Contrast the factors a qualitative Essay

There is no hard and fast rule when it comes to the size of the sample used in a study, and there are many aspects to take into consideration. Contrast the factors a qualitative and quantitative researcher must consider when determining the sample size. How does the sample size impact the study? â€Å"Quantitative researchers seek to select samples that will allow them to achieve statistical conclusion validity and to generalize their results† (Polit 2012, p. 273). And as our text reminds us there is no simple formula to tell you how large a sample is needed for a study. The general recommendation our text gives us is â€Å"the largest sample size possible. † The larger sample size that is used increases the validity of the research. So in turn the smaller the sample size for either study increases the sampling error. The researcher should comparing characteristics of the study in relation to the variable, dependent and independent. The size for most studies â€Å"depends on the magnitude of the expected effect size, which is usually quantified by a relative risk, odds ratio, absolute risk difference, hazard ratio, or difference between two means or medians. The smaller the true-effect size, the larger the study needs to be (Hackshaw, 2008, p. 1141). References Hackshaw, A. (2008, November 1, 2008). Small studies: strengths and limitations. European Respiratory Journal, 32(5), 1141-1145. http://dx. doi. org/10. 1183/09031936. 00136408 This discussion will revolve around the topic of control. In quantitative studies, control is an important issue. What does control mean in research? Why is it important? What do you think is meant by controlling intrinsic and extrinsic variables? Give examples of effective ways to control variables in quantitative research. In qualitative research In research control is a variable in a study that usually remains constant. This variable is what the study results are compared to. This control is what helps the researcher to know if the study was performed correctly or appropriately. When we think about controlling intrinsic and extrinsic variables first we must know what these things are. By definition extrinsic means (Dictionary. com, 2013): being outside a thing; outward or external; operating or coming from without. Intrinsic means: belonging to a thing by its very nature.

Case Study: National Bank of Kuwait

Opting for exempt CHI will reduce the legal requirements to the minimum. Central Bank of Bahrain) According to the CAB, the initial capital required should comprise of: At least two real estate properties constituting 80% of the initial investment At most 20% of the initial Investment should be Invested in development and other activities. Additionally, the CAB requires that the amount of equity capital be at least 40% of the total value. All of the legal requirements as stated above require N.B. to provide substantial funding at the onset of the Joint venture.There are many options available: N.B. may elect to form a separate SSP to raise levered capital required as equity in he CHI. N.B. may invest in the CHI formation from unrestricted investments. N.B. can raise equity of unrestricted investment account holders using Muskrat instruments under the banks name. I opt for the second option, given that the fund type is an open-type fund and N.B. can subsequently raise capital as neede d without limitations as to the number of shares.Further, in order to comply with Shari, N.B. must ensure that: The fund does not disburse or receive fixed payments based on principal (interest). All payments and receipts should be be either in the form of profit shares – or striations thereof; or fee based flows. Profit sharing ratios and fee structures should be according to contractual agreements made before the formation of the fund to avoid gharry. The agreement should include no clause limiting the exposure of the bank to losses in contradiction to the stipulations of Shari without adequate Justification (e. . Limiting the exposure to loss for Arab al mall in a Muhammad contract without a valid justification which may be, for instance, gross misconduct by the midrib in breach of the contract resulting in the loss). To sum up, I suggest that N.B. raises funds through equity of unrestricted investment account holders using Muskrat instrument under the name of the Bank to purchase the assets needed to set up a collective investment undertaking according to the stipulations of the CAB. 2) How N.B. can raise Shari-compliant funds in excess of initial capital for financing of specific real estate projects. After formation of the fund, N.B. will have to enter into joint venture agreements with real estate developers. This will require further financing as the portfolio will require investments for developing real estate assets in arioso countries in excess of the initial investment amount. Islamic finance provides many options for raising capital for such purposes, but two option are the most used: Muskrat and Muhammad.Muskrat, basically, is a partnership where all parties provide finance and share profits according to predetermined arrangements. Management arrangements may differ according to the stipulation of contracts so does the management fees. Muhammad is a special type of partnership that involves a financier (Arab al mall) and an entrepreneur (m idrib) whereby the undertaking is financed by the Arab al mall in turn for a profit or loss share and the midrib provides the actual work and technical expertise and receives a share of the profit.It is worth mentioning that the Midrib does not share losses. The solution to Nab's case is a two-tier financing agreement. There will be a Muhammad contract with the developer whereby the bank is Arab al mall and the developer is the midrib. There will also be a Muhammad contract between the bank and the bank and investors whereby the bank is the midrib and the investors are ABA al mall. The reason why Muskrat was not used is that, in common with investment funds, the manager does not share losses with investors.The common practice is to charge fixed management and other fees and charge commission on profits which is compatible with the Islamic instrument of Muhammad. This strategy better matches the inflows and outflows for N.B. as they will only act as intermediaries between investors a nd developers and will minimize exposure to loss. The income for the fund will be in the form of: Fee income from investors Share of profit from the sale or rent of properties less developers shareThis kind of arrangement is common with Islamic banks when finance is not readily available internally Malden) However, the bank can also limit its risk exposure by taking a deposit from the developer in the form of Muskrat contract whereby the bank will be able to share some of the risk with the developers. This sharing of risk will solve the agency Muskrat partnerships that for their own interest, thus increasing efficiencies in their part of the Job as their net compensation will not contain a fixed minimum but can also extend to loss to a certain extent depending on the amount of the Muskrat contract.

Ethics and Corporate Responsibility in the Workplace and the World Term Paper

Ethics and Corporate Responsibility in the Workplace and the World - Term Paper Example The end use customers of the products offered by the company are also stakeholders who are impacted by the operations of the company. It can also be seen that the regulatory authorities who oversee the operations of the company are also regarded as the other stakeholders in this particular case. 2. The concept of ethics is primarily concerned with differentiating between something that is good from bad (Robbins, 1993). By any standard, it can be seen that the conduct of PharmaCare in Colberia is unethical as a result of the fact that the indigenous population is treated in a bad manner compared to its executives. First and foremost, it can be seen that the healers in this area have volunteered to give their knowledge for free whilst the company is generating lots of revenue from this practice. The other issue is that these indigenous workers work for only $1 per day and they walk for five miles into the jungle to harvest the plants required for manufacturing medicine. These indigenou s people also carry heavy loads on their backs which can weigh as much as 20 pounds. The other issue of concern is that the indigenous workers live in primitive huts that do not have electricity or running water. Overall, the activities of the company in Colberia have destroyed the habitat in the area as well as endangered native species. However, the executives of PharmaCare live in a luxury compound that is comprised of a tennis court, golf course and swimming pool. The compound is electrified and it has running water. This is in stark contrast with the miserable lives being led by the majority of the residents of Colberia who are also the labourers at the above mentioned company. This practice amounts to exploitation and it should not be condoned since it is designed to enrich other people at the expense of the local people who should also benefit from their natural resources. The practice by the company shows that it does not take into account the concept of corporate social res ponsibility in its practice since it totally ignores the needs and interests of the indigenous people who are also supposed to be beneficiaries from the resources that are being plundered by a foreign company. 3. Allen has no legal basis to fire Ayesha, Donna and Tom. These people raised genuine issues that should be dealt with in an amicable way instead of firing them. Ayesha raised a complaint that she has not been promoted by virtue of being a Muslim. This is regarded as discrimination and it has no room in a democracy. All employees should be treated as equal and important to the organization. Donna got sick from the bad working environment in the company and filed for worker’s compensation. This is a genuine case given that the employer has an obligation to make sure that the workplace environment is safe and clean for the benefit of the employees. Thom has also threatened to file a complaint with OSHA as a result of the poor working environment of PharmaCare Company. Ac cording to the United States Department of Labour (nd), the Occupational Safety and Health Administration (OSHA) Act of 1970 states that companies must ensure â€Å"safe and healthful working conditions for working men and women.† It can be seen that Allen cannot legally fire the three mentioned people above since they have genuine complaints. Otherwise, any attempt to fire them will discredit the company since it may be viewed as engaging in unethical practices by different

The Differences Between Alexander the Great and Napoleon Essay

The Differences Between Alexander the Great and Napoleon - Essay Example Either way, they were both men of great power. By comparing their differences in personality and ambition, it becomes clear what traits are dominant among those who wish to lead and rule, and what traits are merely quirks of the person. Alexander the third, more commonly known as Alexander the Great of Macedonia, was not the first in his family to be a warrior. His father, King Philip the second had also been a great warrior, bringing together the country of Macedonia. (Brown). For him, conquest was inevitable, as was the taming of his great horse, Bucephalus. Believing himself to be one of the Gods, Alexander took over his father's empire at the age of twenty, when his father was killed. Alexander won conquest after conquest, eventually being named Pharaoh of Egypt. (Brown). Yet as he pushed his men on, they grew resentful, and eventually refused to continue. It was not long after that he because very ill, and died. For Alexander, his ambitions were actually small, but they took on a large meaning. At the time, to be truly the best was to be Greek. Yet he was from Macedonia, a land the Greeks despised. Alexander the third, more commonly known as Alexander the Great of Macedonia, was not the first in his family to be a warrior. His father, King Philip the second had also been a great warrior, bringing together the country of Macedonia. (Brown).   For him, conquest was inevitable, as was the taming of his great horse, Bucephalus. . Believing himself to be one of the Gods, Alexander took over his father’s empire.... force the land and power necessary to become someone great, and indeed, near the end of his conquests he was called the "Lord of Asia" and had conquered many countries. His motivations and ambitions were clear, wealth, fame, power. He also wanted to finish the work of is father, and destroy the Persians, whom the Macedonians thought to be horrible, filthy people. As for his personality, there is much to be seen in some of his earliest moves a nd actions. Bucephalus, his horse, was tamed by him at the age of twelve, when no other man could tame him. Not only was his intelligence clear, but also his sheer determination. When none of the king's men could tame the horse, Alexander said that he could or would pay the cost of the horse. Easily, he noticed that the horse was not unwilling, but his own shadow was scaring him. Turning him into the sun, Alexander easily tamed and rode the horse. It was at this point that his father told him "Oh my son, look thee out a kingdom equal to and worthy of thyself, for Macedonia is too little for thee." (Lamb) The death of his horse some eighteen years later was tragic to Alexander, and he buried his horse in a tomb near a town he named Bucephala, to honor his horse. His kindness to his animals was important; as was his kindness to the people he conquered. Although, like others, he sold women and children into slavery, he was remarkably good to those who did not oppose his rule, and did n ot rape and murder the women, as other leaders might have. He wanted power, but in many ways, it is clear that he also wanted respect. His intelligence is also clear in his ability to understand and learn from Aristotle, one of the greatest philosophers in history.  

Brown v Board of Education Research Paper Example | Topics and Well Written Essays - 3000 words

Brown v Board of Education - Research Paper Example Thus, public schools could achieve only limited success in integration of white and black students in desegregated schools. A study involving six communities and schools reveals that educators tried to convince the middle class white parents and students for desegregation so as to prevent them from moving out which would make the public schools economically unviable. At the same time, black students were often asked to leave their community schools by offering them bus facilities and such actions resulted in the closure of those black schools. (Wells, Holmes and Revilla). The policy makers tried to bring about color blindness in toto. It was to some extent achieved as stated by the authors â€Å"†¦.when several of the districts and schools we studied had seen a great deal of racial tension and even â€Å"rioting†. By the late 70s, a degree of clam had returned; not talking about race seemed the best way to â€Å"keep the peace† and â€Å"to keep the lid on things † (Wells, Holmes and Revilla 13). Major Claim   A Prejudice and unequal treatment Although schools were desegregated and students of color and whites started attending the same public schools, the administration put the black students in separate class rooms within the same schools. Their needs were often ignored (Wells, Holmes and Revilla). African Americans are over represented in special education The Individuals with Disabilities Education Act (IDEA)3 provides for free public education to students with disabilities. This special education efforts call for initiatives on the part of schools to have appropriate procedures to ensure that a child referred for special education is actually a child with... The paper tells that the Individuals with Disabilities Education Act (IDEA) provides for free public education to students with disabilities. This special education efforts call for initiatives on the part of schools to have appropriate procedures to ensure that a child referred for special education is actually a child with disability requiring special education. It is often the case that wrong cases of children are referred for special education. It is especially the case with African American students in many districts of the country. This results in a disproportionate representation of group membership for special education. Overrepresentation in special education is said to occur when the membership of a particular group, say African Americans is found to be larger than the percentage of that group in the overall educational system or within a given disability group. Such a variance is a cause for concern (Council For Exceptional Children and Black School Education). It has been contended that disproportionate representation of African American students in special education results due to inadequate/wrong allocation of educational resources, wrongful curriculum and pedagogy, and insufficient teacher preparation. The White privilege and racism is charged with referring disproportionate number of African American students for special education categories such as mental retardation and learning disabilities. Such students once labeled as such tend to show results in achievement gains and come out of special education at rates much higher than those of their counterparts in White students with disabilities.

Analyzing Gender Differences in Spontaneous Speech Research Proposal

Analyzing Gender Differences in Spontaneous Speech - Research Proposal Example From the time they are born, baby girls are considered fragile and they are exposed to delicate language and handled very gently. Boys, on the other hand, are exposed to strong tones and power-filled language and are handled less gently as they are tossed in the air and held upright from a younger age to demonstrate their power and strength (Rasquinha & Mouly, 2005) This study attempts to investigate gender differences in choice of topics to talk about and linguistic differences in verbal expressions. Its significance lies in the fact that understanding gender differences and accepting them as natural to the person will help others understand where the speaker is coming from. To understand gender differences in communication better, it is important to actively analyze how men and women express themselves linguistically and explain the differences between the two if any. Background of the Research Problem Most miscommunication problems between men and women stem from the fact that they are wired differently. According to Rasquinha and Mouly (2005), women are more prone to communicating verbally with a language of connection and intimacy. This means that they use more of their emotions when speaking. On the other hand, men are more prone to communicating with a language of status and independence. This means they use more of their logical reasoning and less of their emotions. Sometimes, conflicts arise when issues pertaining to interpretations of certain topics and gender differences come into play.

Womens Suffrage Research Paper Example | Topics and Well Written Essays - 750 words

Womens Suffrage - Research Paper Example A series of activities followed the enlightening, which had been presented by the publication of this book. People began advocating for the equal rights among women and men The origin of the women suffrage movements could be traced in France during the French revolution, where Olympe de Gouges and Nicolas de Condorcet were involved in advocating for women suffrage during the national elections. This movement began spreading across continents and regions and almost all societies experienced such movements advocating for equality. These movements continued to become popular among different regions and they were increasingly utilised to advocate for other rights. Various debates arose within the regions focusing of the need to provide women with the right to vote. During the early 19th century, there was an increasing debate on women suffrage which resulted in a convention calling for women suffrage. The convention was conducted in 1848 in America, and it challenged America to revolutionise the social system in all aspects of life. Proponents of women suffrage believed that, suffrage was the most effective approach for changing the unjust system which failed to offer women the right to vote (Nardo, 2014). Since the movement began, some progress was made and women were accorded many freedoms which they lacked. These included education opportunities, property rights, and many other social freedoms. Although these were achieved through advocating for equal rights, the right to vote still remained elusive to the supporters of suffrage. The granting of the rights to vote remained limited to certain states within the United States of America. By the turn of the 19th century only four states had granted women the right to vote. The organizations which were advocating to equal rights remains focused on other forms of freedoms including the broad economic and political freedoms for social change (Buhle & Buhle, 2005). The

Competitive Review of PepsiCo Term Paper Example | Topics and Well Written Essays - 2000 words

Competitive Review of PepsiCo - Term Paper Example PepsiCo is one of the biggest soft drink, beverage, and convenient snacks companies. Pepsi has been bringing refreshments to its customers for over 100 years. It has almost 18 brands in its portfolio. The soft drink and beverage market is highly competitive with changing customer tastes and preferences and therefore to maintain sustainable growth the management constantly has to introduce new marketing strategies, conduct market research and thereby position and reposition their brands or introduce new brands. Introduction of new brands has always been a favorite marketing strategy with PepsiCo management.    Pepsi has 18 mega brands available in nearly 200 countries and generates sales at the retail level of more than $1 billion. (See appendix 2 for PepsiCo mega brands and annual retail sales of each) Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale in production and distribution, with average annual revenue per production worker close to $1 million. Small companies can compete by producing new products, catering to local tastes, or selling at lower prices.    Coca Cola is the world’s number 1 producer of carbonated soft drinks is Pepsi’s biggest rival. In the soft drinks industry, Coca Cola and Pepsi together have a market share of 95%. Where Coca Cola has a market share of 43.1% and Pepsi has a market share of 39.2%.    The target customers for Pepsi customers are mostly teens and young adults between the ages of 12 to 35 who are fast and lively. They have high expectations in life and are very mobile and active. Pepsi promotes itself as the choice of the â€Å"New Generation†.   One of its recent advertisement slogans is â€Å"Taste the one that's forever young ". â€Å"According to the Competitive Advantage model of Porter, a competitive strategy takes offensive or defensive action to create a defendable position in an industry, in order to cope successfully with competitive forces and generate a superior Return on Investment†(competitive advantage Porter).

Business Plan for a food truck Article Example | Topics and Well Written Essays - 1750 words

Business Plan for a food truck - Article Example Our marketing mix which includes all the segments in terms of pricing, place, promotion and product are updated. The company’s financial projection and the current trends in operation is a good indicator of the ability of our company to break even fast and start realizing its profits. N. Panadas is the name of our company which is located at 12321 University Blvd., Orlando, FL, 32817. Our Company is a Venezuelan food truck that offers Venezuelan empanadas. N. The stuffing for the empanadas is your choice of beef, chicken, cheese, shrimp and fish. While attending to a college I noticed that most of the common fast food chains were built around college campuses. While offering a lot of variety, there were no fast food chains offering empanadas. Most importantly none of the fast food chains offered delivery to dorms even while being across the street from them. N.Panadas offers not only authentic Venezuelan empanadas but also caters to the college lifestyle. The fast food industry is one of the booming industries in terms of business. Most of the students have no time to prepare their own food and would therefore bump into any food store to look for food. For this reason the N. Panada’s has decided to meet the needs of our customers. Our target customers as already described above as the UCF campus students. Most of our target group is students who are aged between 16-30 years. This is a youthful stage which requires a lot of energy due to their extensive active nature in their daily activities. The figure below is an indication of the rising fast food trends. The figure projected above represent the rising population of our target location. There is a good indication that with the rising numbers of the population the fast food industry demands also increases as well. This is proof enough on the rising profits that are being attained from the fast food company. With these projections it is expected that N. Panada’s company is likely to enter

Network Key Terms Essay Example for Free

Network Key Terms Essay The Internet- The global network formed by interconnecting most of the networks on the planet, with each home and company network connecting to an Internet service provider (ISP), which in turn connects to other ISPs. Internet edge- The part of the Internet between an ISP and the ISP customer, whether the customer is a company or organization with a large private TCP/IP network, or whether the customer is a single individual. point of presence- A term used by service providers, particularly for WAN or Internet service providers instead of traditional telcos, that refers to the building where the provider keeps its equipment. Access links that connect the customer device to the WAN service physically connect into the POP. Internet core- The part of the Internet created through network links between ISPs that creates the ability of the ISPs to send IP packets to the customers of the ISPs that connect to the core. Internet access- A broad term for the many technologies that can be used to connect to an ISP so that the device or network can send packets between itself and the ISP. analog modem- A device at the customer and ISP end of an analog circuit, created when one modem calls the phone number of the other modem, with the two modems sending data using the analog circuit. DSL- Digital subscriber line. A type of Internet access service in which the data flows over the local loop cable from the home to the telco central office, where a DSLAM uses FDM technology to split out the data and send it to a router, and split out the voice frequencies and send them to a traditional voice switch. cable Internet- A term referring to Internet access services provided by a cable company, using many components, including a cable modem, coaxial cable, and a CMTS at the cable company head end. default route- In a router, a concept in which the router has a special route, the default route, so that when a rout er tries to route a packet, but the packet’s destination does not match any other route, the router routes the packet based on the default route. host name- A name made up of alphabetic, numeric, and some special characters, used to identify a specific IP host. Host names that follow the convention for domain names in the DNS system use a hierarchical design, with periods  separating parts of the name. Domain Name System- The name of both a protocol and the system of actual DNS servers that exist in the world. In practice, DNS provides a way for the world to distribute the list of matching host name/IP address pair information, letting each company maintain its own naming information, but allowing the entire world to discover the IP address used by a particular host name, dynamically, using DNS protocols, so that any client can refer to a destination by name and send IP packets to that host. Subdomain- With DNS naming terminology, this term refers to a part of a host name (or domain name).That smaller part can be the part that a company registers through IANA or some authorized agency to identify all hosts inside that company. IPv4 address exhaustion- A term referring to the very real problem in the worldwide Internet, which first presented itself in the late 1980s, in which the world appeared to be running out of the available IPv4 address space. classless interdomain routing (CIDR)- One of the short-term solutions to the IPv4 address exhaustion problem that actually helped solve the problem for a much longer time frame.CIDR allows more flexibility in how many addresses IANA assigns to a company, and it helps reduce Internet routing table sizes through route aggregation. Network Address Translation (NAT)- One of the short-term solutions to the IPv4 address exhaustion problem that actually helped solve the problem for a much longer time frame. NAT reduces the number of public IP addresses needed by one ISP customer by using one public IP address for the traffic from many real client hosts. Acronyms: BGP- Border Gateway Protocol CATV- Cable TV CIDR- Classes Interdomain Routing CMTS- Cable Modem Terminating System DSL- Digital Subscriber Line DSLAM- DSL Access Multiplexer FTTC- Fiber to the Curb HFC- Hybrid Fiber Coaxial IANA- Internet Assigned Numbers Authority IPS- Intrusion Prevention Systems ISP- Internet Service Provider NAT- Network Address Translation POP- Point of Presence RIR- Regional Internet Registries RJ-11- Registered Jack 11 SOHO- Small Office/Home Office

The arguments for floating and fixed exchange rates

The arguments for floating and fixed exchange rates Evaluate the respective arguments for floating and fixed exchange rates. Your answer should include an exploration of theoretical issues and evaluation of historical and contemporary experiences of alternative international monetary regimes. Historical Overview of the International Monetary System (IMS) The International Monetary System refers to the institutional framework within which International payments are made, movements of capital are accommodated and exchange rates are determined. An appreciation of the international monetary system is essential for the understanding of the flow of international capital or currency  [1]  . The exchange rate regimes that have been practised for over a century have taken the forms of fixed and floating mechanisms. Floating exchange rate is that which allows exchange rate to vary in accordance with the changes in the supply and demand for foreign exchange. Fixed exchange rate refers to a currency price that is intentionally prevented from fluctuating by means of specific government policies that influence the supply and demand for foreign exchange  [2]  . Reviewing the principal international monetary systems that nations have practised over the past century, it would be seen that each mechanism carries with it a set of rules which are sometimes explicit in the form of laws or regulations and sometimes implicit in the form of conventions or customs that are in the parlance of international finance termed the rule of the game  [3]  . Ronald McKinnon (1993) describes the operations of he principal international systems of the last century and noted that the period from 1914 to 1945 reflected the global turmoil of two World Wars and the Great Depression that no uniform system could be ascribed to the period. Mckinnon (1993) organises his review into seven different episodes except the inter-war period, each having own set of rules  [4]  . McKinnons categorization appears to have been rendered outdated by more recent development in the international monetary system. From my own point of view, I would rather classify the metamorphosis of the international monetary system into eight episodes that are discussed below:- 1. Bimetallism Period Before 1875:- Commodity money system using both silver and gold which are precious metals for international payments and for domestic currency because they possessed the features of a means of exchange such as intrinsic value, portable, recognizable, homogenous, divisible, durable and non-perishable  [5]  . Under a bimetallic standard (or any time when more than one type of currency is acceptable for payment), countries would experience Greshams Law which is when bad money drives out good money  [6]  . 2. The International Gold Standard -(1879-1913) For about 40 years most of the world was on an international gold standard, ended with World War II when most countries went off gold standard. London was the financial centre of the world, most advanced economy with the most international trade. Rules of the Game I The International Gold Standard -(1879-1913) Fix an official gold price or mint parity and allow free convertibility between domestic money and gold at that price; Impose no restriction on the import or export of gold by private citizens, or on the use of gold for international transactions; Issue national currency and coins only with gold backing, and link the growth in national bank deposits to the availability of national gold reserves. In the event of a short-run liquidity crisis associated with gold outflows, the central bank should lend freely to domestic banks at higher interest rates. If Rule (i) is ever temporarily suspended, restore convertibility at the original unit parity as soon as practicable. As a result of these practices, the worldwide price level will be endogenously determined based on the overall world demand and supply of gold. Source:- All the Rules of the Game were adapted from Ronald I. Mckinnon, The Rules of the Game:- International Money in Historical Perspective, Journal of Economic Literature, Volume 31 (Mar 1993) Arguments in Support of the Gold Standard Price Stability through the tying of money supply to the supply of gold, central banks are unable to expand the money supply. The only ways in which they can do so are by acquiring more supplies of gold through production or by running balance of payments surpluses with other countries  [7]  . Facilitates Balance of Payment adjustment automatically this was first described by David Hume and is referred to as Humes specie flow mechanism  [8]  . Arguments Against the Gold Standard The growth of output and the growth of gold supplies needs to be closely linked.- For example, if the supply of gold increased faster than the supply of goods did there would be inflationary pressure  [9]  . Volatility in the supply of gold could cause adverse shocks to the economy  [10]  . In practice, the monetary authorities may not be forced to strictly tie their hands in limiting the creation of money, so some of the theoretical advantages may not hold up. For example, the Central Bank could issue more currency without having acquired more gold, and the public may not become aware of what is going on  [11]  . Countries with respectable monetary policy makers cannot use monetary policy to fight domestic issues like unemployment. 3. The Inter-War Period (1919-1939) After the eruption of the World War I, each warring country after the other put the gold convertibility on hold and embraced the floating exchange rates. However, the United States which joined the battle late, upheld gold convertibility but the dollar floated effectively against other currencies that had ceased to become convertible into dollars. Many exchange rates fluctuated sharply after the war and in the early and through mid-twenties as a lot of currencies experiencing massive devaluations against the dollar but the United States currency had greatly improved its competitive strength over the European currencies during the war in tandem with the stronger relative position of the United State economy  [12]  . Sequel to a prolonged internal debate, the United Kingdom restored the gold convertibility at the pre-war parity against the United State dollar  [13]  . It was not surprising to see other countries emulate Britain and returned to the gold but in many cases at devalued rates and what was the impact of this action on those countries economy? The anomalies and disequilibria created during the war were not well manifested in the par values that were established in the mid-twenties  [14]  . The exchange markets were characterised by turbulence and chaos during the 1930s. Under a condition serious global depression and erosion of confidence, the international monetary system broke down into rival currency blocs, competitive devaluations, discriminatory trade restrictions and exchange controls, high tariffs and barter trade arrangements. Several efforts geared at re-establishing order proved abortive.  [15]   4. The Spirit of the Bretton Woods Agreement (1945) In July, 1944, the International Monetary and Financial Conference organised by the United Nations attempted to put together an international financial system that eliminated the chaos of the inter-war years. The terms of the agreement were negotiated by forty four nations, led by the U.S. and Britain. The British delegation was led by John Maynard Keynes, perhaps the most famous economist of the twentieth century  [16]  . In essence, the Bretton Woods Agreement sought a set of rules that would remove countries from the tyranny of the gold standard and permit greater autonomy for national monetary policies. The negotiators recognised the historical shortcomings of other systems and the trade-offs they would face in trying to balance stable yet adjustable exchange rates. Rules of the Game II:- The Spirit of the Bretton Wood Agreement (1945) Fix an official par value for domestic currency in terms of gold or a currency tied to gold as a numeraire; In the short run, keep the exchange rate pegged within 1.0% of its par value, but in the long run leave open the option to adjust the par value unilaterally if IMF concurs; Permit free convertibility of currencies for current account transactions but use capital controls to limit currency speculation; Off-set short-run balance of payments imbalance by use of official reserves and IMF credits, and sterilize the impact of exchange market interventions on the domestic money supply. Permit national macroeconomic autonomy; each member pursuing its own price level and employment objectives. The IMF was created with the specific goal of being the multilateral body that monitored the implementation of the Bretton Woods agreement. Its role was to hold gold reserves and currency reserves that were contributed by the member countries and then lend this money out to nations that had currency difficulty meeting their obligations under the agreement.  [17]   Currencies had to be convertible:- central banks had to exchange domestic currency for dollars upon request. However, certain countries were also allowed to institute capital controls on certain types of transactions. Only current account related transactions were required to be fully convertible and countries were allowed to impose restrictions on the exchange of capital account related transactions.  [18]   The Asymmetric Position of the Reserve Centre Country In a world with N countries there are only N-1 exchange rates against the reserve currency. If all the countries in the world are fixing their currencies against the reserve currency and acting to keep the rate fixed, then the reserve country has no need to intervene  [19]  . The Collapse of the Bretton Woods System Bretton Woods faltered in the 1960s because of a U.S. trade and budget deficits. Nations holding U.S. dollars doubted the U.S. government had gold reserves to redeem all its currency held outside the U.S. Demand for gold in exchange for dollars caused a large global sell-off of dollars  [20]  . In 1971, the U.S. government closed the gold window by decree of President Nixon. The world moved from a gold standard to a dollar standard: from Bretton Woods to the Smithsonian Agreement  [21]  . Growing increase in the amount of dollars printed further eroded faith in the system and the dollars role as a reserve currency. By 1973, the world had moved to search for a new financial system one that no longer relied on a worldwide system of pegged exchange rates.(Levich, 2004) 5. The Floating Rate Dollar Standard (1973-1984) The floating rate system that developed after the fall of the Bretton woods was not devoid of rules and the rules which were of two folds, one set of rules for countries other than the United States and the other set for the United States. The US dollar remained the centrepiece of international financial markets. To assess the external values of domestic currency, officials would typically refer to an exchange rate in US$. And when intervention was called for, it was generally conducted in U.S. dollar. While the system was called floating, it was far from a freely floating laissez-faire system. Policy makers were unwilling to let private market forces be the sole determinant of exchange rates. This is not surprising given the importance of exchange rates to an economy. Richard Cooper (1984) reminds us that it is inconceivable that a government held responsible for managing its economy could keep its hands off the exchange rate. And sure enough, they are not left alone. The IMF also recognised that each country saw its exchange rate as an important policy variable and that the exchange rate policy of one country could have significant negative spill-over effects on other countries. Therefore, in 1974, the IMF enacted a set of guidelines designed to limit the potential for conflicts regarding exchange rate policies  [22]  . While these guidelines are not binding, they show that the IMF sanctions intervention as a method to promote orderly conditions in the foreign exchange market  [23]  . Essentially, the foreign exchange rate was left to play the role of a residual variable that did a great deal of the adjusting to offset the macro-economic policy differences across countries. With little coordination of these policies, one would expect exchange rate volatility to increase sharply.(Adam Bennett, 1995) Rules of the Game III Industrial Countries Other Than the United States. Smooth short term variability in the dollar exchange rate but do not commit to an official par value or to long term exchange rate stability; Permit free convertibility of currencies for current account transactions while endeavouring to eliminate all remaining restrictions on capital account transactions; Use the US$ as the intervention currency (except for transactions to stabilise European exchange rates) and keep official reserves primarily in U.S. Treasury Bonds; Modify domestic monetary policy to support major exchange rate interventions, reducing the money supply when the national currency is weak against the dollar and expanding the money supply when the national currency is strong. Set long-run national monetary and price targets independently of the United States; let the exchange rates adjust over the long run to off-set those differences. Rules of the Game The United States. Remain passive in the forex market; practise free trade without a balance of payment or exchange rates target. No need foe sizeable official foreign exchange reserves; Keep the U.S. capital markets open for borrowing and investing by private residents and foreign sovereigns; Pursue a monetary policy independent of the exchange rate or policies in order countries, thereby not strong for a common stable price level (or anchor) for tradable goods. 7. The Plaza-Louvre Intervention Accords the Floating Rate Dollar Standard-(1985-1999) The US had held a fairly passive stance toward exchange rates during first 10-years of float. In 1981, the induction of an expansive US fiscal policy combined tight monetary control (supported by President Ronald Reagan) combined with tight monetary control (guided by Federal Reserves Chairman, Paul Volcker) started the US dollar on a prolonged appreciation. By early 1985, the US$ had appreciated nearly 50% (relative to 1980) in real terms against an average of the worlds other major currencies. As the US dollar rose higher, some economists characterised its price behaviour as a speculative bubble (meaning a movement greater than, and progressively greater than justified by macroeconomic fundamentals) and predicted that the foreign exchange value of the dollar was not sustainable.  [24]   The entire episode convinced policy makers that:- exchange rates were too important to be left to market forces, hence intervention was deemed appropriate to smooth disorderly markets and halt market excesses, and exchange rates were too important to be the residual from uncoordinated economic policies, so better policy coordination was required to establish a set of economic fundamentals that in turn would produce a smother path of the exchange rate. As a result, since 1985, a new set of rules has evolved emphasizing the role of exchange market intervention and macroeconomic policy coordination. The first part of the policy change, the easy part, was foreign exchange intervention. Although, the appreciation of the US$ peaked in early March, 1985, the dollar did not initially fall by much and the use Congress continued to favour import restrictions (Barry Eichengreen, 1996). 7(a) The Plaza Accord On September 22, 1985, officials from the Group of Five (G-5) countries Britain, France, West Germany, Japan and the US met at the Plaza Hotel in New York City, where they issued a communiquà © announcing that they would interfere jointly foster dollar depreciation. The dollar fell sharply on this news and continued to decline through 1986. The Plaza communiquà © represented a sharp break with earlier policies. Exchange market intervention was often characterised by leaning against the wind behaviour to reverse the market trend. The Plaza meeting had the Central Banks leaning with the wind of the recently weak dollar. Further exchange market interventions were often kept secret and were often the doings of a single central bank  [25]  . 7(b) The Louvre Accord The dollars free fall continued into 1987, so much that some European officials began to fear for the competitiveness of their own export industries which prompted policy makers from the G-5 countries plus Canada to make another attempt at exchange rate co-operation in a meeting at the LOUVRE in Paris in February 22, 1987. At the Louvre meeting, policy makers agreed to foster stability of exchange rates around their current levels. This was not an unusual statement as part of a press release from a meeting of international finance minister but the Louvre accord was more than an emotional statement in praise of stability. The substance of the Louvre meeting was a set of target zones, or exchange rate range, that the Central Bankers agreed to defend using active foreign exchange intervention  [26]  . The Louvre accord has been criticised on the ground that the target zone strategy could have no real force and the decision to keep the zonal boundaries secret was simply a device to prevent any evaluation of the policys success. The Rules of the Game IV- The Plaza-Louvre Intervention Accords and the Floating Rate Dollar Standard-(1985-1999):- Germany, Japan and United States (G-3) Set broad target zones for the US$/DM and US$/Y exchange rates. Do not announce the agreed upon central rates, and allow for flexible zonal boundaries; Allow the implicit central rates to adjust when economic fundamentals among the G-3 countries change substantially; Central Banks intervene collectively but infrequently to reverse short-run exchange rate trends that threaten a zonal boundary. Signal the collective intent by announcing rather than hiding intervention. G-3 countries hold reserves in each others currencies, for the U.S. This means building up reserves in deutsche marks, yen, and possibly other convertible currencies. Sterilize the immediate impact of exchange market interventions by not adjusting short-term interest rates. Each G-3 country aims its monetary policy towards stable prices (measured by domestic consumer or wholesale prices or the GNP deflator), which indirectly anchors the world price level and reduces the drift in exchange rate zones. The Rule of the Game Other Industrial Countries Support or do not oppose interventions by the G-3 to keep the dollar within its target zone limits. Indeed, policy makers have had to adjust the central rate of the implied target zone and be flexible about the precise location of the target zone boundary. Intervention under the Louvre accord seems to be more successful when accompanied by macroeconomic policy changes, and less successful when domestic monetary is preserved through sterilized intervention. Sterilized intervention in the foreign exchange market leaves the domestic monetary base unaffected  [27]  (Krugman, P and Maurice, O, 2000). The Louvre accord began a process towards greater and, it was hoped, better policy co-ordination. Progress in the coordination process is essential to fundamentally affect the stability of exchange rates in the longer run. 8. The Spirit of the European Monetary System (1979) Following the collapse of the Bretton Woods, European Union (EU) nations looked for a system that could stabilise currencies and reduce exchange-rate risk. In 1979, the created the European Monetary System (EMS) to stabilize exchange rates subject to the following guidelines:- Rules of the Game V The Spirit of the European Monetary System (1979) Applicable to All Member Countries. Fix a par value for each exchange rate in terms of the European Currency unit, a basket weighted according to country size. Keep exchange rate stable in the short run by limiting movements in the bilateral rates to 2.25% on either side of the central rate. When exchange rate threatens to breach a bilateral limit, the strong currency Central Bank must lend freely to the weak currency Central Bank to support the exchange rate. Adjust the par value in the intermediate term only if necessary to realign price levels, and only with the collective agreement of other EMS countries. Work toward a convergence of national macroeconomic policies that would lead to stable long run par value for exchange rates. Maintain free currency convertibility for current account transactions Hold foreign exchange reserve primarily in ECUs with he European Fund for Monetary Co-operation (EFMC), and reduce U.S. dollar reserves. Repay Central Bank debts quickly from exchange reserves or by borrowing from the EFMC within strict long-term credit limits. No single countrys money serves as a reserve currency nor does its natural monetary policy serve (asymmetrically) as the nominal price anchor for the group. The EMS was successful, currency realignments were infrequent and inflation was controlled. Problems arose in 1992 and the EMS was revised in 1993 to allow currencies fluctuate in a wider band from the mid-point of the target zone. The system ceased to exist in 1999 when the EU adopted a single currency. 8(a) The European Monetary System as a Greater DM Area (1979-1998) As earlier proposed, the EMS appears to enshrine the symmetry of the EU member nations in a co-operative process. In practice, the DM was the centrepiece of the Exchange Rate Mechanism (ERM), and German monetary policy formed anchor for the EMS price level. As a consequence, the operation of the EMS was subject to more strains than might have been foreseen, as the strongest country with the least inflation called the Policy Tune, rather than some equally weighted average of all the policy presumptions of the member countries. Most of the strains in the EMS over the period arose from the desire by some European leaders to achieve still closer economic and social union. In 1989, a European Council headed by European Commission President Jacque Delors, presented a plan to establish a European Economic and Monetary Union (EMU). Under the EMU proposal, a single European Central Bank was to set up the monetary policy for a single European money thereby abolishing national monies and an independent role for national central banks. The Delors Plan  [28]  recommended a three-stage plan process to phase in the EMU as follows:- Stage 1- Bring all 12 members EC countries into the ERM while bringing tighter convergence of monetary policies to secure the ERM; Stage 2- Narrow the permissible bands of the ERM and permit a new European Central Bank to exercise more control of national monetary policies. Stage 3- Replace national monies with a common currency, placing responsibility for the European Central Banks that reflect the interests of all EC countries. The EMS Crisis of 1992 1993 The Delors Plan called for a transfer of national sovereign power over monetary policy and national monies to a new EC institutions. In December, 1991, the EC drafted the Maastricht Treaty a 250 page document that laid out the procedure for transferring policy making authority and the approval by all the twelve EC countries was required either by national referendum or parliamentary vote. For reason that substantial parts of the treaty were contentious, most of the sponsoring countries became sceptical and the document could not be approved by member nations contrary to expectation, As a result, currency tension persisted throughout 1993. In the summer of 1993, speculative attacks continued on the French franc and other currencies. This caused Central Banks to intervene heavily but the French resisted devaluation  [29]  . (Richard Cooper, 1984). The Path to European Monetary Union Notwithstanding the shocks suffered by the Delors Plan, voting on the Maastricht treaty continued and by November, 1992, it was adopted and the European Union (EU) was born. However, many countries had negotiated the right to opt out of certain key provisions, including the EUs common monetary and defence institutions. According to the Delors Plan, countries had to meet various economic targets before joining the EMU  [30]  . These criteria were very stringent to fulfil that as at February 1997, only Luxembourg satisfied them. Despite the difficulty in meeting the criteria, undaunted EU policymakers proceeded by designing and unveiling new physical coins and notes. Private firms and banks were compelled to follow suit, redesigning their accounting systems and functional software to accommodate the new euro. 8(b) The Spirit of the European Economic Monetary Union 1999 In May 1998, the European Council met to make two critical decisions:- To determine which countries would participate in the launch of the EMU set for January 1, 1999; and Who would be elected as the President of the European Central Bank. Many observers had expected a narrow EMU with only six countries going in at the start because requirements on fiscal budget deficits and national debt level. Surprisingly, the European Council elected eleven countries virtually all EU except countries, those that desired to opt out of the pioneer team such as Denmark, Sweden and the United Kingdom. Greece actually wanted to join but clearly had not met the convergence requirements  [31]  . On 1st January, 1999, the final and irrevocable conversion rates of the eleven legacy currencies versus the euro were announced. The transition went hitch-free in terms of transaction execution in the foreign exchange market and the operation of the EMU payment and settlement system. Financial markets in the EMU countries redenominated all traded financial securities and instruments from their national currencies into euros. A new market for bonds denominated in euros is thriving. The trend toward trans-national mergers and acquisition across firm within the euro started growing. The last step on the path to monetary union is the introduction of physical euro notes and coins and the withdrawal of legacy currency notes and coins. This process was scheduled to begin January 1, 2002 and to be accomplished not later than July 1, 2002. Empirical Evidences of Recent Currency Crises Despite nations best efforts to head off financial crises within the international monetary system, the world has witnessed several unpleasant crises some of which are summarised below:- Developing Nations Debt Crisis By the early 1980s, developing countries (especially in Latin America) had amassed huge debts payable to large international commercial banks, the IMF, and the World Bank. To prevent a meltdown of the entire financial system, international agencies revised repayment schedules. In 1989, the Brady Plan called for large-scale reduction of poor nations debt, exchange of high-interest loans, and debt instruments tradable on world financial markets. Mexicos Peso Crisis Rebellion and political assassination shook investors, faith in Mexicos financial system in 1993 and 1994. Mexicos government responded slowly to the flight of portfolio investment capital. In the late 199