Analysis Of The Book Face Of An Angel - 930 Words

Women are just as responsible as men for the sexist â€Å"macho† culture present in Latin families due to different reasons: women continue to educate their children with these same sexist ideas that they disagree with, they are also afraid to go against what the patriarchal society says, and they limit themselves to accept their sexist female roles and continue living under their â€Å"man’s† rules. The book Face of an Angel shows how Chavez gives her female perspective about the sexist environment in which females have lived in for several years. Even though the patriarchal model is present in many other cultures, the idea of a â€Å"macho† society is most often related to Latin American families. The basic idea of machismo comes from the patriarchal model which states that males are responsible for bringing the food to the table and females are left at home to take care of the children. This is just the beginning of a series of problems and abuses suffe red by many females in Latin America. It is important to clarify that women’s rights exist, the only problem is the lack of willingness to change. One of the main problems of a macho society is that males have extra benefits in contrast to females. For example: a man can drink in excess and come home late, also have multiple sexual partners, and work in any field they want without being scrutinized in the same fashion as their counterparts. Their goal is to seduce as many different women as possible in order to attain one and perhapsShow MoreRelatedDante Alighieri s Inferno, And The Book Of Revelation1584 Words   |  7 PagesDante Alighieri’s epic poem, Inferno, and the Book of Revelation as told by John in the Bible each regale the natural curiosity of humans involving manifestations of endings and possibilities of new beginnings in the afterlife. The purpose of informing God’s people of these manifestations and possibilities is mutual and key to the prepared ness of humans for life after death. Still, justice is surely delivered appropriately in Inferno and Revelation, due to God’s brilliant arrangements. DivergenceRead MoreFallen Angels Chacter analysis1133 Words   |  5 Pagesï » ¿Character Analysis in Fallen Angels During war, many people change physically, mentally, and socially. War itself is disturbing to the mind. In Walter Dean Meyer’s Fallen Angels, the characters undergo many changes as they learn the true meaning of war. Perry, Peewee and Johnson all change in the sense of their personalities and their outlooks on life. In the beginning of the novel all the characters have very distinct characteristics. As the story progresses they start to see how war can haveRead MoreEssay on Satan, the Core of Milton ´s Paradise Lost1308 Words   |  6 Pageswritten in the classics. A literary criterion that is based on a protagonist, who undergoes conflict on the outside and from within and is prevented by a specific flaw to accomplish their main goal, creates an epic Hero. In Paradise Lost, God does not face conflict because he is perfect and all-knowing, and Adam’s conflict is not presented from the very start, Satan’s is. Because Satan is the main character of the work an d possesses qualities that would deem him heroic, such as his determination againstRead MoreReview Of The Better Angels Of Our Nature By Steven Pinker1262 Words   |  6 PagesMary Kaldor. In combination, these approaches provide a general summary of the major strains of â€Å"declinist† literature and demonstrate the challenges of assessing the changing political violence and armed conflict after the Cold War. In â€Å"The Better Angels of our Nature†, Steven Pinker claims that the decline of war since the 1990s is a continuation of a broader trend of declining violence since neolithic times. Accordingly, he claims that we are living in the â€Å"the most peaceable era in our species’Read More Analysis of Pauline Puyat’s Tracks ­ Essay583 Words   |  3 PagesAnalysis of Pauline Puyat’s Tracks ­ One of the most striking characteristics of Pauline Puyat is her devout Catholicism and her desire to be disconnected from the Ojibwa people. Throughout Tracks, she openly chooses Catholicism over her native religion and abandons her native ways almost completely. When Pauline tries to help Fleur prevent a miscarriage, she is literally held back by her conscious separation from the Ojibwa culture. There are many things that Pauline fails toRead MoreSummary Of The Triptych Melencome, And Knight, Death And The Devil1537 Words   |  7 Pagesto the skull and hourglass, the object’s presence generates an atmosphere of ominous danger- pertaining to judgement day, from the rainbow’s pairing, in the book of revelations: â€Å"I saw another mighty angel coming down from heaven†¦ with a rainbow over his head2: St. Jerome also represents an aspect of the last judgment, listening to an angel trumpeting the decree. The foreground (physical world), is cluttered with equipment for alchemy, geometry and carpentry which appear unused, around the broodingRead MoreA World Of Calamity, By Ross Gay883 Words   |  4 PagesRoss Gay’s book Against Which, portrays his poetry to readers allowing them to gain understanding of the cruel world that one lives in. Moreover, the unusual brutalities that people are inevitable confronted with in life. The common denom inators within Gay’s poems such as violence, love, fear, and loss allows the reader to visualize characters’ transformation within his poems. In a world of calamity, Gay has created poems that portray the corporal conforming to gender and sex but also human developmentRead MoreEssay about The Voice of the Chimney Sweepers1180 Words   |  5 PagesWilliam Blake (1757-1827) led a relatively happy life. At an early age, he claimed that he could see God, Angels, and other important Italian figures. Blake’s parents encouraged him to keep a record of all the masters he claimed to keep in contact with. Blake’s father, James Blake, gave him casts and engravings to keep this record. At the age of ten, Blake started at a drawing school named Henry Pars’ Drawing School. Three years later, he was apprenticed to a Master Engraver, James Basire. BlakeRead MoreReading Like A Writer By Francine Prose880 Words   |  4 PagesIntroduction Like most – maybe all – writers, I learned to write by writing and, by example, by reading books† - Francine Prose, Reading Like A Writer. In the New York Times bestseller Reading Like A Writer, Acclaimed American Author Francine Prose returns with potent insight and the works of the most superlative writers of our time, in this guide to mastering the art of writing through reading. Prose graduated from Radcliffe College in 1868 but had received most of her training through avidlyRead MoreThe Scarlet Letter, By Nathaniel Hawthorne1422 Words   |  6 PagesThe Scarlet Letter, â€Å"Young Goodman Brown,† â€Å"The Minister’s Black Veil† and an abundant array of other books and short stories. The stories that are mentioned contain a copious amount of symbolism throughout the entirety of each book. All the stories that he ever wrote have an underlying meaning and the symbolism was hidden within in the names, characters, places, and actions that happened in the books and helped the readers to have a greater understanding about the Puritan lifestyle and the Bible.

Gay Marriage Is Not The Only Issue Involving Marriage

Divorce is not the only issue involving marriage in America. There are still reservations about same sex couples being given the privilege to marry each other. With American morality, values, religion, and culture being questioned, this is one of the heaviest debates of our time. America was founded on the belief of freedom for all, and the gender of your partner should not matter. A question that some may ask is, what exactly is gay marriage? Gay marriage or same-sex marriage is the legal and social recognition that a joining (marriage) between two persons of the same social gender or biological sex takes place (Quick). As of February 9, 2015, gay marriage has been legalized in 37 American states and the district of Columbia(Marriage). While the remaining states have gay marriage bans through laws, constitutional amendments, or both. Proponents argue that same-sex couples ought to have access to the same marriage benefits and public acceptance enjoyed by heterosexual couples, and that prohibiting gay marriage is unconstitutional discrimination. Opponents argue that altering the traditional definition of marriage between a man and a woman will further weaken a threatened institution. They believe that legalizing gay marriage is a slippery slope that will lead to polygamous relationships. Gay marriage has come a long way from the 1980 s when only few Americans ever thought of marrying someone of the same sex(Wood). Same-sex couples have a history of fighting for theirShow MoreRelatedSame-Sex Marriage Essay1633 Words   |  7 PagesWhile the issue of homosexuality is relatively new to our country, the fight for rights started almost immediately, and people today are still struggling to earn civil liberties, like same-sex marriage. If some change isn’t made now, their struggle for rights could last even longer than other minorities have endured. Since there is no national ruling made to abolish same-sex marriage, each state sets its own laws regarding ga y marriage. Currently in the US, five states allow same-sex marriage, severalRead MoreCommon Ground : Same Sex Marriage956 Words   |  4 PagesCommon Ground: Same-Sex Marriage Same-sex marriage, a controversial social issue in the U.S. for several decades, is constantly evolving. When viewed historically, great change has happened in a short period of time, in the movement for same-sex marriage, given that until recently, no society in thousands of years has ever allowed it. Futurist John Naisbitt, author of Megatrends, has studied the change in the public’s perspective on gay marriage. Naisbitt asserts: â€Å"In just my lifetime, weRead MoreGay Marriage Essay1335 Words   |  6 PagesGay Marriage People should be able to marry whomever they want and they shouldnt have the fear to be judged and have the same rights of everybody else becasue they are people just like us. Gay marriage has affected the country in many ways. It was legalized just two years ago by the Supreme Court ruling it (www.theatlantic.com). I chose this topic because people should do what they want and marry who they want so they have the same rights as everybody else. There was 14 states that did not allowRead MoreGay Marriage Should Not Be Condemned1108 Words   |  5 Pagesbeen heated debate’s concerning gay marriage’s in the world. Some people support gay marriage while others do not. Gay marriage is a marital union that involves two adults of the same gender. For instance, a woman and another or marriage involving two men would constitute a gay marriage. Generally, this issue has been prevalent in the developed countries such as the United States; but it is a fact those kinds of marriages exist in other countries in the world over, only that the participants do notRead More Equal Rights for All Essays918 Words   |  4 PagesEqual Rights for All Gay marriage has always been a subject of great controversy. Andrew Sullivan addresses this issue in his persuasive essay entitled â€Å"Let Gays Marry.† Sullivan’s essay appeared in Newsweek in June of 1996. Through his problem/solution structure of this essay, Sullivan uses rhetorical appeals to try and persuade the audience to accept gay marriage as a natural part of life. Sullivan, an editor of The New Republic, also wrote Virtually Normal: An ArgumentRead More Let Gays Marry and Leave Marriage Alone Essay1278 Words   |  6 Pageswill summarize some of the key points from the essay, Let Gays Marry, by Andrew Sullivan, and the essay, Leave Marriage Alone, by William Bennett. Some of these main points are taken from mutual beliefs of both authors and others are derived from the opposing opinions of the two. The first summary of Andrew Sullivan’s essay is a reflection of Andrew Sullivan’s stance of the issue. The original essay was in favor of allowing same sex marriage in America. My summary will dictate some of the argumentsRead MoreThe Fundamental Right to Same-Sex Marriage Essay718 Words   |  3 PagesThe legalization of same-sex marriage has been a controversial issue for years. Arguments have risen between political and religious point of views over the controversial topic. While many believe it is morally and ethically wrong, there are others who believe it is emotionally and socially acceptable. More than half the country legally denies the right to marry between lesbian or gay couples. When denying same-sex couples to marry, the government is degrading the rights of citizens and is encouragingRead MoreReligion And The Civil Rights Movement954 Words   |  4 Pagesobtain gay and civil rights has been directly influenced by religion, either in a positive or ne gative way. More specifically, religion has served as a disadvantage to achieving gay rights and an advantage to those that participated in the civil rights movement. Contrary to the recent successes of the gay rights movement, there have been a lot of obstacles along the way and most of them have been due to religious beliefs and practices. Religion opposes gay rights, especially gay marriage on the basisRead MoreThe Issue of Gay Marriages918 Words   |  4 PagesGay marriage has come to be a pressing topic in the contemporary society as more and more individuals get actively involved in discussing it. Individuals who oppose same-sex marriage are typically inclined to bring on a deontological argument or to say that legalizing the act might bring on other issues. In contrast, people who support gay marriages focus on matters related to human rights and justice. The arguments generated by each of the sides are certainly thought-provoking and it is very difficultRead MoreGay Marriag e Should Be Legal1684 Words   |  7 PagesGay marriage In discussions of gay marriage one controversial issue has been whether or not it should be legalized. On the one hand, some people argue that gay marriage should not be accepted in our society. On the other hand, some people believe that gay marriage should be legalized. Others even maintain that gay marriage is not a problem, and we should respect the preferences of everyone. My personal view is that gay marriage is not a big issue because we are in a free country, where everyone

The reasons why costs need to be controlled to a budget free essay sample

Analyse the reasons why costs need to be controlled to a budget. Give at least 4 examples of the negative effects of exceeding financial budgets and how it affects the business. By chloe_smith M4-Analyse the reasons why costs need to be controlled to a budget. Give at least 4 examples of the negative effects of exceeding financial budgets and how it affects the business. Example of costs Variances and whether they are adverse (A) or favourable(F) over the three months (Nov, Dec, Jan) Identify the possible reasons for these variances Materials On budget Petrol 20 Adverse Petrol prices went up. Wages Advertising 1 50 Adverse The person in control of advertising didnt budget effectively and anticipated the prices wrong or they took out a marketing campaign that was substantially higher than they expected. Insurance 300 Adverse They couldVe renewed their insurance but if this is the case then they shouldVe known how much the insurance was going to cost. We will write a custom essay sample on The reasons why costs need to be controlled to a budget or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Alternatively they couldVe had a claim within the 3 months. Factory rental The landlord the company are renting their land from may have put up his rental prices or perhaps they slightly expanded their factory within the 3 months. Bank loan payment 75 Adverse The interest rate may have increased and they werent aware of this. Equally in previous months they could have paid less to the bank and therefore had to catch up during these 3 months and paid more. Van Payment 60 Favourable An adverse variance in petrol would arise the problem ot trying to limi t the amount you transport. They can do this by comparing the petrol prices of local petrol stations and then using the cheapest proven one. An adverse in advertising would cause a problem as the company may need to decrease how much they advertise, which ould cause the business to become less known or they could limit their advertising to only market their product at prime times. In order to do this they could predominantly advertise their product before Christmas or if their product is predominantly seasonal then advertise it during peak times e. g. in summer or winter. A 300 adverse variance for insurance as this means they have less money to spend on liabilities and will need to ensure they arent going to make any claims as this will increase the insurance further. In order to do this they will need to improve their ealth and safety around their offices and stores and also the regularly check the maintenance of any vehicles they own. If the landlord has decided to increase the factories rent then there is nothing the company can predominantly do help this, whereas if the business has expanded the factory then this shouldnt become problematic for the company as they should be producing more and therefore increasing sales to bring in more revenue for their expenses. The problem the business has with an adverse on bank loans is that the interest can go up and will not decrease Just because they are unable to pay the substantial amount one month he payments should be paid consistently and at the same price every month as they are a debt that should be cleared as soon as possible. D3- As a result of these adverse variances I am writing a report about the problems caused when you dont check your costs and budgets and when you are spending more than you have. If a business is unable to manage their costs and budgets they then become incapable of paying their expenses, for example electricity, gas and other bills. Alternatively spending money the business hasnt got results in the business owing debts. If you ont manage your finances you can have outstanding debts, from external sources like banks. When a business takes out a loan from the bank they agree in a contract to the terms and conditions the bank set. These standards are expected to be met even if you find your company struggling to keep up with payments. The business will also be expected to pay interest on the loan, small businesses will pay a different amount of interest on the loan than bigger businesses and these interest rates will be determined by the circumstances of the business. A bank could impose a legal inding covenant before a loan is issued. If this condition is breached, the bank can order the business to repay the loan immediately. The staff can also be affected by the lack of control on a companys finances. This can cause the staff members to feel unappreciated and can result in them becoming demotivated and not producing a high standard of work, in severe circumstances the staff can strike. Moreover the suppliers wont continue to supply the goods required to operate and without the goods the customers wont be able to buy the products, from the company, this could ead to the customers starting to go to competitors as they will have to look elsewhere. In addition to this the shareholders wont get the right amount of money required from the profits, resulting in disputes and legal cases within the business. Other shareholders will then not want to continue investing in the business and give the business a bad reputation. Overall when a business does not manage their costs to a budget they damage their business, mostly the three main elements; statt, suppliers and customers which is the most important parts of criteria when successfully running a business.

The Imf And The Bretton Woods Agreements Essay Example For Students

The Imf And The Bretton Woods Agreements Essay The international financial system has been radically altered since the worldwide depression of the late 1920s and early 1930s. This change is due in large part to the inception of the International Monetary Fund (IMF) and its subsequent control over the international financial system. In this paper I will examine the extensive role of the Bretton Woods system of exchange rates and the gold standard. Additionally, I will examine the role that the IMF has taken on since the demise of the gold standard. To begin, we must examine the circumstances that surround the creation of the IMF, who the actors are and what each of their roles are as member countries. The IMF was created as a result of the worldwide market collapse that took place initially in October of 1929. The domino effect that took place when the first market crashed was seen to be a situation so severe that world powers felt that drastic measures needed to be taken to ensure that this was the last global financial crisis that the world would face. Its creation in 1944 was the beginning of a new era for the international financial system. We will write a custom essay on The Imf And The Bretton Woods Agreements specifically for you for only $16.38 $13.9/page Order now The creation of the IMF occurred at Bretton Woods along with the World Bank and the system of fixed exchange rates and the gold standard for currency. Under this system, the US dollar was tied to gold by a United States government commitment to buy it at $35.00 and ounce and sell to central banks at the same price (excluding handling and other charges). Other participating countries maintained the exchange values of their currencies at prices which were almost fixed in terms of the dollar (the values fluctuate normally not more than one percent on either side of their parities), with the result that exchange rates were almost universally fixed. Other governments carried out their commitments by selling internationally acceptable liquid resources when there was an excess demand for foreign currencies in terms of their own currencies, and by buying liquid resources when there was an excess supply. What constituted internationally acceptable resources for this purpose were gold, and oth er liquid assets denominated in ?key? or reserve currencies, principally US dollars or UK pounds sterling. The IMF was to ensure that these standards were being followed as well as being the lender for temporary deficits, and balance of payment problems. Each member country contributed a predefined amount, or quotas, of national currencies and gold. This quota also determines the voting power on the IMF and the amount of resources that they may draw on from the Fund. Designed to foster monetary cooperation, the IMF sought to enforce strict rules of behaviour in a world based on the gold standard and fixed currency-exchange rates. The Fund had, in theory, strict rules regarding how much to lend and when it was to be repaid. In reality, however, the Fund had discretion to waive any normal limitations. In 1961 with the advent of the General Arrangements to Borrow (GAB), the Fund increased its ability to lend through arrangements to borrow from 10 major industrial countries. At the time, these agreements had enabled the IMF to have and additional $6 billion at its disposal. The Gold Standard, in theory, functioned to limit the ability of governments to issue currency at will, hence decreasing the purchasing power of money. It existed before the Bretton Woods agreement, but was suspended for reasons that we will see later. If, for example, the US dollar were defined as equal to 1/20 of an ounce of gold, then the number of dollars that the United States could issue would be constrained by its holdings of gold reserves. Moreover, if the UK defined its currency, the pound sterling, as 5/20 of an ounce of gold, the fixed exchange rate between the US and the UK, quite obviously would be $5 USD=?1 sterling. One specific problem with specie standards (that is a currency convertible into a standardised unit of a non-monetary commodity) is that the value of money is only as valuable as the specie backing it. When worldwide gold production was low in the 1870s and 1880s, the money supply grew slowly, leading to a general deflation. This situation changed radically in the 1890s following the discovery of gold in Alaska and in South Africa. The result was rapid money growth and inflation up until the outbreak of World War I. Furthermore, linking currencies to gold did not totally restrain governments from manipulating the value of their currencies. First, in order to finance expenditures by printing money, governments would frequently suspend the gold standard during times of war. Second, even without officially abandoning gold, some nations periodically redefined the value of their currencies in terms of gold. Instead of allowing for gold or foreign reserves to be consistently depleted, the countries would choose instead to devalue their currencies. It might seem, by this previous line of argument that countries had no real restrictions on their behaviour when it came to currencies, since they could devalue them at will. However, there was a serious price to pay for devaluation. Should a country threaten to devalue its currency, a speculative attack on that countrys currency would surely follow as investors attempted to rid themselves of that currency. Such countries would ultimately lose large amounts of reserves. This is exactly what occurred in the UK in 1966 and 1967. Confidence in the value of the pound sterling crashed and the subsequent loss of gold reserves amounted to 28 million ounces. In one day alone (November 17, 1967) the British government lost reserves valued at over $1 billion. On August 15, 1971, in the midst of a major international monetary crisis, President Richard M. Nixon announced a new policy suspending indefinitely the U.S.s commitment to redeem gold for dollars. This commitment was the lynchpin of the international monetary system in which the U.S. dollar served as the key currency by which the value of other currencies would be determined. Nixons decision to break the link between the dollar and gold effectively pulled the rug out from under the other world currencies, forcing them to re-determine their values, and thus forcing devaluation of the dollar. This event is generally regarded as marking the demise of the system of fixed exchange rates. The fall of the Bretton Woods system represents an important transitional stage in the history of international economic relations. It represents a change from a hegemonic system dominated by the U.S. intended to lay the foundation for an open, competitive world economy to the current system of floating exchange rates and expanding global capitalism. The Fall of the Bretton Woods System President Nixons announcement in 1971 and then the subsequent collapse of the system in 1973 were hardly spontaneous occurrences. The fall of Bretton Woods was simply the culmination of a chain of economic and political developments that were quite predictable. From flaws in the design of the system that made it inherently unstable, to the spin-off of international capital markets that exploited its weaknesses, the collapse of Bretton Woods was inevitable. Because of the U.S. pledge to back dollars with gold, the stability of the system was based on the ratio of foreign-held dollars to the value of gold held by the United States. If the amount of foreign dollars exceeded the amount of U.S. gold, the U.S. could not pay all of its claimants without changing the price of gold. So as the ratio of foreign dollars to U.S. gold increased, so did pressure to devalue the dollar. As such, the stability of the system was gauged by the U.S. balance of payments. Considering this, confidence in the dollar became an essential element of the Bretton Woods system. The decade following the signing Bretton Woods agreement would see the U.S. balance of payments shift from surplus to deficit, producing new pressures on the system. From 1948 to 1958, several new and significant features surfaced in the international system. These features included development of new institutions for economic cooperation, dramatic economic growth in Europe, rising U.S. military spending, U.S. foreign aid to the Third World, and the emergence of U.S.-based multinational corporations (MNCs). These new additions to the international landscape helped to generate the stability and prosperity that gave nations the confidence to participate in this liberal system. But at the same time, each factor contributed to an outflow of dollars, pushing the U.S. balance of payments in the direction of larger deficits, meaning more do llars abroad and more potential claimants on U.S. gold, thereby destabilizing the system. The balance of payments difficulties posed a unique problem for the United States. As the hegemon of the system, the U.S. had an obligation to provide economic and military security for itself, its allies, and the system. In the 1960s U.S. leaders faced the dilemma of trying to solve the balance of payments problem while still fulfilling the countrys responsibilities as hegemon. The initial deficits of the 1950s, which were created through military and economic aid, were actually seen as beneficial at the time in that they helped close the gap with the still economically weak Europeans. By the end of the 1950s, Europe had recovered and the deficit became a problem. Before 1958 and 1959, large surpluses in goods and services and investment income had helped to offset the costs of providing foreign aid, military expenditures abroad, and private overseas investment. When the U.S. surpluses suddenl y shrank, the payments deficit became even wider. Clearly the burden of hegemony was taking its toll on the United States. One of President John F. Kennedys economic advisers warned, will not be able to sustain in the 1960s a world position without solving the balance of payments problem. This assessment proved to be accurate as U.S. efforts to meet its global responsibilities further damaged its balance of payments, undermining its ability to act as hegemon. The increase in U.S. deficits meant money was leaving the country and as such, it had to go somewhere. This is evidenced by the surpluses experienced by Japan and Western European countries, such as West Germany, which were growing rapidly. The surpluses, combined with the U.S. deficit, meant decreasing liquidity in the world economy, as the U.S., in its role as central banker to the world, had supplied much of the liquidity from its reserve assets, mainly gold. To remedy this situation, a devaluation of the dollar would have been seemingly appropriate. However, the U.S. could not devalue the dollar without horribly upsetting the other currencies of the world. Another way to help correct the disequilibrium in world payments would have been to have surplus countries like Germany and Japan revalue their currencies, effectively devaluing the dollar in the process. Because these countries were persistently reluctant to change their own rates, the payments imbalances increased until a breaking point was reached in 1971. The fact that the surplus countries did not wish to revalue their currencies emphasizes an important flaw in the design of the Bretton Woods system. Orin Kirshner writes, It was becoming uncomfortably clear that a system of fixed exchange rates, in which gold and the dollarwere the main components, was rather asymmetrical in its pressures for adjustment. The deficit countries were under pressure to adjust when they ran out of reserves and had to go to the or to the central bankers for aid; bu t there were no similar pressures on the creditors to reduce their surpluses. Another interesting development that played a large part in the breakdown of the Bretton Woods system is the Eurodollar phenomenon. The Eurodollar, or Eurocurrency (other currencies were also involved), market was a by-product of the large-scale accumulation of dollars in foreign banks following the shift from a dollar shortage (U.S. payment surplus) to a dollar surplus (U.S. payments deficit) in 1957-1958. It was then that London bankers decided to lend these dollars out, rather than return them to the U.S. (which would have helped to stabilize the situation by improving the U.S. balance of payments). Thus, Lairson says, was born the Eurodollarmarket essentially an unregulated money supply. When the U.S. government acted in 1963 to address this problem by enacting the interest equalization tax to slow the outflow of dollars for loans, U.S. banks then opened overseas branches to continue their foreign len ding. Lairson writes, because no single state could regulate it effectively and because of the unceasing U.S. payments deficits, a Euromarket system developed consisting of the dollar and other currencies, a system of bank credit, and a Eurobond market (bonds denominated in dollars floated outside the United States). A massive volume of funds emerged that, without much restriction, could move across borders in search of the highest yields available on a global basis. The emergence of this new, unregulated concentration of capital made even more difficult than before for the U.S. to get a handle on the system. .ucce7d2ada0122332a26f75ee04450ccc , .ucce7d2ada0122332a26f75ee04450ccc .postImageUrl , .ucce7d2ada0122332a26f75ee04450ccc .centered-text-area { min-height: 80px; position: relative; } .ucce7d2ada0122332a26f75ee04450ccc , .ucce7d2ada0122332a26f75ee04450ccc:hover , .ucce7d2ada0122332a26f75ee04450ccc:visited , .ucce7d2ada0122332a26f75ee04450ccc:active { border:0!important; } .ucce7d2ada0122332a26f75ee04450ccc .clearfix:after { content: ""; display: table; clear: both; } .ucce7d2ada0122332a26f75ee04450ccc { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ucce7d2ada0122332a26f75ee04450ccc:active , .ucce7d2ada0122332a26f75ee04450ccc:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ucce7d2ada0122332a26f75ee04450ccc .centered-text-area { width: 100%; position: relative ; } .ucce7d2ada0122332a26f75ee04450ccc .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ucce7d2ada0122332a26f75ee04450ccc .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ucce7d2ada0122332a26f75ee04450ccc .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ucce7d2ada0122332a26f75ee04450ccc:hover .ctaButton { background-color: #34495E!important; } .ucce7d2ada0122332a26f75ee04450ccc .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ucce7d2ada0122332a26f75ee04450ccc .ucce7d2ada0122332a26f75ee04450ccc-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ucce7d2ada0122332a26f75ee04450ccc:after { content: ""; display: block; clear: both; } READ: GutierrezS Analysis Of Book Of Job EssayLairson suggests that two main reasons can be identified for the decline and fall of the Bretton Woods system. First, he writes, the system was inherently unstable because the mechanisms for adjustment of exchange rates were so inflexible. He states the economic relations that developed after 1948 were structured by these fixed values even as the shift from U.S. surplus to deficit increasingly demanded adjustment of exchange rates. He continues, the world of 1971 was significantly different from the world of 1945-1950, but the Bretton Woods system made few accommodations to that reality. Lairsons second reason, which he regards as pe rhaps most reflective of those changes, was the massive growth of the market power of international capital and its impact on fixed rates. The transnational actors who emerged over the years reflect this notion. By 1973, the Eurocurrency market had grown to nine times the size of U.S. reserves. Such an immense collection of resources, he says, was capable of overwhelming even concerted government action. The immense pressure these forces put on the dollar and the fixed-rate system itself finally led to an international monetary crisis, forcing Nixon to temporarily take the dollar off the gold standard. Then on March 19, 1973, the system collapsed entirely, even while major efforts to reform the system were in progress. By this time, the powerful new transnational actors collectively lost confidence in the fixed-rate system and in the ability of governments to create any viable system. Finally, Kirshner states, financial officials of the main industrial countries, including the Unite d States, found it preferable, and inevitable, to let their exchange rates float. The Bretton Woods system was at an end. In hindsight, it becomes apparent that the Bretton Woods system, by the 1970s, had served its purpose and the time had come for it to give way to a system better suited to the realities of the time. The Bretton Woods agreements and institutions were designed to stabilize the world economy in the aftermath of World War II, so that countries could eventually interact, grow, and compete as equals in a world of open markets. This system, which was dependent on U.S. hegemony for its success, had progressed to the point where the distribution of economic and political power had become more widespread among other countries. This process can be viewed as a maturation of the international system as U.S. hegemony was no longer practical in the monetary system, and, as we would later see, it was becoming less necessary in other aspects of the international system. The move to floating exchange rates in Western economies forced the IMF to end its role as traffic cop of the world monetary system and to concentrate instead on providing advice and information to its members, which in 1998 numbered 182 countries. That role was key in helping nations in Latin America, Africa, Asia, and Central Europe restructure their economies following the 1982 debt crisis. Here, we will focus on the effects of the debt crisis on Sub-Saharan Africa (SSA). Although much focus has been given to the effects of the 1982 debt crisis in Mexico and other Latin American countries, the effects on Africa have nonetheless been strongly felt, and the consequences of that period linger on today. In Mexico the crisis was solved in 1987 through the Baker plan, funded by the Japanese and private creditors. The plan was targeted towards the commercial debt of the countries to which the banks were most exposed-middle income countries. As a result of this initiative, commercial activity was no longer at risk and the threat of the Latin American countries forming a debt cartel was assuaged. In SSA, however, the effects of the crisis have not yet been addressed as wholly as the Baker plan did for the Latin American countries. Some questions have arisen regarding the role of the IMFs lending practices in the SSA region. Whether or not the IMF has focused enough on LDCs development and growth as their main objectives. While this was not the purpose for the creation of the IMF, many have sought to make it so. Later the IMF sought a more ambitious role as an international lender of last resort to the world economy. The lender of last resort is an institution that will lend during times of financial crisis that will allow the market to return to equilibrium through its lending practices. Allan Meltzer has established five criteria that a lender of last resort at the domestic level must adhere to. We will use the analysis of Stanley Fisher, an important figure with the IMF to determine how these characteristics apply to the international case later on. .u0eadbed49306b0707a20503acc838e7f , .u0eadbed49306b0707a20503acc838e7f .postImageUrl , .u0eadbed49306b0707a20503acc838e7f .centered-text-area { min-height: 80px; position: relative; } .u0eadbed49306b0707a20503acc838e7f , .u0eadbed49306b0707a20503acc838e7f:hover , .u0eadbed49306b0707a20503acc838e7f:visited , .u0eadbed49306b0707a20503acc838e7f:active { border:0!important; } .u0eadbed49306b0707a20503acc838e7f .clearfix:after { content: ""; display: table; clear: both; } .u0eadbed49306b0707a20503acc838e7f { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u0eadbed49306b0707a20503acc838e7f:active , .u0eadbed49306b0707a20503acc838e7f:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u0eadbed49306b0707a20503acc838e7f .centered-text-area { width: 100%; position: relative ; } .u0eadbed49306b0707a20503acc838e7f .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u0eadbed49306b0707a20503acc838e7f .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u0eadbed49306b0707a20503acc838e7f .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u0eadbed49306b0707a20503acc838e7f:hover .ctaButton { background-color: #34495E!important; } .u0eadbed49306b0707a20503acc838e7f .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u0eadbed49306b0707a20503acc838e7f .u0eadbed49306b0707a20503acc838e7f-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u0eadbed49306b0707a20503acc838e7f:after { content: ""; display: block; clear: both; } READ: Racial Prejudices EssayThe first is that the central bank is the only lender of last resort in a monetary system such as that of the United States. Second, to prevent illiquid organizations from closing, the central bank should lend on any collateral that is marketable in the ordinary course of business when there is no panic. It should not restrict lending to paper eligible for discount at the central bank in normal periods. Third, the lenders loans, or advances, should be made in large amounts, on demand, at a rate of interest above the market rate. This discourages borrowing by those who can obtain accommodation in the market. Fourth, the above three principles should b e stated in advance and followed in a crisis. Finally, insolvent financial institutions should be sold at the market price or liquidated if there are no bids for the firm as an integrated unit. The losses should be borne by owners equity, subordinated debentures, and debt, uninsured depositors, and the deposit insurance corporations as in any bankruptcy. The argument for the need of an international lender of last resort rests not only on the volatility of capital markets but on the inherent financial panics that ensue from them. The importance of regulating these volatile markets was seen at Bretton Woods through the controls over capital inflows, yet it could not regulate the capital outflows. Fisher argues that not only does there need to be an international lender of last resort, but that increasingly the IMF has been playing that role since it first assumed that position in the international bailout of Mexico in 1995. Fisher proceeds to dismiss the argument that the lender of last resort need necessarily be a central bank. He divides the category of lender into two when financial crisis occurs. On the one hand, there are crisis lenders, who could be central banks. Fisher argues that there exists no requirement for them to be central banks. The only requirement is that enough liquidity exists within a particular institution such that it is able to supply the loans necessary to return the market to equilibrium. On the other hand we have crisis managers who are responsible for directly managing to whom the loans are given, and how best to deal with the crisis at hand. Fisher argues that in terms of international crises the IMF is perfectly suited to deal with such crises both as a crisis lender and as a crisis manager. Clearly the role of the IMF as international lender of last resort has presented itself, initially Mexico and as we will see the structure has been established for these activities to continue. In return for the imposition of an economic austerity plan in Mexico, the fund, along with the U.S. and other major industrial countries central banks, provided credit lines and other facilities totalling $47.8 billion. Although the assistance gave rise to criticism that the IMF was bailing out international investors and not the Mexican economy, the fund in 1997 and 1998 increased the amount each member contributed and expanded its lending activities further by establishing a $47 billion line of creditcalled the New Arrangements to Borrowwith two dozen countries. The increase in borrowing authority would allow troubled IMF members to draw well in excess of what would normally be allowed, a move that was well timed. In the 1990s capital had flooded into emerging economiessuch as Thailand, Indonesia, and South Koreawith little attention to borrowers creditworthiness. When economic problems started to occur, foreign and domestic investors alike rushed to get their money out of those countries. In the ensuing panic, currencies and stock and bond markets imploded, cutting off financing and swiftly throwing entire economies into recession. The crisis persisted, even amid billions of dollars in IMF and Western loan commitments. With the IMF estimating that world economic growth was only 2.2% in 1998, half what it had forecast in late 1997, it became apparent that more forceful moves woul d be required. Along with the IMFs fortified capital base and widened lending authority, it still was unclear whether widening the disclosure of emerging economies foreign-currency reserve levels, publicizing their growth estimates, and announcing capital inflows and outflows would help forestall the next crisismuch less put a decisive end to the one that drew headlines in 1998. This was because the entire face of international finance had changed since the IMF was created. Financial flows were once controlled by a handful of major banks that could be easily corralled into restructuring problem loans in cooperation with relatively modest IMF assistance. In the late 1990s, however, flows were dominated by thousands of banks; securities firms; and mutual, pension, and hedge funds that could move capital in and out of countries with a click of a computer mouse. The number of countries seeking international investment, meanwhile, had proliferated, as had the diversity of debt, equity, a nd other financial instruments. This array of investors and instruments made coordinating any response to financial crises extremely difficult, concluded Moodys Investors Service Inc., a major global credit-rating agency. The IMF, meanwhile, continued to face criticism that it was secretive in its dealings, undemocratic in its makeup, and unresponsive to the needs of poorer members. Many critics noted that the economic austerity programs that were typically attached to any IMF assistance were not always appropriate. In some cases spending cuts only deepened local recessions and made the task of necessary financial and industrial restructurings all the more difficult. Some economists, including Jeffrey D. Sachs, the director of the Harvard Institute for International Development, believed the IMF should permit countries to essentially go bankrupt, imposing formal suspensions of loan payments while creditors and debtors negotiated the value of the loans and determined whether any loan s could be exchanged for equity. During the negotiations a troubled country could continue to obtain new financing and exporters could conduct business, selling their goods and earning foreign currencies vital to a countrys economic revival. Suggestions such as these, if they were accepted, might require years to be put into practice. If the crisis of 1998 had one lesson, it was that nothing short of a cooperative effort by the entire world community is needed to repair the major shortcomings in the global system, according to IMF chair Camdessus . The question was whether the repairs would be performed quickly enough to enable the IMF and its backers to cope with the next financial implosion. BibliographyBibliography1. Haan, Roelf L., Special Drawing Rights and DevelopmentH.E. Stenfert Kroese N.V., Leiden, Netherlands, 19712. Simha, S.L.N., Gold and the International Monetary SystemRao and Raghavan, Mysore, India, 19693. Sharma, K.K., International Monetary SystemMeenakshi Prakashan, Meerut, India, 19834. Kenen, Peter B. et al, The International Monetary SystemCambridge University Press, Cambridge, England, 19945. Hellmann, Rainer, Gold, the Dollar, and the European Currency SystemsPraeger Publishers, New York, USA, 1979Economics Essays