A Farewell To Arms Essays (738 words) - A Farewell To Arms

A Farewell to Arms A Farewell to Arms [If The Sun Also Rises was one of the best books I have ever read, then A Farewell to Arms is Truth. I simply cannot believe that these books existed so long without my knowledge of how grand they are. I consider myself to read constantly, more than almost anyone I know, literature and simple, and here in less than a month I read two books that are undoubtedly among the best I have encountered. How many other good books exist that I have yet to read? Am I really a reader? Will I ever finish them all? What will I do if I tire of reading?] When I finished FTA I was of course stunned by the death of Catherine and the baby and Henry's sudden solitude. "What happens now?" I felt, as I so often do when I finish a book that I want to go on forever. This is infinitely more difficult with a book that has no conclusion, and FTA leaves a reader not only emotionally exhausted but also just as alone as Henry and with nowhere to go. The entire work was aware of where it was goin g and what was going to happen next, and then to stop the way it did was unfair. Now, I've read enough essays while deciding which would be the topic for my class presentation that I know many people see that the unfairness of life and the insignificance of our free will are apparently the most important themes in the book, but I don't agree. I also don't agree that it is a war story or a love story. Exactly what it is, though, is not clear to me. Can't art exist without being anything? "There isn't always an explanation for everything." War and love are obviously important themes in the book, and the relationship between the two is explored by Hemingway and, somewhat, by Henry. In the first two Books we are in the war and the war is overwhelming. In the last two Books we are in love. And, just as the first two Books are peppered with love in the time of war, the last two Books are tinged with war in the time of love. The third Book is the bridge between the two 'stories' and it is not surprising that it centers on the escape. It is during the escape that Henry resolves that he is through with the war (a war in which he really has no place) and decides that all he wants is to be with Catherine. Until the third Book Henry doesn't seem to be agonizingly concerned with matters of right or wrong in the war and it seems, in fact, separate from him. Even when he is injured it doesn't appear that he is really a part of the war which surrounds him. He maintains a distance from it and this distance isn't really closed until Aymo is killed by his own army, he discovers that Bonello is only staying with him out of respect, and he is almost killed as a spy. After this he resolves to desert the army and be reunited with his love, Catherine. Henry is no dummy and he could easily tell that everything was not all correct with Cat, which leads to the question of his love for her. You must admit that Cat is a bit...well... flaky when they first meet. She loses that persona soon enough, although I couldn't help but distrust her integrity until somewhere in the middle of the fourth Book. It is also difficult to believe wholeheartedly in his love for her until much later in their relationship, and it leaves me wondering if he is leaving his involvement in the war because of his unfailing love for Cat or if Cat and any feelings he has for her are just excuses to escape the insanity of the war he experiences in the third Book. When he is with Catherine, they are in another place, untouched by the war, both symbolically (in the tent of her hair) and literally (in Switzerland). [It seems like I don't ever say anything earth-shattering, or

Quoting Out of Context Fallacy (Changing Meaning)

Quoting Out of Context Fallacy (Changing Meaning) The fallacy of quoting something out of context is often included in the Fallacy of Accent, and it is true that there are strong parallels. However, Aristotles original Fallacy of Accent referred solely to shifting the accent on syllables within words, and it is already stretched in modern discussions of fallacies to include shifting the accent between words within a sentence. To expand it further to include shifting emphasis on entire passages is, perhaps, going a bit far. For that reason, the concept of quoting out of context gets its own section. What does it mean to quote someone out of context? After all, every quotation necessarily excludes large sections of the original material and is thus an out of context quotation. What makes this a fallacy is to take a selective quotation which distorts, alters, or even reverses the originally intended meaning. This can be done accidentally or deliberately. Examples and Discussion Quoting out of Context A good example is already hinted at in the discussion of the Fallacy of Accent: irony. A statement meant ironically can be taken wrong when in written form because much irony is communicated through the emphasis when spoken. Sometimes, however, that irony is communicated more clearly through the addition of more material. For example: 1. This has been the best play Ive seen all year! Of course, it is the only play Ive seen all year.2. This was a fantastic movie, as long as you arent looking for plot or character development. In both of these reviews, you start out with an ironic observation which is followed by an explanation which communicates that the foregoing was meant to be taken ironically rather than literally. This can be a dangerous tactic for reviewers to employ because unscrupulous promoters can do this: 3. John Smith calls this the best play Ive seen all year!4. ...a fantastic movie... - Sandy Jones, Daily Herald. In both cases, a passage of the original material has been taken out of context and thereby given a meaning that is exactly the opposite of what was intended. Because these passages are being used in the implicit argument that others should come see the play or movie, they qualify as fallacies, in addition to just being unethical. What you see above is also part of another fallacy, the Appeal to Authority, which attempts to convince you of the truth of the proposition by appealing to the opinion of some authority figure - usually, though, it appeals to their actual opinion rather than a distorted version of it. It is not uncommon for the Quoting Out Of Context fallacy to be combined with an Appeal to Authority, and it is frequently found in creationist arguments. For example, here is a passage from Charles Darwin, often quoted by creationists: 5. Why then is not every geological formation and every stratum full of such intermediate links? Geology assuredly does not reveal any such finely-graduated organic chain; and this, perhaps, is the most obvious and serious objection which can be urged against the theory. The Origin of Species (1859), Chapter 10 Obviously, the implication here is that Darwin doubted his own theory and had encountered a problem he could not solve. But lets look at the quote in the context of the two sentences following it: 6. Why then is not every geological formation and every stratum full of such intermediate links? Geology assuredly does not reveal any such finely-graduated organic chain; and this, perhaps, is the most obvious and serious objection which can be urged against the theory.The explanation lies, as I believe, in the extreme imperfection of the geological record. In the first place, it should always be borne in mind what sort of intermediate forms must, on the theory, have formerly existed... It is now obvious that instead of raising doubts, Darwin was simply using a rhetorical device to introduce his own explanations. The exact same tactic has been used with quotations from Darwin about the development of the eye. Of course, such methods are not limited to just creationists. Here is a quote from Thomas Henry Huxley used on alt.atheism by Rooster, a.k.a Skeptic: 7. This is ... all that is essential to Agnosticism. That which Agnostics deny and repudiate, as immoral, is the contrary doctrine, that there are propositions which men ought to believe, without logically satisfactory evidence; and that reprobation ought to attach to the profession of disbelief in such inadequately supported propositions.The justification of the Agnostic principle lies in the success which follows upon its application, whether in the field of natural, or in that of civil, history; and in the fact that, so far as these topics are concerned, no sane man thinks of denying its validity. The point of this quote is to try and argue that, according to Huxley, all that is essential to agnosticism is to deny that there are propositions which we should believe even though we do not have logically satisfactory evidence. However, this quote misrepresents the original passage: 8. I further say that Agnosticism is not properly described as a negative creed, nor indeed as a creed of any kind, except in so far as it expresses absolute faith in the validity of a principle, which is as much ethical as intellectual. This principle may be stated in various ways, but they all amount to this: that it is wrong for a man to say that he is certain of the objective truth of any proposition unless he can produce evidence which logically justifies that certainty.This is what Agnosticism asserts; and, in my opinion, it is all that is essential to Agnosticism. That which Agnostics deny and repudiate, as immoral, is the contrary doctrine, that there are propositions which men ought to believe, without logically satisfactory evidence; and that reprobation ought to attach to the profession of disbelief in such inadequately supported propositions.The justification of the Agnostic principle lies in the success which follows upon its application, whether in the field of natural, or in that of civil, history; and in the fact that, so far as these topics are concerned, no sane man thinks of denying its validity. [emphasis added] If you notice, the phrase it is all that is essential to Agnosticism actually refers to the preceding passage. Thus, what is essential to Huxleys agnosticism is that people should not claim to be certain of ideas when they do not have the evidence which logically justifies such certainty. The consequence of adopting this essential principle, then, leads agnostics to repudiate the idea that we ought to believe things when we lack satisfactory evidence. Combining the Out of Context Fallacy with Other Fallacies Another common way to use the fallacy of quoting out of context is to combine with a Straw Man argument. In this, someone is quoted out of context so that their position appears weaker or more extreme than it is. When this false position is refuted, the author pretends that they have refuted the real position of the original person. Of course, most of the examples above are do not by themselves qualify as arguments. But it would not be unusual to see them as premises in arguments, either explicit or implicit. When this happens, then a fallacy has been committed. Until then, all we have is simply an error.

Strategic Management Wk3 Assignment Example | Topics and Well Written Essays - 500 words

Strategic Management Wk3 - Assignment Example The methods and strategies aim at making a business dominate its market space. Competitive advantage management is, therefore, an integral part of a business plan. This paper explores value creation and competitive advantage. In particular, the paper discusses key steps in creating value and importance of competitive advantage. In addition, the paper highlights how a multinational company maintains competitive advantage over its competitor. According to Bamford & West (2009), creating value and competitive advantage in a business calls for, as the first step, an understanding of competitive advantage type an organization wishes to employ in. Based on Michael Porter’s analysis, competitive advantage, as a firm’s strength, is categorized as either differentiation or cost advantage (Bamford & West, 2009). Cost advantage occurs when a company delivers similar products like its competitors but at low costs, while differentiation entails delivering high quality products than those of a rivaling business. The second step involves assessing available resources in a business. Available resources determine whether a business applies one type of competitive advantage or both. Third step involves evaluating strengths or abilities of a business (Bamford & West, 2009). Strengths of a company are vital in planning for steady progress of an organization. From abilities and resources, a business realizes its distinctive c ompetencies. Identified skills facilitate efficiency, innovativeness, and quality customer-business relation. The final step involves deciding on when and how to apply formulated strategies. Wal-Mart is an example of a multinational company that has successfully applied the concept of value creation and competitive advantage to win its competitors. Wal-Mart Stores, Inc. runs numerous chains of warehouse stores and large discount retail shops worldwide. According to Fishman (2006), the company is considered as among

Essay Questions Example | Topics and Well Written Essays - 750 words - 6

Questions - Essay Example , the khalifa, although with no prophetic function, continued as the leader of the Umayyads, with an ideology of unity and power of Islamic communities. This gave rise to the third Islamic ideology of jihad, i.e warfare, meant to defend or expand their rule and eliminate the monopoly of the Arabic rule. In Islam, religion dictates law. Hence, the propositions of jihad allowed war against non-Muslims, prohibited war within Muslims and usage of violence was allowed only to spread Islam. After the death of the last Umma leader, the Umayyads merely remained as an insignificant group as the Abbasid revolution started (747-750), with their new caliph Abu-al-Abbas-al-Saffah, and this group flourished until 1258, holding the power in Baghdad (Steams & Langer, 113). Although the Umayyads, Caliphates, and jihadis share Islamic ideologies, history revealed huge differences among these communities attributing to various interpretations of Quranic teachings. Enormous political and military oppositions emerged during the Islamicate period. The Umayyads were strongly united only until death of Uthman. Post this, intra-Muslim war broke out and continued up to a century. This war marked the beginning of Umayyads and Abbasids as two separate groups, and the Abbasids expanded vastly and for a very long period (Pipes, 67). Although the Abbasids raged war against non cooperative groups, their intention remained to create an atmosphere of peace through Islam. They invited and supported non-Muslim conversion to Islam to a great extent along with a commitment to provide security to all the Muslims. This security and noble causes helped the Abbasids expand their territory and flourish for many centuries. Therefore, the role of Abbasids in expanding Dar-al-Islam was greater than the Umayyads. The Ottoman Empire is considered as one of the largest and most influential Muslim empires of the later medieval ages. These invasions influenced trade, culture, politics and lifestyle

Module 1 Small Scale Evaluative Study Essay Example | Topics and Well Written Essays - 2500 words

Module 1 Small Scale Evaluative Study - Essay Example Evaluation in schools is of interest to various stakeholders in the education sector i.e. the government, parents, teachers, media and the wider society (Bracey 2006). Government inspectors have in many cases taken the roles of evaluation on schools’ performance in many countries although the new trend that is widely gaining prominence is that of schools doing self evaluation. Inclusion is one of the aspects of self evaluation that has been seen to have a wide range of positive outcomes if well implemented and it is for this reason that this paper shall seek to further on its impact on the evaluation process and how this can be facilitated by the SENCo (Swaffield and MacBeath 2005). It is a basic understanding that leadership should not be detached from the organs it is leading and it is for this reason that the process of inclusion is quite important in the cases of self evaluation for schools. All the stakeholders mentioned above need to work together and share ideas as evaluation is mostly the basis for school improvement and appraisal of standards of education. Valuable outcomes have been seen to crop up in instances where the school management and the various stakeholders come together and give ideas or good as well as bad areas that need improvement and how best to do it. SENCo has the best chance and has their work well organised when such a scenario is in the offing. On basic terms the teaching staff for example should monitor leaning activities, manage performance of pupils, conduct department reviews and become actively involved in improvement and development activities of the school. Students with special needs have various disabilities that affect their learning and for this reason there are more aspects that need to be looked into more than the case would be in other schools. This is quite an interesting aspect to explore into and the findings of this paper shall come from various methods

Mauritius National Pension Fund Financial Analysis

Mauritius National Pension Fund Financial Analysis The National Pension Fund and its financial implications on the economy of Mauritius Chapter 1: Introduction The philosophy of the National Pension Fund (NPF) includes the idea that one ought to earn a reasonable proportion after pension age of what one earned during ones working life. If you have contributed to the NPF and built up your pension points, you will get a pension which, when added to your old-age pension will be a reasonable. The National Pension Fund scheme is proposed as another mandatory saving for retirement. Once it is set up, the NPF will fit into Pillar 2 of the Multi-Pillar Model of the World Bank. The NPF nevertheless will not replace provident funds or retirement mutual funds, but rather improves saving channels for future retirees. Mauritius is found in the developing countries group where contractual savings, savings with insurance companies and pension funds exceed 40 percent of Gross Domestic Product and which represent a greater potential force in the domestic financial system. Pension funds account for 75 percent of contractual savings. The pension system is a balanced and well-managed multi-pillar. In Mauritius there have not many authors that have write specifically on that subject, that is, financial implication of National Pension Fund on the Mauritian economy. I have mainly used the research made by other analysts in other countries and try to apply it on the Mauritian economy. Obviously the result will not be the same, but try to make an estimate of it. Objectives of that Project: Analyse the overall financial implication of NPF Testing the financial effect of NPF on national savings Estimating the relationship between fiscal balance of Mauritius non-retirement account and the net saving that occurs within the NPF Chapter Outline Chapter one gives a brief overview of how the project is carry on. Chapter two makes an overview of the National pension fund, its evolution, structure and its financing source as well as government expenditure and the future of NPF. Chapter three is the literature review, that is, what writers around the globe have commented on the pension system. Chapter four is the research methodology. The research is carried out using regression equation to examine the financial implication NPF on our variables. Chapter five then come the analysis based on the results obtained, that is the financial effect of NPF on national savings and the relationship between fiscal balance of Mauritius non-retirement account and the net saving that occurs within the NPF. Then finally chapter seven will include suggestions and conclusions. Chapter 2: Literature Review Introduction Pension funds is be defined as forms of institutional investor, which collect, pool and invest funds contributed by sponsors and beneficiaries to provide for the future pension entitlements of beneficiaries (E PhilipDavis 1995). Pension fund offer individuals the mean to collect saving over their working life so as to finance their consumption needs in retirement, either by means of a lump sum or by provision of an annuity, while also supplying funds to corporations, households (via securitised loans) or governments for investment or consumption. Bodie(1990a) has formalized pension funds function as a form of retirement income insurance. E Philip Davis (1995) suggests that pension funds perform a number of the functions of the financial system more efficiently than banks or direct holdings. Their growth complements that of capital markets and they have acted as major catalysts of change in the financial landscape. But this is not the only reason for growth. It is also a consequence of fiscal incentives and benefits to employers, as well as growing demand arising from the ageing of the population. Pension funds are typically sponsored by employers, such as companies, public corporations, industry or trade groups; accordingly, employers as well as employees typically contribute. Funds may be internally or externally managed. The pension system is commonly divided into three pillars. The first pillar is the pay-as-you-go system based on payments by public institutions which are mainly funded by tax revenues. The second pillar constitutes fully funded pension funds with mandatory membership and the third pillar is based on fully funded pension saving schemes with voluntary membership. In a pay-as-you-go system, each generation pays for the costs of the currently retired in return for a commitment for the same treatment during its own retirement. Workers who spend their entire work and retirement life under a PAYGO system with constant tax rates will earn a real return on their contributions equal to the growth in the workforce plus the growth in the real wage (Samuelson, 1958, and Aaron, 1966). Pension funds provide millions of people in the world security and comfort in old age. Pension funds represent the savings of millions of people, and as Paul Myners says, the ability of funds to invest these assets effectively has a profound impact on their economic well being. Because so many people depend on pension funds to provide for their futures, ensuring the funds serve the needs of their members is a priority for Government. The social security system on the other hand as stated by law, guarantees people covered by its provisions either because they perform an occupational activity or meet the requirements established for non-contributory type social security, as well as dependent members of the family or similar, adequate protection in the contingencies and circumstances. Social Security has been defined as the protection which society provides for its members through a series of public measures against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, invalidity, old age and death; the provision of medical care; and the provision of subsidies for families with children. In the Social Security system, the money you pay into the system gets immediately paid back out to the people who are currently getting Social Security checks. The Social Security tax has been raising more money than is needed to pay for current benefits, in order to build up a surplus to help finance the retirement of the Baby Boom generation. The money is used in a sense to finance the government deficit, just like any other money the government borrows, Dean Baker (1998). The Social Security system is primarily a pay-as-you-go system, meaning that payments to current retirees come from current payments into the system. So Social Security will be the foundation of your retirement income. Thats because: You wont outlive your Social Security retirement benefit. It will be there for you for the rest of your life. Your Social Security benefit wont lose its value. From time to time, Social Security benefits are adjusted so they always keep pace with inflation. Why National Pension Fund? Worker myopia, or lack of foresight poor planning occurs because people give too little considerations to their future economic needs when making decisions about saving for retirement. Most people seem to have a natural inclination to live for today and avoid thinking about old age and death. Hence, they give very little systematic thought to the financial issues of old age until they come face to face with them. By the time they recognize they may have a problem when they retire, it is usually too late to fix. Government intervention through NPF has help people set aside a portion of their earnings when they are working so that they have an adequate income when they retire. Without compulsory contributions for retirement, myopic workers would not save enough to ensure an adequate retirement income and poverty would result. Another rationale for the existence of the compulsory contribution to the NPF is to protect the prudent that saves for retirement against those who do not save. Under a purely voluntary system some will contribute, others will not. As Boulding (1958) puts it in his argument, those who do not insure will have to be supported anyway-perhaps at lower levels and in humiliating and respect-destroying ways when they are in their non-productive phase of their life, but that they will escape the burden of paying premiums when they are in their productive phase. In fairness to those who insure voluntarily and in order to maintain the self-respect of those who would not otherwise insure, contributions for retirement should be made compulsory. Hence, mandatory contributions are necessary to achieve the retirement savings results that people need to have so as to have an adequate standard of living in their retirement years. Pension funds are also an important source of capital accumulation that can be used for different purposes as the build up the basic of national infrastructure, power stations and electric networks, Olli E. Kangas (2006). The Finnish case demonstrates that it was possible to unify social policy goals with the economic goals of building up modern industrial market economies. The Finnish experience has serves as a good example of how social policy has been successfully used as a developmental strategy, Mkandawire (2001). Pension funds are not only vital to the pension holders they provide for. They are also key players in the economy as a whole. Government Budget Pension funding issues have an important, but often hidden, impact on the finances of state governments, J. Fred Giertz (2003). In most countries, contributions to retirement funds are made by employers and employees each year. Yet, there is no requirement in the short run that these contributions be sufficient to fully fund the systems. Governments always ensure that pension payments are actually made to retirees, regardless of the level of contributions, as they are generally the funders of last resort. If pension systems are under funded, governments must deal with this problem sooner or later through additional contributions to the systems. If systems are over funded, government resources can be redirected from pensions to other government programs,J. Fred Giertz (2003). It is seen that private pensions reduce public pension spending in the longer term, once private schemes are mature. Private pensions is likely to increase budgetary pressures in the short term: if workers contributions go into their individual pension accounts, they cannot be used to pay for the pensions of the older generation; thus, governments have to finance pensions for the transition generation through taxation or borrowing, Nicholas Barr (2001). This will in a way affect the government budget. Unsustainable pension systems can be a problem to fiscal stability, economic growth, and poverty reduction. The need for pension reform has become pressing as demographic aging has strained pension systems around the world, leading to large expenditures, large deficits, and high contribution rates. In many cases the pension system has become a source of fiscal and macroeconomic instability, a constraint to economic growth, and an ineffective and or inequitable source of retirement income. J. Fred Giertz (2003)suggests thatnot only are pension asset changes large in comparison with state budgets, they are also growing and becoming more volatile. This trend is likely to continue and the relative size of state pension obligations is increasing. This suggests that pension funding is becoming an increasingly important aspect of state government. He also states that ‘state pension funding today is no sounder than in the early 1990s. This is not necessarily a cause for alarm, but it is a source of concern. Pension funding will be an increasingly important demand on state finances in the up coming years. In the G-10 (1998) report, it states that the ageing of populations could have dramatic effects on government finances. Under current policies, government spending in the G-10 countries is projected to rise sharply over the next several decades for several reasons. Per capita expenditure for the elderly is high in the areas of public retirement benefits and, in some countries, welfare support. Public expenditure on medical and health support for the elderly is also high and has been rising. If advances in medical technology come at ever increasing cost and if the incidence of health expenditure on the elderly continues to rise, the fiscal burden could become substantial in some countries. At the same time, government revenues will be adversely affected as the baby boom generation moves from its high income generating years to retirement. Countries whose revenues are tied more to consumption or value added taxes will tend to experience less of a deterioration in revenues than those that depend more heavily on income or payroll taxes. This would create a severe drag on national saving at a time when saving will be crucial to fostering the growth of labour productivity. Impacts of ageing population Norman Vincent Peale quotes that: â€Å"Age-based retirement arbitrarily severs productive persons from their livelihood, squanders their talents, scars their health, strains an already overburdened Social Security system, and drives many elderly people into poverty and despair. Ageism is as odious as racism and sexism.† Barry Bosworth (2003) argued that slowing economic growth and population aging in the major industrial countries have placed increased financial strain on pay-as-you-go (PAYGO) public pension systems. Retirement pensions have become a serious fiscal concern in most industrialized countries. Pensions are largely paid for from tax revenues and it is foreseen that contributions will need to be raised substantially during the coming decades. The World Bank (1994) states that high taxes are harmful to economic growth, since they reallocate resources to the informal sector, thereby reducing output in the more efficient formal market sector of the economy. The reasons are that many people are now nearing retirement age and that the populations nowadays live longer and have fewer children than in the past. Nicholas Barr (2001) argued that the effect on funded schemes is more restrained but equally unavoidable. When a large generation of workers retires, it liquidates its financial assets to pay for its pensions. If those assets are equities, sales of financial assets by the large pensioner generation will exceed purchases of assets by the smaller younger generation, leading to falling equity prices and, hence, to lower pensions. Alternatively, if those assets are bank accounts, high spending by the large pensioner generation will generate inflationary pressures and again reduce the value of pensions. Domestic savings The main views of the life-cycle theory stipulate that individuals try to smooth consumption over their lifetime, Brumberg and Modigliani (1954). Normally savings follow a hump shaped pattern, that is, income is relatively low when individuals are either very young or retired as during their working life savings rate is higher .Ageing Population increases the proportion of households with a relatively lower savings rate in the economy which leads to a decrease in private savings. Estimates of the impact of a change in the age structure of the population on private savings, shows that population ageing will be likely to reduce savings. As regard to public savings, population ageing is likely to exercise considerable pressure on public finances, Weil (2006). In the situation of the pension schemes of the current pay-as-you-go pension schemes that exist in many states, an ageing population implies that the number of beneficiaries increases while the number of contributors to the system decreases. The ageing population will also adversely affect public finances through higher healthcare and long-term care costs, given that older populations are more likely to make use of healthcare facilities, which, to a large extent, are provided by the public sector. Both microeconomic and macroeconomic studies find that the observed age profile of saving generally conforms with the life-cycle model, which implies that saving rates rise over a workers active career and then decline in retirement. Compared with macroeconomic analyses, microeconomic studies tend to show smaller variation in saving rates over the life cycle, this may be of the highly skewed distribution of wealth and saving across households, Ralph C. Bryant (2004). At a micro level, company or other obligatory pension funds can implement enforced saving by deferring wages and salaries, thereby reducing risk of a low replacement ratio. At a macro level, the increase in saving is not usually one-to-one, as increased contractual saving via pension funds is typically partly or wholly offset by declining flexible saving, E Philip Davis (1995). The remaining effect most likely results from liquidity constraints on some individuals (especially the young), who are unable to borrow in order to offset obligatory saving via pension funds early in the life cycle. It can also be anticipated that, even in a liberalized financial system, credit constraints will affect lower income individuals particularly severely, as they have no assets to guarantee and also have less secure employment. Therefore forced pensions saving will tend to increase their overall saving particularly markedly, Bernheim and Scholz (1992). On the other hand Samwick (2000) found a lower rate of saving in countries with extensive PAYG systems. Agosin (2002) extended their analysis and shows that the rise of saving was concentrated in the business sector, and that the net change in household saving was small. Implications for equilibrium real interest rates The forecasted declines in savings make the expected consequence of ageing on the equilibrium real interest rate ambiguous. If investment falls faster than domestic savings at each level of aggregate income, the real interest rate that clears the market for loanable funds is expected to fall, since it is difficult for savers to find profitable investment opportunities, J.C. Trichet (2007). On the other hand, if domestic savings were to fall faster than investment then the real interest rate would rise to reflect the relative scarcity of financial funds. This likely decline in interest rate that equalizes savings and investment could be identified developed financial markets. Even though the actual impact of the evolving demographic structure on the equilibrium real interest rate in the capital markets is something that is going to occur with a considerable lag, some economists have suggested that expectations of such developments may have already started to exert some influence on the pricing of bonds. Among other things, these analyses suggest that ageing could have contributed to the â€Å"flattening† of the yield curve that has been observed over the recent past, J.C. Trichet (2007). However as it is based on the assumption that capital market participants are perfectly forward looking, an assumption which is questionable, it should be treated with a great deal of caution: if it is true that financial markets tend to overreact to short term phenomena, the effects of ageing on the yield curve could be limited, DellaVigna and Pollet (2005). It has to be taken into consideration that these quantitative simulations require a number of qualifications. On one hand, some real world factors may make the true decline in the equilibrium real interest rate larger than estimated in macroeconomic models. For instance, older people may save more than predicted by the life cycle theory as they may want to leave a bequest to their children, putting further downward pressure on the equilibrium rate. The degree of risk aversion may also change with age as if the older people were systematically more risk averse than the young one, the accumulation of precautionary savings would lead to a higher than predicted savings rate and a lower than predicted real rate, Bakshi and Chen (1994).Moreover private savings rates may be significantly affected by pension reforms, Miles (2002). Pressures on Prices Hans J Blommestein (1998) states that concerns have been expressed that the growing demand for high quality private securities like equity and corporate bonds, associated with the growth of advance funded pension systems in search of investment opportunities (thereby increasing the demand for financial assets) and falling public sector borrowing requirements (thereby reducing the supply of government securities), would put strong upward pressure on the prices of financial assets. Here, the combination of the widespread privatisation of state owned enterprises and reform of pension systems brings the opportunity of killing two birds with one stone. Pension reform, which would increase the demand for equity, and privatisation, which expands the supply, at the same time permits a more balanced growth in private securities markets, at least over the medium term. In a somewhat longer term perspective, population ageing may have an impact on the risk premium, that is, the difference betwee n the returns on stocks and the yield on bonds. As asset preferences vary across age groups, the ageing of the baby boom generation could affect both absolute and relative positions of stock and bond prices. On average, middle age is the portion of the life cycle when saving rates are highest. Moreover, middle aged workers generally are more able and willing to hold a riskier portfolio; that is, one weighted more heavily towards stocks than bonds. This is a consequence of two factors: first, while still working, a stockholder is better able to make up for any bad equity returns; second, middle aged workers have a longer time horizon and thus are willing to accept more risk in exchange for the expectation of higher returns. Moreover, higher demand for stocks relative to bonds should increase the price of stocks relative to bonds, thus decreasing the equity premium. Thus, some have hypothesized that an ageing population would cause the equity premium to increase. But if the age of the population is increasing at least in part because life span is increasing, and thus time horizons are lengthening, then the ageing of the population does not necessarily imply that average risk aversion should be increasing and risk premium on stocks should be rising. After the baby boomers begin to retire, saving rates would tend to fall, stock and bond prices to decline, and the equity premium to rise as baby boom retirees shift their portfolios away from stocks toward bonds, Hans J Blommestein (1998). Population age structure can influence the demand for different classes of financial market assets both because of its effect on saving and because young, middle aged, and elderly savers may seek to hold their assets in different forms. Empirical studies have uncovered evidence that population age structure affects stock market prices and the real returns of different classes of financial assets, but the consistency of this evidence is not overwhelming. It is unclear whether the effects of demographic influences on asset prices and returns are large relative to the effects of other and less predictable determinants of prices and returns, Ralph C. Bryant (2004). Implications of population ageing for the conduct of monetary policy The life-cycle theory stipulates that , individuals during their working lives accumulate financial wealth in order to finance their consumption during retirement. As a consequence, populations who are near to retirement age will tend to have higher wealth to income ratios. Simultaneously, expected imbalances in publicly financed pension schemes make it possible to consider that the increasing number of retirees would depend more on their own accumulated wealth, as opposed to public pension provisions, to maintain their consumption levels. Consequently, the fraction of the population exposed to asset price fluctuations could increase with ageing, Young (2002). Bean (2004) argues that longer life expectancy would presumably strengthen this effect. Therefore, the transmission channel of monetary policy may be affected by ageing. In particular, the so called wealth channel, which links asset prices to consumption, may gain relative importance and play a vital role than in the past, G10 (2005). Miles (2002) points out that the monetary policy multiplier would probably rise with population ageing, mainly as a result of the increased wealth channel and greater price impact of monetary policy decisions. In spite of this, he also mentions that an older population is less likely to be credit constrained, especially when the pension system is reformed towards more funded systems. This might reduce the effectiveness of the credit channel. Depending on the relative importance of these channels, monetary policy could, in principle, become more or less effective with ageing. Miles suggests that the first effect is expected to dominate. A move towards demographic structure in which the population accounts for an increasing elderly population is expected to generate a gradual but persistent change in savings habits. This may results in an impact on the demand for all classes of assets even though certain sector of the capital market are likely to be affected more substantially than others. If, for example, older people are more risk averse and prefer to hold financial assets paying fixed income returns such as government securities, then the demand for government bonds would tend to increase relative to riskier investment options, such as equity, Bakshi and Chen (1994) and De Santis and Là ¼hrmann (2006). In this situation, where a larger part of households wealth is invested in nominal assets, price stability would be even more important for households, G10 (2005) and Bean (2004). Stable prices ensure that the real value of both pension entitlements and savings is maintained and prevent arbitrary redistributions of income and wealth to the detriment of the most vulnerable groups in society, in particular, pensioners. It is likely that, as a significant fraction of wealth is accumulated in real estate and financial assets, households exposure to asset price movements will tend to increase. This might coincide with a situation in which a large fraction of the population in their old age dis-saving phase are disposing assets in order to finance consumption during retirement. In this respect, some authors have warned that, when the baby-boom generation retires and starts to dissave, excess supply in financial markets could lead to a significant decline in asset prices, the consequences of which might be felt by the entire population, Siegel (1998), Abel (2001) and (2003). This view is known as the â€Å"asset meltdown† hypothesis. Yoo (1994) estimated that asset prices may drop by as much as 15% as a result of demographic change alone. This is why a credible commitment to maintaining price stability and, as a reflection, an orderly financial environment is and will remain so important for maintaining the standard of living of people, particularly for the poorest and the most vulnerable. Investment of Pension Fund The rapid growth of pension funds in many countries, and the stimulus they are providing to the growth of capital markets, both suggest that their activities as financial intermediaries merit considerable attention, E Philip Davis (2000). Pension funds have an impact on the stability of financial markets in several ways, most significantly through their investment behavior. Since early withdrawal of funds is usually restricted or forbidden, pension funds have long term liabilities, allowing holding of high risk and high return instruments. Accordingly, monies are intermediated by pension funds into a variety of financial assets, which include corporate equities, government bonds, real estate, corporate debt (in the form of loans or bonds), securitised loans, foreign holdings of the instruments mentioned above and money market instruments and deposits as forms of liquidity. Hellwig (1990) suggest that financial institutions can form long term relationships with borrowers, which reduce information asymmetry and hence moral hazard. Apart from economies of scale these considerations have arisen in the literature mainly for debt finance and for banks. Whereas the importance of information asymmetries and incomplete contracts is equally recognised for equity finance, the role of financial institutions as counterparts is less well developed. Equally, institutional investors such as pension funds may not rely on the same information and control mechanisms as banks. The role of pension funds is clearly not to facilitate exchange of goods, services and assets directly. This is because, unlike banks, money market funds, and to a lesser extent long term mutual funds, they do not offer liquid liabilities. Nevertheless, pension funds have had an important indirect role in boosting the efficiency of the financial systems, by influencing the structure of securities markets. This effect on micro structure links to their demand for liquidity, i.e. to transact in large size without moving the price against them, anonymously, and at low transactions costs. Pension funds provide risk control directly to households via the forms of retirement income insurance they provide, an advantage which largely reflects the unusual (among financial intermediaries) link of pension funds to employers. To assist in undertaking this risk control function they diversify assets as noted above and also act in securities and derivatives markets to hedge and control risk. As institutional investors, pension funds are well placed to use derivatives and other means of risk control; many innovations have been introduced or developed specifically to cater for their demand (Bodie 1990b, 1999). E Philip Davis (1995a) suggests that as pension funds focus mainly on government bonds and high grade corporate bonds, while banks tend to monopolise small business financing. And Lorenzo Bini Smaghi (2006) states that investing wisely matters for long term economic wellbeing, and that the portfolio allocation decision is of paramount importance in order to maintain living standards in the old age. Pension funds are the fastest growing of all financial institutions. They now cover half the labor force and represent one-eighth the financial assets of the entire household sector, Vincent P. Apilado (1972). The size of pension funds has also had an impact on the structure of financial markets: countries with large funded pension schemes tend to have highly developed securities markets; in countries with small pension-fund sectors, capital markets are relatively underdeveloped (the equity market in particular, Hans. J. Blommestein (1998). Living Standard M.  PONDS  (2003) states that the raison dà ªtre of wage indexed defined benefit pension funds is to provide insurance against standard of living risk after retirement, based on intergenerational risk sharing. Pension funds necessarily have to accept mismatch risk in providing this kind of insurance. Mismatch risk taken by the pension fund is risk for the funds stakeholders. The material living standards of tomorrows working and retired people will depend on the goods and services produced by those who will be working at the time. Changes in retirement income financing might alter the relative living standards of workers compared with retirees, but only later retirement could have a large effect in increasing living standards for both, Peter Hicks (2004). O Mauritius National Pension Fund Financial Analysis Mauritius National Pension Fund Financial Analysis The National Pension Fund and its financial implications on the economy of Mauritius Chapter 1: Introduction The philosophy of the National Pension Fund (NPF) includes the idea that one ought to earn a reasonable proportion after pension age of what one earned during ones working life. If you have contributed to the NPF and built up your pension points, you will get a pension which, when added to your old-age pension will be a reasonable. The National Pension Fund scheme is proposed as another mandatory saving for retirement. Once it is set up, the NPF will fit into Pillar 2 of the Multi-Pillar Model of the World Bank. The NPF nevertheless will not replace provident funds or retirement mutual funds, but rather improves saving channels for future retirees. Mauritius is found in the developing countries group where contractual savings, savings with insurance companies and pension funds exceed 40 percent of Gross Domestic Product and which represent a greater potential force in the domestic financial system. Pension funds account for 75 percent of contractual savings. The pension system is a balanced and well-managed multi-pillar. In Mauritius there have not many authors that have write specifically on that subject, that is, financial implication of National Pension Fund on the Mauritian economy. I have mainly used the research made by other analysts in other countries and try to apply it on the Mauritian economy. Obviously the result will not be the same, but try to make an estimate of it. Objectives of that Project: Analyse the overall financial implication of NPF Testing the financial effect of NPF on national savings Estimating the relationship between fiscal balance of Mauritius non-retirement account and the net saving that occurs within the NPF Chapter Outline Chapter one gives a brief overview of how the project is carry on. Chapter two makes an overview of the National pension fund, its evolution, structure and its financing source as well as government expenditure and the future of NPF. Chapter three is the literature review, that is, what writers around the globe have commented on the pension system. Chapter four is the research methodology. The research is carried out using regression equation to examine the financial implication NPF on our variables. Chapter five then come the analysis based on the results obtained, that is the financial effect of NPF on national savings and the relationship between fiscal balance of Mauritius non-retirement account and the net saving that occurs within the NPF. Then finally chapter seven will include suggestions and conclusions. Chapter 2: Literature Review Introduction Pension funds is be defined as forms of institutional investor, which collect, pool and invest funds contributed by sponsors and beneficiaries to provide for the future pension entitlements of beneficiaries (E PhilipDavis 1995). Pension fund offer individuals the mean to collect saving over their working life so as to finance their consumption needs in retirement, either by means of a lump sum or by provision of an annuity, while also supplying funds to corporations, households (via securitised loans) or governments for investment or consumption. Bodie(1990a) has formalized pension funds function as a form of retirement income insurance. E Philip Davis (1995) suggests that pension funds perform a number of the functions of the financial system more efficiently than banks or direct holdings. Their growth complements that of capital markets and they have acted as major catalysts of change in the financial landscape. But this is not the only reason for growth. It is also a consequence of fiscal incentives and benefits to employers, as well as growing demand arising from the ageing of the population. Pension funds are typically sponsored by employers, such as companies, public corporations, industry or trade groups; accordingly, employers as well as employees typically contribute. Funds may be internally or externally managed. The pension system is commonly divided into three pillars. The first pillar is the pay-as-you-go system based on payments by public institutions which are mainly funded by tax revenues. The second pillar constitutes fully funded pension funds with mandatory membership and the third pillar is based on fully funded pension saving schemes with voluntary membership. In a pay-as-you-go system, each generation pays for the costs of the currently retired in return for a commitment for the same treatment during its own retirement. Workers who spend their entire work and retirement life under a PAYGO system with constant tax rates will earn a real return on their contributions equal to the growth in the workforce plus the growth in the real wage (Samuelson, 1958, and Aaron, 1966). Pension funds provide millions of people in the world security and comfort in old age. Pension funds represent the savings of millions of people, and as Paul Myners says, the ability of funds to invest these assets effectively has a profound impact on their economic well being. Because so many people depend on pension funds to provide for their futures, ensuring the funds serve the needs of their members is a priority for Government. The social security system on the other hand as stated by law, guarantees people covered by its provisions either because they perform an occupational activity or meet the requirements established for non-contributory type social security, as well as dependent members of the family or similar, adequate protection in the contingencies and circumstances. Social Security has been defined as the protection which society provides for its members through a series of public measures against the economic and social distress that otherwise would be caused by the stoppage or substantial reduction of earnings resulting from sickness, maternity, employment injury, invalidity, old age and death; the provision of medical care; and the provision of subsidies for families with children. In the Social Security system, the money you pay into the system gets immediately paid back out to the people who are currently getting Social Security checks. The Social Security tax has been raising more money than is needed to pay for current benefits, in order to build up a surplus to help finance the retirement of the Baby Boom generation. The money is used in a sense to finance the government deficit, just like any other money the government borrows, Dean Baker (1998). The Social Security system is primarily a pay-as-you-go system, meaning that payments to current retirees come from current payments into the system. So Social Security will be the foundation of your retirement income. Thats because: You wont outlive your Social Security retirement benefit. It will be there for you for the rest of your life. Your Social Security benefit wont lose its value. From time to time, Social Security benefits are adjusted so they always keep pace with inflation. Why National Pension Fund? Worker myopia, or lack of foresight poor planning occurs because people give too little considerations to their future economic needs when making decisions about saving for retirement. Most people seem to have a natural inclination to live for today and avoid thinking about old age and death. Hence, they give very little systematic thought to the financial issues of old age until they come face to face with them. By the time they recognize they may have a problem when they retire, it is usually too late to fix. Government intervention through NPF has help people set aside a portion of their earnings when they are working so that they have an adequate income when they retire. Without compulsory contributions for retirement, myopic workers would not save enough to ensure an adequate retirement income and poverty would result. Another rationale for the existence of the compulsory contribution to the NPF is to protect the prudent that saves for retirement against those who do not save. Under a purely voluntary system some will contribute, others will not. As Boulding (1958) puts it in his argument, those who do not insure will have to be supported anyway-perhaps at lower levels and in humiliating and respect-destroying ways when they are in their non-productive phase of their life, but that they will escape the burden of paying premiums when they are in their productive phase. In fairness to those who insure voluntarily and in order to maintain the self-respect of those who would not otherwise insure, contributions for retirement should be made compulsory. Hence, mandatory contributions are necessary to achieve the retirement savings results that people need to have so as to have an adequate standard of living in their retirement years. Pension funds are also an important source of capital accumulation that can be used for different purposes as the build up the basic of national infrastructure, power stations and electric networks, Olli E. Kangas (2006). The Finnish case demonstrates that it was possible to unify social policy goals with the economic goals of building up modern industrial market economies. The Finnish experience has serves as a good example of how social policy has been successfully used as a developmental strategy, Mkandawire (2001). Pension funds are not only vital to the pension holders they provide for. They are also key players in the economy as a whole. Government Budget Pension funding issues have an important, but often hidden, impact on the finances of state governments, J. Fred Giertz (2003). In most countries, contributions to retirement funds are made by employers and employees each year. Yet, there is no requirement in the short run that these contributions be sufficient to fully fund the systems. Governments always ensure that pension payments are actually made to retirees, regardless of the level of contributions, as they are generally the funders of last resort. If pension systems are under funded, governments must deal with this problem sooner or later through additional contributions to the systems. If systems are over funded, government resources can be redirected from pensions to other government programs,J. Fred Giertz (2003). It is seen that private pensions reduce public pension spending in the longer term, once private schemes are mature. Private pensions is likely to increase budgetary pressures in the short term: if workers contributions go into their individual pension accounts, they cannot be used to pay for the pensions of the older generation; thus, governments have to finance pensions for the transition generation through taxation or borrowing, Nicholas Barr (2001). This will in a way affect the government budget. Unsustainable pension systems can be a problem to fiscal stability, economic growth, and poverty reduction. The need for pension reform has become pressing as demographic aging has strained pension systems around the world, leading to large expenditures, large deficits, and high contribution rates. In many cases the pension system has become a source of fiscal and macroeconomic instability, a constraint to economic growth, and an ineffective and or inequitable source of retirement income. J. Fred Giertz (2003)suggests thatnot only are pension asset changes large in comparison with state budgets, they are also growing and becoming more volatile. This trend is likely to continue and the relative size of state pension obligations is increasing. This suggests that pension funding is becoming an increasingly important aspect of state government. He also states that ‘state pension funding today is no sounder than in the early 1990s. This is not necessarily a cause for alarm, but it is a source of concern. Pension funding will be an increasingly important demand on state finances in the up coming years. In the G-10 (1998) report, it states that the ageing of populations could have dramatic effects on government finances. Under current policies, government spending in the G-10 countries is projected to rise sharply over the next several decades for several reasons. Per capita expenditure for the elderly is high in the areas of public retirement benefits and, in some countries, welfare support. Public expenditure on medical and health support for the elderly is also high and has been rising. If advances in medical technology come at ever increasing cost and if the incidence of health expenditure on the elderly continues to rise, the fiscal burden could become substantial in some countries. At the same time, government revenues will be adversely affected as the baby boom generation moves from its high income generating years to retirement. Countries whose revenues are tied more to consumption or value added taxes will tend to experience less of a deterioration in revenues than those that depend more heavily on income or payroll taxes. This would create a severe drag on national saving at a time when saving will be crucial to fostering the growth of labour productivity. Impacts of ageing population Norman Vincent Peale quotes that: â€Å"Age-based retirement arbitrarily severs productive persons from their livelihood, squanders their talents, scars their health, strains an already overburdened Social Security system, and drives many elderly people into poverty and despair. Ageism is as odious as racism and sexism.† Barry Bosworth (2003) argued that slowing economic growth and population aging in the major industrial countries have placed increased financial strain on pay-as-you-go (PAYGO) public pension systems. Retirement pensions have become a serious fiscal concern in most industrialized countries. Pensions are largely paid for from tax revenues and it is foreseen that contributions will need to be raised substantially during the coming decades. The World Bank (1994) states that high taxes are harmful to economic growth, since they reallocate resources to the informal sector, thereby reducing output in the more efficient formal market sector of the economy. The reasons are that many people are now nearing retirement age and that the populations nowadays live longer and have fewer children than in the past. Nicholas Barr (2001) argued that the effect on funded schemes is more restrained but equally unavoidable. When a large generation of workers retires, it liquidates its financial assets to pay for its pensions. If those assets are equities, sales of financial assets by the large pensioner generation will exceed purchases of assets by the smaller younger generation, leading to falling equity prices and, hence, to lower pensions. Alternatively, if those assets are bank accounts, high spending by the large pensioner generation will generate inflationary pressures and again reduce the value of pensions. Domestic savings The main views of the life-cycle theory stipulate that individuals try to smooth consumption over their lifetime, Brumberg and Modigliani (1954). Normally savings follow a hump shaped pattern, that is, income is relatively low when individuals are either very young or retired as during their working life savings rate is higher .Ageing Population increases the proportion of households with a relatively lower savings rate in the economy which leads to a decrease in private savings. Estimates of the impact of a change in the age structure of the population on private savings, shows that population ageing will be likely to reduce savings. As regard to public savings, population ageing is likely to exercise considerable pressure on public finances, Weil (2006). In the situation of the pension schemes of the current pay-as-you-go pension schemes that exist in many states, an ageing population implies that the number of beneficiaries increases while the number of contributors to the system decreases. The ageing population will also adversely affect public finances through higher healthcare and long-term care costs, given that older populations are more likely to make use of healthcare facilities, which, to a large extent, are provided by the public sector. Both microeconomic and macroeconomic studies find that the observed age profile of saving generally conforms with the life-cycle model, which implies that saving rates rise over a workers active career and then decline in retirement. Compared with macroeconomic analyses, microeconomic studies tend to show smaller variation in saving rates over the life cycle, this may be of the highly skewed distribution of wealth and saving across households, Ralph C. Bryant (2004). At a micro level, company or other obligatory pension funds can implement enforced saving by deferring wages and salaries, thereby reducing risk of a low replacement ratio. At a macro level, the increase in saving is not usually one-to-one, as increased contractual saving via pension funds is typically partly or wholly offset by declining flexible saving, E Philip Davis (1995). The remaining effect most likely results from liquidity constraints on some individuals (especially the young), who are unable to borrow in order to offset obligatory saving via pension funds early in the life cycle. It can also be anticipated that, even in a liberalized financial system, credit constraints will affect lower income individuals particularly severely, as they have no assets to guarantee and also have less secure employment. Therefore forced pensions saving will tend to increase their overall saving particularly markedly, Bernheim and Scholz (1992). On the other hand Samwick (2000) found a lower rate of saving in countries with extensive PAYG systems. Agosin (2002) extended their analysis and shows that the rise of saving was concentrated in the business sector, and that the net change in household saving was small. Implications for equilibrium real interest rates The forecasted declines in savings make the expected consequence of ageing on the equilibrium real interest rate ambiguous. If investment falls faster than domestic savings at each level of aggregate income, the real interest rate that clears the market for loanable funds is expected to fall, since it is difficult for savers to find profitable investment opportunities, J.C. Trichet (2007). On the other hand, if domestic savings were to fall faster than investment then the real interest rate would rise to reflect the relative scarcity of financial funds. This likely decline in interest rate that equalizes savings and investment could be identified developed financial markets. Even though the actual impact of the evolving demographic structure on the equilibrium real interest rate in the capital markets is something that is going to occur with a considerable lag, some economists have suggested that expectations of such developments may have already started to exert some influence on the pricing of bonds. Among other things, these analyses suggest that ageing could have contributed to the â€Å"flattening† of the yield curve that has been observed over the recent past, J.C. Trichet (2007). However as it is based on the assumption that capital market participants are perfectly forward looking, an assumption which is questionable, it should be treated with a great deal of caution: if it is true that financial markets tend to overreact to short term phenomena, the effects of ageing on the yield curve could be limited, DellaVigna and Pollet (2005). It has to be taken into consideration that these quantitative simulations require a number of qualifications. On one hand, some real world factors may make the true decline in the equilibrium real interest rate larger than estimated in macroeconomic models. For instance, older people may save more than predicted by the life cycle theory as they may want to leave a bequest to their children, putting further downward pressure on the equilibrium rate. The degree of risk aversion may also change with age as if the older people were systematically more risk averse than the young one, the accumulation of precautionary savings would lead to a higher than predicted savings rate and a lower than predicted real rate, Bakshi and Chen (1994).Moreover private savings rates may be significantly affected by pension reforms, Miles (2002). Pressures on Prices Hans J Blommestein (1998) states that concerns have been expressed that the growing demand for high quality private securities like equity and corporate bonds, associated with the growth of advance funded pension systems in search of investment opportunities (thereby increasing the demand for financial assets) and falling public sector borrowing requirements (thereby reducing the supply of government securities), would put strong upward pressure on the prices of financial assets. Here, the combination of the widespread privatisation of state owned enterprises and reform of pension systems brings the opportunity of killing two birds with one stone. Pension reform, which would increase the demand for equity, and privatisation, which expands the supply, at the same time permits a more balanced growth in private securities markets, at least over the medium term. In a somewhat longer term perspective, population ageing may have an impact on the risk premium, that is, the difference betwee n the returns on stocks and the yield on bonds. As asset preferences vary across age groups, the ageing of the baby boom generation could affect both absolute and relative positions of stock and bond prices. On average, middle age is the portion of the life cycle when saving rates are highest. Moreover, middle aged workers generally are more able and willing to hold a riskier portfolio; that is, one weighted more heavily towards stocks than bonds. This is a consequence of two factors: first, while still working, a stockholder is better able to make up for any bad equity returns; second, middle aged workers have a longer time horizon and thus are willing to accept more risk in exchange for the expectation of higher returns. Moreover, higher demand for stocks relative to bonds should increase the price of stocks relative to bonds, thus decreasing the equity premium. Thus, some have hypothesized that an ageing population would cause the equity premium to increase. But if the age of the population is increasing at least in part because life span is increasing, and thus time horizons are lengthening, then the ageing of the population does not necessarily imply that average risk aversion should be increasing and risk premium on stocks should be rising. After the baby boomers begin to retire, saving rates would tend to fall, stock and bond prices to decline, and the equity premium to rise as baby boom retirees shift their portfolios away from stocks toward bonds, Hans J Blommestein (1998). Population age structure can influence the demand for different classes of financial market assets both because of its effect on saving and because young, middle aged, and elderly savers may seek to hold their assets in different forms. Empirical studies have uncovered evidence that population age structure affects stock market prices and the real returns of different classes of financial assets, but the consistency of this evidence is not overwhelming. It is unclear whether the effects of demographic influences on asset prices and returns are large relative to the effects of other and less predictable determinants of prices and returns, Ralph C. Bryant (2004). Implications of population ageing for the conduct of monetary policy The life-cycle theory stipulates that , individuals during their working lives accumulate financial wealth in order to finance their consumption during retirement. As a consequence, populations who are near to retirement age will tend to have higher wealth to income ratios. Simultaneously, expected imbalances in publicly financed pension schemes make it possible to consider that the increasing number of retirees would depend more on their own accumulated wealth, as opposed to public pension provisions, to maintain their consumption levels. Consequently, the fraction of the population exposed to asset price fluctuations could increase with ageing, Young (2002). Bean (2004) argues that longer life expectancy would presumably strengthen this effect. Therefore, the transmission channel of monetary policy may be affected by ageing. In particular, the so called wealth channel, which links asset prices to consumption, may gain relative importance and play a vital role than in the past, G10 (2005). Miles (2002) points out that the monetary policy multiplier would probably rise with population ageing, mainly as a result of the increased wealth channel and greater price impact of monetary policy decisions. In spite of this, he also mentions that an older population is less likely to be credit constrained, especially when the pension system is reformed towards more funded systems. This might reduce the effectiveness of the credit channel. Depending on the relative importance of these channels, monetary policy could, in principle, become more or less effective with ageing. Miles suggests that the first effect is expected to dominate. A move towards demographic structure in which the population accounts for an increasing elderly population is expected to generate a gradual but persistent change in savings habits. This may results in an impact on the demand for all classes of assets even though certain sector of the capital market are likely to be affected more substantially than others. If, for example, older people are more risk averse and prefer to hold financial assets paying fixed income returns such as government securities, then the demand for government bonds would tend to increase relative to riskier investment options, such as equity, Bakshi and Chen (1994) and De Santis and Là ¼hrmann (2006). In this situation, where a larger part of households wealth is invested in nominal assets, price stability would be even more important for households, G10 (2005) and Bean (2004). Stable prices ensure that the real value of both pension entitlements and savings is maintained and prevent arbitrary redistributions of income and wealth to the detriment of the most vulnerable groups in society, in particular, pensioners. It is likely that, as a significant fraction of wealth is accumulated in real estate and financial assets, households exposure to asset price movements will tend to increase. This might coincide with a situation in which a large fraction of the population in their old age dis-saving phase are disposing assets in order to finance consumption during retirement. In this respect, some authors have warned that, when the baby-boom generation retires and starts to dissave, excess supply in financial markets could lead to a significant decline in asset prices, the consequences of which might be felt by the entire population, Siegel (1998), Abel (2001) and (2003). This view is known as the â€Å"asset meltdown† hypothesis. Yoo (1994) estimated that asset prices may drop by as much as 15% as a result of demographic change alone. This is why a credible commitment to maintaining price stability and, as a reflection, an orderly financial environment is and will remain so important for maintaining the standard of living of people, particularly for the poorest and the most vulnerable. Investment of Pension Fund The rapid growth of pension funds in many countries, and the stimulus they are providing to the growth of capital markets, both suggest that their activities as financial intermediaries merit considerable attention, E Philip Davis (2000). Pension funds have an impact on the stability of financial markets in several ways, most significantly through their investment behavior. Since early withdrawal of funds is usually restricted or forbidden, pension funds have long term liabilities, allowing holding of high risk and high return instruments. Accordingly, monies are intermediated by pension funds into a variety of financial assets, which include corporate equities, government bonds, real estate, corporate debt (in the form of loans or bonds), securitised loans, foreign holdings of the instruments mentioned above and money market instruments and deposits as forms of liquidity. Hellwig (1990) suggest that financial institutions can form long term relationships with borrowers, which reduce information asymmetry and hence moral hazard. Apart from economies of scale these considerations have arisen in the literature mainly for debt finance and for banks. Whereas the importance of information asymmetries and incomplete contracts is equally recognised for equity finance, the role of financial institutions as counterparts is less well developed. Equally, institutional investors such as pension funds may not rely on the same information and control mechanisms as banks. The role of pension funds is clearly not to facilitate exchange of goods, services and assets directly. This is because, unlike banks, money market funds, and to a lesser extent long term mutual funds, they do not offer liquid liabilities. Nevertheless, pension funds have had an important indirect role in boosting the efficiency of the financial systems, by influencing the structure of securities markets. This effect on micro structure links to their demand for liquidity, i.e. to transact in large size without moving the price against them, anonymously, and at low transactions costs. Pension funds provide risk control directly to households via the forms of retirement income insurance they provide, an advantage which largely reflects the unusual (among financial intermediaries) link of pension funds to employers. To assist in undertaking this risk control function they diversify assets as noted above and also act in securities and derivatives markets to hedge and control risk. As institutional investors, pension funds are well placed to use derivatives and other means of risk control; many innovations have been introduced or developed specifically to cater for their demand (Bodie 1990b, 1999). E Philip Davis (1995a) suggests that as pension funds focus mainly on government bonds and high grade corporate bonds, while banks tend to monopolise small business financing. And Lorenzo Bini Smaghi (2006) states that investing wisely matters for long term economic wellbeing, and that the portfolio allocation decision is of paramount importance in order to maintain living standards in the old age. Pension funds are the fastest growing of all financial institutions. They now cover half the labor force and represent one-eighth the financial assets of the entire household sector, Vincent P. Apilado (1972). The size of pension funds has also had an impact on the structure of financial markets: countries with large funded pension schemes tend to have highly developed securities markets; in countries with small pension-fund sectors, capital markets are relatively underdeveloped (the equity market in particular, Hans. J. Blommestein (1998). Living Standard M.  PONDS  (2003) states that the raison dà ªtre of wage indexed defined benefit pension funds is to provide insurance against standard of living risk after retirement, based on intergenerational risk sharing. Pension funds necessarily have to accept mismatch risk in providing this kind of insurance. Mismatch risk taken by the pension fund is risk for the funds stakeholders. The material living standards of tomorrows working and retired people will depend on the goods and services produced by those who will be working at the time. Changes in retirement income financing might alter the relative living standards of workers compared with retirees, but only later retirement could have a large effect in increasing living standards for both, Peter Hicks (2004). O

Mentor Graphics :: essays papers

Mentor Graphics Objective To complete all aspects of the exercise regarding D type flip-flop, TTL and CMOS and to familiarize us with the HDL software which is Mentor Graphics. This software is capable of constructing and simulating a particular design. As for this assignment 1, we are given 4 weeks to complete the assignment. It is compulsory to attend every lab sessions as there is no alternative software to use. Only a certain limit of time is given for the use of the software and therefore designing of circuit is required to be completed before attending the lab. To give students a first-hand understanding of the EDA lab and most importantly Mentor Graphics, a powerful tool in HDL technology. This assignment allows the students to understand or rather familiarize themselves with the design flow of the EDA software and to fully explore what the software is capable and powerful to do. Lastly, to prepare the students for the next assignments which uses the similar software. Introduction – D(elay) Flip-Flop (What You Have to Know First!) The D flip-flop is useful when a single data bit (1 or 0) is to be stored. An additional inverter to the S-R flip-flop at the R input creates a D flip-flop. The D flip-flop shown below is a modification of the clocked SR flip-flop. The D input goes directly into the S input and the complement of the D input goes to the R input. If there is a HIGH on the D input when a clock pulse is applied, the flip-flop SETs and stores a 1. If there is a LOW on the D input when a clock pulse is applied, the flip-flop RESETs and stores a 0. The truth table below summarizes the operations of the positive edge-triggered D flip-flop. As before, the negative edge-triggered flip-flop works the same except that the falling edge of the clock pulse is the triggering edge. (a) Logic diagram with NAND gates (b) Graphical symbol InputsD CP(CLK) OutputsQ Q’ Comments 1 1 0 SET (stores 1) Mentor Graphics :: essays papers Mentor Graphics Objective To complete all aspects of the exercise regarding D type flip-flop, TTL and CMOS and to familiarize us with the HDL software which is Mentor Graphics. This software is capable of constructing and simulating a particular design. As for this assignment 1, we are given 4 weeks to complete the assignment. It is compulsory to attend every lab sessions as there is no alternative software to use. Only a certain limit of time is given for the use of the software and therefore designing of circuit is required to be completed before attending the lab. To give students a first-hand understanding of the EDA lab and most importantly Mentor Graphics, a powerful tool in HDL technology. This assignment allows the students to understand or rather familiarize themselves with the design flow of the EDA software and to fully explore what the software is capable and powerful to do. Lastly, to prepare the students for the next assignments which uses the similar software. Introduction – D(elay) Flip-Flop (What You Have to Know First!) The D flip-flop is useful when a single data bit (1 or 0) is to be stored. An additional inverter to the S-R flip-flop at the R input creates a D flip-flop. The D flip-flop shown below is a modification of the clocked SR flip-flop. The D input goes directly into the S input and the complement of the D input goes to the R input. If there is a HIGH on the D input when a clock pulse is applied, the flip-flop SETs and stores a 1. If there is a LOW on the D input when a clock pulse is applied, the flip-flop RESETs and stores a 0. The truth table below summarizes the operations of the positive edge-triggered D flip-flop. As before, the negative edge-triggered flip-flop works the same except that the falling edge of the clock pulse is the triggering edge. (a) Logic diagram with NAND gates (b) Graphical symbol InputsD CP(CLK) OutputsQ Q’ Comments 1 1 0 SET (stores 1)

Hopkins Winhover Analysis

Who is God? Gerard Hopkins spent his life finding the answer through his poetry and exploring the nature around him. In Gerard Hopkins' poem â€Å"The Windhover† there is a representational allusion to Christ and Jesus. The speaker praises the Lord by praising what he takes as a symbol for Christ. Throughout the poem the speaker symbolizes Christ's glory by the way the falcon reacts to the air, how it maneuvers and even characteristic traits of the falcon species. The poem uses alliteration, internal rhyming, compound metaphors, elliptical grammar and complex threads of connotation. One could only appreciate the glory of the Lord more after interpreting the poem. The poem is almost impossible to understand without good background knowledge about Hopkins’s ideas and his odd words. There are many words of the Anglo-Saxon origin like rung (past tense of ‘ring’), minion, dauphin, and chevalier. There are also unusual combinations like â€Å"dapple-dawn-drawn†, which is an image of the bird. The last stanza is particularly complex because of the associatively linked words related to Christ and his sacrifice. Finally, the grammar is also odd; actually the poem does not follow any traditional grammar and structure. In short, the poem can be discussed as a sonnet because it has some of the features of the typical sonnet, but it must be called a modified sonnet adapted to a different kind of subject, word-game and music. The poem is therefore the thanksgiving to Christ. It is a hymn that is romantic in form but religious in theme. When the poet sees the beautiful bird, he is reminded of Christ and becomes thankful and appreciative of him. The poem’s theme is therefore related to the poet’s praise of Christ rather than being about the bird. Hopkins has mixed his romantic fascination with the nature and his religious favor of gratitude towards God for giving us a beautiful nature. The beauty of nature is illustrated by his attention that is suddenly drawn by the scene of a bird flying in the sky. He describes a bird which he saw flying in the sky that morning. Like in a romantic poem, he remembers the experience to express his feelings. That morning, the speaker had been out at dawn. From the excited description in the poem, we can infer that the speaker was probably in the field. This admirer of Christ brings the image of Christ’s wounds, pain and sacrifice. This suggests that he always remembers and becomes thankful to Christ. The poem is subtitled â€Å"To Christ our Lord† because the falcon reminds him of Christ. The speaker continuously hails one of God's most stunning creatures, the falcon. He is flabbergasted at the magnificence of the windhover's flight. He wonders at its colorful feathers and the sheer speed of its flight. His tone suggests that he is in awe. He is observing something equivalent to the second coming of Jesus or angels walking among regular men. He throws out a barrage of visual imagery to describe the windhover and still does not seem to come close to its real magnificence. He wonders how such a creature could exist but is eventually just filled with glee in knowing the fact that it does exist. In the first stanza the speaker states that he spotted the morning's minion as if to suggest that the falcon was somehow less important to the morning. He suggests that there is some sort of royal hierarchy by using words that recall images of sovereignty. He describes the different tricks of the bird’s flight. The second stanza takes a different stance on things. The windhover is out maneuvering when it smoothly and suddenly dives. The speaker is scared for the birds' safety but is pleasantly surprised when the bird is lifted by a huge wind. One can say that in times of foolish pleasure he can fall but Christ will always be there to lift him back up. Christ is the cushion needed for even a temporary fall from grace. Stanza three uses a stream of descriptive words to denote the dignity of such a creature. In the animal kingdom it would be considered king of the roost. The speaker calls the windhover a chevalier meaning knight or in other words a savior. Christ is also considered a savior. The speaker compares the bird and Christ with the hard work of the plow that creates a channel and displays the wet soil underneath and burned embers that shine red-gold when split open and burn with fire. That is directly omparable to the assumption that the speaker was living a dark life until the Lord stirred up his liveliness, split open his dark shell and helped him to shine with a new vigor for life. Christ could be seen in nature in the windhover's existence. He is symbolized in all the actions of the falcon and also represented in its characteristics. The speaker praises the Lord by his amazed praise and represented in its characteristics . The speaker praises the Lord by his amazed praise and appreciation. Christ does exists in even the smaller details in life and all we have to do is observe them periodically to know that Christ lives on.

Definition and Examples of Free Relative Clauses

Definition and Examples of Free Relative Clauses In English grammar, a free relative clause is a type of relative clause (that is, a word group beginning with a wh-word) that contains the antecedent within itself. Also called a nominal relative clause, a  fused relative construction, an independent relative clause,  or (in traditional grammar) a noun clause. A free relative can refer to people or things, and it can function as a subject, a complement, or an object.Examples and Observations Nobody knows it, because nobody knows what really happened.(Donald E. Westlake, The Hook. Mysterious Press, 2000)We want to make sure that what were doing is really what we ought to be doing.(General Abrams in Vietnam Chronicles: The Abrams Tapes, 1968-1972, ed. by Lewis Sorley. Texas Tech University Press, 2004)You can say what you please. I burnt my English books and I didnt get a degree. All Im saying now, if Im allowed, is that Willie should get a degree.   (V.S. Naipaul, Half a Life. Alfred A. Knopf, 2001)A man wearing the uniform of the Military Police had stepped into the unit and was just turning toward where she was standing.  (Michael Palmer, The Fifth Vial. St. Martins Press, 2007)Look, Cynthiayou have a perfect right to disapprove. You go ahead and think whatever you want. Even if you want to be angry, then you be angry.   (Philip Roth, Letting Go. Random House, 1962)The way I hear it you can really put it away.Whoever told you that is a liar. Bledsoe straightened a way from the rail, started toward the barn.  (Michael Joens, Blood Reins. Thomas Dunne Books, 2005) Antecedents in Free Relative Clauses The relative word in the nominal relative clause has no antecedent since the antecedent is fused with the relative: I found what (that which; the thing that) you were looking for; He says whatever (anything that) he likes. Because they are free of antecedents, such clauses are sometimes called independent or free relative clauses.  (Tom McArthur, Concise Oxford Companion to the English Language. Oxford University Press, 2005) A Headless Relative A relative clause which apparently lacks a head is called a free relative clause, also sometimes called a headless relative (though some argue that the head is present syntactically but phonologically empty, and hence that this is a misleading term).  (R.E. Asher and ‎J.M.Y. Simpson, The Encyclopedia of Language and Linguistics. Pergamon Press, 1994) Characteristics of Free Relative Clauses [The] free relative clauses . . . [are] italicised in: (117a) What you say is true(117b) I will go where you go(117c) I dont like how he behaved toward her They are characterised by the fact that the wh-pronoun what/where/how appears to be antecedentless, in that it doesnt refer back to any other constituent in the sentence. Moreover, the set of relative pronouns found in free relative clauses is slightly different from that found in restrictives or appositives: e.g. what and how can serve as free relative pronouns, but not as appositive or restrictive pronouns; and conversely, which can serve as a restrictive or appositive relative pronoun but not as a free relative pronoun.  (Andrew Radford, Analysing English Sentences: A Minimalist Approach. Cambridge University Press, 2009) Two Types of Free Relative Clauses: Definite and Indefinite The first type of free relative clause, the definite free relative clause, is introduced by a wh- word such as what, where, or when, as shown in (64). (64) Mark eats what he orders. . . . [V]erbs that are followed by definite free relatives beginning with what must be capable of being followed by nonhuman NPs. What Jim chose in (65a), a free relative, passes this test, as shown by (65b). (65a) Sally ordered what Jim chose.(65b) Sally ordered a hamburger/coffee/a piece of pie. Another test for definite free relatives is substituting that (thing) which for what, as shown in (66). (66) Sally ordered that (thing) which Jim chose. . . . The second type of free relative clause is an indefinite free relative clause, also called a conditional free relative clause because the words that introduce the clause (who(m)ever, whatever, whichever, whenever, and however) can be paraphrased with if, as show by (68a) and (68b), or regardless of, as shown by (68c) and (68d). (68a) Joan dances with whoever asks her to dance.(68b) If someone asks Joan to dance with him, she dances with him.(68c) Fred eats whatever Alice offers him.(68d) Regardless of whatever Alice offers Fred, he eats it. (Ron Cowan, The Teachers Grammar of English: A Course Book and Reference Guide. Cambridge University Press, 2008)

J. Edgar Hoover Essays - English-language Films, Free Essays

J. Edgar Hoover Essays - English-language Films, Free Essays J. Edgar Hoover For nearly half a century J. Edgar Hoover was one of the most powerful officials in the Federal government of the United States. As head of the Federal Bureau of Investigation from 1924 until his death in 1972, he was the nations chief law enforcement officer. His intimate knowledge of politicians and government operations made him a man to be feared by elected officials, and none of the eight presidents under whom he served dared fire him. J.Edgar Hoover was born on January 1, 1895, in Washington D.C. He attended George Washington University and earned a degree in 1917. In 1919 he became assistant to Attorney General A. Mitchell Palmer in the Department of Justice. It was Palmer who instigated the post World War I red scare, an anti-Communist hysteria that led to the deportation of many aliens. Hoover was put in charge of the deportations. When Hoover became director of the Bureau in 1924, he quickly formed an elite force of powerful law enforcement officers. He enhanced the FBIs fame by capturing many gangsters, bank robbers, and other lawbreakers. After World War II he waged a relentless fight against internal subversion. The 1970s often criticized Hoover for his authoritarian methods. He died in Washington, D.C., on May 2, 1972. In the rest of the paper I will explain more in depth of how J. Edgar Hoover rose to power and why he is considered one of the most corrupt men to ever hold a government position. It is not very difficult to figure out the most outstanding characteristic of J. Edgar Hoover. Out of all of his characteristics, the one that truly stands out is that he was extremely powerful. J. Edgar Hoover is the most famous law enforcement officer that the United States has ever known. J. Edgar Hoover began his adult life at the bottom of the ladder with a very limited amount of power. As he grew older and became more experienced his prestige and power skyrocketed. At the height of his prestige and power he was the most famous director of the Federal Bureau of Investigation in the history of the United States. One factor that helped J. Edgar Hoover gain more power, was that he had many connections with many important people (Summers 29). Another factor that aided J. Edgar Hoover in his rise to power was the knowledge he had about people (Kessler 449-450). This meant that he could control people, or in other words, blackmail them (Summers 38-39). The third reason why J. Edgar Hoover became such a powerful individual is that he was very intelligent and shrewd (Summers 25). These three factors all contributed to forming one of the most powerful men the world has ever known. J. Edgar Hoover knew many important people that held many important positions. Hoover received his first government job thanks to a close family friend by the name of Bill Hitz (Summers 29). Hitz was a judge and considered the President and Supreme Court Justice Brandeis among his close friends (Summers 29). Another individual who helped Edgar along the way was his boss at the Department of Justice, George Michaelson (Summers 29). Bruce Bielaski, a senior official, recalled how - on the trolley to work one day in 1917 - he found himself talking shop with his neighbor, mail room chief George Michaelson (Summers 29). Michaelson dropped the name of a young lawyer he had sorting mail, one of the brightest boys around (Summers 29). You dont need anybody with brains doing that, said Bielaski (Summers 29). If you want him, Michaelson replied, you can have him (Summers 28-29). That conversation on the trolley was a fatal one for America (Summers 29). Bruce Bielaski was Director of the Bureau of Investigation, direct forerunner of what we know now as the Federal Bureau of Investigation (Summers 29). Bielaski would now join the growing list of people that would help Hoover on his quest to power. Bielaski did not forget the young man that his neighbor had recommended - though he did not bring Edgar into the Bureau (Summers 29). Instead he told John Lord OBrian, head of the War Emergency Division, about Edgar (Summers 29). Many

Hearing Sounds Assignment Example | Topics and Well Written Essays - 500 words

Hearing Sounds - Assignment Example The outer ear is composed of three parts which are the pinna (or auricle), the external auditory canal (or external auditory meatus), and the tympanic membrane (or eardrum) (Net Industries and its Licensors ,par.2). The pinna is the organ on the side of our heads that we commonly call "the ear". The external auditory canal is a passageway in the temporal lobe of the skull that begins at the ear and extends inward and slightly upwards. The outer one-third portion of the canal is lined with a membrane containing ceruminous (ear wax producing) cells, and hair cells which protects the eardrum by trapping dirt and other foreign bodies. The purpose of the cerumen and hairs is to protect the eardrum by trapping dirt and to keep the canal moist. The tympanic membrane or eardrum is a thin, concave membrane stretched across the inner end of the external auditory canal and serves as a transmitter of sound by vibrating in response to sounds traveling down the external auditory canal, and beginni ng sound conduction in the middle ear. The middle ear starts from the inner surface of the eardrum. It is connected to a chain of three small bones called the ossicles, known as the malleus (hammer), incus (anvil) and stapes (stirrup). These bones conduct sound waves from the tympanic membrane to the inner ear.