Management Accounting - Total Quality Management Essay

Management Accounting - Total Quality Management - Essay Example As the managerial accounting is a phase of accounting that is concerned with the information provided to managers, the planning and controlling operations will be effective. The information will be regarding the feedbacks of operations, activities and finances of the company. These activities require efficient monitoring. The provision of good information for the implementation of managerial accounting will result in coming out of finished products in time. The non value added activities are also taken into account to provide the required information. The further information provided by the company is regarding organizational charts, performance reports, cross check art cycle, planning methods, control cycle, processing and engineering, raw materials, segments, setup , staff. These are provided by taking into consideration the put time and total quality management. ( Department of Defence, 2007) 1 1.1 Breakeven Chart: In preparing a chart the breakeven point for the activities company that creates profit is important. This involves the fixed costs and variable costs. These values for the product cetnrex are as follows. It was estimated that the variable cost per unit is 10 GBP. The fixed cost is estimated at 25,000GBP. The variable cost of 10,000 units as mentioned will be 10x10,000 = 1,00,000GBP. The following graph shows number of units in X axis and cost in thousands of pounds on Y - axis. The fixed cost is shown as 25,000 GBP. 2 The revenue line is plotted after plotting the breakeven chart. The sales price is multiplied by number of units and this amount is considered as output. The sales price for the product of Derailler gears is given as 14 GBP, the total revenue can be calculated as 14x10,000= 140000. The total revenue line and variable cost lines are in different colors. The point where the two lines will intersect denotes the breakeven point. The breakeven point indicated in the following graph is 1, 25,000 GBP. The profit will be 1, 40,000-1, 25,000 = 15,000GBP on the Centrex product. 3 2.2 Breakeven Level of Output: The fixed costs of the products are estimated at 25,000 GBP. The variable costs will not be more than 1,00,000 GBP. This plugs the maximum costs at 1,25,000 GBP. As the company has planned to sell the units at 14 GBP per unit, the minimum revenues accrued due to the sales will be 1,40,000 GBP and this ensures a minimum profit of 15,000 GBP. This means that the marketing and sales targets reach the breakeven when the total sales revenue is 1,40,000 GBP. The extra revenue accrued after that point will be the extra profit and the 15,000 GBP mentioned above can be considered as the minimum profit by selling the 10,000 units of Centrex. The total portion encompassed by the graph is divided into two portions. The top potion denotes the profit and the lower represents the probability of loss. Though the probability of loss is more in this venture, the possibility of gaining can be termed as more as the analysis is breakeven as fixed and variable costs prevail over the aspects considered in the analysis and the reason is explained in the next subsection (2.3) 2.3 Percentage Margin Safety: The outcome obtained by subtracting the breakeven sales from the forecasted sales is termed as percentage margin safety. It can also calculated by dividing the operating income by net sales. As we considered the breakeven

Enterprise entrepreneurial management Assignment

Enterprise entrepreneurial management - Assignment Example The business planning process – a critical appraisal The typical business planning process may be actually helpful as it aims to convey objectives and missions of the organization to its employees. But, there are several researchers who argue that the entrepreneur should rely on his experience and intuitions rather than waste time on the business planning process. This is because researchers argue that planning may not be successful in the uncertain conditions surrounding the formation of business (Delmar & Shane 2003). Moreover, each component of the business planning process has its own setbacks. Let us analyze each component and find out in what way a business plan can pose as a hindrance. Generating an idea The basic step of a business planning process is to generate an idea. A new venture has to first ascertain the product or the service which it will provide. Most organizations come out with new ideas for a product or a service depending on the data collected from potent ial and current customers. This kind of customer focused process is solely dependent on the information given by customers. However the response given by these people has limitation with reference to the environment and current experience. Hence there may be a discrepancy in the idea generated (Lilien et al. 2002). This may pose as a severe hindrance for the business plan. Moreover, there are other constraints like generation of funds for the new venture. Many business plans may never be formulated due to limitations in the form of competition, technology, lack of funds etc. Strategic goals and objectives The second step in a business plan is to formulate the strategies or tactics which are to be used in order to attain goals and objectives. Strategies may be short term and long term. These are plans which must be followed in order to attain final objectives. However, the very purpose of strategic planning is defeated in today’s changing environment. Due to the uncertainties in market conditions, entrepreneurs may be more successful if they go by their intuitions and experience, rather than going by previously formulated strategic objectives (Mintzberg 1994). Another problem which is ensued in setting objectives is that most plans are formulated outside the business planning process. Also entrepreneurs need to set realistic and achievable goals. It may be very easy to set strategic objectives but very difficult to implement these objectives to the middle and lower management. Most entrepreneurs do not give attention to the fact that the pre determined goals they are setting may be rigid, extremely rational, bureaucratic and dysfunctional at times. Hence, the formulation of potential strategic objectives may not hold true during the implementation process (Shrader, Taylor & Dalton 1984). This is one reason why the strategic objectives should be flexible and top executives need to change it depending on the changing market situations. Market research and analysis The third step in a business plan is to formulate a market plan which takes into account the market promotion and advertisement

Othello Race Journal Essay Example | Topics and Well Written Essays - 250 words

Othello Race Journal - Essay Example This can be seen in the language which is used to describe the character. For instance, throughout the play he is refereed to as â€Å"this Moor†, â€Å"the thick lips†, or more pejorative as â€Å"Barbary horse†, and â€Å"Devil†. ("Elizabethan Thater: Skakespeare in Context" ) Moreover, characters in the play are more prone to believe that Desdemona was poisoned or somehow bewitched and in this way, forced to love Othello than to believe that their relationships are natural. â€Å"Did you by forced courses subdue and poison this young maids affections?† ("Elizabethan Thater: Skakespeare in Context") Obviously, race becomes the crucial feature that sets him apart. Throughout the play, the attitudes towards Othello are much influenced by that fact that he is racially different from the majority in the society. The following creates the tension between the characters and drives the development of the conflict. As a whole, the play reflects the existing at those time anxieties and prejudices relating to interracial marriages and the belief in the white superiority that define the place of Othello among others. In this context, Othello fulfill the role of an outsider in the society which is guided by racial stereotypes and

History of Islamic banking Term Paper Example | Topics and Well Written Essays - 1000 words

History of Islamic banking - Term Paper Example One of the major functions of commercial banks is to mobilize savings and offer loans to the potential investors in the economy (Saeed, 1996). The system of regular banking asks for a certain price known as interest on the loans being given to the investors (USAID, 2005). The rate of interest charged on loans becomes directly proportional to the time period for which the loan is offered. The system is not the same for all the banks following Islamic banking system. This process of banking donnot involve in offering loans that are interest free. It is believed that ‘riba’ or ‘usury’ which is known as interest is firmly forbidden under the regulations of Muslim law. Islamic banks are rapidly growing all over the world both in Muslim as well as non Muslim nations. So apart from Islamic nations like Egypt, Sudan etc; Philippines, U.K., Denmark are also widely establishing Islamic banks in their economies although they comprise Muslim population as minorities. Is lamic banking theory thinks that it is incorrect to take benefits from borrowers. Unlike the commercial theories of regular banking, Islamic banking follows ‘riba’ which is actually based on concepts like ‘mudaraba’ and ‘musharake’ (Hamza, 2013). Thus by this process the creditors cannot raise the nominal value of loans offered. The board of Islamic banks are formed with Shariah scholars who would see that the interest of the laws is duly considered by almost all the banks following Islamic laws. The principles of Islamic banking explains paying as later after buying is ‘halal’ but if someone charges on the credited money even that is also punishable (Hosein, 2011). The regular banks deny loans without collaterals or interests. Flexible verses Fixed Return on Deposits The commercial regular banking system offers fixed rates of return on the deposits made by the depositors. The rate of fixed return varies according to the time perio d for which the deposits are made. In general there are three types of deposits or accounts that can be opened in regular banks which are savings, current and fixed deposits. As estimated the highest return is received from the fixed deposits, then savings and finally current account deposits. The system is not the same with Islamic banks, the depositors depositing money in such banks get variable returns. This is because the returns are given from the profits made by the Islamic banks. So the depositors may land up with either profit or loss. These banks follow a strict rule of investing in the poverty alleviation and rural development programs. Often due to the greater importance given in the welfare aspects potential deposits face losses kept in these banks. It is found that the lack of interests in depositors is becoming problematic in the expansions of such banks. It is stated despite of all the problems faced by the depositors no one has actually faced problems of making a los s in an Islamic Bank. The command deposits kept in the Islamic banks are under the contract of ‘Wadiah’. The fund deposited in the Islamic banks is not used for investments in the market. The fund can only be invested if it is authorised by the depositors. The different current, savings, or other deposit plans offered by an Islamic bank are always made very attractive to the depositors. The contract of ‘Mudharaba’ often set the demand deposits in the Islamic banks. Sometimes the rate of interests that the depositors receive is directly proportional to

Drinks that Influenced History and Civilization Essay Example for Free

Drinks that Influenced History and Civilization Essay The author describes the origin of six drinks that greatly influenced history and civilization around the world: beer, wine, spirits, coffee, tea, and cola. He explains how each drink was the defining drink during a historical period from antiquity to present day. The fluids are vital because each had a role of shaping the modern world. They have been used as currencies, in religious rites, as a political symbol, sources of philosophical and artistic inspiration. Some have served to highlight the power of the elite, and appease the downtrodden. They connected world cultures by impacting trade, economy, religion, and politics. Beer was discovered through different methods of cooking and storing cereal grains. When the ice age ended, lands such as the Fertile Crescent provided abundant cereal grains. Such grains provided a reliable source of food, and the ability to store cereal grains began to encourage people to stay in one place. This resulted in permanent settlements as societies transitioned from hunting and gathering to farming. Although the residents of such villages continued to hunt, skeletal evidence suggests that they subsisted mostly on plant-based diets. Beer was shared, and it was symbol of hospitality and friendship. To Neolithic drinkers, beer’s ability to intoxicate and ferment seemed magical, and it was concluded that it was a gift from the gods. Beer-drinking cultures tell stories and myths of how it was discovered. Mesopotamians and Egyptians saw beer as an ancient, god-given drink that supported their existence, formed part of their cultural and religious identity, and had great social importance. It was consumed by anyone regardless of status, age, or gender. Beer impacted the growth and diffusion of the earliest civilizations greatly. The emergence of complex societies, the need to keep written records, and the popularity of beer all followed from the surplus of grain. It was also used as a form of currency and payment. Beer also had a direct link to health. Mesopotamians and Egyptians used it medicinally. The Egyptians used bread and beer in funerals. Without the discovery of beer, the earliest civilizations of Southwest Asia and Egypt would not have been as prosperous.

Inflation Rate and GDP Growth of Pakistan

Inflation Rate and GDP Growth of Pakistan CHAPTER 1: The topic of this research is relationship between inflation rate and GDP growth of Pakistan. Nowadays in Pakistan inflation rate is high, when inflation crosses logical limits, it has negative effects on GDP growth. It drops the value of money, resulting in uncertainty of the value of profit loss of borrowers, lenders, buyers and sellers. The rising the uncertainty in saving and investment. In Feb 2009 CPI Inflation rate of Pakistan was 22.97% and GDP was 5.8%. GDP and inflation rate negative correlation present even when other factors are included to the study and the investment rate, population of growth, and the constant advances in technology and still when the factor in the effects of supply shocks features of a part of the observed period 1.2 PROBLEM STATEMENT: In this research determine how much rate of inflation affect the GDP growth of Pakistan. In this research also determine inflation rate significantly affect the GDP growth of Pakistan. GDP shows the economic performance of a country so it is of most importance for concerned departments and economists of that country. On the other hand rising inflation can impact negatively on GDP and the objectives that a country achieves can be demolished by rising inflation. 1.3 SIGNIFICANCE OF RESEARCH: If GDP growing fast and rate of inflation is falling down, it is good for the economy. More money comes in Pakistan and financer invests more and more capital. GDP indicates all sectors such as agriculture, telecommunication, services, manufacturing and Per Capita Income. These all indicators represent the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s economy. If these sectors were growing fast, countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s economy also grows faster. Foreign investors observe the market condition of Pakistan and foreign investors must see the GDP Inflation Rate of Pakistan. If the GDP growing faster and inflation going down, foreign investors invest more money into Pakistan. If GDP is growing faster, the investor earns more money and achieves good profit and aspires to keep doing business for long term and expects less risk for the loss. Investors also expect for greater dividend in real terms, if rate of inflation is dropping down. This research is also significant for foreign investor and domestic investor of stock market. If inflation is increasing, investors invest less in market because investors do not expect good profit and dividend for the shares and also expect huge risk in market for long term. If any countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s inflation rate is increasing, it is very difficult for financial institution to maintain the trust of investors because there is a chance of loss for the investors. This research is also significant for exporters. Exporters must see the inflation and GDP of Pakistan. If inflation is increasing, exporters export fewer goods because goods are expensive for exporters due to high inflation. Exporters export more goods, when inflation is low because goods are affordable for exporters and easy to export goods. This research is also significant for fresh graduate students. If inflation is high, there is less chance of jobs because the rate of unemployment is also high due to inflation rate. Fresh graduate also do not start business because it is carries more risk and there is chance waste of capital. 1.4 HYPOTHESES: H1: There is a negatively relationship between the Inflation rate and economic growth of Pakistan. H2: Inflation rate significantly effect on economic growth rate of Pakistan. 1.5 SUMMARY OF RESEARCH: The overall summary of this research defined in the following parts: First chapter is Introduction. In this part describe overview of all research, research problem, hypotheses of this research and definitions used in this research. Literature Review is second chapter. Describe summary of all articles, which related to this research. Third Chapter is Research Method. In this part describe data collection method, how sample size of this research and also describe technique of this research. Fourth Chapter is Results. In this part includes interpretations and findings in relevance to the hypotheses test. In this part also describe hypotheses assessment summary in table form. Fifth and last Chapter is Conclusion. In this part includes discussion based on this research finding in setting with the past research findings. In this part also describe some recommendations and implications of this research and also describe future research possibilities. Ending this part with conclusion. 1.6 DEFINITIONS: GDP and Inflation are the key macroeconomic indicators of the economic performance of any country. The relationship and cause affects are very important for any economic performance of the country. GDP Economic Growth: GDP indicates only currently produced goods and services. It is a flow measure of output per time period. For Example, per quarter or per year and indicates only goods and services produced during this interval. Such market transactions as exchange of previously produced houses, cars or factories do not enter into GDP. However, two types of goods used in the production process are counted in GDP. The first is Capital Goods and other type of goods is Intermediate Goods (Froyen, 2005). Components of GDP: GDP is broken down into the components. The first component is Consumption component of GDP. Consumption consists of the household sectors. Consumption can be further broken down into consumer durable goods (e.g., automobiles, television), nondurable consumption goods (e.g., foods, beverage, and clothing) and consumer services (e.g., medical services, haircuts) (Froyen, 2005). The second component of GDP is Investment. Investment is part of GNP (Gross National Product) purchased by the business sector in addition residential construction. Investment divided into three sub components. First is business fixed investment, second is residential construction investment and final id inventory investment (Froyen, 2005). The third component of GDP is government purchases. It is goods and services that are the parts of recent output that goes to the government sector such as federal government, state and local government (Froyen, 2005). The final component of GDP is Net exports. Net Exports equal total (gross) export minus imports. Gross exports are currently produced services goods and sold to foreign buyers, should be counted in GDP. Imports are purchases by domestic buyers of goods and services produced abroad and should not be counted in GDP. Imported goods and services are, however, included in the consumption, investment and government spending totals in GDP. Therefore, need to subtract the value of imports to arrive at the total of domestically produced goods and services (Froyen, 2005). Inflation: Inflation is when prices continue to keep rising, typically as a result of overheated economic growth or extra capital in the market search for too few opportunities. Wages usually creep upwards, so that companies can retain good workers (Amadeo, 2008). How Protection Inflation: If person are locking inflation protect alone, one best way to protect. Person purchase treasury bills and bonds; there pay fixed rates of interest. However, twice a year the governments readjust the principle in response to changes in the CPI, published monthly by the Statistics Bureau. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s mean, as inflation increases, the value of bonds increases. This is best way for protect inflation, when inflation increases (Amadeo, 2008). Aggregate Demand Theory: Aggregate Demand Theory shows that the negatively relationship between Inflation rate (price Level) and output/income (National Product). Aggregate Demand theory was developed by the English economist John Maynard Keyness (1883-1946). Term of à ¢Ã¢â€š ¬Ã‹Å"Aggregateà ¢Ã¢â€š ¬Ã¢â€ž ¢ was also used as à ¢Ã¢â€š ¬Ã‹Å"aggregate spendingà ¢Ã¢â€š ¬Ã¢â€ž ¢ and à ¢Ã¢â€š ¬Ã‹Å"aggregate expenditureà ¢Ã¢â€š ¬Ã¢â€ž ¢ (Case and Fair, 1992). How Aggregate Demand (AD) Curve deriving: The aggregate demand (AD) curve shows that the negative/inversely relationship between the aggregate output/income and the Inflation/price level and the aggregate demand (AD) curve is showing downward sloping (Case and Fair, 1992). Figure 1.1 INFL2 INFL1 Inflation Rate AD y2 y1Real Output/Income (National Product) (Source: Case and Fair, 1992) Reason for downward-slopping Aggregate Demand Curve: The increase price level/inflation causes the demand for money to increase, which cause the interest rate to increase and then the higher interest rate causes aggregation out to down (Case and Fair, 1992). The decrease in consumption brought about by a rises in the interest rate contributes to the generally fall in output. (Case and Fair, 1992). CHAPTER 2: LITERATURE REVIEW Metin (1998) analyzed the empirical relationship between inflation and growth for the Turkish economy by a multivariate co-integration analysis. Metin (1998) developed model shows that the scaled income growth significantly affects inflation in Turkey. The qualified model of inflation was constant and it estimated a model previously. In this paper developed model because if inflation change one percent so it significantly affect to Growth Rate. An extensive literature had examined the relationship between the budget deficit/Income growth and inflation. At a theoretical level, Sargent and Wallace (1981) showed that under certain conditions, if the times paths of government spending and taxes were exogenous, bond-financed deficits were non-sustainable, and the central bank should eventually monetize the deficit. Money supply and inflation was rising in the long run. These findings had subsequently been generalized for the open economy case and for alternative forms of financing. Increase money supply and inflation in the long run due to the government spending and economical condition were not sustainable (Scarth, 1987; Langdana, 1990). Metin (1995) analyzed inflation for Turkey using a general framework of sector relationships and found that fiscal expansion was a determining factor for inflation. The excess demand for money affected inflation positively, but only in the short run. On the other hand, imported inflation, the excess demand for goods, and the excess demand for assets in the capital markets had little or no effect on inflation. A key policy implication of was that Turkish inflation could be reduced rapidly by eliminating the budget deficit. The demand for money, assets and goods impact on inflation (Metin, 1995). The losses were automatically financed by the credits extended by the Central Bank to the SEEs, resulting in high money growth. For 1950 period in Turkish inflation rising and balance of Payment had difficulties. Most the private firm purchase commodities at official price and reached experienced losses (Aktan, 1964; Okyar, 1965; Fry, 1972; Krueger, 1974, Onis and Riedel, 1993). Metin (1958) implemented a fairly typical International Monetary Fund (IMF)-supported stabilization program, which improved the foreign-exchange situation and drastically reduced inflation. The most important component of the program was an increase in the prices of SEE goods, a component that was featured prominently in the 1970 and 1980 reforms as well. Raising those prices in 1958 resulted in an immediate and once-and-for-all increase in the price level, after which the reduced rate of expansion of Central Bank credits reduced inflation. Metin (1958) analyzed inflation dropped from 25% in 1958 to less than 5% in 1959, real gross domestic product (which had been declining) started growing immediately due to the greater availability of imports. Metin (1998) analyzed that Turkey was among the more rapidly growing developing countries during most of the 1960s, with an annual inflation rate of 5%-10%. The nominal exchange rate was kept constant after the 1958 devaluation. Investment spending increased and was financed mainly by foreign aid. In the late 1960s, foreign id did not increase, but the rate of investment spending was maintained. In addition, some difficulties appeared in obtaining imports, creating visible restraints on economic activity and growth. Turkeyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Economic volatility in deferent sectors such as in the late 1960s, foreign aid did not increase, but the rate of investment spending was maintained. In addition, some difficulties appeared in obtaining imports, creating visible restraints on economic activity and growth Barro (1995) studied that If a number of countries characteristics were held constant, in that case regression results shows that an raise in average inflation of ten proportion points per year reduces the growth rate of real per capita income GDP by 0.2 to 0.3 proportion points per year and lowers the proportion of investment to GDP by 0.4 to 0.6 proportion points. Over here come to know that some characteristics were stay constant but some of effected due to increase of inflation rate result reduce the growth rate of real per capita. Barro (1995) analyzed the result that inflation control on growth looks little; the long term inflation effects on standards of living were considerable. such as, a shift in monetary policy that increase the long-term average of inflation rate increase by ten percentage points per year was projected to down the level of real GDP after 30 years by 4% to 7%, more than enough to justify a strong interest in price constancy. The inflation rateà ¢Ã¢â€š ¬Ã¢â€ž ¢s influence intensively effected lives standard which identifies by the Monitory Policy, average inflation rate and GDP. To evaluate the effects of inflation on economic growth, Barro (1995) Regression Equation method used to which many other determinants of growth were held constant. The framework was one that in this paper had developed and applied previously. Barro (1995) identified that tool through in this paper assessed influence of inflation on the development of economy and to evaluate the effects of inflation on economic growth. Fama (1981) explained these anomalous stock return-inflation relations. The data were consistent with the hypothesis that the negative relations between stock returns and inflation positive relations between actual variables and stock returns, which were more fundamental determinants of equity values. The inflation had negative influence on stock return and also real variable Metin (1995) examined the relationship between the public- sector deficit and inflation. System co-integration analysis suggests three stationary relationships. Although weak relation does not hold for variables concerned (except Ay), one was still able to develop a conditional model for inflation. In that model, an increase in the scaled budget deficit immediately increases inflation. Real income growth had a negative immediate effect and positive second-lag effect on inflation. The shortfall affected inflation at a second lag. These dynamics were consistent with institutional and general knowledge of the economy. The conditional model of inflation was constant over the sample period, even though several significant structural breaks occurred during the period. Breaks included three devaluations, structural stabilization, and economic liberalization programs. The major finding from the new equation was that budget deficits (as well as real income growth) significantly affect inflati on in Turkey. Braun and Tella (2000) studied that there was a positive partial correlation between inflation and corruption for several countries for which data was available. Furthermore, argue that causality was from inflation variability to corruption. There was a positive relationship between corruption and inflation. Dornbusch and Frenkel (1973) had developed alternative approaches to be analysis of growth and inflation. found that the effect of inflation on per capita real balance, consumption and the capital-labor ratio remain ambiguous if the yield on capital was a function of per capita real balance or if consumption was an increasing function of the rate of inflation. That ambiguity was in general not entirely removed by consideration of maximization and a specification of the nature of the service of real balance. The alternative effects inflation on per capital real balance, consumption and the capital labor ratio. Fama (1981) tested out the hypothesis that the negative relations between real stock returns and inflation observed during the post-1953 period were the consequence of proxy effects. Stock returns were determined by forecasts of more relevant real variables, and negative stock return-inflation relations were induced by negative relations between inflation and real activity. This relation inflation, real activity and stock returns define through the money demand and the quantity theory of money. Barro (1995) evaluated the effect on investment shows up clearly only for inflation rates above 10%à ¢Ã¢â€š ¬Ã¢â‚¬Å"20% per year. For lower inflation rates, the estimated effect of inflation on the investment ratio tends not pointedly different from zero. The investment effects positively when inflation above 10% to 20% per year but lower inflation effect on investment negatively and zero inflation not significantly effect on investment. Barro (1995) analyzed that the Inflation effects on growth and investment were significantly negative and long term Inflation to reduce the value of growth and investment. The analysis was that the effects of inflation on growth were significantly negative relation and also the effects of inflation on investment were significantly negative relation. Barro (1995) the values of inflation for three periods (i.e. 1965-75, 1975-85 and 1985-90) were not differing significantly from one to another. If different coefficient of inflation test for each period, then resulting values was not significantly from one to another period. If the inflation rise 10% year, growth rate of real per Capita income of GDP by 0.2% to 0.3% point per year. Khan and Senhadji (2001) located that under floating exchange rates, growing domestic inflation can move up long-run output if credit was rationed (inflation was low). However, there exist inflation thresholds as were observed empirically inflation and output were positively (negatively) correlated below (above) the threshold. With fixed exchange rates, the scope for credit to be rationed depends in a relatively complicated way on the rate of foreign and domestic inflation, and increasing foreign inflation always reduces long-run output. Barro (1995) calculated the standard deviation and analyzed the result was that if the standard deviation of inflation was included in the regressions, then the estimated coefficient on average inflation changes little, and the estimated effect of the standard deviation of inflation was still around zero. Standard deviation of inflation included in the regression, result of estimated coefficient on average inflation was little and standard deviation was around zero. Results were directly related to the literature on the costs of inflation. Despite a long tradition of research on the subject, empirical estimates were scant. Following Bailey (1956) estimating the area under the money demand curve, Fischer and Lucas (1981) found that for the US, an inflation rate of 10-percent per annum would cost 0.3- 0.9 percent of national income each year. More recently, Fischer (1993) estimated in a cross-section of countries that an increase in the inflation rate of 100 percentage points would lead to a reduction in the annual growth rate of 3.9 percentage points. Barro (1997) found that the negative relation between inflation and growth was stronger for low levels of inflation, and that inflation variance was also negatively correlated with growth. The estimated in a cross section of countries that an increase in the average inflation rate of 10 percentage points per year leads to a reduction in the growth rate of GDP of 0.3 to 0.4 percentage points per year. Braun and Tella (2000) presented the cross section estimates of the correlation between inflation variability and corruption. Average the data for 1982-1994 to obtain a maximum sample. Document a positive and significant correlation between measure of noise in the price system (Inflation Variance) and corruption. The Positive and significant correlation between the inflation and corruption Barro (1995) analyzed that it was also possible that the inflation produce a positive and significant relationship between inflation and growth. This thing happen, when demand of goods increase. Braun and Tella (2000) analyzed the result was that the increase in the cost of audit leads to an increase in corruption and in the extant fixed cost of investing. This in turn leads to a decline in aggregate investment and growth. Using the evidence that relative price oscillations increase with inflation variability, assume that the cost of audit was an increasing function of inflation variability. If corruption was increasing, Growth and Investment was decrease because negatively impact on growth and investment. Inflation was increasing due to corruption was rising. Barro (1995) evaluated that in recent years, many central banks, including the Bank of England, more emphasis on price stability. One indicator concern, the Bank of England began in February 1993 to issue the Inflation Report. Central bank gave more importance on price stability and monetary policy defines in term of interest rate or growth with stable and low inflation. In this paper contributes to closing this perception gap. Find a theoretical and empirical link between inflation variability and corruption. Since corruption had been found to had a negative/inversely impact on growth and investment. There was an indirect, corruption affected cost of inflation. Estimate that a one standard deviation raise in inflation variability from the median can lead to a reduction in the annual growth rate of one third of a percentage point and a reduction in the investment rate of 1-percent. Corruption was negative impact on growth and investment. Corruption affected cost of inflation (Mauro, 1995; Knack and Keefer, 1995; Kaufmann and Wei, 1999). Fama (1981) found the result was that the negative relations between inflation and real activity predicted by the money demand-quantity theory model and observed consistently in the regressions were negative partial correlations. The relations between inflation and real activity predicted by the money demand quantity theory model Braun and Tella (2000) calculated that increase in inflation variability of one standard deviation from the median leads to an increase in corruption of 0.12 of a standard deviation. Repeating the above calculations obtain that an increase in inflation variance of one standard deviation leads to a decline in investment of 1.02 percent of GDP, and a decline in growth of 0.33 percentage points. Braun and Tella (2000) estimated for the impact of an increase in inflation variability of one standard deviation range from 1.02 percent to 2.72 percent of GDP for investment, and from 0.33 to 0.88 percentage points for growth. Increase in inflation of one standard deviation leads to decline in investment of 1.02 % of GDP and decline in growth 0.33 % points. Braun and Tella (2000) estimated the effects were also economically significant. Researcher basic cross section approximate suggests that a one standard deviation increase in the variance of inflation associated with an increase in corruption of up to 0.47 points, or 32-percent of the standard deviation of corruption. Braun and Tella (2000) estimated can be used to calculate an indirect cost of variable inflation that operates through corruption. Researcher find that an increase in inflation variability of one standard deviation from the median can lead to a decline in investment of 2.7-percent of GDP, and to a decline in the annual growth rate of 0.9 percentage points. Increase in inflation of one standard deviation leads to decline in investment of 2.7 % of GDP and decline in growth 0.9 % points. Braun and Tella (2000) calculated that increase in inflation variability of one standard deviation from the median leads to an increase in corruption of 0.12 of a standard deviation. Braun and Tella (2000) analyzed the result was that an increase in inflation variance of one standard deviation leads to a decline in investment of 1.02 percent of GDP, and a decline in growth of 0.33 percentage points. Braun and Tella (2000) estimated for the impact of an increase in inflation variability of one standard deviation range from 1.02 percent to 2.72 percent of GDP for investment, and from 0.33 to 0.88 percentage points for growth. Increase in inflation of one standard deviation leads to decline in investment of 1.02 % of GDP and decline in growth 0.33 % points. Fama (1981) analyzed two types of models for expected inflation were estimated and compared. One approach was interest rates into expected inflation rates and expected real returns. Since the interest rates were observed at the beginning of the time intervals of interest, this approach estimates the ex ante expected inflation rates which eventually allow to document the negative relations between ex ante expected stock returns and expected inflation rates. The negative relation between the expected stock returns and expected inflation rates Fama (1981) analyzed second approach, based on money demand and quantity theory of money, estimates conditional expected inflation rates as functions of money and real activity growth rates. Since measures of current money and current and future real activity growth rates were major explanatory variables, these conditional expected inflation rates were not ex ante measures. Fama (1981) also analyzed the money demand-quantity theory models of inflation provide the empirical economic story which explains why the ex ante expected inflation rates extracted from interest rates were also strongly related to current and future real activity. Inflation rate were strongly related to interest rate because of money demand theory and quantity theory of money. Fisher (1911) observed the relations between inflation and the measures of current and future real activity which this model presumes were important in the determination of stock market returns. The theoretical basis for the study of inflation-real activity relations was a rational expectations combination of money demand theory. The theory and empirical results were abstracted from my 1980 paper. In this paper presented just enough of the theory and evidence to document the inflation-real activity relations of interest. Verme (2004) was study the Walrasian equilibrium; changes in either the domestic inflation rate or in the world inflation rate had qualitatively similar effects. When credit was rationed, changes in the domestic inflation rate and the world inflation rate always affect the domestic capital stock differently. This occurs because credit rationing breaks the link between the marginal product of capital and the rate of interest on loans: what matters was how the domestic and foreign rates of inflation affect the self-selection constraint and researcher affect this differently. Whenever there were restrictions on capital availability, the domestic and foreign inflation rates react differently on the economy. Verme (2004) analyzed theory of Walrasian equilibrium was that changes in the domestic rate of inflation can had very different effects under credit rationing. Again, this happens because what matters was how the domestic inflation rate affects the self-selection constraint. Higher domestic inflation can actually relax this constraint by increasing the rate of interest on loans, and hence attenuating the incentives of agents to misrepresent the type. The domestic inflation can also cause dearth of capital if the interest rate rises for the reason of inflation. Verme (2004) presented a model of a small open economy where financial intermediaries make a real allocate function then consider the relative merits of different exchange regimes, focusing my attention on policies that had been implemented in Latin America and, particularly, in Argentina and Peru. This document puts forward an example of an open economy where financial intermediaries may cause situations where credit may not always be restricted. Verme (2004) observed that the inflation thresholds as were observed empirically: increasing inflation beyond the threshold level reduces domestic growth output. However in economies with fixed exchange rates, increases in the foreign (and domestic) rate of inflation always had adverse consequences for real activity. In case of variable exchange rates, inflation can encourage production if credit was limited, however if the inflation exceeds beyond a certain limit then it reduce the output. Mauro (1995) estimates may be used to derive an indirect, corruption-induced, cost of inflation variability. This cost can be calculated by multiplying estimated of the impact of inflation variability on corruption by exogenous estimates of the impact of corruption on investment and growth. Given that Mauro (1995) presented such estimates, this calculation was relatively straightforward. The cost of inflation can also increase if corruption impacts investment and growth. Fama (1981) explanation of the absence of positive simple relations between money supply and real activity growth rates during the post- 1953 period was an interesting topic for future research. This was especially so since the monetary measure used, the growth rate of the base, was the one most under the control of the monetary authorities. Studying the relationship between money supply and growth rate reveals that the said rate was under most control of the controlling authorities. Braun and Tella (2000) estimated that an increase in corruption of one standard deviation leads to a decline in the average investment rate of 8.5 percent of GDP. In this paper also estimates that GDP growth would decline by 2.76 percentage points per year. It was estimated that a slight increase in the corruption can greatly decline the investment. Fama (1981) tested that the effect hypothesis implies that actions of real activity should dominate dealings of inflation when both were used as explanatory variables in real stock return regressions. In monthly, quarterly, and annual data, growth rates of money and real activity eliminate the negative relations between real stock returns and expected inflation rates. In the annual stock return regressions unexpected inflation also loses its explanatory power when located in competition with future real activity. Sometimes inflation loses its quality of increasing growth rates when there was real economic growth in the future. Fama (1981) analyzed the hypothesis for both common stocks and bonds were that expected real returns were determined in the real sector. Spurious negative relations between inflation and expected real returns were then induced by a somewhat unexpected characteristic of the money supply process during the post- 1953 period, in particular, the fact that most of the variation in real money demanded in response to variation in real activity had been accommodated through offsetting variation in inflation rather than through nominal money growth. After the analysis of securities, it was accomplished that there exists a negative/inversely relationship between inflation and expected real returns. The severe drought in India during the current cropping season may put more pressures on international prices of a number of commodities i.e. international sugar prices had already risen substantially, which had also impacted domestic prices, which sufficient domestic availability, Increasing the int

Alzheimers Disease: Biology, Etiology and Solutions

Alzheimers Disease: Biology, Etiology and Solutions Introduction Alzheimers disease (AD) is a type of dementia characterized by the progressive loss in cognitive function due to neurodegeneration that results in gradual memory loss and eventually the inability to carry out tasks of daily living. The two types of AD are distinguished by age of onset and etiologies; early-onset AD develops prior to age 65 and has strong genetic associations while late-onset AD develops after age 65 with a more complex etiology. Late-onset AD accounts for 90-95% of AD cases (Harman 2002). Aging is a strong risk factor for developing late-onset AD. Given that the global population of people ages 65 and up is expected to increase from 26.6 million in 2006 to 106.8 million by 2050 (Brookmeyer et al. 2007) AD is a growing public health concern in regards to disease management and development of innovative treatments. The prevalence of AD globally is 4.4%, with 1 in 10 people over age 65 and nearly one-third of people over age 85 affected by dementia in developed countries (Qiu et al. 2009). AD prevalence is the greatest in East Asia, followed by Western Europe, South Asia, and North America (Prince et al. 2015). Disease burden is anticipated to be the greatest in low and middle-income countries with the fastest growth in the elderly population and limited access to care (Prince et al. 2015). By 2050, the U.S. population of adults with AD is projected to increase to 13.2 million. With 43% of AD patients requiring a high level of care, the financial and healthcare burden of AD is expected to rise (Qiu et al. 2009). Given that the burden of AD will increase over the coming decades with costly impacts on health care and social services, it is necessary to continue AD research to identify a cause and develop novel therapies. Etiology Alzheimer’s disease is a multifactorial disease with several genetic, person, and lifestyle risk factors that contribute to development of disease. Although many risk factors for AD have been identified a cause has not yet been found. Of the genetic risk factors identified, apolipoprotein E alleles, with ethnic and sex variability in risk of developing AD, and TREM2 gene mutations have the strongest associations with AD. Lifestyle risk factors include hypertension, obesity, diabetes, and education. The development of AD requires a combination of these risk factors that induce the production of neurotoxic amyloid beta (Aß) and neurofibrillary tangles (NFTs), the agents of AD. Apolipoprotein E (apoE) has been identified as playing a role in AD pathology. ApoE is naturally produced and is involved in lipid transport (Ridge et al. 2013; 2018 Feb 27).   In AD it is thought that apoE regulation of Aß is altered (Kanekiyo et al. 2014). There are three apoE alleles that differ in the risk they confer to AD; the ÃŽ µ2 and ÃŽ µ3 alleles are protective but the ÃŽ µ4 allele increases risk for AD (Ridge et al. 2013). Additionally, it appears that ethnicity modulates the risk of AD conferred by the apoE ÃŽ µ4 allele, conferring greater risk among Caucasians and Japanese than African Americans and Hispanics (Ridge et al., 2013). The apoE ÃŽ µ4 allele is an established risk factor for the development of AD however it is not causative and the risk that carrying this gene confers is likely modulated by other factors such as ethnicity and lifestyle.   Mutations in the TREM2 gene have also been implicated in AD pathology. The TREM2 gene codes for a receptor expressed in myeloid cells, the principal innate immune cell in the brain (Hickman and El Khoury 2014) and in greater abundance in the hippocampus and neocortex, brain structures affected by neurodegeneration in AD (Guerreiro et al. 2013 Jan 9). A rare missense mutation in the TREM2 gene was identified in Islanders that confers significant risk of AD (Jonsson et al. 2013 Jan 9) and a loss of function mutation increases the risk of late-onset AD in heterozygous carriers (Hickman and El Khoury 2014). This loss of function mutation promotes the production of Aß and reduces Aß phagocytosis and degradation (Hickman and El Khoury 2014). In addition to the genetic risk factors discussed above, several lifestyle risk factors for AD have been identified including cardiovascular risk factors and obesity. Cardiovascular risk factors (smoking, hypertension, high cholesterol, and diabetes) in mid-life are associated with a 20-40% increased risk of AD in a dose-dependent fashion (Whitmer et al. 2005). Hypertension that develops in mid-life and persists into late-life is associated with a greater risk of dementia (McGrath et al. 2017). Furthermore, the risk of hypertension for AD in late-life might be influenced by sex, with females having a 65% increased risk of developing dementia if hypertensive in mid-life but no such association among males (Gilsanz et al. 2017). Midlife insulin resistance is also a risk factor for Aß accumulation (Ekblad et al. 2018 Feb 23) and patients with diabetes and the apoE ÃŽ µ4 allele have more Aß plaques and NFTs in the brain (Peila et al. 2002). Obesity is linked to AD via several singl e-nucleotide polymorphisms (Hinney et al. 2014). In people who are obese, leptin and adiponectin lose their neuroprotective role as the brain becomes resistant to leptin and the levels of adiponectin decrease (Letra et al. 2014). Research conducted by Nuzzo et al. (2015) further supports this association, finding that obese mice fed a high-fat diet had elevated Aß accumulation. Addressing these modifiable risk factors in mid-life may help reduce the risk of developing AD in late-life. Higher educational attainment and continued cognitive stimulation in later life are protective against AD. Amieva et al. (2014) found that individuals with AD who had education beyond 6 years of primary school showed delayed cognitive decline before diagnosis compared to individuals with less education. Participating in cognitive leisure activities in late-life, like reading books, newspapers, and magazines, solving crossword puzzles, and attending courses and professional training, has a protective effect as well (Sattler et al. 2012). Higher educational attainment may be associated with reduced risk of AD and delayed cognitive decline if AD develops because of its association with increased hippocampi and amygdalae size. In individuals with AD, the hippocampi are larger in those who had 20 years of formal education compared to those with 6 years (Shpanskaya et al. 2014). The role of education in hippocampal size is further implicated by Tang, Varma, Miller, and Carlson (2017) who f ound that the left hippocampus is larger than the right, possibly due to education honing retrieval of verbal memory by the left hippocampus through increasing intellectual ability and literacy skills.   Biology   Alzheimer’s disease results in the progressive loss of neurons in the cerebrum. The first structures affected are the hippocampi followed by the amygdala (Pini et al. 2016). As the disease progresses so does neuronal loss throughout the cerebrum. In AD, Aß peptides and neurofibrillary tangles (NFTs) formed by tau protein cause synaptic damage that leads to apoptosis. Additionally, the innate immune system in the brain does not function properly in AD and therefore does not remove Aß peptides before they aggregate to form plaques.   Amyloid beta is naturally produced in the brain by the cleavage of amyloid precursor protein (APP), but when APP is cleaved by ß-secretase Aß peptides are formed that can cause synaptic and mitochondrial damage and aggregate to form plaques (Querfurth and LaFerla 2010). In healthy individuals, Aß peptides are cleared by microglia and enzymes but these mechanisms deteriorate in individuals with AD and the Aß peptides accumulate and result in neurodegeneration (Sarlus and Heneka 2017). Aß plaques cause neuronal cell death by accumulating around neurons, impairing normal function and inducing an inflammatory response. More attention recently has been given to Aß peptides, which lead to apoptosis in neurons through synaptic damage and inhibition of mitochondrial function. Aß peptides cause synaptic damage in the hippocampus by aggregating and creating pores in the cell membranes that allows calcium ion entry into the cell. Over time, these pores become non-selective and allow flux of large molecules like ATP and glucose that alters cell metabolism and disrupts homeostasis resulting in apoptosis (Sepà ºlveda et al. 2014). Aß also produces reactive oxygen species that initiate oxidative stress which leads to mitochondria in the cell releasing cytochrome C and inducing apoptosis (Querfurth and LaFerla 2010). Both Aß peptides and APP can enter the mitochondria where they disrupt the electron transport chain and ATP production (Caspersen et al. 2005; Reddy and Beal 2008). Synapses are sites of high mitochondrial activity because ATP is needed for neurotransmitter release (Reddy and Beal 2008), so inhibition of mitochondrial activity by Aß also results in synaptic damage. NFTs are intracellular aggregations of hyperphosphorylated tau protein and also cause neurodegeneration. Tau protein is a component of the cytoskeleton of neural cells but when hyperphosphorylated tau proteins have an affinity for themselves and destabilize the cytoskeleton (Iqbal et al. 2005; Spillantini and Goedert 2013). Tau protein is phosphorylated by glycogen synthase kinase -3ß (GSK-3ß) (Rankin et al. 2007) which can be activated by Aß peptides (Takashima 2006). Tau protein mediates synaptic damage by inhibiting extracellular signal-regulated kinase (ERK) signaling that is key in cell survival (Sun et al. 2016). Approaches Current treatment of AD relies on two types of medications: acetylcholine esterase inhibitors (AChEIs) and N-methyl-D-aspartate (NMDA) receptor antagonists. AChEIs work by slowing the degradation of acetylcholine (ACh) by inhibiting acetylcholine esterase which allows more ACh action at the synapses (Nelson and Tabet 2015). When cholinergic neurons are lost during the course of AD, ACh synthesis and receptor signaling are reduced (Auld et al. 2002). AChEIs are most effective in slowing progression of cognitive decline in mild to moderate cases and less effective in severe AD (Gillette-Guyonnet et al. 2011). Memantine is an NMDA receptor antagonist (Tariot et al. 2004) that helps mitigate the loss of NMDA receptor function due to Aß peptides (Snyder et al. 2005). Memantine is not effective for mild cases of AD (Nelson and Tabet 2015) but it is effective in moderate to severe cases, especially when used in combination with AChEIs (Tariot et al. 2004). Although AChEIs and NMDA receptor antagonists are the current pharmacological treatments available for AD, they are only able to slow the progression of the disease and lose effectiveness as AD progresses. The challenge in designing a drug to prevent or cure AD is the multifactorial nature of the disease with genetic and lifestyle risk factors. Even when non-pharmacologic interventions (controlling blood pressure, cognitive stimulation therapy, healthy diet and exercise, and maintaining social networks) (Nelson and Tabet 2015) are used as part of a comprehensive treatment plan and initiated early in disease progression, the best that current treatments can offer is to slow the natural progression of the disease With AD prevalence expected to increase worldwide across all races and ethnicities, the culture of different populations is an important consideration when designing intervention strategies. Social and economic barriers that prevent access to health care and social services among different populations need to be understood to identify and implement the best treatment specific to that population. Cultures also differ in how they view AD-related cognitive decline and may consider the memory loss a part of normal aging and therefore delay seeking treatment. An awareness of how cognitive decline in older age is defined culturally, how cultures differ in caring for the elderly, and how barriers to AD care services impacts each culture’s choice of treatment is key to developing successful interventions. Proposed Solutions The greatest challenge in developing treatment for AD that can prevent AD development or progression is that a specific cause has not yet been identified. However, recent research has identified new pharmacologic targets involved in the production of Aß and new therapies to reduce Aß and tau pathology. Research by Hu, Das, Hou, He, and Yan (2018) identified the ß-secretase BACE1 as a potential pharmacological target for the treatment of AD. In a mouse model of AD in adults with BACE1 inhibition, it was observed that synaptic function improved and Aß plaque formation was prevented. Although some clinical trials of BACE1 inhibitors have stalled, with Merck stopping its clinical trial of verubecestat in February 2018 (Merck 2018), there is still hope of developing pharmacologic treatments targeting Aß and tau proteins (Amgen 2017). A novel therapeutic approach being researched is the use of optogenetic stimulation to reduce Aß and tau phosphorylation. Using a light flickering at 40 hertz, (Iaccarino et al. 2016) found they could stimulate brain waves called gamma oscillations in a mouse model of AD and observed reduced Aß plaque formation and tau phosphorylation. This may lead to new non-invasive AD therapies, but more research is needed to investigate its effectiveness in humans. With treatment approaches that target the production of toxic Aß and abnormal tau phosphorylation, it is conceivable that in the future we may be better able to prevent and stop the progression of AD. References Amgen. 2017 Nov 2. 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