works Cited Hawthorne, Nathaniel. The Scarlet Letter. Oxford: Oxford University Press, 1998. Langenscheidt's Pocket Merriam-Webster Dictionary. New York: Langenscheidt Publishers, Inc, 1999. Springfield, Massachusetts: Merriam-Webster, Incorporated, 1997.

Student Response Essay 1

Student Essay #1 Response In her essay about rollercoasters, Kendall Anderson explains how rollercoasters came to be so popular, are constantly improving in style and technology, and are always leaving us wanting more thrills. I actually enjoyed reading this essay, it was very informal and included interested facts, like about the person who rode on a rollercoaster for a ridiculous amount of hours, and about how there are very few deaths on rollercoasters that are usually just from the medical conditions of the person who went on the coaster.I felt like I could really believe this person about their knowledge and explaining rollercoasters and how they work and how they are made and what makes them so fun with all their appeal to logos, especially when I looked at the works cited page. I found that on the works cited page that Anderson used sources from articles from using Academic search premier and journals such as Popular Mechanics, which are reliable sources and not full of bogus information.She used her sources very effectively as she paraphrased and summarized appealed greatly to logos and providing facts about rollercoasters to explain all the interesting things about them that make you further interested in rollercoasters. I could really tell that she did her research and wasn’t just claiming things about rollercoasters that she couldn’t back up with warrant and facts, which made me believe her. I could tell that she was paraphrasing and summarizing when she included her source in parenthesis at the end of whatever she paraphrased about rollercoasters.What surprised me in her essay was all the interesting facts she included, like when she talked about not only the rollercoasters, but the rollercoaster riders themselves and the many rollercoasters they attempt to ride and for the crazy lengths of time they ride them for, and even the age of the majority of the people in ACE was surprising to me. I found the topic of rollercoasters intriguing to read about since they are a thrill to me, so that is why I even chose to read Anderson’s essay, which in the end I found very informal, interesting, and enjoyable to read.

The Full Risk Management Lifecycle - 849 Words

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We can use statistic tools or ask for experts’ opinion to increase the correctness and effectiveness. †¢ Resolve risks. There are several methods used t resolve risks, such as transfer, mitigate, and add redundancy. I think this is the most important part of risk management. However, due to the limitation and subjectivity of people’ knowledge, the solutions might be not practical and useful. To improve it, we can involve all the stakeholders together to brainstorm the solutions. †¢ Monitor risks. In a real project, new risks may occur andShow MoreRelatedBenefits Of Adopting A Full Product Lifecycle Risk Management System1772 Words   |  8 Pagesadopting a full product lifecycle Risk Management system. B) Describe the Risk Management cross-functional team members and their comparative responsibilities to the overall Risk Management process. 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