Quantitative Easing within the Eurozone

Quantitative Easing within the Eurozone Inflation is one of those things where the situation determines whether it is good or bad. Central Banks (CBs) are able to steer the inflation rate. Before the financial crisis of 08-09, they managed them by interest rate adjustment. The interest rate at which a bank borrows overnight would be reduced to prevent an economic fall, or increased if spending and credit would get out of hand (The Economist, 2015). When the CBs lowered their overnight interest rates during the financial crisis, even cutting the rates to almost zero did not manage to cause an economic recovery. Therefore, CBs started to experiment with alternative methods to encourage banks to pump money in the economy. Quantitative Easing (QE) is one of those alternative tools (The Economist, 2015). The current president of the European Central Bank (ECB), Mario Draghi, announced in January 2015 that he was going to employ QE within the Eurozone (Stewart, 2015). QE is an unconventional method in which a CB creates money and buys financial assets, such as bonds (Bank of England, n.d.). The use of QE has been popular since the financial crisis. In Europe, the ECB stated in 2009 that they would focus on buying a form of corporate debt, covered bonds, with an initial value of  £60bn (Duncan, 2009). In 2015 this eventually became  £60bn/month of bonds which would be bought from European institutions, agencies and central governments (Stewart, 2015). In 2016 they also included corporate bonds under their QE program. QE advantages In the recent crises interest rates had already been reduced to sub-zero levels, when there was still a need to prevent an economic downturn. Therefore CBs had no probable course of action anymore. With QE however, CBs could still influence the economy. QE increases the money supply, which causes competition between lenders due to excess money and therefore lower interest rates. This means that the CBs do not have to lower the interest rates, as they will automatically go down. QE also limits the increase in unemployment as result of a crisis, since it prevents in short-term a huge economic fall. The fact that QE shows immediate results, can be used to buy and therefore remove toxic assets, and that the government is in control of the outcomes, make it an interesting alternative to the classic conventional method. With QE CBs know the exact amount of money that they are implementing in the marketplace (MSG, 2017). QE disadvantages One of the CBs its main tasks is to monitor and control inflation. The inflation target in the EU is just under 2% (European Central Bank, 2017). QE causes a high inflation, due to the fact that money is created to buy the bonds. In the short-term a rise in inflation is a good thing, since shows economic improvement. In the long-term; however, high inflation is a problem. There is no long term data available since QE is a recent phenomenon, but it is a possibility that it could create long term inflation problems (Management Study Guide, 2017). QE also causes fluctuation in the interest rates, since the higher inflation over time will also make the interest rates rise. This is against the goal of the CB to keep them at a stable level. QE gives improvements in the economy in the short-term, however; in the long-term it could destabilize the economy (Management Study Guide, 2017). ECBs decision to choose QE In June of 2014, the ECB lowered their interest rates to a negative number (CÃ…â€Å"urà ©, 2016). The method to decrease interest rates was therefore not really implementable anymore. The ECB had to search for an alternative method to influence the economy. Other CBs were using QE, and there was also an example where QE had worked (UK, 2009[3]). The need to increase spending combined with the other possible motives could be the reason which pushed the ECB towards QE. The question now is where the need to increase spending came from. The core of the problems in the Eurozone is a spending crisis. One persons spending is another persons income. John Maynard Keynes[4]. In the aftermath of the 08 crisis, too much debt and poor growth prospects sacrificed spending in the private sector. New banking regulations combined with oversized balance sheets caused unwillingness to expand lending in banks. This combined resulted in dramatic decreases in private sector spending (van Lerven, 2016). [5] Graph 1 Due to the recession government its social security expenditures increased after they had bailed out banks. The decrease in spending mentioned above meant less tax revenue. These two events combined caused an expansion in government budget deficits, as is clearly visible in the graph above (Eurostat, 2017). This meant that governments also started to cut in their spending, which resulted in lower incomes for households, and therefore lower goods and services demands (van Lerven, 2016). To be able to give a recommendation to Mario Draghi, it is important to look at the results of their QE program are so far. In the first three months, there was a small increase in prices. However, in the following five months the inflation rate declined progressively and even reached a negative number in September 2015. After this it shows a few rises and falls, but all nowhere near the goal the ECB wanted to achieve with QE (van Lerven, 2016). The inflation was far from just under two percent. However, there is no long term information available, and QE has worked before. Currently QE aims to stimulate spending indirectly. The ECB does not give money to governments or the normal people, but puts it into financial markets. They then hope that the private sector changes their behaviour when it comes to borrowing and spending. The unfortunate truth is however, that investigation shows that QE has weak results in the transmissions in which it is supposed to work. Assets prices have increased, but there is no noticeable increase in spending in the Eurozone. The results the ECB wanted have not been achieved (van Lerven, 2016). Recommendation The current QE program has been here for a couple of years now, and with significant size. The goals the ECB hoped to achieve were not achieved, and therefore it is unlikely that increasing the length or size will lead to the spending they desperately want. As member of the board of governors I would suggest the use of more direct ways to increase the spending in the economy. References Bank of England, n.d. What is quantitative easing?. [Online] Available at: http://www.bankofengland.co.uk/monetarypolicy/pages/qe/default.aspx[Accessed 15 February 2017]. CÃ…â€Å"urà ©, B., 2016. Assessing the implications of negative interest rates. [Online] Available at: https://www.ecb.europa.eu/press/key/date/2016/html/sp160728.en.html[Accessed 28 February 2017]. Coy, P., 2014. Why John Maynard Keynes is just the economist we need to get the worlds economy humming again. [Online] Available at: https://www.bloomberg.com/news/articles/2014-10-30/why-john-maynard-keyness-theories-can-fix-the-world-economy[Accessed 28 February 2017]. Duncan, G., 2009. ECB opts for quantitative easing to lift the eurozone. The Times, 8 May, p. 53. European Central Bank, 2017. Monetary Policy. [Online] Available at: https://www.ecb.europa.eu/mopo/html/index.en.html[Accessed 23 February 2017]. Eurostat, 2017. General Government gross debt annual data. [Art] (Eurostat). Management Study Guide, 2017. Disadvantages of Quantitative Easing. [Online] Available at: https://www.managementstudyguide.com/disadvantages-of-quantitative-easing.htm[Accessed 28 February 2017]. MSG, 2017. Advantages of Quantitative Easing. [Online] Available at: https://www.managementstudyguide.com/advantages-of-quantitative-easing.htm[Accessed 28 February 2017]. Stewart, H., 2015. ECB unveils  £1.1tn QE plan to stimulate eurozone economy. [Online] Available at: https://www.theguardian.com/business/2015/jan/22/ecb-unveils-1-trillion-qe-plan-stimulate-eurozoen-economy[Accessed 12 February 2017]. The Economist, 2015. What is quantitative easing?. [Online] Available at: http://www.economist.com/blogs/economist-explains/2015/03/economist-explains-5[Accessed 23 February 2017]. TransferWise Ltd., 2015. What Is Quantitative Easing And Why Is It Used?. [Online] Available at: https://transferwise.com/gb/blog/what-is-quantitative-easing-why-is-it-used[Accessed 28 February 2017]. van Lerven, F., 2016. Quantitative Easing in the Eurozone: a One-Year Assessment. Intereconomics, 51(4), pp. 237-242. Zewald, S. B. J., 2017. Euros op tafel gevallen. [Art] (University of Bradford). Zewald, S. B. J., 2017. Money Printing. [Art] (University of Bradford).    [1] (Zewald, 2017) [2] (Zewald, 2017) [3] (TransferWise Ltd., 2015) [4] (Coy, 2014) [5] (Eurostat, 2017)

Police Stress

Police Stress page2 The first type of stress is external stress. The way that this stress is described is by stress that is caused by real threats and dangers. A few of these are like a call like a man with a gun and other dangerous type of situation. With this kind of stress it is able to affect a police officer on the job. This is because this is where the danger is and when these types of situations happen at. The way that this type of stress can affect a police officer social life is mentally. They can be out with other people having fun and joking around. Then in the officer mid they would be thinking about something that had happen that day. This kind of stress can also affect their personal life as well. The way that this happens is the officer does not know how to deal with or let go of the types of situations that they have to deal with on a day to day basis. I think that they could deal with this type of stress thought therapy or by talking to someone. This next type of stress is called organizational stress. The best way to describe this type of stress is by being over worked. This type of stress can affect an officer job by them being tired and from them being away from their family all the time. This type of stress also affects them socially. This is because they do not want to make plans to go and do something because of fear of them being called in for work. This type of stress can have an effect on their personal life as well. The way that this happens is the officer’s family starts to feel neglected and the officer stares to feel that he is letting them down. The way that they are able to deal with this type of stress is by going and getting some help, talking to someone or asking for some time off. The third type of stress that a police officer has is called personal stress. The way that this type of stress is described is by a police officer not getting along with fellow officers. The way that this affects the officer’s job is by having problems within the police department that they work in. The way that it affects them socially is it can cause tension in their socially life between people that they know. This stress also affects their personal life as well. This happen they take home this stress and use it against the people there. The way that they can deal with this is by getting to know the people they work with or talking with someone. The last type of stress there is for a police officer is called operational stress. The way that this type of stress is described is by having to deal with the day to day duties that they have to do on the job. This can affect their job because they do not do their job as well and sometimes they fail at it. The way that this affects them socially is by the way they look at criminals, Police Stress page2 citizens and their families. This can also affect them personally the way that it doses this is by making hard to deal with their family as well as work. The way that they can deal with this is by talking to a therapist or someone at work.

Top Guide of War Essay Topics

Top Guide of War Essay Topics The principal reason for the American civil was the matter of slavery. In other provisions, war can be regarded as as an armed confrontation between two parties that ends in several vital deaths on a battlefield. While the most frequent reason for the Civil war is thought to be slavery, there were several different factors involved also. The best thing about the civil war is it is fought for a fantastic cause like the abolishment of slavery. The New Angle On War Essay Topics Just Released It's far better move away from the essay for two or three days. When attempting to write like an expert writer you would like your work to look its finest. You just need to receive your thoughts down in a semi-logical way in one location. The actual issue is that most individuals aren't even conscious of what they're doing. War Essay Topics - the Conspiracy When you understand such differences you can greatly enhance the caliber of your content effortlessly . You would then have to select the arguments you will use to be able to strengthen your stance. Thus picking a superior convincing essay issue becomes extremely important when you decide to create an opinion. No matter how much you'll be taking that day, there are a few ways that will allow you to get through the essay with a very low quantity of stress. On-line essay writing services are supplied to the students at an incredibly lucrative price which is the reason it is simple to have a very good score in the assignments. Professional writers just want to use the very best research materials for their work. You should have a firm idea on how best to create topics people may wish to read about. If you absolutely require a top grade or whenever you have very little experience writing academic papers, you might have to contemplate employing a professional academic writer. War Essay Topics: No Longer a Mystery My essay is all about the civil war and the way it ended and the essential events that helped to end it. Your original thoughts on the source of the Civil War essay may not be just what you wished to state originally. When you select a topic for your Cold War paper, it is a great concept to concentrate on a notion that you are thinking about discussing. The general subject of your term paper is going to be the Cold War era . The impacts of war are both bodily and psychological. The usage of atomic weapons could develop into the important reason of fear of both the USA and the USSR. The Vietnam war is just one more illustration of war created as a result of difference in ideologies between the 2 nations. No matter which war you're likely to write about, whether it's the Civil War, WWI, WW2, Vietnam or Iraq War, you should first decide on your topic and pick a technique of approach to utilize in writing the war essay. Finding the Best War Essay Topics There are many topics in which you'll need to demonstrate your power of persuasion. If you have to select a great theme from many of Cold War essay topics, you ought to be prepared to undertake research of the history, and spend plenty of time and careful consideration on your writing. As you start to learn about the essay writing process it's important to provide time to your writing. Reasons to choose us If you are searching for a trustworthy essay writing service, we are the one that you require. There are various types of essays and largely depend on just what the writer would like to convey. More likely, your reader may wish to keep reading your essay to discover your opinion. To produce a fantastic bit of writing, one must be craft a great introduction as it is the very first thing a reader reads after the subject of the war essay. One particular important element of essay writing is a fantastic topic. Locate a topic which you feel strongly about. You first have to determine the reason behind your essay, before you're able to write persuasive content about it. You also ought to understand how to compose a persuasive essay, namely how to organize components of the persuasive essay in how that will get the job done best. Save your primary argument until the conclusion of your essay.

Glenn T. Seaborg Biography

Glenn Seaborg was a scientist who discovered several elements and won a Nobel Prize in Chemistry. Seaborg was one of the great pioneers of nuclear chemistry in the United States. He was responsible for the actinide concept of heavy element electronic structure. He is credited as co-discoverer of  plutonium and other elements up to element 102. One interesting bit of trivia about Glenn Seaborg is that he may have achieved what the alchemists could not: turn lead into gold! Some reports indicate the scientist transmuted lead into gold (by way of bismuth) in 1980.   Seaborg was born on  April 19,  1912  in Ishpeming, Michigan, and died on February 25,  1999  in  Layfayette, California at age 86.   Seaborgs Notable Awards 1951 Nobel Prize for Chemistry with Edwin McMillan for research with transuranic elements.Between 1946 and 1958, his team added ten new elements to the periodic table.Appointed chairman of the Atomic Energy Commission (1961-1971). President of American Chemical Society in 1976.Element 106 was renamed  seaborgium  in his honor. There was controversy over the element name, as it was issued while Seaborg was still alive.Co-author of approximately 500 scientific articles and many books.Seaborg held over 40 patents, including the only patents ever granted for making chemical elements (curium and americium). Early Nuclear Chemistry and New Element Group - Actinides In February 1941, Seaborg with Edwin McMillan produced and chemically identified the existence of  plutonium. He joined the Manhattan Project later that year and started work on the investigation of transuranium elements and better ways to extract plutonium from uranium. After the end of the war, Seaborg moved back to Berkeley where he came up with the idea of the  actinide  group, to position higher numbered elements in the periodic table of the elements. Over the next twelve years, his group discovered elements 97-102. The actinide group is a set of transition metals with properties similar to each other. The modern periodic table places the lanthanides (another subset of transition metals) and actinides below the body of the periodic table, yet in line with the transition metals. Cold War Applications of Nuclear Materials Seaborg was appointed chairman of the Atomic Energy Commission in 1961 and held the position for the next ten years, serving three presidents. He used this position to champion the peaceful use of atomic materials such as for medical diagnosis and treatments, carbon dating, and nuclear power. He was also involved in the Limited Nuclear Test Ban Treaty and the Non-Proliferation Treaty. Glenn Seaborg Quotes The Lawrence Berkeley Lab recorded several of Seaborgs most famous quotes. Here are some favorites: In a quote regarding education, which was printed in the New York Times: The education of young people in science is at least as important, maybe more so, than the research itself. In a comment about the discovery of the element plutonium (1941): I was a 28-year-old kid and I didnt stop to ruminate about it, he told the Associated Press in a 1947 interview. I didnt think, My God, weve changed the history of the world! On being a graduate student at Berkeley (1934) and competing with other students: Surrounded by dazzlingly bright students, I was uncertain I could make the grade. But taking heart in Edisons dictum that genius is 99 per cent perspiration, I discovered a pedestrian secret of success. I could work harder than most of them. Additional Biographical Data Full Name: Glenn Theodore Seaborg Field of Expertise: Nuclear Chemistry Nationality: United States High School: Jordan High School in Los Angeles Alma Mater: UCLA and University of California, Berkeley