Social And Cultural Aspect Of Child Abuse In Punjab

Social And Cultural Aspect Of Child Abuse In Punjab In the article he discussed that children are a very vulnerable sector of our society. Child abuse can occur in every sector of our society, but some children are at a higher risk for abuse. The reason behind the research is to find out what is child abuse and to know the different forms of physical abuses. D.P.Noe said Children are at an increased risk for abuse if they were a product of an unwanted pregnancy, or have parents that are still children themselves. There is an increased risk for child abuse if the parents of a child have history of being abused when they were children. or are have been brought up in a home with domestic violence. Single parents or parents with a drug or alcohol problems put a child at a higher risk for abuse. Certain socioeconomic levels such as children living in poverty place them at a higher risk for abuse. The different types of physical abuses discussed by the author are May present with bruises that are patterned, multiple bruises of different ages, bruising in a non-ambulatory child, burns, and lacerations. The reason behind the research is to know the role of the family life educator that how child abuse can be prevented by the family itself. He said there are different programs to prevent child abuse there are school based programs, Schools are in a unique position to address the child abuse problem through school based programs. School based programs should stress the primary prevention of child abuse by basing content on the cultural forces contributing to abuse. He describe some teaching suggestion in the article which are effective in a family life education program emphasizing the teaching of positive discipline as a primary prevention method for child abuse for example Invite student perspective on the topic of discipline, Invite students to share their feelings with the class. Further more he discussed that what question should be asked by the student and how should they be treated. The role of the teachers. He said equally important is the need to develop activities that will provide students with an opportunity to confront feelings about discipline issues and to learn discipline and guidance strategies that help children develop social competence. The reason behind the research is to know the reason why and how child abuse occur in step families. Evidence from the cases suggests that stepparents are overrepresented among abusers. Jean Giles-Sims and David Finkelhor explained five theories that have been used to explain this presumed relationship. The theories are: social-evolutionary, normative, stress, selection and resource theory. Author also discussed Stepparents and Natural Parents as Perpetrators In Three Types of Child Abuse (physical abuse, sexual abuse and emotional abuse). According to his research step mother conduct more physical and emotional abuse. The social-evolutionary (sometimes referred to as socio-biological) perspective predicts that stepchildren are more likely to be both physically and sexually abused than natural children, using different arguments to explain each type of abuse. According to the normative theory of sexual abuse by stepparents is consistent with a social-evolutionary perspective which ar gues that the justification of incest taboos is to avoid genetic degradation. However, the normative argument does not require a biologically based assumption. In the stress theory it is stated that stepfamilies experience stress, and that stress is related to child abuse. In the selection factor theory author said that it may be that the same factors which make people prone to divorce and remarriage also make them prone to abuse children. It may be that the same factors which make people prone to divorce and remarriage also make them prone to abuse children. Resource theory is the final theoretical approach which explains higher rates of child abuse by stepparents. According to this theory, the more resources a person can command, the more power and authority that person has at his/her disposal to regulate a social system. the reason for conducting this research is to analyse the Ethical dilemmas that are commonly encountered in family sexual abuse cases. In the research the primary ethical problems faced by marital and family therapists working with families in which child sexual abuse is suspected or has occurred are examined. The sexual abuse of children is most frequently perpetrated by males upon females, with stepfather or biological father/daughter molestation being the most commonly reported form of abuse. Kitchener (1984) and Thompson (1990) suggest that the practitioner turn to the following six general ethical principles to guide ethical decision making: autonomy, fidelity, Justice, beneficence, nonmaleficence, and self-interest. These provide a framework for considering the specific ethical dilemmas encountered by family therapists who are confronted with child sexual abuse. Author also discussed the therapeutic treatment of abuse it is recommended that sexual abuse treatment with these fam ilies not be undertaken without specialized training and supervision (Principle .6). The therapist may need to refer the family, a process that can be facilitated by helping the clients understand that this action affirms the therapeutic promise to promote their welfare. Awareness of the meta-ethical principles involved in working with these families can help to identify where principles may conflict. The reason for the study is to identify economic and cultural generative factors of child abuse. There are special circumstances affecting the occurrence of child maltreatment, such as parental youth and inexperience, parental discord and divorce, adoption, and problematic child attributes, which are explored in the research. The evidence for intergenerational transmission of abuse is also examined. The few prospective studies that have used quantitative methods have yielded mixed results, with two (Johannesson, 1974; Sears, 1961) reporting no evidence for an association between corporal punishment and child aggression, and (Lefkowitz, Eron, Walder, Huesmann, 1977 McCord, 1979 Singer, Singer, Rapaczynski, 1984) find a positive association. The reason why parents maltreat their children are parents own background, economic position. Economic factors leads to economic stress, Economic stress generated depression and demoralization in parents, which in turn resulted in marital conflic t and bad parenting-harsh, inconsistent discipline and hostile rejection or non involvement. Divorce is also the reason for the maltreatment of children by parents. Low income and single parents also become the reason for the child abuse. Data obtained from research with non abusive middle-class families. The research also focuses on facets of responsiveness (warmth, reciprocity, attachment) and demanding ness (coer- civeness, confrontation, monitoring, supervision, consistent discipline, corporal punishment) (Maccoby Martin, 1983). Compared to parents from non abusive families, parents from both abusive and neglectful families can be expected to be less responsive and neglectful parents to also be less demanding. The reason for conducting the research is to find the exact relationship between stress and child abuse despite the fact that stress contributes to child abuse. Author discussed three models postulating the influence of stress on child abuse phenomenological model, life change model, and social model. In phenomenological model describe that an early formulation of the stress and child abuse relationship, suggests that abusive behaviour is unleashed by figurative or solid incidents perceived as stressful by adults who are vulnerable to abuse from inadequate upbringings. Stress arises when an incident is judged to be personally threatening. Assessing the threat, including risks to self-esteem and physical comfort, occurs after the individual inventories his or her personal resources for coping. The usefulness of the phenomenological model is limited by its lack of ability to identify unique characteristics of the situation or the abuser. Such constraints as cultural factors, for one, c ontribute to abuse. In the life chain model describe the connection between stress and abuse. This model posits a series of changes in life situation as contributing to the potential to abuse. It also assumes that physical and psychological stress processes are equivalent. The life change model is as follows: C:UsersstudentDesktopaaaaaaaaa.PNG The social model describes another explanation of the connection between child abuse and stress. Child abuse is largely a function of the stresses of poverty, the social model rests on accumulating evidence from child abuse researchers that diminished social or ecological resources accompany poverty and increase child maltreatment among the poor. members of lower socioeconomic groups are exposed to more stressful events than members of higher socioeconomic groups and that the poor are more helpless to the impact of those events. Social isolation is manifest in child abuse. In short phenomenological, life change and social models of stress in child abuse explains that stress in part arises from personal appraisals, cross-sectional life disruptions, and environmental deprivations. This research is done to analyse the different effects of demographic, social, and economic factors on the number of child abuse and there are neglect reports in 18 urban, suburban, and rural counties over a period of 6 years. The analytic portion of this research consists of two parts. The first tests hypotheses about the effect of each independent variable on the dependent variable, child abuse and neglect reports. The model is separately tested for the urban, suburban, and rural counties. The second part uses the independent variables to determine the extent to which the model replicates actual data in each type of county. The time-series approach is used to analyse the growth of child abuse. Eighteen of 58 urban, suburban, and rural counties were selected for analysis. Child labor has become an important discussion topic and that how childrenà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s rights may be protected as globalization has increased so has concern for childrenà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s rights and child labor.. Most societies believe that if children will work they will learn more but conditions that are detrimental to their health is an area of concern. Children who are appreciated by their families are able to learn more an in a less stressful manner compared to those who are not praised and whose work is also not praised. Many conventions have been held by ILO to de motivate those who employ children and force them to work in hazardous conditions. Some international organizations have also been trying to create awareness about childrenà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s rights. In every country organizations are working for rights of child. New institutions are opened to guide the people. UNICEF and various nongovernmental organizations are working to protect Convention on the Rights of the Children and its effective implementation There are several forms of child abuse and the one which has received most concern is the battered child syndrome. There are six main types of abuses that have been discussed including physical abuse and physical neglect. The reason for child abuse could be that as a child the abuser was also maltreated by his parents for not meeting their demands. Such children when marry look for spouses who have been through similar experiences during their child hood. Parents sometimes have unrealistic expectations from their children and when the child is unable to meet these demands the parents become frustrated and become abusive towards the child. Adolescents aged 12 to 17 account for 20% of the abuse and neglect cases. These children can be treated with the help of the family and several different community services. Although the aim of the treatment is to protect the child but it also focuses on the parents. Abusive parents have problems asking for help thus a reporting system can generate better results. Suspected child abuse may be directed by observing a sick or injured child with his parents or by listening to parentà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s explanation of injuries. Parents should be told of places from where they can receive help for parenting their child in a better manner. The emotional aspects of parenting should be incorporated into parental training classes as well as into all other types of parenting education. Family life courses and family planning clinics should inform people of the responsibilities negative along with positive. The American public health association adopted policies to prevent child abuse as a problem which has significant health problems. The cost of child maltreatment has significant and long lasting effects. Cultural acceptance for child abuse is seen in schools in the form of punishments and abuse by parents and neighbors is seen as a problem. Thus measures should be taken to reduce acceptance for child abuse and violence. Coordinated efforts of the public sector and the private sector shall be taken in order to create awareness about the responsibility. Training programs should also be held in order to reduce abuse against children in an effective manner. These programs need funding and support to become more affordable by the society. A conclusion that the article with draws is that those children who have been abused as a child tend to become child or spouse abusers themselves thus research shows that child abuse is directly related to family stress, financial problems and single parenting responsibilities. Child abuse can only be prevented with the help and cooperation of all the sectors private and public including public health, law and order and educational institutes.

Recent Changes in Monetary Policy in Pakistan

{text:bookmark} {text:toc-mark-start} PAKISTAN ECONOMIC POLICY {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} DATED: *15TH* DECEMBER 2009 {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Submitted To: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Sir Ashraf Janjua {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Submitted By: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Nimra Anjum {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Rakana Payam {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} text:bookmark} {text:toc-mark-start} *Sheema H*asanat {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} ACKNOWLEDGEMENT {text:toc-mark-end} We would like to give our special thanks to our Pakistan Economic Policy teacher, Mr. Ashraf Janjua for giving us this opportunity to work and have an insight of the our country’s economy, also to let us interpret our learning in a real situation. We thank him for the assist ance through out this project. Table of Contents MONETARY POLICY Monetary policy is the regulation of volume of money supply, by the central bank in order to achieve relative price stability. If the economy is heating up then the Central bank can increase the bank rate or the reserve requirement. Whereas when there is recession, then the bank rate is reduced. Instruments for the Regulation of Money Supply Open market operations. Cash Reserve requirement Statutory Liquidity Ratio Credit Ceiling Open market operations: It is the buying and selling of government securities. If the M. S is high then the securities are sold so that people buy it and money goes to the SBP and if the M. S is low then you buy securities in this way Money supply increases. Cash Reserve Requirement: It is a requirement in which all the commercial bank have to keep a percentage of cash with the SBP. Currently, it is around 7%. Statutory Liquidity Ratio: It is a requirement in which each bank has to maintain a certain reserve requirement to strengthen their liquidity position. Credit Ceiling: It is the fixation of the upper limit; quotas are assigned to different banks. Components of Money text:bookmark} {text:toc-mark-start} Mo is the resource money and comprises of: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Currency in circulation {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Bank’s Reserve with the SBP {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Other deposits with the SBP {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Cash in the tills of the Bank {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} M1= Currency in circulation + Demand deposits with scheduled banks + other deposits with SBP. text:toc-mark-end} {text:bookmark} {text:toc-mark-start} M2=M1 + time deposits with the scheduled banks. Technically, M2 is called Monetary Assets & M1 is called Money Supply. {text:toc-mark-end} How is Money Created? {text:bookmark} {text:toc-mark-start} There are three sources of creating money: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Net Credit creation by the central Bank (SBP): Credit extended during a period minus recoveries. {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} 1 and 2 are called net Bank credit. Credit is always on the Asset side of Banks. When this credit is used by issuing cheques end up with bank (either the same bank/or any other bank). These cheques are deposits, and are on the liability side of the banks. These deposits/liabilities become money/monetary Assets, and are equal to the credit created by the Banking System. {text:toc-mark-end} How Much Money can be Created? {text:bookmark} {text:toc-mark-start} The share of currency in circulation in Mo and, {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Level of cash in tills and commercial banks reserves with SBP as a % of Mo. text:toc-mark-end} {text:bookmark} {text:toc-mark-start} The higher the value of either of these amounts with respect to M2, the lower the Money Multiplier. {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} 1/c + r (1-c) {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} C= the ratio b/w CIC + other deposits with SBP and M2 {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} R= Cash assets of Scheduled banks: Ca sh in tills of commercial banks + reserves with SBP. {text:toc-mark-end} DOES MONETARY POLICY PLAY EFFECTIVE ROLE IN CONTROLLING INFLATION IN PAKISTAN? Introduction text:bookmark} {text:toc-mark-start} Inflation is politically costly for the government (Haque and {text:toc-mark-end} Salient Features of the Monetary Policy {draw:frame} {draw:frame} {draw:frame} Instruments of Monetary Policy {text:bookmark} {text:toc-mark-start} Cash Reserve Requirement {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} {draw:frame} {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Discount Rate {text:toc-mark-end} {draw:frame} INFLATION TREND IN PAKISTAN (2004-2009) According to the State Bank of Pakistan, the core inflation in the year (2005) was 8. per cent which has almost doubled since the last year (2004) in which the inflation rate was 3. 8 per cent. During this year the non-governmental borrowing increased by 30 per cent. The two main reasons for high inflation during this peri od were because of excessive government borrowings and the price of wheat. According to the State Bank of Pakistan, government estimated that the inflation rate in the next year would range between 7. 7 and 8. 3 per cent. During the year (2006) there was a decrease in the total inflation of the country (general and food) from 9. 3 to 7. 9 per cent and 12. 5 per cent to 6. per cent respectively. The government took several major steps to bring the inflation down during this year as well by tightening the monetary policy and augmenting the supply of essential commodities through liberalization of import regime. As a result the general inflation declined from 9. 3 per cent (2004-05) to 7. 9 per cent (2005-06) & the non-governmental borrowing in the year 2006 became 23 per cent. During 2007 the core inflation reduced from 7. 5 per cent to 5. 9 per cent, due to tight monetary policy. According to the SBP the food inflation increased from 6. 9 per cent (2006) to 10. per cent (2007) becaus e of supply side constraints in which the prices of some key food staples (including wheat, rice, vegetable, ghee etc,) were increased. Where as comparatively the non-food prices grew at a slower pace since last year and the general Inflation (CPI) declined from 7. 9 per cent to 7. 8 per cent. The inflationary trend in the food prices during the year (2008) increased to 17. 6 per cent as compared to the last year in which the food inflation was 10. 3 per cent, affecting people living standards of low and fixed income groups. The non-food inflation had the same increasing trend as in the year (2007), which was 6. per cent and during the year (2008) was 7. 9 per cent. Although the core inflation was reduced to 5. 9 per cent but during this year it went back to 8. 4 per cent because of the global increase in some commodity, higher utility tariff and by local supply and demand driven prices. Inflation during (2008) indicates that the prices of a few commodities (18) essential food items registered sharp increase particularly during the second half of the fiscal year (2008). Other significant contributors to (2008) upward inflationary trend included house rent, which is the index that measures the cost of construction in Pakistan, racing to 11. per cent by April (2008). The current fiscal year commenced with ease in headlines compared to the same month of previous fiscal year. The consumer price inflation annually was 11. 2 per cent during July (2009) as against 24. 3 per cent in July (2008) and 13. 1 per cent in the previous month. A major increase in the core inflation was witnessed in July (2009) of 17. 6 per cent as compared to July (2008) 8. 4 per cent. The food inflation increased by 6. 1 per cent during this fiscal year. The main reason for this high inflation was due to low export growth relative to import, high oil prices and inadequate foreign apital inflow. Conclusively, one can say that inflation adversely affects the overall economic growth, the financ ial sector development and exploit the vulnerable poor segments of the population. Inflation also decreases the real income and induces uncertainty. Considering such undesirable impacts of inflation on the economy, there's a consensus among the world leading central banks that the price stability is going to be the prime objective of monetary policy and the central banks are committed to lower the inflation in the economy. Hence the State bank of Pakistan should adopt inflation as their main focus of monetary policy, by targeting inflation explicitly or implicitly as and when required. EFFECTIVENESS OF MONETARY POLICY STATEMENT IN PAKISTAN Economic policies aim to increase the welfare of the general public and monetary policy supports this broad objective by focusing its efforts to promote price stability. Embedded in this objective is the belief that persistent inflation would compromise the long term economic prospects of the country. The objective of monetary policy in Pakistan, as laid down in the SBP Act of 1956, is to achieve the targets of inflation and growth set annually by the government. In pursuit of this mandate, SBP formulates the country's monetary policy that is consistent with these announced targets. In my remarks today, I plan to provide perspective on: First, why central banks focus on price stability? Second, how the monetary policy transmission mechanisms work? Third, what are the principal features of Pakistan's monetary policy framework? Fourth, selected thoughts on effectiveness of Pakistan's monetary policy framework Finally, what measures are needed to improve the effectiveness of the monetary policy framework in Pakistan? These questions have been a subject of much debate lately, as monetary tightening – an inevitable policy response for regaining macroeconomic stability – has aroused anxiety but better public understanding of this question will help them to appreciate central bank's monetary policy stance. Why Focus on Price Stability? Monetary Policy Transmission Mechanism The monetary transmission mechanism refers to a process through which monetary policy decisions affect the level of economic activity in the economy and the inflation rate. Understanding the transmission mechanism of monetary policy is crucial for appropriate design and efficient conduct of monetary policy. As monetary policy actions affect policy variables with a considerable lag and with high degree of variability and uncertainty, it is important to predict the possible impact and extent of monetary policy actions on the real variables. Thus, by its very nature, monetary policy tends to be forward-looking. It is also important to know which transmission channels are more effective in terms of transmitting changes in monetary policy actions to ultimate policy goals. Since various financial sector developments particularly regarding introduction of new financial products, technological changes, institutional strengthening, and expectations about future policy, etc can potentially change economic effects of the monetary policy measures, there is a need to regularly update, empirically test and reinterpret monetary policy transmission channels. The impact of monetary policy is perceived to transmit in to the real economic activity through five channels. †¢ The first channel and most widely studied and understood channel of monetary policy transmission relies on the link between changes in the short-term nominal interest rate (induced by changes in the policy rate) and the long-term real interest rate that ultimately affect components of aggregate demand such as consumption and investment in an economy. As such, it is the changes in the long-term real interest rates that have its impact on aggregate consumption, business investment and other components of aggregate demand. †¢ The second channel, known as the credit channel, involves changes in monetary policy that not only affects the ability of firms to borrow money (by affecting their net worth) but also affects the ability of banks to lend money. The strength of this channel depends on the degree to which the central bank has allowed banks to extend loans and the dependence of borrowers on bank loans. These factors are clearly influenced by the structure of the financial system and its regulation. †¢ The third channel of monetary policy transmission focuses on asset prices (other than the interest rate) such as the market value of securities (bonds and equities) and prices of real estate. A policy-induced change in the nominal interest rate affects the price of bonds and stocks that may change the market value of firms relative to the replacement cost of capital, affecting investment. Moreover, a change in the prices of securities entails a change in wealth which can affect the consumption of households. Fourth, a policy-induced change in the domestic interest rate also affects the exchange rate that in turn affects the foreign financial flows, net exports and thus aggregate demand. The strength of the exchange rate channel depends on the responsiveness of the exchange rate to monetary shocks, the degree of openness of the economy, sensitivity of foreign private inflows and n et exports to exchange rate variations, and the net worth of firms and thus their borrowing capacity if they have taken exposure to foreign currency. Moreover, exchange rate changes lead to changes in the domestic price of imported consumption goods and imported production inputs affecting inflation directly. †¢ Since expectations influence the inflation dynamics, there is a fifth channel that is based on the economic agents' expectations of the future prospects of the economy and likely stance of the monetary policy. According to this ‘expectations channel', most economic variables are determined in a forward-looking manner and are affected by the expected onetary policy actions. Thus, a consistent, credible, and transparent monetary policy can potentially affect the likely path of the economy by simply affecting expectations. Monetary Policy Framework in Pakistan Considering the economic and financial market structure in Pakistan, SBP has for sometime pursued a monetary targeting regime with broad money supply (M2) as a nominal anchor to achieve the objective of controlling inflation without any prejudice to growth. The process of monetary policy formulation usually begins at the start of the fiscal year when SBP sets a target of M2 growth in line with government's targets of inflation and growth (usually in the month of May) and an estimation of money demand in the economy. The basic idea is to keep the money supply close to its estimated demand level, as both a significant excess and a shortfall may lead to considerable deviations in actual outcomes of inflation and real GDP growth from their respective targets. Underlying this framework are two strong assumptions: first, there is a strong and reliable relationship between the goal variable (inflation or real GDP) and M2; and second, the SBP can control growth in M2. While containing the M2 growth close to its target level is the key consideration in the current monetary framework, the composition of the money supply does matter and at times requires policy actions even if these actions lead to a deviation in monetary growth from its target level. To understand this point, it is necessary to know the major components of money supply and their relative importance. Net foreign Assets (NFA) and Net Domestic Assets (NDA) of the banking system are the two major components of money supply. The NFA is the excess of foreign exchange inflows over outflows to the banking system, or in other terms it is a reflection of underlying trends in the country's external Balance of Payment (BoP) position. It is estimated by the projected values of all major external transactions such trade, workers' remittances; debt servicing, foreign investment, and debt flows etc. The NDA of the banking system, which primarily consists of credit to the government and the private sector, reflects changes in the fiscal and the real sectors of the economy, If is estimated as a residual of M2 and the NFA. Further break-up of NDA is estimated on the basis of projected credit needs of the government and the private sector. NOW coming to the importance of these components of the money supply, depletion in NFA is generally considered as an unhealthy development. Sharp NFA depletion reflects worsening BOP position and a pressure on exchange rate. In such a case, a higher NDA growth, though helps in expanding M2 to reach ifs target level, may further deteriorate external accounts, sharper depreciation of local currency, and higher depletion of country's foreign exchange reserves. Although since FY07, only the indicative M2 growth target is being announced, SBP also takes into consideration the causative factors for monetary expansion while pursing this target. Considering the changes in monetary aggregates and other economic variables, the changes in monetary policy are signaled through adjustments in the policy discount rate (3-day repo rate). Further, the changes in the policy rate are complemented by appropriate liquidity management mainly through Open Market Operations (OMOs) and if required changes in the Cash Reserve Requirement (CRR) and Statutory Liquid Reserve requirement (SLR) are also made. † Significance of various channels that transmit the monetary policy shocks in Pakistan to the real economy has been analyzed by few economists. Ahmad et al. (2005) found that credit channel is the most ‘important conduit for transmitting monetary policy actions to the real economic activity. Evidence confirms transmission through the active asset price channel and exchange rate channel. According to this study, monetary policy shocks impact real output after a lag of 7 to 11 months. Tasneem and Waheed (2006), on the other hand, investigated whether different sectors of the economy respond differently to monetary shocks. The presence of sector wise differences in the monetary transmission mechanism has profound implications for macroeconomic management as the central bank then has to weigh the varying consequences of its actions on different sectors. Investigating the transmission of changes in interest rate to seven sub sectors of the economy, the authors found evidence supporting sector-specific variation in the real effects of monetary policy. They found that the interest rate shock on manufacturing, wholesale and retail trade, and finance and insurance sectors transmit after a lag of 6 to 12 months. On the other hand, monetary policy shocks have negligible impact on agriculture, mining and quarrying, construction and ownership of dwelling sectors. Generally, historical evidence does reflect that Pakistan has been a high inflation and high interest economy given its inherent structural weaknesses. The role and effectiveness of monetary policy appears more visible in the 2000s when financial sector reforms started bearing fruits in terms of a more market based money and foreign exchange markets. Entering the 21sf century, the loose monetary policy stance in the face of low inflation, low growth and low twin deficits, along with structural measures to open up the economy and alleviate some first round constraints, triggered the economy on a long-term growth trajectory of above 7 percent. Monetary policy stance was however altered as the inflationary pressures started to build up in 2005. At the end of the fiscal year, the economy, which had been showing sustained steady growth since FY01, registered a historically high level of growth (9 percent), average inflation rose sharply (9. percent) and the external current account balance turned into deficit (-1. 4 percent of GDP) Coinciding with these developments, the fiscal module started to show signs of stress as the fiscal balance was converted into a deficit and the stock of external debt and liabilities, which had been declining since FY00 after the Paris Club rescheduling, began increasing. These indicators largely capture t he high and growing aggregate demand in the economy on account of sustained increase in peoples' income. With the emerging domestic and global price pressures, SBP tightened its monetary policy after a prolonged gap of a few years. The efforts to rein-in inflation, however, proved less effective due to a rebound in international commodity prices and a rise in domestic food prices later on. The rise in the international commodity prices, particularly oil, exacerbated the fight against inflation. The international oil prices (Arabian Light) rose from US$27. 1 at end 2004 to US$50. 9 at end 2006, whereas international food prices rose by 24, 24 and 21 percent during 2004, 2005 and 2006 respectively. Realizing the complications of monetary management and adverse global and domestic economic developments, the implementation of SBP monetary policy during FY06 varied significantly from the preceding fiscal years. In addition to the rise in the policy rate, the central bank focused on the short-end of the yield curve, draining excess liquidity from the interbank money market and pushing up short-tenor rates. Consequently, not only did the overnight rates remain close to the discount rate through most of the year, the volatility in these rates also declined. These tight monetary conditions along with the Government's administrative measures to control food inflation helped in scaling down average inflation from 9. 3 percent in FY05 to 7. 9 percent in FY06, within the 8. 0 percent annual target. This was certainly an encouraging development, particularly as if was achieved without affecting economic growth as the real GDP growth remained strong at 6. 6 percent in FY06. Further Strengthening of Tight Monetary Policy For FY07, the government set an inflation target of 6. 5 percent. To achieve this, a further moderation in aggregate demand during FY07 was required as the core inflation witnessed a relatively smaller decline in FY06, indicating that demand-side inflationary pressures were strong. In this perspective, SBP further tightened its monetary policy in July 2006 raising the CRR and SLR for the scheduled banks; and its policy rate by 50 basis points (bps) to 9. 5 percent. Moreover, proactive liquidity management helped in transmitting the monetary tightening signals to key interest rates in the economy. For instance, the Karachi Inter Bank Offer Rate (KIBOR) of 6 months tenor increased from 9. 6 percent in June 2006 to 10. 02 percent at end-June 2007 and the banks' weighted average lending and deposits rates (on outstanding amount) increased by 0. 93 percentage points and 1. 1 percentage points, respectively, during FY07. In retrospect, it appears evident that monetary tightening in FY07 did not put any adverse impact on economic growth, as not only was the real GDP growth target of 7. 0 percent for FY07 was met, the growth was quite broad based. At the same time, the impact of the monetary tightening was most evident in the continued deceleration in core inflation during FY07. One measure of core inflation, the non-food non-energy CPI, continued its downtrend from YoY high of 7. 8 percent in October 2005, to 6. 3 percent at end-FY06, and to 5. 1 percent by the end of FY07. However, much of the gains from the tight monetary policy on overall CPI inflation were offset by the unexpected rise in food inflation. On the downside, however, broad money supply (M2) grew by 19. 3 percent during FY07, exceeding the annual target by 5. percentage points. Slippages in money supply growth largely stemmed from an expansion in NFA due to the higher than expected foreign exchange inflows. Equally stressful was the impact of Government borrowings from the central bank during the course of the year. The pressure from the fiscal account was due to mismatch in its external budgetary inflows and expenditures. With the privatization inflows and th e receipts from a sovereign debt offering at end-FY07, the Government managed to end the year with retirement of central bank borrowings, on the margin. By end-FYO7, SBP holdings of government papers were still around Rs 452 billion, despite a net retirement of Rs 56. 0 billion during the year. Another major aberration in FY07 emanated from the high level of SBP refinancing extended, for both working capital and long-term investment, to exporters. Aside from monetary management complexities, these schemes have been distorting the incentive structure in the economy. FY08 and Beginning of FY09: More Challenging FY08 was an exceptionally difficult year. The domestic macroeconomic and political vulnerabilities coupled with a very challenging global environment caused slippages in macroeconomic targets by a wide margin. After a relatively long period of macroeconomic stability and prosperity, the global economy faced multifarious challenges: (i) hit by the sub prime mortgage crisis in U. S in 2007, the international financial markets had been in turmoil, the impact of which was felt across markets and continents; (ii) rising global commodity prices, with crude oil and food staples prices skyrocketing; and (iii) a gradual slide in the U. S dollar against major currencies. Combination of these events induced a degree of recessionary tendencies and inflationary pressures across developed and developing countries. Policy-makers were gripped with the dual challenge of slowdown in growth and unprecedented rising inflationary pressures. Central bankers faced a demanding task of weighing the trade-off between growth and price stability. With the exception of few developed countries, most central banks showed a strong bias towards addressing the risk of inflation and responded with tightening of monetary policies. On the domestic front, the external current account deficit and fiscal deficit widened considerably to unsustainable level (8. 4 and 7. 4 percent of GDP). The subsidy payments worth Rs 407 billion by Government, which account for almost half of the fiscal deficit, shielded domestic consumers from high international POL and commodity prices and distorted the natural demand adjustment mechanism. While the government passed on price increase to consumers, the rising international oil and other importable prices continued to take a toll on the economy. Rising demand has cost the country dearly in terms of foreign exchange spent on importing large volumes of these commodities. Rising fiscal deficit and lower than required financing flows resulted in exceptional recourse of the Government to the highly inflationary central bank borrowing for financing deficit. At the same time the surge in imports persisted. As a result, inflation accelerated and its expectations strengthened due to pass through of international oil prices to the domestic market, increases in the electricity tariff and the general sales tax, and rising exchange rate depreciation. These developments resulted in a further rise in headline as well as core inflation (20 percent weighted trimmed measure) to 25 percent and 21. 7 percent respectively in October 2008. Considering the size of macroeconomic imbalances and the emerging inflationary pressures, SBP remained committed to achieve price stability over the medium term and thus had to launch steeper monetary tightening to tame the demand pressures and restore macroeconomic stability in FY09. SBP thus increased the policy rate from 13. 5 to 15%. What Needs to be Done to Improve the Effectiveness of Monetary Policy? Apart from taking policy measures to address the emerging challenges, SBP also introduced structural changes in the process of monetary policy formulation and conduct to make the monetary policy formulation and implementation more transparent, efficient, and effective. Specifically, during the last couple of years, SBP focused on †¢ Institutionalizing the process of policy formulation and conduct †¢ Stepping up movement towards a more market based credit allocation mechanism Developing its analytical and operational capacity †¢ Improving its capabilities to assess future developments to act proactively and †¢ Improving upon the communication of policy stance to the general public. However, the following areas need attention and are keys or effective monetary management. 1. Effectiveness of monetary and fiscal co-ordination would be helpful. Section 9A and 9B of the SBP Act (amended in 1994) art iculates the institutional mechanism for economic policy making and co-ordination and defines the ground rules for both the process and the policy making. However, the track record of the Monetary and Fiscal Policies Co-ordination Board (MFPCB), established in February 1994 that requires quarterly meetings of the SBP and the government, has been less than satisfactory. Furthermore, the sequencing of economy-wide projections is done in isolation of the budget and monetary policy making process, and the budget making process has not respected the monetary compulsions. With rising spending and stagnating revenues, the budget assumes at the start of the year certain recourse to the central bank rather than treat it as mere ways and means advances. . For effective analysis of developments and policy making, timely and quality information is extremely important. However, due to weaknesses in the data collection and reporting mechanism of the various agencies of the country, information is not available with desired frequency and timeliness. Also there are concerns over the quality of data. Unlike many developed and developing countries, data on quarterly GDP, employment and wages, etc is not available in case of Pakistan. Moreover, the data on key macroeconomic variables (such as government expenditure and revenue, output of large-scale manufacturing, crop estimates, etc) is usually available with substantial lags. This constrains an in-depth analysis of the current economic situation and evolving trends, and hinders the ability of the SBP to develop a forward-looking policy stance. 3. Unlike many countries, both developed and developing, there is no prescribed limit on government borrowing from SBP defined in the SBP Act or the Fiscal Responsibility and Debt Limitation (FRDL) Act 2005. Besides being highly inflationary, government borrowing from SBP also complicates liquidity management. Borrowing from the central bank injects liquidity in the system through increased currency in circulation and deposits of the government with the banks. In both cases, the impact of tight monetary stance is diluted as this automatic creation of money increases money supply without any prior notice. Moreover, access to potentially unlimited borrowings from the SBP provides little incentives to the government to put the fiscal accounts in order. Therefore, the foremost task to improve the effectiveness of monetary policy is to prohibit the practice of government borrowings from the SBP. In this regard, appropriate provisions are required to cease or limit government recourse to central bank financing through amendments in the SBP Act and the FRDL Act 2005. 4. Another issue is to make a clear distinction between exchange rate management and monetary management. Currently, there is a general perception that the State Bank is bound to keep the exchange rate at some predefined level and any movement away from this level is then considered as an inefficiency of the SBP. There is a need to understand that for an open economy, it is impossible to pursue an independent monetary and exchange rate policy as well as allowing capital to move freely across the border. Since the SBP endeavors to achieve price stability through achieving monetary targets by changes in the policy rate, it is not possible to maintain exchange rates at some level with free capital mobility. This can only be achieved by putting complete restrictions on capital movements, which is not possible. SBP's responsibility is to ensure an environment where foreign exchange flows are driven by economic fundamental and are not misguided by rent seeking speculation. 5. Finally, based on experience particularly gained during the last two months is to differentiate between liquidity management and monetary policy stance. Recently, when the banking system experienced extraordinary stress due to shallow liquidity in the system, rumor mongering heightened the general public anxiety over few banks' sustainability. Consequently, the SBP had to intervene in the market by injecting ample liquidity through various measures. In some quarters, these changes were deemed as a change in the bank's tight monetary policy stance. However, this was not the case and the bank had to clearly and repeatedly communicate that the existing stance is being continued. Later on, the bank further tightened its monetary policy. It must be understood that quite often, liquidity management can drive the market interest rates away from the direction desired under the monetary policy stance. However, this has to be temporary and ‘the interest rates are bound to move in the policy stance direction. To resolve this issue, the SBP is studying various options, including the introduction of a â€Å"Standing Deposit Facility† to keep the interbank rate within a corridor. In conclusion, it is imperative that above steps be taken urgently. Over the period, however, this needs to be complemented with much deeper structural reforms to synchronize and reform the medium term planning for the budget and monetary policy formulation process Several studies and technical assistance have provided extensive guidance in this area, but the lack of capacities and short term compulsions have often withheld such reforms. What is important is to recognize that a medium term development strategy, independently worked out, would help minimize one agency interest which has often been a source of co-ordination difficulties. It would also help the budget making process more rule based than the incrementally driven process to satisfy conflicting demands. THE RECENT DEVELOPMENTS IN MONETARY POLICY (2007-2009) The SBP has kept its tight monetary policy stance in the period July 01, 2008-April 20, 2009. The policy rate was adjusted upward in November 2008 to shave-off some aggregate demand from the economy and kept constant in January 2009. However, noticing visible signs of demand compression enabled the SBP to reduce 100 basis points on April 20, 2009. During July 01, 2008-April 18, 2009, money supply (M2) expanded by 1. 6 percent against the target of expansion of 8. 0 percent for the year and last year expansion of 8. 1 percent in the comparable period of last year. The reserve money witnessed contraction of 2. 2 percent in this period as against expansion of 10. 3 percent in the comparable period of last year. Net domestic assets (NDA) have increased by Rs. 307 billion as compared to increase of Rs. 627. 5billion in last year. However, it is showing an increase of 7. 6 percent in stock during this period, whereas, last year the growth in stock was 20. 4 percent in the comparable period. Net foreign assets (NFA) have recorded a contraction of Rs. 263. 9 billion against the contraction of Rs. 356. 4 billion in the comparable of last year [See Table-6]. {draw:frame} Government borrowing for budgetary support has recorded an increase of Rs. 240. 5 billion as compared to Rs. 336. 0 billion in the comparable period of the last year. The government has over performed against freezing the net borrowing from SBP at Rs. 57 billion in 2008-09 and the SBP financing has shown a net increase of Rs. 103. 3 billion and financing from scheduled banks witnessed a net increase of Rs. 137. 2 billion during July 01, 2008-April 18, 2009. Credit to private sector witnessed a net increase of Rs. 55. 4 billion during July 01, 2008-April 18, 2009 as compared to Rs. 359. 7 billion in the comparable period of last year. The stocks st ill went up by 9. 1 percent. SBP undertook aggressive monetary tightening during the period, further increasing the policy rate by 300 bps in two rounds. On a cumulative basis, this means a 550 bps increase during the last 18 months up to March 2009. However, the policy rate was decreased by 100 bps on April 20, 2009. These policy measures were in response to carryover of macroeconomic stresses of the preceding year and increase in real aggregate demand. Monetary tightening has worked in the right direction. Weighted average lending rate have witnessed slight decline from 15. 5 percent in October 2008 to 14. 8 percent in February 2009. Weighted average deposit rate on the other hand has increased from 6. 2 percent in October 2008 to 7. percent in February 2009 which implies narrowing of the spread amidst intensive deposit mobilization efforts on the part of the banks. The weighted average yields on 6 months T-bill has declined by almost 250 basis points to 11. 5 percent in March 2009 as against 14 percent in November and December 2008 [See Fig-2]. {draw:frame} Recent Discount Rate in Pakistan (2007-2009) During 2007-08, the SBP contin ued with tight monetary policy stance, thrice raising the discount rate and increased the Cash Reserve requirement (CRR) and Statutory Liquidity Requirement (SLR). In the light of continued inflationary buildup and increasing pressures in the foreign exchange market, the SBP announced a package of monetary measures on May 21, 2008 that included;(i) an increase of 150 bps in discount rate to 12 percent; (ii) an increase of 100 bps in CRR and SLR to 9 percent and 19 percent, respectively for banking institutions (iii) introduction of a margin requirement for the opening of letter of credit for imports (excluding food and oil) of 35percent, and (iv) establishment of a floor of 5percent on the rate of return on profit and loss sharing and saving accounts. The year 2008-09 is characterized by a reduction in CRR by 2 percent in two equal phases to help the liquidity issues of the banking system. Later on, the SBP announced a 200 bps hike in discount rate to 15 per cent on November 12, 2008 in response to persistent hike in core inflation and current account deficit in a last ditch effort to demand compression. Following a slight reversal in the mounting inflationary and demand pressures, the SBP announced a downward adjustment of policy rate by 100 bps on April 20, 2009. SBP’s tight monetary policy and rationalization of fiscal subsidies and expenditure controls are the key factors that contributed a reasonable progress towards macroeconomic stability. The private consumption grew by 5. 2 percent in real term during 2008-09 which implies that notwithstanding substantial reduction in the fiscal and current account deficits, demand pressures are still confronting monetary management. {draw:frame}

Regions Chart and Written Response Essay

Continued to treat the African Americans poorly. Paid poorly wages just cared about having a name and the money. Social reform movement. Farmers were politically active. Social Growth of industries caused a gap between rich and poor in this region. Political views clashed. Labor union formed first here. Still had race issues. Segregation and discrimination continued. The Chinese immigrants and the white settlers had cultural differences that led to friction. Riots and discrimination laws. Gap between rich and poor. A lot of friction. Active labor unions Economic or Type of Economy Center of the industrialization during the first and second industrial revolution. Producing more than 85% of the United States industrial products. Very low on industrial output. Had textile mills and ironwork industries. Agriculture included timber, coal, iron and steel. Little industrial development. Natural Resources was their main thing such as limber and metals. Agriculture as well. Farming and manufacturing. Steel and automotive. Upper states we center of industry, a hub for shipping and transportation. Population Change  Many immigrants began to come. 1 out of 5 industrial workers was an immigrant. Very high population. African Americans leaving to new factories in the North and Midwest for a better chance at good wages and improve their  economic and social standings. Immigrants from China came to the West looking for jobs on expanding the railroads. Sparse Population. Cities grew rapidly. Large numbers of immigrants. Transportation 200,000 miles of railroads connected cities by the 1900. The necessity of coal led to mining. Great transportation systems. New railroads stretched as far as Florida. Major railroads connected the West to the East.  Railroads and Trains contained livestock and grain. Part 2 – Respond to the prompt in a well- developed paragraph of your own. Be sure to include social, political and economic factors in your response and fully address all parts of the prompt. Explain how the Second Industrial Revolution affected the North, South, West, and Midwest. Which region would you have preferred to live in during this period? Why? The Second Industrial Revolution affected the North, South, West and Midwest mostly by population, economy, and social changes. Many immigrants came to these regions searching for a better life or founding out information on new technology because of this, it led to a lot of social friction between the immigrants and the settlers of the region. Political views clashed, segregation, riots and discrimination laws were happening while immigrants were coming in. These regions had to work with what they had and what they can use, this created the different types of economy such as industrial, manufacturing, farming, agriculture, etc. I would’ve preferred to live in the northern region because it was more developed in industries and technology.

A Case Analysis Of Ernest Hemingway s Bipolar Disorder

The following paper is a case analysis of Ernest Hemingway’s bipolar disorder. The goal of the paper is to conceptualize bipolar disorder using a psychodynamic model. The case study uses the concepts of abnormal psychology to trace the etiology of a mood disorder beyond just the vestiges of uncommon behavior. The paper argues that he suffered from a mood disorder. The etiology of his mood disorder is the unresolved issues he had with his father’s suicide. Excessive use of alcohol exacerbated his problems. He exhibited bipolar mood swings that contributed to his suicide. He engaged in risk-taking behavior. He was most likely motivated to rescue himself from an overprotective mother and a cold and disciplinarian father. Case Conceptualization The purpose of the paper is to conceptualize the principles of psychodynamic psychotherapy in the field of abnormal psychology. The psychodynamic model derives from psychoanalytic theory. The psychoanalytic approach to psychology relies on a psychodynamic model for treatment. Psychoanalysis is the science of interpretation. Psychoanalysis began with the work of Sigmund Freud, and its principle suggestion is that unconscious motivations govern the desires of human beings (Barlow, p. 17). Freud wrote that unconscious desires lie at the heart of the psyche. Consciousness is what human beings are made aware of in waking life. Freud observed that the life of the mind is more than just conscious awareness. At a deeper unconscious level,