Monetary theory Research Paper Example | Topics and Well Written Essays - 2250 words

Monetary theory - Research Paper Example Its value differs in different regions and parts of the world when compared. However, it is a common accepted and standard means of exchange by people within a boundary; that is why an individual from outside a nation will find himself with either few or more money after currency change in a foreign land that does not share similar currency. According to Leyshon and Thrift, there exist several forms of money, â€Å"namely; pre-modern money; commodity money; money of account; state money and virtue money† (3). Money exists as paper (certified currency notes), metallic coins, made of kinds of metals and credit money which is easily convertible and highly appreciated through cheques. In the past, a variety of commodities ranging from iron, gold, copper, silver, shells and animals served as a medium of exchange in various locations and times. The history of money can be traced back from the act of exchange; however, barter trade was not able to handle the complexity of life dealin gs and so had to be replaced with a common medium. Money must be easy to transport and identify, durable, difficult to duplicate, divisible and widely accepted (â€Å"the measure of money,† boj.org). Money supply in the economy: This is simply the amount of money circulating in an economy. Several methods have been put across to measure money supply in an economy. However, the measures differ from nation to nation, in time and the intention. According to Dwivedi, â€Å"(i) money supply is a stock variable and measure of money supply refers to the stock of money at of point in time; (ii) by measure of money supply is meant the measure of stock of money available to the public as a means of payments and store of value and (iii) the term ‘public’ means all economic units including household, firms and institution† (212) excluding some areas like commercial and main central banks where money is in circulation. To quantify money, various policy makers and econo mists use M0, M1, M2 and M3 methods. â€Å"M1includes money in circulation, checkable deposits and traveler’s checks while M2 adds savings deposits, time deposits held in depository information and money market mutual funds share on top of M1†( Gwartney, Stroup, Sobel, and Macpherson 266). M0 is the monetary base from which other measures build on while M3 is a broader measure including items that would be termed to be close substitutes for money. Money value is affected by its supply in the market; when its supply is limited comparing with its demand, its value is high at the time, but when unlimited in circulation, it looses its value; that is, one uses a lot of it to buy few items. Money supply is a very central issue in any nation; in most countries, it is handled by the government through central banks and treasury, other involved groups are credit unions and depository institutions among others with regard to a nation. Money supply in an economy will always affec t interest rates; with increase in supply, the GDP increases too in the short run while price level in the long run, otherwise they both decrease in the same manner respectively. Money supply is important to GDP calculation and its increase bids bond prices up as it slows down the interest rate to affect investments which in turn influences total output in an economy. Suppose money supply generates faster than real output, inflation tends

Mary Barnett case Essay Example | Topics and Well Written Essays - 750 words - 1

Mary Barnett case - Essay Example While analyzing the testimony of Caroline Hospers, it may consider that Mary Barnett was a frequent drinker and she was not a fit mother. It is also identified that Barnett lives without a husband and she had wild parties in her apartment. However, Hospers’ testimony that Barnett had gone to California ‘just to party and have a good time’ is her speculation only (Chaffee, â€Å"thinking critically†). This statement clearly indicates that Hospers’ is not in good touch with Barnett, and therefore her testimony might be biased. Therefore, Hospers’ claim that ‘the baby was not taken care of properly’ might also be a speculation. From the policeman’s testimony, it is pretty clear that Barnett was absolutely conscious of what she was going to do. She admitted to the policeman that she was aware of the fact that she was leaving her baby unattended in the apartment and she would not be coming back soon She also said that she had to get to California at all costs. Hence, it can be assumed that getting to California immediately was the first priority of Barnett and she decided to leave her baby in the apartment for a while. Although Barnett had visited her mother before she left the city, she did not try to ensure that her mother would look after little Alison. In the professional view of Dr. Parker, Barnett is competent to stand trial because her current depression and anxiety problems were induced by the guilt she feels for what she did. Dr. Parker undoubtedly states that Barnett ‘was mentally competent on January 23, when she left her child unattended’. There is no need to suspect the testimony of Dr. Parker because he is an experienced professional psychiatrist who has been involved in many judicial hearings to comment on the mental competency of the defendant. Alice Jones’ testimony reflects that Barnett had been suffering from many life difficulties since the birth of Alison. She adds that Barnett had increasingly depended on