Inflation Management in Sri Lanka free essay sample

Amarasekara (2008, p. 37) also concluded that in most sub-samples, inflation does not decline following a contractionary policy shock, possibly due to the longer lag effect. Innovations to money growth raise the interest rate, and when inflation does respond, it reacts to monetary innovations faster than GDP growth does. International Monetary Fund (2008) showed that changes in policy interest rates have significant effects on output but a small impact on inflation. Credit does not respond strongly to changes in policy interest rates. 3. Objectives of the Study The Central bank conducts monetary policy to achieve its one of primary objectives of price stability by changing interest rate and money supply. Therefore, the main objective of the study is to identify the relationship between the interest rate and inflation in Sri Lanka. A successful monetary policy strategy requires an understanding of the relationship between operating instruments of monetary policy (i. e. interest rate) and the ultimate goals like the price stability and output. We will write a custom essay sample on Inflation Management in Sri Lanka or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Therefore, the study will help to identify the effectiveness of policy rates as a monetary policy instrument for inflation management. . Model, Methodology and Data Analysis Model and Methodology A regression model will be used to estimate the effect of key variables on inflation. The main concern of the study is the effect of the interest rate on the inflation. However, the model will be incomplete without including the variables below. This study tries to improve past models done by Sri Lankan economists by including additional macroeconomic variables namely; unemployment (UN), budget deficit (BD) and foreign inflation (FI) to remove any omitted variables bias. In this analysis, MMR is used as changes in policy rate are immediately transmitted to MMR. Inflation: According to previous literature, past inflation has an effect on current inflation through expectations. Here the Colombo Consumer Price Index (CCPI) is used. Exchange rate (ER): Changes in in the exchange rate affects the price of exports and imports in the country, and thus has a direct effect on inflation as Sri Lanka is heavily depend on international trade. GDP growth (GDP): The GDP is seasonally adjusted to capture seasonality. Unemployment (UN): According to the Phillips Curve there is an inverse relationship between unemployment and inflation. Foreign Inflation (FI): In 2011, imports accounted for 37. 6% of GDP (CBSL Annual Report 2011) in Sri Lanka, and therefore prices of goods and services of Sri Lanka’s major trading partners can have an influential effect on inflation. Budget Deficit (BD): Most of the past literatures in Sri Lanka have omitted this important variable. However, public finance is an important issue in Sri Lanka and the effect of Monetary Policy cannot be studied without it. Data Collection For this study quarterly data will be obtained for all the variables from the first quarter of 1996 to the last quarter of 2011. The main data sources of the analysis are Annual Reports of CBSL, Monthly Bulletins of CBSL, other publications of CBSL, Annual Reports and Quarterly Reports of the Department of Census and Statistics of Sri Lanka, and the World Bank Report 2011-2012. Analytical Tools The OLS regression model will describe the significance of key variables of the model and the effectiveness of the model in explaining the objective of the study. Apart from the simple OLS regression analysis, various econometric models will be used to obtain outcomes such as unit-root tests, Granger causality tests, impulse response and AR-root tests and Vector auto regression. The Ramsey’s Reset Test will be used for checking functional form mis-specification of the model. The normality of errors and other non-spherical disturbances will be checked using White’s Test (for Heteroskedasticity) and Durbin Watson Test (for serial correlation). The model also will be tested by omitting the interest rate variable and regressing the restricted model using J-Test to determine if the model is very different.

Your Discussion Section 4 Things to Remember - Proofed

Your Discussion Section 4 Things to Remember - Proofed Your Discussion Section: 4 Things to Remember When writing a master’s thesis or PhD dissertation, it’s easy to lose track of what you’ve done. This is why it’s important to plan your paper properly. Referring back to what you’ve already done is especially vital when discussing the results of your research, as it isn’t enough to simply describe your data. You also need to relate your results back to your original hypothesis and your literature review, which will help clarify the significance of your work. At Proofed, we’ve noticed that many overlook their literature review in the discussion section. But since this can seriously affect the clarity of your work, we’ve compiled the following list of four things to remember when discussing the results of your research. 1. Use Your Literature Review to Contextualize Your Work The main purpose of a literature review is to contextualize your work as part of an existing debate. Don’t forget this when it comes to discussing your results, as the overall significance of your research will depend on how you have engaged with past research. 2. Compare Your Results with Existing Studies Do your results agree or conflict with the past studies you’ve examined? If there’s a difference, why might this be? Comparing your results with past studies is a great way to connect your research with the existing debate. It can also provide the basis for the conclusions you draw from your results. 3. Understand the Limitations of Your Work The discussion section of your paper should include some acknowledgement of the limitations of your study (e.g., in terms of scope or the methods used). If you have critically analyzed similar studies in your literature review, you can compare your work against their strengths/weaknesses. 4. Don’t Be Afraid to Tweak Your Literature Review The focus of your research may change over time when working on a long-term project. This is normal. The key thing is to adjust the focus of your literature review to reflect these changes. When discussing your results, for example, if you notice certain themes or trends are more prominent than others, it’s often helpful to revisit your literature review to emphasize these same themes/trends there too. If you follow this advice you should find it much easier to communicate your ideas clearly when writing up your dissertation/thesis. But to make completely sure your writing is up to scratch before submission, it’s a good idea to have one of the experts at Proofed check your work. Try sending a 500-word sample to be proofread for free today.

McCarthy, Murrow and the Use of Media Essay Example | Topics and Well Written Essays - 1000 words

McCarthy, Murrow and the Use of Media - Essay Example The spirit of the era facilitated the task and made McCarthy’s allegation against the regulation of supporting rebellious actions very efficient. His fight against the Communism in the United States influenced the life of American people and even now its influence is present in the American society. McCarthy accused the government in being â€Å"riddled with card-carrying members of the Communist Party†.1 The political career of Joseph McCarthy ended after 1954. The main goal of the given work is to show that it was the media that made the career of McCarthy and it was also the media that finally destroyed it. The role of the media in McCarthyism creation The famous speech of Joseph McCarthy given on February 9, 1950 made a good start for McCarthyism mainly because it impressed the media. According to Bayley (1981) the speech â€Å"has been the subject of more speculation, argument, and investigation than almost anything he said in the next five years†.2 The medi a, maybe against its wish and due to its carelessness, helped a lot and made a perfect start for era of McCarthyism. The consequences this event had turned into the difficult period in the history of media. The speech given by McCarthy contained much lie, however, journalists published it without any verification. The facts presented in the speech were not only false, they were absurd: â€Å"Why wouldn't he read some of the names on the list, if he had a list? If he had a list where on earth would he have got it? Who would have given it to him? The FBI? The State Department? Why? Could he have worked it up himself?†.3 The reporters who published this speech did not care about these issues, notwithstanding that it was their straight responsibility to check the information before publishing. Many experts consider press even to be responsible for the period when American citizens were misled. Not only printing but also television was successfully used by the shrewd senator. With the help of TV he easily penetrated homes of American citizens. Bayley (1981) points out: â€Å"McCarthy's rise to national prominence coincided with the explosive growth of television in the United States†.4 However, here McCarthy made a mistake: he did not take into account the fact that TV program can’t be corrected or edited and thus it may lead to his breakdown that finally happened. The media and the default of McCarthy The troubles of McCarthy started when he attacked the presidents, notwithstanding that Harry Truman was successfully defeated by him. McCarthy accused Truman in sympathy towards Communists and this fact was negatively treated by the American citizens. The party of Republicans was the next to win with Dwight Eisenhower as a leader. Unfortunately, it was not enough for the McCarthy to have a position of the head of Senate, thus he decided to compromise Eisenhower. McCarthy used press to accuse Eisenhower in being sympathetic to the Communist. 5 Eis enhower gave a speech in response but McCarthy was so self-assured that he answered Eisenhower on TV even not knowing the content of president’s speech. Joseph McCarthy did not know how mature the president was and accused him again but then it appeared that Eisenhower even did not even mention the name of the scandal senator in his speech. According to Reston, the speech of the president was a "note on the principals that should govern the relations between the legislature and the executive under the US