Friday, December 27, 2019
Julius Caesar, a man born in around 12 to 13, 100 BC, was considered the start of a new legacy in the history of Rome. Participating in several wars, becoming dictator after forming multiple military alliances, to being assassinated on the Ides of March, Julius Caesar was a politically-flexible, popular leader of the Roman Empire. (Julius Caesar Biography, April 23, 2014) Although CaesarÃ¢â¬â¢s birth was never confirmed on the exact date, he was born and raised by his mother, Aurelia, and by his father, Gaius Julius Caesar. (Julius Caesar: Historical Background, April 23, 2014) In around 85 BC, Julius CaesarÃ¢â¬â¢s father had died. About a few years later, while Caesar was 18 years old, he married the daughter of a member of the Popular faction inÃ¢â¬ ¦show more contentÃ¢â¬ ¦Marcus Licinius Crassus, a popular Roman general and politician, was also a friend of Caesar, but Pompey and Crassus grew older just to become more and more of a rival to Julius than a friend or ally. Juliu s, with the brains, had convinced them that they would be in better hands as allies. This 3-man allied power became known as the First Triumvirate. With more power than before, Caesar conquered the area known as Gaul which today is known as France and Belgium. During this takeover, his hired political assistants controlled the government for him back home. (Julius Caesar: Historical Background, April 23, 2014) A major turning point of CaesarÃ¢â¬â¢s life was when his wife, Cornelia, passed away in 69 BC. As this tragedy faded, Julius remarried Pompeia, a relative of Pompey. However, this marriage lasted for several years before they divorced in 62 BC. (Julius Caesar: Historical Background, April 23, 2014) Continuing on his success, Caesar was unstoppable, but even though he was an ally of Pompey, Pompey envied Caesar and did not really support him that much through his success. Jealousy struck him. Crassus, on the other hand, had not grown fond of Pompey. They reconciled once again at a conference in Luca in 56 BC. This peace expanded CaesarÃ¢â¬â¢s reign for another five years, because he gave Crassus a five-year rule in Syria and Pompey in Spain for five years. Syria marks the location where Crassus was killed in battle. (Julius Caesar Biography, AprilShow MoreRelatedThe Real History Behind Rome: Julius Caesar Essay815 Words Ã |Ã 4 Pages Rome, the subject of this report is Rome. The (completely wacko made-up) legend says that Rome was founded by Romulus and Remus, the twin sons of Mars, the god of war. Supposedly some king tossed them into a basket, chucked them into the Tiber River, and left them to die a good old-fashioned baby-river-drowning-death. Apparently this never happened because they were rescued by a she-wolf and raised as one of her own. Eventually Romulus and Remus decided to ice that king and overthrow the kingdomRead MoreJulius CaesarÃ ´s Death: Analysis Essay552 Words Ã |Ã 3 PagesShould Julius Caesar have been killed? This question has plagued history for years without a real answer. Julius Caesar was corrupt and all powerful, and his death saved Rome. It really is that simple; he declared himself dictator for life and ignored the SenateÃ¢â¬â¢s power. A man with that much power can only hurt a nation. Julius Caesar was a blood thirsty man. He fought everyone he could just to extend Rome. (Julius Caesar. ) He savagely killed anyone that got in his way. Many may say that he wasRead MoreWilliam Shakespeare s Julius Caesar1201 Words Ã |Ã 5 PagesDellinger English II 4/18/17 Julius Caesar There are many people you may have heard of that lived during 100 B.C.- 10 A.D. in Rome. Some of those people include Marcus Brutus, Cleopatra, Mark Antony, and Julius Caesar. In this paper I will be talking about Julius Caesar. And while doing so I will be talking about his early/personal life, his career, and his assassination. Julius Caesar was born July 12. B.C. as Gaius Julius Caesar, to Aurelia Cotta, and Gaius Julius Caesar. Julius was born with the NeurologicalRead MoreEssay on Julius Caesar and The Late Roman Republic729 Words Ã |Ã 3 PagesJulius Caesar was a general and a politician of the late Roman Republic. He greatly influenced the size of the Roman Empire before seizing power and making himself dictator of Rome, which paved the way for the Imperial system. (Julius Caesar 100BC-44BC, April 29th, 2014) Gaius Julius Caesar Octavianus Augustus was born on July 12th or 13th, 100BC into the prestigious Julius clan. He and his family were closely related to the Marion faction in Roman politics. Caesar started to progress within theRead MoreJulius Caesar : The Dictator Of Rome1011 Words Ã |Ã 5 Pages Julius Caesar was born in Rome, Italy c. July 12, 100 BCE (Ã¢â¬Å"Julius CaesarÃ BiographyÃ¢â¬ ). Although many despised him, he was still able to reach his highest potential and became the dictator of Rome. This was not done easily, rather Julius went through many tough battles and overcame many difficult obstacles to reach his highest potential of a dictator. Through his dictatorship, Caesar changed the course of history to what we know it is today. Young Julius came from very humble beginnings. He wasRead MoreAnalysis of William Shakespeares Julius Caesar1183 Words Ã |Ã 5 PagesShakespeares Julius Caesar There have been many rulers in history who have been betrayed by those they trust, but The Tragedy of Julius Caesar (William Shakespeare,1959) still holds a special place in Western literature as one of the most enigmatic human beings to ever exist. Powerful men like Julius Caesar shaped the life and times of the late Roman Republic, just before Rome would officially become the Roman Empire on the crowning of Augustus as the first Roman emperor. Julius Caesar was a powerfulRead MoreJulius Caesar As A Bad Dictator982 Words Ã |Ã 4 PagesSmith World literature 10 3 March, 2015 Julius Caesar One famous quote Ã¢â¬Å"Veni, Vidi, Vici; I came, I saw, I conqueredÃ¢â¬ (Julius Caesar) taken from ShakespeareÃ¢â¬â¢s, Julius Caesar, expresses his personal views of Rome. The patricians people described in ShakespeareÃ¢â¬â¢s Julius Caesar being a bad dictator. Which may have also leads to his assassination on the ides of March (March 15). The plebeians and some patricians such as Mark Antony, and his adoptive son Octavius Caesar, saw him as a good military leader.Read MoreEssay on Julius Caesar951 Words Ã |Ã 4 PagesEarly life Julius Caesar was born on July 13, 100 B.C. Though he was a descendent of the oldest patrician family, Julius Caesar grew up in a very poor district of Rome called Subura. As a child, he studied martial arts, history, and law (Ã¢â¬Å"Julius CaesarÃ¢â¬ ). At the age of seventeen, Julius married Cornelia, the daughter of Luciussulla, who was a dictator of Rome. Because Luciussulla did not approve of the marriage, he tried to force the two to divorce, but they both refused. Julius Caesar studiedRead MoreHow Did Julius Caesar Affect Rome? Essay1119 Words Ã |Ã 5 Pages Julius Caesar was a very influential figure in Roman history. Many features of the Roman Empire came from his reign as dictator. But what, specifically, were some of those great achievements? In this research paper, I will explain Julius CaesarÃ¢â¬â¢s youth, the Roman Republic before Caesar came to power, the Roman government before Caesar became dictator-for-life, the effects of Julius Caesar, the reas ons for his assassination, and what affects there were when the public learned about his assassinationRead MoreComparing Julius Caesar s The Twelve Caesars 1729 Words Ã |Ã 7 PagesJulius CaesarÃ¢â¬â¢s mindset influenced the history of his people. He was born July 12, 100 b.c in Rome as Gaius Julius Caesar, known today as Julius Caesar. He was a Praetor, Aedile, Consul, Pontifex Maximus, and dictator for life, and his greatest achievement is changing the Roman republic to the Roman empire. His life ended tragically when he was stabbed twenty three times by his political enemies. Creating the Roman empire changed the history of his people. The three main sources used in this essay
Thursday, December 19, 2019
Baseball is a game of skill that is played with a hard ball and a bat between two teams of nine players each at a time on the playing field at once. Although many different people play Baseball all over the world it is most popular in the United States. It is so popular in fact, it is referred to as the national pastime of the United States because of the tradition and popularity associated with the game. Baseball consists of many complicated rules. It also has a very elaborate history. One can not fully understand the game America has grown to love until learning about not only the rules but also the history. HISTORY A popular legend of the history of baseball claims that Abner Doubleday, who was a Union officer during the AmericanÃ¢â¬ ¦show more contentÃ¢â¬ ¦In each half of an inning one team bats while the other plays the field. If the score is tied after nine innings are over then the game is continued into extra innings and is concluded when one team is winning after an extra inning. These are the basic rules of baseball. THE FIELD AND EQUIPMENT Baseball is played on a field, which usually covers about two acres. The field is divided into an infield and an outfield. These two parts are considered fair territory and the rest of the field is considered foul. The infield is in the shape of a diamond and is 90 ft on each side. One point of the diamond is home plate which batters hit from. The other three points are bases: first, second, and third base. In the middle of the diamond is a pitchers mound which is slightly raised off the ground. The edges of the diamond from home plate to first base and home plate to third base are the foul lines, which extend all the way to the wall in the outfield. Behind first base is right field, behind second base is called center field, and behind third base is called left field. Fences are placed at the farthest limits in the outfield. In foul territory beyond the foul lines in the infield are dugouts where players sit when they are not playing or waiting to bat. Baseball also consists of many pieces of equipment. Baseball equipment includes the following: a hard ball which has a cork center and has a circumference of 9 in., a bat made out of wood orShow MoreRelatedBaseball : Baseball And Baseball795 Words Ã |Ã 4 PagesBaseball Tryouts Look I love baseball, I love watching it, playing it, but the only flaw to me playing baseball is that I suck. I truly really suck. IÃ¢â¬â¢m so bad that if I wished a million times to be a great baseball player it wouldnÃ¢â¬â¢t come true, thatÃ¢â¬â¢s how bad I am. In a few weeks this traveling baseball team is having tryouts and I want to tryout and all but I donÃ¢â¬â¢t want to make a fool of myself. But my dad keeps saying, Ã¢â¬Å"Kevin you are trying out for this team no matter what and you are goingRead MoreBaseball, Baseball And Softball1112 Words Ã |Ã 5 Pagesit comes to Baseball and Softball, these two sports have many similarities, but yet differ in many areas of the game. It insists, Ã¢â¬Å"Softball is often referred to baseball for girls, with a larger ball and aa smaller diamondÃ¢â¬ (History of Softball). Even though there may be some truth about that statement, it doesnÃ¢â¬â¢t mean thatÃ¢â¬â¢s the only difference between the two. When it comes down to it, both sports have specific field requirements, equipment, rules and future occupations. Baseball has specialRead MoreBaseball And The Game Of Baseball859 Words Ã |Ã 4 PagesÃ¢â¬â¹ Baseball to most it just a simple game that involves one just throwing a ball, another hitting it, and then another catching it, but itÃ¢â¬â¢s much more than that. The ability to hit a baseball three hundred plus feet, thatÃ¢â¬â¢s coming at you at speeds greater than 85 mph, is hard to attain. Now imagine trying to catch a ball thatÃ¢â¬â¢s coming at the same speeds, not so easy now right? Apart from the physical abilities needed to play, the mental part of the game is also important. The game of baseball is similarRead MoreBaseball : The Abhorrent Baseball Season1251 Words Ã |Ã 6 PagesThe Abhorrent Baseball Season The most embarrassing baseball season in my life was in spring 2014. I played baseball for a decade when I decided to retire. I thought that I should end on the best season I have ever had because IÃ¢â¬â¢ve had already made up my mind that this season was going to be my last season. I played for North West in the junior division. There was only one other junior team, so we had to travel a lot for our games. I was probably the fifth or sixth best player on the team (IRead MoreCricket Vs. Baseball : Cricket And Baseball1244 Words Ã |Ã 5 PagesCricket vs. Baseball Many people always ask me one question: Ã¢â¬Å"What is cricket and is it like baseball?Ã¢â¬ I always tell them that cricket and baseball are two completely different sports with their own rules. The cricket ball and baseball ball are similar to each other, but they each have their own stitching. Around 1550, there was evidence that cricket was played by people in Guildford, Surrey in England. However, many historians believe that the sport was discussed by the French before 1550. TheRead MoreBaseball Of The Baseball Rule1448 Words Ã |Ã 6 PagesINTRODUCTION Baseball ballpark owners owe a duty of care to spectators who attend games their stadiums. Historically, there has been a devotion to the Ã¢â¬Å"baseball ruleÃ¢â¬ , which is essentially a tool of public policy used to protect stadium owners. However, there is very little consensus on what exactly the rule entails and how it is applied across all jurisdictions. While this rule is justified based on a limited amount of data, Gallatin legislature should either reshape it to better reflect modernRead MoreEssay on Baseball613 Words Ã |Ã 3 PagesBaseball As I sat and watched the college world series this weekend I began to wonder about baseball and several questions came to mind: where did we get the game of baseball? Who should we give credit to for the formation of the game we see today? How has it withstood the tests of wartime? And what helped this game thrive to what it is today, the nationÃ¢â¬â¢s pastime? Baseball grew out of various ball and stick games that had been played throughout the United States during the first halfRead MoreBaseball : The Origin Of Baseball Essay1336 Words Ã |Ã 6 PagesThe Origin Of Baseball With upwards of ten million people participating in the sport of baseball in the United States alone, it is apparent that baseball is one of the worldÃ¢â¬â¢s most popular sports. Throughout the years, the sport of baseball has evolved from a humble game played on empty sandlots to Ã¢â¬Å"AmericaÃ¢â¬â¢s national pastime.Ã¢â¬ The game has come a long way, but how did this game come to be? Everything has its humble beginnings, and baseball is no different. Games that resemble baseball have been aroundRead MoreBaseball And Its Impact On Baseball1736 Words Ã |Ã 7 PagesBaseball was introduced to America in the 1800s. As the game of baseball started to become popular, many people became interested in the game. Baseball fanatics fell in love with the sport, but not everyone could play. Racial discrimination found its way to baseball when the game was first discovered and created many controversies that prevented many colored players from playing the game because of their skin co lor. This could be part of the reason why in todayÃ¢â¬â¢s culture, you do not see many blackRead More Baseball Essay809 Words Ã |Ã 4 Pages BASEBALL Baseball is a unique sport in many different ways. It is the only major competitive sport that has no time limit. The success of a player is determined on how well he can play as an individual and how well the team plays along with him. There are many rules that determine the success of a playerÃ¢â¬â¢s performance. A baseball game is played with two teams and each team is permitted 25 players per team; however this is only true for professional teams. There are three parts to baseball: offense
Wednesday, December 11, 2019
Question: Discribe about the Dicksmith company in Australia or New Zealand. Answer: Introduction Dick Smith is an electronics retailer organization in Australia. The organization was founded by Dick Smith in the year 1968 (Australia, 2016). Headquarters of the organization is situated in South Melbourne in Australia. The organization has spread its business across Australia and New Zealand. This essay will present a thorough discussion of the history and the strategic operating model of the organization. History of the organization Dick Smith Dick Smith is an electronics retail organization established in the year 1968 in a small rented place in Sydney. The organization started the business with a small capital of 610 Australian dollars (Australia, 2016). At the initial stage, the organization mainly installed car radios and provided servicing services for the same. . The organization was functioning well and in the year 1969 the company moved to a bigger premise for better service. Gradually the organization expanded its business from its car radio business and opened a Dick Smith wholesale shop (Australia, 2016). Though the organization has diversified into various businesses but the core business of the organization remains centralized to electronic business. Smith has also acquired the ideas of modern business and tries to incorporate them into his business. According to Chitimira, (2015), Dick Smith launched a self-serve shopping idea and produced an annual mail order catalogue. In this catalogue, the data of every e lectronics outlet were incorporated. In the year 1970, the organization opened outlets in mainland states. Many car battery radios were also launched by the organization between 1970 and 1980. System 80 which was the brand of the organization was so successful that the organization also launched Commodore VIC 20 and Commodore 64. This is the brief history of the organization. Companys strategic operating model and progress Dick Smith is a large electronics company in Australia and generates revenue of 1.319 Australian dollars (Australia, 2016). The organization has employee strength of over 3300 and the slogan of the company is Do more. Save more. (Australia, 2016). The company uses the internet to develop the operating model. In the website of the company the details of the product and its prices are given (Jablonski, 2016). Customers can order the product from anywhere and the product will be delivered at the desired location. This reduces the warehouse cost of the company. Suppliers are selected with the help of electronics tendering. This helps the organization Dick Smith to have a wider choice of suppliers. This helps the company to have a good product at a cheaper cost. Electronic negotiations help the organization to save time and enhance different functions. Dick Smith has also redesigned its store and the electrical components were replaced by computers and television (McLean, 2013). Conclusion The researcher has discussed the history and operating model of the enterprise Dick Smith. The organization has a glorious future and today it is one of the big names in electronics consumer industry. The organization has also taken help of internet and technology to develop its operation model. References Australia, D. (2016).Dick Smith | The Best in Tech at Amazing Prices.Dicksmith Australia. Chitimira, H. (2015). The regulation of market manipulation in australia: A historical comparative perspective.Potchefstroom Electronic Law Journal,18(2), 111-148. Jablonski, A. (2016). Scalability of sustainable business models in hybrid organizations.Sustainability,8(3), 194. doi:10.3390/su8030194 McLean, I. W. (2013;2012;).Why australia prospered: The shifting sources of economic growth. Princeton, New Jersey;Princeton, N.J;: Princeton University Press.
Tuesday, December 3, 2019
Inflation Its Causes and Effects Essay Inflation is the rise in the general level of prices. This is equivalent to a fall in the value or purchasing power of money. It is the opposite of deflation. Measuring inflation Inflation is measured by observing the changes in prices of goods in the economy using econometric techniques. The rises in prices of the various goods are combined to give a price index that reflects the change in prices of these many goods, where the inflation rate is the rate of increase in this index. There is no single true measure of inflation, because the value of inflation will depend on the weight given to each good in the index. Examples of common measures of inflation include: Ã¢â¬ ¢ consumer price indexes which measure the price of a selection of goods purchased by a typical consumer. In many industrial nations, annualised percentage changes in these indexes are the most commonly reported inflation figure. Ã¢â¬ ¢ producer price indexes which measure the price of a selection of inputs purchased by a typical firm. Ã¢â¬ ¢ wholesale price indexes which measure the change in price of a selection of goods at wholesale (i. e. , typically prior to sales taxes). Ã¢â¬ ¢ GDP deflator which is used to adjust measures of gross domestic product for inflation. The role of inflation in the economy A great deal of economic literature concerns the question of what causes inflation and what effects it has. A small amount of inflation is often viewed as having a positive effect on the economy. One reason for this is that it is difficult to renegotiate some prices, and particularly wages, downwards, so that with generally increasing prices it is easier for relative prices to adjust. Inflation may also have negative effects on the economy: Ã¢â¬ ¢ Increasing uncertainty may discourage investment and saving. Redistribution o It will redistribute income from those on fixed incomes, such as pensioners, and shifts it to those who draw a variable income, for example from wages and profits which may keep pace with inflation. o Similarly it will redistribute wealth from those who lend a fixed amount of money to those who borrow. For example, where the government is a net debtor, as is usually the case, it will reduce this debt redistributing money towar ds the government. Thus inflation is sometimes viewed as similar to a hidden tax. International trade: If the rate of inflation is higher than that abroad, a fixed exchange rate will be undermined through a weakening balance of trade. Ã¢â¬ ¢ Shoe leather costs: Because the value of cash is eroded by inflation, people will tend to hold less cash during times of inflation. This imposes real costs, for example in more frequent trips to the bank. (The term is a humorous reference to the cost of replacing shoe leather worn out when walking to the bank. ) Ã¢â¬ ¢ Menu costs: Firms must change their prices more frequently, which imposes costs, for example with restaurants having to reprint menus. We will write a custom essay sample on Inflation Its Causes and Effects specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Inflation Its Causes and Effects specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Inflation Its Causes and Effects specifically for you FOR ONLY $16.38 $13.9/page Hire Writer On balance many economists see moderate inflation as a benefit, and so there are a variety of fiscal policy arguments which favor moderate inflation. Central banks can affect inflation to a significant extent through setting the prime rate of lending and through other operations. This is due to the fact that most money in industrialised economies is based on debt (see money and credit money), and so controlling debt is thought to control the amount of money existing and so influence inflation. A government may find some level of inflation to be desirable, particularly in order to raise funds. Causes of inflation Inflation may be caused by an increase in the quantity of money in circulation. This has been seen most graphically when governments have financed spending in a crisis by printing money, leading to hyperinflation where prices rise at extremely high rates. Another cause of inflation occurs when there are many people and organisations with enough market power to increase their prices. The money supply is also thought to play a role in determining levels of more moderate levels of inflation, although there are differences of opinion on how important it is. For example, Monetarist economists believe that the link is very strong; Keynesian economics by contrast typically emphasise the role of aggregate demand in the economy rather than the money supply in determining inflation. A fundamental concept in such Keynesian analysis is the relationship between inflation and unemployment, called the Phillips curve. This model suggested that price stability was a trade off against employment. Therefore some level of inflation could be considered desirable in order to minimize unemployment. The Philips curve model described the US experience well in the 1960s, but failed to describe the combination of rising inflation and economic stagnation (sometimes referred to as stagflation) experienced in the 1970s. Stopping inflation There are a number of methods which have been suggested to stop inflation. One method is simply instituting wage and price controls, which were tried in the United States in the early 1970s. However, most economists regard price controls as counterproductive in that they tend to distort the functioning of the economy. Monetarists emphasize increasing interest rates in the hope of reducing the money supply. Keynesians emphasize reducing demand, often through fiscal policy, using increased taxation or reduced government spending to reduce demand. In some cases of hyperinflation, confidence in the currency can be restored by pegging the value of the currency to a commodity such as gold or a stronger currency such as the U. S. dollar. Types of inflation: Ã¢â¬ ¢ Demand pull inflation Ã¢â¬ ¢ Cost push inflation Ã¢â¬ ¢ Inflation induced by adaptive expectations, often termed the wage-price spiral Historically, inflation meant an increase in the money supply, which was the cause of price increases. Some economists still prefer this meaning of the term, rather than to mean the price increases themselves. Demand pull inflation arises where there is an increase in aggregate demand in an economy relative to aggregate supply. This is commonly described as too much money chasing too few goods. This would not be expected to persist over time due to increases in supply, unless the economy is already at a full employment level. Cost push is a type of inflation caused by arbitrary increases in the cost of goods or services where no suitable alternative is available. A situation that has been often cited as of this was the oil crisis of the 1970s, which some economists attribute as the cause of the inflation experienced in the Western world in that decade. It is argued that this inflation resulted from increases in the cost of oil imposed by the member states of OPEC. Monetarist economists such as Milton Friedman argue against the concept of cost push inflation because they believe that increases in the cost of goods and services do not lead to inflation without the government cooperating in increasing the money supply. The argument is that if the money supply is constant, increases in the cost of a good or service will decrease the money available for other goods and services, and therefore the price of some those goods will fall and offset the rise in price of those goods whose prices have increased. One consequence of this is that monetarist economists do not believe that the rise in the cost of oil was a direct cause of the inflation of the 1970s. Hyperinflation is a form of economic inflation in which the general price level is increasing rapidly. No single definition is universally accepted; one simplistic definition is a monthly inflation rate of 50%. Hyperinflation is just out-of-control inflation at an extremely high rate. Hyperinflation was rare before the 20th century, because past a certain level of inflation the economy would revert to either specie metals or barter. The widespread use of fiat money created the possibility for hyperinflation as governments often tended to print larger amounts of money to finance their expenses. Where such an increase in money supply is done without regard for the actual market demand for money then inflation results. Rates of inflation of several hundred percent per month are often seen. Extreme examples include Germany in the early 1920s when the rate of inflation hit 3. 25 million percent per month, Greece in the mid-1940s with 8. 55 billion percent per month, and Hungary during the same approximate time period at 4. 19 quintillion percent per month. Other more moderate examples include Eastern European countries in the period of economic transition in the early 1990s and in Bolivia and Peru in 1985 and 1988, respectively. Nations such as Ghana in North Western Africa continue to this day to have inflation in the order of 30% per annum. Hyperinflation produces some interesting banknotes. One type has a big long row of zeros on the number. (like this: 10,000,000,000). Another type uses words for part or all of the number (like this: 10 Billion or this: Ten Billion) Still others avoid the use of large numbers simply by declaring a new unit of currency (so, instead of 10,000,000,000 Dollars, you might set 1 New Dollar = 1,000,000,000 old Dollars, so your new banknote would read 10 New Dollars. In countries experiencing hyperinflation it is common to see men and women bringing enormous grocery bags full of banknotes to the store, even for simple purchases like bread or milk. Stagflation is a portmanteau word used to describe a period with a high rate of inflation combined with an economic recession. The Phillips curve, which is associated with Keynesian economics suggests that stagflation is impossible bec ause high unemployment lowers demand for goods and services which lowers prices. This results in low or no inflation. By contrast, monetarism which argues that inflation is due to the money supply rather than to demand predicts that inflation can occur with high unemployment if the government increases the money supply. Stagflation occurred in the economies of the United Kingdom in the 1960s and 1970s and the United States in the late 1970s, and the difficulty in fitting its existence within a Keynesian framework led to a greater acceptance of monetarist theories in the 1970s and 1980s. But some still believe in Keynesian economics, saying that there was no recession at that time. The coinage of the term has been claimed for the UK Finance Minister Iain Macleod who died in 1970. Adaptive expectations In economics, adaptive expectations means that people base their expectations of what will happen in the future based on what has happened in the past. For example, if inflation has been high in the past, people would expect it to be high in the future. In the theory of inflation, demand pull inflation and cost push inflation are usually one off shocks. However, a series of such shocks may lead people to assume that inflation is a permanent feature of the economy, in which case they will modify their economic behaviour ccordingly, based on their expectation of future inflation rates. For instance, they may begin demanding larger pay raises this in itself acts as a cost push, leading firms to push their prices higher, and thus to another round of pay-raises. This wage-price spiral builds some inflation directly into the economy! The theory of adaptive expectations was popular in the 1980s, as an explanation of some aspects of the economic crisis that the West went through after the 1970s oil shock. The fact that some countries, particularly the UK, took until the 1990s to achieve stable low inflation rates again suggests there may well be something in the idea. An alternative theory of how expectations are formed is rational expectations. Effects of Inflation: Regardless of whether inflation is demand pull or cost-push, the failure to correctly anticipate it results in unintended consequences. These unintended consequences impose costs in both labor markets and capital markets. Lets examine these costs. Unanticipated Inflation in Labor Market Unanticipated inflation has two main consequences for the operation of the labor market: Redistribution of income Ã¢â¬ ¢ Departure from full employment Redistribution of Income Unanticipated inflation redistributes income between employers and workers. Sometimes employers gain at the expense of workers, and sometimes they lose. If an unexpected increase in aggregate demand increases [he inflation- rate, [hen wages will not have been set h igh enough. Profits will be higher than expected, and wages will buy fewer goods than expected. In this case, employers gain at the expense of workers. But if aggregate demand is expected to increase at a rapid rate and it fails to do so, workers gain at the expense of employers. With a high inflation rate anticipated, wages are set too high and profits are squeezed. Redistribution between employers and workers creates an incentive for both firms and workers to try to forecast inflation correctly. Departures from Full Employment Redistribution brings gains to some and losses to others. But departures from full employment impose costs on everyone. To see why, lets return to the soda-bottling plant in Kalamazoo. If the bottling plant and its workers do not anticipate inflation, but inflation occurs, the money wage rate does not rise to keep up with inflation. The real wage rate falls, and the firm tries to hire more labor and increase production. But because the real wage rate has fallen, the firm has a hard time attracting the labor it wants to employ. It pays overtime rates to its existing work force, and because it runs its plant at a faster pace, it incurs higher plant maintenance and parts replacement costs. But also, because the real wage rate has fallen, workers begin to quit the bottling plant to find jobs that pay a real wage rate that is closer to one that prevailed before the outbreak of inflation. This Labor turnover imposes additional costs on the firm. So even though its production increases, the firm incurs additional costs, and its profits do not increase as much as they other- wise would. The workers incur additional costs of job search, and those who remain at the bottling plant wind up feeling cheated. Theyve worked overtime to produce the extra output, and when they come to spend their wages, they discover that prices have increased, so their wages buy a smaller quantity of goods and services than expected. If the bottling plant and its workers anticipate a high inflation rate that does not occur, they increase the money wage rate by too much, and the real wage rate rises. At the higher real wage rate, the firm lays off some workers and the unemployment rate increases. Those workers who keep their jobs gain, but those who become unemployed lose. Also, the bottling plant loses because its output and profits fall. Unanticipated Inflation in the Capital Market Unanticipated inflation has two consequences for the operation of the capital market. They are: Ã¢â¬ ¢ Redistribution of income Ã¢â¬ ¢ Too much or too little lending and borrowing Redistribution of Income Unanticipated inflation redistributes income between borrowers and lenders. Sometimes borrowers gain at the expense of lenders, and sometimes they lose. When inflation is unexpected, interest rates are not set high enough to compensate lenders for the falling value of money. In this case, borrowers gain at the expense of lenders. But if inflation is expected and then fails to occur, interest rates are set too high. In this case, lenders gain at the expense of borrowers. Redistributions of income between borrowers and lenders create an incentive for both groups to try to forecast inflation correctly. Too Much or Too Little Lending and Borrowing If the inflation rate turns out to be either higher or lower than expected, the interest rate does not incorporate a correct allowance for the falling value of money and the real interest rate is either lower or higher than it otherwise would be. When the real interest rate turns out to be too low, which occurs when inflation is higher than expected, borrowers wish they had borrowed more and lenders wish they had lent less-: Both groups would have made different lending and borrowing decisions with greater fore- sight about the inflation rate. When the real interest rate turns out to be too high, which occurs when inflation is lower than expected, borrowers wish they had borrowed less and lenders wish they had lent more. Again, both groups would have made different lending and borrowing decisions with greater fore- sight about the inflation rate. So unanticipated inflation imposes costs regard- less of whether the inflation turns out to be higher or lower than anticipated. The presence of these costs gives everyone an incentive to forecast inflation correctly. Lets see how people go about this task. Forecasting Inflation: Inflation is difficult to forecast. The reasons are, first, there are several sources of inflationthe demand-pull and cost-push sources youve just studied. Second, the speed with which a change in either aggregate demand or aggregate supply translates into a change in the price level varies. This speed of response also depends, as you will see below, on the extent to which the inflation is anticipated. Because inflation is costly and difficult to forecast, people devote considerable resources to improving inflation forecasts. Some people specialize in forecasting, and others buy forecasts from specialists. The specialist forecasters are economists who work for public and private macroeconomic forecasting agencies and for banks, insurance companies, labor unions, and large corporations. The returns these specialists make depend on the quality of their forecasts, so they have a strong incentive to forecast as accurately as possible. The most accurate forecast possible is the one that is based on all the relevant information and is called a rational expectation. A rational expectation is not a correct forecast. 1t is simply the best forecast available. It will often turn out to be wrong, but no ocher forecast that could have been made with the information available could be predicted to be better. Youve seen the effects of inflation when people fail to anticipate it. And youve seen why it pays to try to anticipate inflation. Lets now see what happens if inflation is correctly anticipated. Anticipated Inflation: In the demand-pull and cost-push inflations that we studied earlier in this chapter, money wages are sticky. When aggregate demand increases, either to set off a demand-pull inflation or to accommodate cost-push inflation, the money wage does not change immediately. But if people correctly anticipate increases in aggregate demand, they will adjust money wage rates so as to keep up with anticipated inflation. In this case, inflation proceeds with real GDP equal to potential GDP and unemployment equal to the natural rate. Figure 32. 7 explains why. Suppose that last year the price level was 110 and real GDP was $7 trillion, which is also potential GDP. The. aggregate demand curve. as ADo; the aggregate supply curve was SASo, and the long-run aggregate supply curve was LAS. Suppose that potential GDP does not change, so the LAS curve does not shift. Also suppose that aggregate demand is expected to increase and that the expected aggregate demand curve for this year is ADl In anticipation of this increase in aggregate demand, money wage rates rise and the short-run aggregate supply curve shifts leftward. If the money wage rate rises by the same percentage as the price level rises, the short-run aggregate supply curve for next year is SASl. If aggregate demand turns out to be the same as expected, the aggregate demand curve is ADl and with the short-run aggregate supply curve SASl the actual price level is 121. Between last year and this year, the price level increased from 110 to 121 and the economy experienced an inflation rate of 10 percent, the same as the inflation rate that was anticipated. If this anticipated inflation is ongoing, in the following year aggregate demand increases (as anticipated) and the aggregate demand curve shifts to AD2. The money wage rate rises to reflect the anticipated inflation, and the short-run aggregate supply curve shifts to SAS2. The price level rises by a further 10 percent to 133. What has caused this inflation? The immediate answer is that because people expected inflation, wages were increased and prices increased. But the expectation was correct. Aggregate demand was expected to increase, and it did increase. Because aggregate demand was expected to increase from ADo to ADl, the short-run aggregate supply curve shifted from SASo to SASl. Because aggregate demand actually did increase by the amount that was expected, the actual aggregate demand curve shifted from ADo to ADl. The combination of the anticipated and actual increases in aggregate demand produced an increase in the price level that was anticipated. Only if aggregate demand growth is correctly forecasted does the economy follow the course described in Fig. 32. 7. If the expected growth rate of aggregate demand is different from its actual growth rate, the expected aggregate demand curve shifts by an amount that is different from the actual aggregate demand curve. The inflation rate departs from its expected level, and to some extent, there is unanticipated inflation. Page 348 figure 15. 7 Unanticipated Inflation: When aggregate demand increases by more than expected, there is some unanticipated-inflation that looks just like the demand-pull inflation that you studied earlier. Some inflation is expected, and the money wage rate is set to reflect that expectation. The SAS curve intersects the LAS curve at the expected price level. Aggregate demand then increases, but by more than expected. So the AD curve intersects the SAS curve at a level of real GDP that exceeds potential GDP. With real GDP above potential GDP and unemployment below the natural rate, the money wage rate rises. So the price level rises further. , If aggregate demand increases again, a: demand-pull inflation spiral unwinds. When aggregate demand increases by less than expected, there is some unanticipated inflation that looks like the cost-push inflation that you studied earlier. Again, some inflation is expected, and the money wage rate is set to reflect that expectation. The SAS curve intersects the LAS curve at the expected price level. Aggregate demand then- increases, but by less than expected. So the AD curve intersects the SAS curve at a level of real GDP-below potential GDP. Aggregate demand increases to restore full employment. But if aggregate demand is expected to increase by more than it actually does, wages again rise, short-run aggregate supply again decreases, and a cost push spiral unwinds Weve seen that only when inflation is unanticipated does real GDP depart from potential GDP. When inflation is anticipated, real GDP remains at potential GDP. Does this mean that an anticipated inflation has no costs?