International Marketing in Construction Industry Essay

Universal Marketing in Construction Industry - Essay Example ...) know about conceivable future difficulties in this segment, and have begun, or are getting ready, to address them. The opposition in this industry is high in light of the fact that these nations have an appeal for development administrations, as they regard it to be essential for their general monetary development. In the previous years, both the interest and the gracefully bends for this industry have seen a rightward move, yet as can be seen from the outline beneath, the expansion sought after has been more than the increment in flexibly, prompting a higher balance cost, and making this industry an exceptionally productive one for providers. Because of this very explanation, there has been a ton of capital inflow and interest in the district, with more firms entering the market and a further extent of rivalry in the business. Choosing precisely which spot to go will rely upon the nation's economy, the association's objectives, rivalry in that specific nation, the market for work power, and so forth. Likewise, approaches by Governments and other legal bodies in regards to limitation on section of outside firms in the nation will assume a job. In the accompanying subjects, we will talk about what components will enable the firm increase to access to the market, and how the firm can tailor its own benefits in order to ensure it best suits the area's business. In the event that we happen to see an elevated perspective on the constru... There is an enormous assortment in various states concerning the level of improvement in this segment. For instance, albeit open development has stayed frail in Vietnam, there has been a solid extension in private development that started in late-2001, and still continues1. Indeed, this energy was sufficient to pull by and large development in the modern segment up to 9.0 percent in 2003. Information shows that development exercises recouped emphatically in Brunei from a withdrawal of 2.4 percent in 2001 to grow 7.5 percent in the next year yet a land overabundance in the capital added to the division's troubles in 20032. The development business in Singapore has a yearly gross yield of about $10 billion, with a limit of about $12 billion (Ofori, Foreign development laborers in Singapore). On the off chance that we carry this to the cutting edge, at that point putting resources into Singapore's development industry certainly is by all accounts a useful alternative for the firm. The b usiness contributes around 7 percent of total national output (GDP) of the nation and records for about 6.5 percent of absolute work. A significant thing to note is that since the mid-1980s, development undertakings from Singapore have won a sizeable volume of activities in nations inside the district. Thus, financial specialists in Singapore can get to business sectors all through the area, without really putting for all time in them. With respect to territory of Foreign Direct Investments in the locale, South, East and South-East Asia have kept on being the fundamental magnet for capital inflows into creating nations. In 2005, South-East Asia sub-locale got $37 billion (Auansakul, An Excerpt from an Overview of World Investment Report 2006), drove by Singapore, Indonesia, Malaysia and Thailand. Arrangements like permitting single-brand

Comparison of Leadership Theories

Correlation of Leadership Theories The foundation of connection among adherents and pioneers that attention on genuine changes and results that reflects through shared reasons for existing is essentially initiative. Initiative likewise includes in making change not just in keeping up status quote. Another initiative significant element is to bring individuals and make them comprehension to meet up around a typical vision and to realize change wanted future. In numerous angles, the significance of administration is fundamental without it families, networks and just as associations would go down separated. In other sense, the method of improving effectiveness, confidence, client support and execution is the basic part of initiative. It is likewise basic for the associations to deal with basic circumstance and lead that viably and just a decent pioneer with great initiative capacity can lead group effectively. There are various styles of authority fundamentally it is way the individual arrangements with that so as to rem ain alive in their position. These are dictator, vote based and free enterprise.( Business:William M. Pride, Robert J. Hughes, Jack R. Kapoor,Cengage Learning, 2009 Political Science - p.179) In dictator authority style, pioneer holds all the force and obligations. In this style, representatives are alloted to explicit assignment by the pioneer and hope to complete it precise. In free enterprise authority style, pioneer offers capacity to workers. There are at least two elective choices taken by pioneer, representatives can pick any of them from that point it depends up to them. In law based initiative styles, pioneer gives more significance on representatives and attempts to energize them and demonstrates thoughtfulness regarding people. Recorded, old style and contemporary way to deal with Leadership hypothesis: Historically there are numerous authority moves toward that connected with various speculations of administration. Extraordinary Man hypothesis of administration: 1900s: This is the soonest speculations of administration. Around then a large portion of the scientists accepted that pioneers are conceived, not made. In Great Man hypothesis, depicts that the fundamental mysteries of an incredible pioneer lies in being brought into the world extraordinary. It gives significance on the investigation of all the incredible pioneers who were extraordinary, might be they are from nobility or from the lower classes however they had the chances to lead. By discovering those individuals who did extraordinary things, for example, Nepolean, Hitler, Curchill in the event that we go further back, at that point Lord Krisna, Gesus and Hazrat Mohammad were extremely simple to bring up them. As indicated by Great Man hypothesis, it accepts that pioneers must have a few characteristics like great directing force, shrewdness, great character, fearlessness, presence of mind; savagery and expressiveness that cant be had through learning or through specific instructed programmes.(Organisational conduct by Hawa Singh,1st ed,2009-10,page-263)( Fire Service Leadership: Theories and Practices-Mitchell R. Waite, International Association of Fire Chiefs;Jones Bartlett Learning, 2008 Business Economics;page-3,4) Quality Theories of Leadership: 1900s-1940: Trait hypotheses are like Great Man speculations here and there. It accept that pioneers must have general attributes or individual highlights that they get by conceived and basic to all and make them better coordinated to authority. In Trait Theory of initiative simply attempted to discover attributes of notable pioneer that were visit. This methodology depended on the plan that is independence and individual inborn worth that recognize fruitful pioneer structure every other person. In 1994, Yukl directed research on attributes and aptitudes and connected to authoritative viability (Introduction to instructive administration hierarchical conduct: hypothesis into practice,Patti L. Possibility, Edward W. Chance,Eye on Education, 2002,page.87). These were- Vitality and weight persistence Presence of mind Internal locus of control Passionate development Value Matchless quality motivation Arriving at direction Requirement for alliance Situational Theories of Leadership: (Initiative in Organizations: There Is a Difference among Leaders and Managers, David, University Press of America, 2009, p 33) In situational speculations of administration gives more significance on the various circumstances like where the assignment to be practiced, fit encompassed by characters, force and observations. Adequacy of administration depends on those circumstances. These situational speculations are additionally called Contingency hypotheses since this Theory is dependent upon the prerequisites or the status of the circumstances. 1960s-70: In Contingency/situational hypothesis contends what pioneers play out that can be controlled by that circumstances and that practices must be connected with that natural circumstances close by (Understanding Leadership Perspectives: Theoretical and Practical Approaches, By Matthew R. Fairholm, Gilbert W. Fairholm,2008,page.11). A decent situational pioneer can just apply diverse administration styles with the evolving circumstances. The best activity taken by the pioneer relies upon of the pioneer relies upon a scope of situational factors. How the model functions basically to accomplish results: Recognizable proof of nitty gritty occupation and errand Asses present execution Comparing pioneer reaction Distinctive initiative styles could impact by the wide scope of factors relying upon the diverse ecological circumstances and it makes an effect on pioneer conduct, wherein pioneer can work. There are some basic possibilities like authoritative volume, unpredictability in task, development of laborer thus numerous others. As per situational hypothesis, situational factors are restricted and change as indicated by that possibility and determined conduct of pioneer can just work in particular sort of circumstances not for all. There are three most unmistakable speculations of possibility Way Goal hypothesis Feidlers Contingency hypothesis The Vroom-Yettons model Way Goal hypothesis: In this hypothesis basically center around pioneers inspirational capacity and it tends to be improved by expanding singular settlements to subordinates for work objective accomplishment, increase individual fulfillment by raising chances (House, 1971).According to these speculations key occupier is that the viability can be estimated through the practices of various pioneers that will be affected by situational factors. In more extensive sense it concentrated on introductory game plan and reflection conduct of pioneers however later it stretched out as participative and administration practices regarding accomplishment situated (House and Mitchell, 1974).there are two significant supposition on way Goal hypotheses of initiative (Leadershipã‚â edited by Linda L. Neider, Chester Schriesheim, IAP, 2002, page-116) Right off the bat, it worries with the reasonableness of pioneers conduct to the subordinates Besides, it worries with the persuasive elements of pioneer (House and Mitchell, 1974). Reasonableness: Leader practices should be appropriate for the subordinates so it encourages them to work well with various circumstance. This great conduct of pioneer upgrades the general fulfillments of subordinates. Inspiration: The job of a pioneer is significant in spurring of workers for specific undertaking to build the general execution. Fiedlers Contingency hypothesis: Overseeing hierarchical conduct: Henry, Neal P. Mero, John R. Rizzo Wiley-Blackwell, 2000 pages.461, 467 In 1971, Feidler proposed explanation on that how bunch execution can be influenced through the relations of administration direction, bunch setting and employment qualities. Pioneers circumstance can gauge however different degrees like connections among pioneers and individuals, structure of occupation and position power (Fiedler, 1978). The connection among pioneer and part: This alludes to how the pioneer is loved by the gathering individuals. At the point when great relationship exists among pioneers and individuals then all are get high fulfillment in work and associations esteems is accomplished through individual qualities. On the off chance that the connection is going gravely, at that point there is absence of normal trust. Another significant term bunch cohesiveness, it is hard to make all the representatives cooperate when it low. On the off chance that it is high yet awful connection with pioneer, at that point bunch cooperates to hurt the association just as pioneer. Structure of occupations: It is sorted in two different ways like high errand and low undertaking structure. In high assignment work structure pioneer should realize what the objective is and how to accomplish that. In low assignment structure work pioneer must settle on a choice how to perform task each opportunity to complete it. Position power: In high position power pioneer has position to take any significant choices without educating anybody to higher association levels. In low position power, pioneer has constrained position. The Vroom-Yettons model of administration: This model is generally utilized in the advancement of authority in corporate focus and furthermore gets enough help from professionals. (Mechanical and authoritative brain science: connecting hypothesis with practice; By Cary L. Cooper, Edwin A. Locke, page-151,152)The most significant parts of this model is that legitimates both the imperious and just pioneer conduct and coordinating that is reasonable in fastidious circumstances. This model likewise gives productive data about what might be the ideal time of utilizing gatherings or contradicted to character dynamic. This model has a few constraints like pioneers are consistently need to take choice in picking of authority styles, it considers every choice in term of circumstance yet it doesn't rely upon past factor. Psychological asset hypothesis: Psychological Resource hypothesis is the alteration of Feidlers Contingency hypothesis. This hypothesis concentrated on character, habits and situational properties. Intellectual asset hypothesis coordinates psychological assets like individual astuteness, useful information and aptitude, work capacity, into unique model. Suppositions: 1) Plans and techniques are imparted through order conduct by troughs. 2) Experienced and more brilliant pioneers ha

HOW TO Download Facebook Videos In Three Easy Steps

HOW TO Download Facebook Videos In Three Easy Steps Make Money Online Queries? Struggling To Get Traffic To Your Blog? Sign Up On (HBB) Forum Now!HOW TO: Download Facebook Videos In Three Easy StepsUpdated On 08/06/2018Author : Pradeep KumarTopic : GuidesShort URL : http://hbb.me/2oziXhR CONNECT WITH HBB ON SOCIAL MEDIA Follow @HellBoundBlogLong back, I shared a tutorial for downloading HD Quality Youtube videos and we also shared how to download Facebook Albums easily.Now Im going to share another simple tutorial for downloading Facebook videos in three easy steps.Working Procedure For Downloading :#1 Go to Facebook Video Downloader and enter the Facebook video link in the download box shown.Video Link? How to get that? It is really simple. Go to the specific Facebook video, right click on it and select Copy link address. [I used Mozilla Firefox here and it is recommended.]Example : http://www.facebook.com/video/video.php?v=105596872793612After getting the video link, paste it in the download box as show in the picture below.#2 N ow click the Download This Video button and then the streaming video opens in a new window.#3 Right click the video and select Save video as... Hurray! Now your desired Facebook video is downloaded.If you are a Facebook Addict, then these might be useful to you :10+ Tips To Identify Fake Profiles On Facebook5 Cool Greasemonkey Scripts For Facebook Users5+ Best Sites To Sell Facebook Applications10 Cool Tricks For Facebook UsersYou can also try Facebook Video Downloader Chrome Extension for downloading Facebook videos easily.Do You Know? You can embed Facebook videos on your blog without downloading them.Do you know any other way/method for downloading Facebook videos easily? Please share it in the comments. READHow To Install Thesis Skins [Tutorial]

The Image Processing Techniques For Breast Cancer

Abstract- In recent years the image processing techniques are used commonly in various medical areas for improving earlier detection and treatment stages, in which the time span or elapse is very important to discover the disease in the patient as possible as fast, especially in many tumours such as the lung cancer, breast cancer. This system generally first segments the area of interest (lung) and then analyses the separately obtained area for nodule detection in order to examine the disease. Even with several lung tumour segmentations have been presented, enhancing tumour segmentation methods are still interesting because lung tumour CT images has some complex characteristics, such as large difference in tumour appearance and uncertain tumour boundaries. To address this problem, tumour segmentation method for CT Images which separates non-enhancing lung tumours from healthy tissues has been carried out by clustering method. The proposed method uses pre-processing technique that rem ove unwanted artifacts using median and wiener filters. Initially, the segmentation of the CT images has been carried out by using K- Means clustering method. To the clustered result, EK-Mean clustering is applied . Further the features like entrpy, Contrast, Correlation,Homogenity and the area are extracted from the tumorous part of Fuzzy Ek- Means segmented Image. For feature extraction, statistic method called Gray Level Co-occurrence Matrix (GLCM). Classification is done by using theShow MoreRelatedAdvanced Computational Intelligence Techniques For Hypoglycemia Monitoring System1204 Words   |  5 PagesPROJECT TITLE : ADVANCED COMPUTATIONAL INTELLIGENCE TECHNIQUES FOR HYPOGLYCEMIA MONITORING SYSTEM. Microwaves imaging recognition by using advanced computational intelligence on biomedical applications (breast cancer detection) RESEARCH AREA OF INTEREST : HEALTH TECHNOLOGIES 1. INTRODUCTION This project aims to develop improved microwave imaging algorithms using radar based time reversal signal processing coupled with tomographic reconstruction to solve for the inverse source and scattering problemsRead MoreApplication Of Higher Order : Features On Mammograms Essay1701 Words   |  7 Pagesprapti.research@gmail.com Abstract— Photographing the changes in internal breast structure due to formation of masses and microcalcification for detection of Breast Cancer is known as Mammogram, which are low dose x-ray images. These images play a very significant role in early detection of breast cancer. Usually in pattern recognition texture analysis is used for classification based on content of image or in image segmentation based on variation of intensities of gray scale levels or coloursRead MoreBreast Cancer Essay1160 Words   |  5 PagesBreast cancer is the most commonly detected disease in females everywhere [1]. There are several efforts done to give solutions to Detect of breast cancer using thermal images. In this section we will make a review for some of these iterations. Araujo et al. [2] proposed a framework to use interval data to model breast strange shape as malignant, benign and cyst. They used a segmentation method that drawing ellipsoidal elements that selects the area of each breast. Ellipses were adjusted for theRead MoreBreast Cancer Develops From The Breast Tissue1216 Words   |  5 PagesBreast Cancer Breast cancer develops from the breast tissue. It occurs when abnormal cells in the breast divide uncontrollably and form tumours. The tumours are either a lump or a thickening of body tissue. According to cancer research UK, in 2012, there was 50,750 new cases of breast cancer in women and 353 new cases of breast cancer in men, in the UK. There was also 11,716 deaths from breast cancer. (http://www.cancerresearchuk.org/health-professional/cancer-statistics/statistics-by-cancer-tRead MoreAnalysis : Automated Tissue Image Analysis1748 Words   |  7 Pages Topic1: image analysis JIAN GAO 13050902 This report is about automated tissue image analysis, there are 5 parts in this article: 1. Introduction of image analysis 2. How image analysis be used in slide image of histology 3. What can be obtained from slide of diagnostic use 4. Discuss the advantages and disadvantages of image analysis 5. Conclusion 1. WhatRead MoreArtificial Neural Networks ( Anns )1749 Words   |  7 Pagesloosely based on the human biological nervous system which work to model statistical data. An ANN â€Å"consists of processing elements known as neurons that are interconnected to each other and work in unison to answer a particular problem [, and] can be used in places where detecting trends and extracting patterns are too complex to be detected by either humans or other computer techniques.† Although recent in their explosion in popularity, the underlying logic behind ANNs have existed for â€Å"nearly aRead MoreEssay about Breast Cancer Diagnosis Methods Analysis2614 Words   |  11 PagesAbstract: Breast cancer research over the last decade has been tremendous and the novel methods being develop help in the early detection, in setting the stages of the therapy and in assessing the response of the patient to the treatment. Some of the studies look very promising and their use in future may decre ase the radiation dose to the patient. This paper studies various techniques used for the diagnosis of breast cancer. Different methods are explored for their merits and de-merits for the diagnosisRead MoreAn Evolving Diagnostic Decision Support System769 Words   |  4 PagesProc. of the 6th Int. Conf. on Information Processing and Management of Uncertainty in Knowledge-based Systems (IPMU96). pp.1445-1450, Granada, Spain (1996). 7. ellaHassanien, A., Ã…Å¡lzak, D. (2006). Rough neural intelligent approach for image classification: A case of patients with suspected breast cancer.International Journal of Hybrid Intelligent Systems, 3(4), 205-218.† 8. Pal, S. K., Polkowski, L. (Eds.). (2012). Rough-Neural Computing: Techniques for Computing with Words. Springer Science Read MoreThe Size Based Filtration For Ctc Capturing1714 Words   |  7 Pagesfabrication techniques. The size-based filtration for CTC capturing is described in Figure. 2C. The Jettaâ„ ¢ microfluidic slide captures and isolates rare CTCs from blood samples based on their size and deformability differences from blood cells with a very high efficiency (85%). The label free capture process allows researchers to customize assays based on the size of the cells they are seeking to isolate. The microfluidic chip captures various types of CTCs: large, small (compared to leukocytesRead MoreMammography: A Special Imaging Method in Diagnostic Radiology3550 Words   |  15 Pageswithin the breast. This evolution has been enabled by advancements in the technology itself and its implementation into healthcare regulations of numerous countries around the world (Pisano et al., 2004). In its beginning stages, breast cancer is a relatively treatable disease, and increased awareness for both mammograms and self-breast examinations have led to earlier diagnoses. Studies suggest that increases in mammography screenings have been one of the main reasons that breast cancer mortality

Argumentative Analysis Of Martin Luther King - 982 Words

Argumentative Analysis In 1963, activist Martin Luther King Jr. wrote a letter to the clergymen stating various rhetorical strategies to persuade them and the American of â€Å"injustice anywhere is a threat to justice everywhere,’ that the ‘stinging darts’ of segregation have made it impossible to wait any longer for freedom† (King 136) Dr. King tells the clergymen that he was upset about their criticisms, on how nonviolent resistance to racism were not â€Å"unwise† or â€Å"untimely†. In his letter, King used the elements of Aristotle and engages them with the practical reasoning process of the audience to persuade the clergymen to act on the injustice that is happening to his people. He does this using figure authority, emotional appeal, and the use†¦show more content†¦Dr. King blends pathos and practical reasoning to emphasize his argument. His argument on racism was straightforward and direct he uses his heart. Take as an example when he mentions in the letter â€Å"I had hoped that the white moderate would understand†¦. Now is the time to make real the promise of democracy.† (24-26) He uses this and makes the audience feel emotional intensity and to present his frustration on lies that he’s been given by the people who have said they will help him and do nothing about it. King later in the letter mentions â€Å"dangerously structured dams that block the flow of social progress,† failures to â€Å"lift our national policy from the quicksand of racial injustice to the solid rock of human dignity.† (24-26) This quote is an example of how he connects his feelings to persuade the clergymen to act upon the sizzling situation before it worsens and corrupts all the nation. Accordingly, he is letting the audience know his community has been unquestionably patient for a long period of time and therefore he is writing his letter. For his assert he persuasively used a blend of elements such as and practical reasoning and direct argumentation. These elements are what made his letter certainly inspiring and courageous. The elements that King uses obtains what he wants, intrigued his audience, make them feel what he is going through and is requiring them to act. For instance, he quotes â€Å"discipline,† their restraint from violenceShow MoreRelatedSelf-Reflective Paper 838 Words   |  3 Pages20 pages in this course after turning in this paper, and not including citation pages. In paper 1 I was able to write 4 and a half pages and that was due to my interest in the topic, arguing about the significance of paragraphs 14 and 15 of Martin Luther King Jr’s Letter from Birmingham Jail. For paper 2, which was choosing a topic of choice to argue about, it was easier to write more due to the fact that arguing the topic was so engaging to me. My topic was whether or not congress should allow abortionsRead MoreJoey Martin . Professor C. Danley . English – 2367: Writing1753 Words   |  8 PagesJoey Martin Professor C. Danley English – 2367: Writing Proposal 30 January 2017 A Textual Analysis of: The Second Chance Killer My writing proposal topic is based off the article â€Å"The Prisoner† written by the author Skip Hollandsworth. And published on Texas Monthly, created a masterful piece that had a distinct purpose and way of portraying a twelve-year-old killer. Hollandsworth goes on to explain Edwin growing up in poverty and around gang violence for most his juvenile life. Edwin grew upRead MoreInstructive Text Types11631 Words   |  47 Pagestype†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Chapter 2.Text Forms†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.... 2.1 The descriptive text form†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.... 2.2 The narrative text form†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2.3 The expository text form†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦.. 2.4 The argumentative text form†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2.5 The instructive text form †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦ Chapter 3.The directive-instructive text-type†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦.. 3.1 General characteristics†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3.2 Directive and InstructiveRead More Promoting and Protecting Minority Rights Essay2310 Words   |  10 Pagesother things, did find similar ground in balancing minority rights with majority rule. While on one hand, it seemed reasonable to allow the majority to choose policy, on the other it seemed clear a majority could just as easily abuse a minority as a king could abuse his people if left completely unrestricted. Thomas Jefferson, in his own words stated In Republics, the great danger is, that the majority may not sufficiently respect the rights of the minority.† If the federal government did not takeRead MorePsychology and Ob9277 Words   |  38 Pagesa) conscious choice. c) scientific research. b) unconscious processes. d) psychotherapy. ANS: b DIFF: 2 PG: 1-17 TYPE: R OB: 4 80. Dr. Cooper treats her patients by exploring their unconscious conflicts using dream analysis. Self-direction and conscious choice are not part of the therapeutic intervention. Dr. Coopers theoretical approach is a) humanistic-existential. c) psychoanalytic. b) social-cognitive. d) neoanalytic. ANS: c DIFF: 3Read MoreLogical Reasoning189930 Words   |  760 PagesUniversity v Acknowledgments For the 1993 edition: The following friends and colleagues deserve thanks for their help and encouragement with this project: Clifford Anderson, Hellan Roth Dowden, Louise Dowden, Robert Foreman, Richard Gould, Kenneth King, Marjorie Lee, Elizabeth Perry, Heidi Wackerli, Perry Weddle, Tiffany Whetstone, and the following reviewers: David Adams, California State Polytechnic University; Stanley Baronett, Jr., University of Nevada-Las Vegas; Shirley J. Bell, UniversityRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesDominican University Doyle Lucas, Anderson University Alexandra Luong, University of Minnesota Rick Maclin, Missouri Baptist University Peter Madsen, Brigham Young University Lou Marino, University of Alabama Catherine Marsh, Northpark University J. David Martin, Midwestern State University Timothy A. Matherly, Florida State University John Mattoon, State University of New York Paul Maxwell, Saint Thomas University Brenda McAleer, University of Maine at Augusta Christina McCale, Regis College Don McCormickRead MoreDeveloping Management Skills404131 Words   |  1617 PagesLine 58 Understanding and Appreciating Individual Differences Important Areas of Self-Awareness 61 Emotional Intelligence 62 Values 65 Ethical Decision Making and Values 72 Cognitive Style 74 Attitudes Toward Change 76 Core Self-Evaluation 79 SKILL ANALYSIS 84 Cases Involving Self-Awareness 84 Communist Prison Camp 84 Computerized Exam 85 Decision Dilemmas 86 SKILL PRACTICE 89 Exercises for Improving Self-Awareness Through Self-Disclosure 89 Through the Looking Glass 89 Diagnosing Managerial Characteristics

What Is DNA Replicated From DNA - 800 Words

In cells, DNA is replicated from chromosomes with two points of regulation: a six protein complex forms at an origin and is activated by proteins that can modify others (Gambus et al, 2006; Labib, 2010; Zegerman and Diffley, 2006). This draws more proteins towards the origin for initiation to occur. Origins are specific DNA sequences where the two DNA strands are unwound for replication, creating fork-like structures (Labib, 2010). Origin unwinding occurs by the six protein complex mentioned with other initiator proteins and a four protein complex called GINS (Gambus et al, 2006). Another six protein complex called the Origin Recognition Complex orders these components at the origin (Takeda et al, 2005). DNA replication is then carried†¦show more content†¦The ability to create an artificial origin allows for more research into the start of replication including the protein involved (Takeda et al, 2005). DNA Replication Initiation One paper used bypassing proteins in the replicative process of yeast to find that modification of proteins Sld2 and Sld3 by a modifier protein is only required for replication activation (Zegerman and Diffley, 2006). Sld3 modification allows it to bind one end of a bridge-like protein Dpb11 while Sld2 binds the other. The Sld modifying protein modifies up to two hundred different proteins and is activated by other modifying proteins used earlier in the replication process and its levels are kept low in these earlier stages as to avoid replicating DNA too early (Labib, 2010; Zegerman and Diffley, 2006). This paper could have suggested a role for the Sld2/3-Dpb11 interaction but does provide greater insight into various modifying proteins’ functions in replication (Zegerman and Diffley, 2006). Gambus et al showed that in yeast GINS interacts with the initial six protein complex mentioned and many regulatory proteins, through multiple methods such as r elated to their mass, and investigated the interaction strengths by incremental inhibition of their bonding (Gambus et al, 2006). GINS positions these extra proteins around the six protein complex and allows their interaction for DNA unwinding and replication. Understanding GINSShow MoreRelatedEssay about The Question of Biology is Why?1518 Words   |  7 Pagesother things. As humans, we are comparative by nature—always wondering what is the best between multiple things (if it even is) and why. That is why we do it, ultimately. We feel that we must answer the question â€Å"Why?† In this biographical paper, I will be analyzing two very different processes: DNA Replication and the Polymerase Chain Reaction (PCR). It is that each of these individual processes carries much importance. 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Spirituality Personal Worldview Inventory - Free Sample Solution

Question: Discuss the various possible meanings of the term "spirituality," and your understanding of the concepts of pluralism, scientism, and postmodernism? Answer: Spirituality is applied differently for every human being. Someone can exercise their spirituality by doing prayer in the church or mosque or temples (Dennis, 2014). But someone may exercise his or her spiritual side by silent and private prayer, yoga, meditation etc. Pluralism is a policy concerning with the diversity of religious believe which are co exist in the society. According to worldview one religion believes is not solitary and elite source of the divine truth (Rouner, 1984). Acceptance of two or more religious believe mutually is even valid for the purpose. Scientism is an application or believes which is applicable universally. This is a scientific approach. It is an observation that experiential science comprises the majority reliable worldview or the majority precious part of individual knowledge to the elimination of other point of view (Williams Robinson, 2014). Postmodernism is kind of religious believe which is influenced by the postmodern philosophies. This view considers and examines the orthodox views of the religious faith and applications. Postmodern understandings of religion admit and worth a variety of miscellaneous explanations of truth (Hungerford, 2010). There is a negative response of pointed difference and worldwide Meta narrativein the sphere of postmodern belief and this reproduce one of the nucleus of the philosophy. In spiritual believe prime reality refers to the sole power of God and only God (Gaston, 1999). This view reflects the view that God is not touchable and invisible, we have to feel the presence by the spiritual understanding. The person who believes in God, they viewed that God has extreme power and there is no boundary of the expectation from the supreme power. Nature is created by the God for our living and maintains our family. It is created by the supreme power to maintain our personal relationships. It present around us as it created by an autonomous supreme power. In the discussion of spirituality, the discussion of human being is obvious. It is the basic question the basic question that whether God created human being by his imagination or the human beings are just the naked Ape. According to the spiritual concept, we can claim that human beings are created by God at his imagination but if we consider the post modern concept of spirituality we may conclude that human beings are created by nature. This is also a major question in this part is that what happened to a person after death. the transformation may apply here. The spiritual believes state that the sole of a human being never dies; it is the body which extinguishes after the death of a human being. We are made by the supreme almighty who has the knowledge about everything. He can be detonated as all knowing God. The intelligence has developed under the several long process of evolution. We have the understanding about right or wrong because we are created by God. The spiritual believes declares that the nature of the God is always good and that is the reason for that we can determine and discriminate between the good and bad thing around us. The scientific theory states that it is the effect of our social and cultural upbringing which helps us to understand the meaning of good and bad. Human history considered to be based on the particular question that whether we come from the God or something else? General believes declares that the purpose of the God is to make paradise on the Earth for this reason. The human life and community is based on this theory. Scientific and post modernism theories state that the human beings are developed in the by the evolution in the nature. By the answer of the all question we can get an idea about the human and spiritual believes. It denotes the theory of originality of human being. It will help the human being to understand the concept of right and wrong in human being. The theories apply to the structure of family and human needs. Along with these entire queries in mind, we have a concise appear at what are possibly the chief worldviews so as to people clutch in this contemporary planet. It is significant to measure that the subsequent prcis are tremendously brief, and we can think in unsophisticated way. The theory of spirituality and believes are reflected the view of originality of the human being. The spiritual practices are now influenced by the modern waves. This brings more scientific views and ways in the theory. It encourages more modern approaches and reasoning to the general spiritual believes. References Dennis, P. (2014).Spirituality. Cork: BookBaby. Gaston, R. (1999). God, Religion and Reality.Theology,102(806), 132-133. doi:10.1177/0040571x9910200218 Hungerford, A. (2010).Postmodern belief. Princeton: Princeton University Press. Rouner, L. (1984).Religious pluralism. Notre Dame, Ind.: University of Notre Dame Press. WAAIJMAN, K. (2007). Spirituality - a Multifaceted Phenomenon.Studies In Spirituality,17(0), 1-113. doi:10.2143/sis.17.0.2024643 Williams, R., Robinson, D. (2014).Scientism. London: Bloomsbury Publishing.

Loss of Biodiversity free essay sample

The definition of biodiversity encompasses the degree of variations in organisms and/ or species within an ecosystem. The loss of biodeversity would be the diminishing of dfferent species within that ecosystem. For example, a lake may be the home to many types of fish. A change in the lakes temperature or chemistry may affect a food source for a certain type of fish. This type of fish may die out and leave the lake with one less species in it. The loss of one fish or food source may impact other populations and furthe diminish species diversity. Cause Invasive Species plants or animals which have moved to a habitat where they were not naturally found and are more successful than local species. Habitat loss Agriculture, housing and industry are destroying the habitats of many plants, animals and microbes. Our development means we must destory or decrease the natural ecosystems. Many animals have a certain range that they must maintain in order to live. We will write a custom essay sample on Loss of Biodiversity or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page If they do not have access to this area, their lives are significantly altered. Pollution Our oceans, rivers, lakes and lands have become rubbish bins for societys industrial and organic waste. Plastic in our garbage causes enormous problems. It kills or injures many marine animals and birds either through accidental entanglement or ingestion of the material in the mistaken belief that the plastic is food. For example, sometimes bags are misidentified as jellyfish. Climate Change Many plant and animal species are unlikely to survive climate change. For some species there will no longer be anywhere to live. Exploitation We have drastically reduced some fish populations, hunted some whales to the verge of extinction and destroyed whole forests and their ecosystems. Blast fishing is another practise which reduces the coral reefs in the sea. It is practiced in many areas. This is the process whereby dynamite is placed into an area in order to catch a large quantity of fish. Coral reefs especially are devastated by this activity. It is most prominent in undeveloped countries where this practice has existed for years. Effect The ecosystems deteriorate to an unsustainable level, at which the results would be incredibly expensive to reverse (ex. in Bangladesh and India, the over-logging of trees and forests makes floods during the monsoon seasons deadly. environmental changes Loss of one species may cause a chain reaction, resulting in a change to the ecosystem itself. gives us less choice as humans If certain species are lost, they are no longer available to us either as food, as enjoyment, or as resources for things we may not even know about yet. For example, if we deplete all the yellowfin tuna in the ocean, we no longer have this species avail able for our consumption. If we are divers or underwater explorers, we no longer can see this fish in its own environment and receive pleasure from this act. Solution Stop climate change from running out of control. In order to tackle climate change world needs international climate deal that would reduce greenhouse gas emissions on global level. Stop deforestation. Tropical rainforests are the areas of the richest biodiversity in our planet, providing living environment for millions of different species. Reduce environmental pollution. Pollution is not only happening in land but also in our oceans having very negative impact on marine biodiversity. Animals and plants cant thrive in polluted environment. Education and the Media Through educating people about the severity of this issue, there will be (hopefully) less exploitations of resources, pollution, and habitat losses. In addition, the media could be used to spread these types of thoughts and again, emphasize the importance of biodiversity, the detrimental effects it has on ecosystems, and how it impacts us. Biodiversity also needs to be more studied in order to give us the necessary knowledge needed to protect animal and plant species from going extinct.

Effect of indo on family essays

Effect of indo on family essays What has been the effect of industrialisation on the family? In our society there are many different types of families. Depending on the way someone has been raised, his or her perception of a family would differ. The types of families that are common to our world are as follows: Extended family, Nuclear family, Lone parent family and the Reconstituted families. The extended family usually consists of 3 generations: the grandparents, parents and children. The extended family has been popular amongst people living in an agricultural society. This is usually because so many hands are needed to work in the fields. Industrialised families can also contain extended families. This could be because in times of poverty a larger family could help economically. The nuclear family is smaller then the extended family and is made up of parents and their children. Some agricultural societies have nuclear families because its crucial to survive. This could be because of lack of food, shelter etc. therefore a smaller family would be useful. The lone parent f amily includes a single parent and his/her dependant children. These types of families tend to be governed by females. Single parents are usually the product of divorce, death of a partner or pregnancy outside of marriage. Finally stepmothers or stepfathers manage the reconstituted families. Now that we are aware of what types of families are existent around us we can move on to what the industrial revolution done to the family. R.M. Maclver and C.H Page are of the functionalist family, along with Talcott Parsons and Ronald Fletcher. Maclver and page believe that both the extended and nuclear family have a number of functions. The roles of the nuclear family are to provide a home, production and rearing of children and sexual needs and the extended family has several functions (therefore making it multi-functional) and patriarchal (which means it is headed by a male). Maclver...

ZAPPOS.COM Assignment Example | Topics and Well Written Essays - 500 words

ZAPPOS.COM - Assignment Example Customers are treated as humans and taken utmost care. Customer service and Culture are the biggest lessons that organizations and other leading people should pick up from Zappos and its CEO. Almost two-third of the sales for Zappos is from repeated customers which underlines the customer service provided by them. With the growing market and the ever increasing competition in the market, Zappos grew from selling shoes to the selling clothes, bedding, toys, cookware, electronics, and more. Though this has been emulated from Amazon, Zappos policy of customer satisfaction with free shipment has only contributed to its success. The company’s core values define its diversity. To encourage the employees to be in sync with the company’s culture of being open-minded, humble and encouraging to learn all the time all point towards endorsing diversity. Such an environment gives all the employees to be themselves and be professional following the corporate culture all the time. Yes I agree with this assertion. Zappos is mainly focused on customer relationship. Zappos just does not focus on lowering the prices as a part of its customer service; it takes care of each customer. They have set the tone for other companies to follow. Most companies spend lots on advertising and attracting customers but fail to deliver what they promised. Zappos does not spend more on advertising but retains most of its clients with its excellent service to the customer. It increases business impressing clients with its service. The advertising comes in place through the clients who are impressed with the service that they recommend their friends to go with Zappos. Zappos policy of being Simple, committed to customer service and being oneself are the main aspects other organizations should emulate. Friendly and humble CEO who bothers more about chasing vision of satisfying the customers and not charts and graphs of

Francis Bacon and Rene Descartes Essay Example | Topics and Well Written Essays - 1250 words

Francis Bacon and Rene Descartes - Essay Example The point is that Bacon considered the reality as perceptional, empirical thing, that’s why the only knowledge that can be reliable for humans is the perceptional one. Rational thinking only processes the empirical information. Descartes’ method or rational analysis of deduction is about thinking only. Descartes claims that any knowledge that we get must be questioned by doubt not to take wrong and mistaken information for truth. By deduction Descartes means analyzing the reality by finding the most elementary truth, which lately will lead to some bigger truth and this consistent order of research must reveal the origins of everything. But the main rule in this inquiry is to be skeptical, because only skeptical approach can discern wrong and truthful knowledge and select the appropriate one to move on in exploration. Bacon’s and Descartes’ methods are obviously totally different, because the fundamentals the thinkers use in their approaches are considered to be opposite. Descartes uses rational thinking and doubt-based analysis, while Bacon claims that the only thing researcher can rely on is empirical knowledge. Both Locke’s and Hobbes’ political theories are based on the concept of social agreement (contract). But the main essential difference between the roles of government in these theories is in their opposite views on basis of society: Hobbes claims that society is based on feud of people with each other, when Locke says that it is equality what makes people to conclude social agreement.

Effects of Central Bank Independence on Inflation Rates

Effects of Central Bank Independence on Inflation Rates Abstract This paper analyses and explains the effects of central bank independence on a countrys inflation rates and its economic performance thereafter. It deals with the benefits believed to come along with independence and the delegation of monetary policy to the central bank, the determinants and accuracy of the index of central bank independence (CBI), and the different impact that CBI has on developed and developing countries. The studies and test conducted have shown that CBI lowers inflation in developed countries but in developing countries it might have the reverse effects, mainly due to the degree of independence, and factors like traditions, the law, and the statue of the economy which vary across countries. 1. Introduction This paper intends to study the relationship between central bank independence (CBI) and inflation levels among different countries; developing and industrialized. The main research problem that I intend to examine is whether central bank independence can lower the inflation rates of the countries that grant independence to their central banks, and whether this can lead to improved economic performance. What is discussed in this paper is not only whether central bank independence (CBI) can lower inflation and hence inflation variability, but also whether this can be achieved at low cost. The economies presented in the study include both those of the developed countries, e.g. the U.K., as well as those in transition e.g. Russia that have recently gained entrance in the EU. In this paper I analyze the impact of CBI on inflation, the benefits that are believed to come along with CBI and the factors used in measuring CBI. You will see that CBI can have different forms of measurement that produce slightly different results, hence the effectiveness of the CBI index is also analyzed. The reason for choosing this topic for further study is simply because during the past two decades there has been a considerable move towards central bank independence across several countries, with the belief that this will improve their inflation levels and thus contribute to economic growth. However, as you will see further on, this is not always the case, as some studies have revealed contradicting results, and economists and academics continue their studies to get a clerer picture of this issue. 2. The Spread of CBI and The Reasons for It To begin with, it is amazing how fast CBI has spread among countries and governments since the late 1980s. One simple explanation of this spread is A.Alesinas (1988; 845) statement: independent central banks have been associated with a lower average inflation rate and may have been responsible for reducing politically induced volatility of monetary policy and inflation 2.1 Should a central bank become independent? Folder (2005) explains that CBI was adopted to avoid possible disputes between political parties as a central bank is seen as a provider of information. Many economists have expressed their opinion on the spread of CBI; others have linked it to a way of avoiding the blame of political failure by some governmental parties (Miller, G. 1998, White 1994). Others have linked it to the infrequent changes of the government (de Haan and vant Hag, 1995). That is, central bank independence in many cases was adopted after periods of high inflation in order to reduce it, due to the inflation targeting function a central bank is capable of pursuing. It can also be associated with the attraction of foreign investment and hence economic growth as a consequence of the targets set and the autonomy with which the bank can then operate (Maxfield, 1997). In countries within the European Union, CBI is a perquisite following the Maastricht Treaty (1992) for adopting the euro currency. Overall and according to Folder (2005), independence has always been related to the adoption of anti-inflationary measures for pursuing monetary policy, but its explanation lies within the sociology of the financial elites and the politics legitimizing their policy preferences. The reasons behind achieving price stability through gaining central bank independence, Cukierman (1996) explains are several and include; the breakdown of other institutions like the European Monetary System (EMS) that had been responsible for maintaining price stability which is considered as the single and most significant objective of a central bank. Ilieva and Gregoriou (2005) suggest that in transition economies central bank independence has increased mainly due to the desire of such countries like e.g. Czech Republic, Poland, Romania, etc., to join the European Union and the acquis communautaire that applicant countries should adopt. As they continue to reason the addiction to CBI, they add that another incentive for CBI is the international financial institutions such as the IMF (International Monetary Fund) that require certain criteria to be met before making unconditional loans, and these criteria are feasibly met with the help of CBI. Also, countries are attracted to CBI as this will attract potential investors by improving the nations creditworthiness. Cukierman, A. (1996) analyses developments since the late 1980s to the legal independence of central banks and to its meaning; the measurement of CBI, the interaction of central banks with the government, its effect on the economy, its determinants, etc According to Cukierman, the trend towards CBI is due to a quest for price stability which is due to the following two reasons: First, following the stagflation of the seventies and the adverse economic performance of some high inflation countries, in Latin America and elsewhere, conventional wisdom concerning inflation and real growth has changed. Whereas during the sixties the accepted view was in line with Keynesian dogma, that some inflation is good for growth, during the eighties and nineties became that inflation and the associate uncertainties retard growth. (1996; 3) The good economic performance of Japan and Germany, countries with already low inflation added more value to the above concept. Second, the rapid growth and internationalization of capital markets raised the importance of price stability as governments and private investors sought to enhance their access to broadening world financial markets. (1996; 3) 2.2 Types of Central Bank Independence Independence with regards to central banking can be categorized into different groups, depending on the degree of freedom and the subject from which the central bank becomes independent. The major types of independence are; Legal independence, where the bank is partly accountable to the government and legislation provides a framework within which the central bank and the government cooperate on certain issues. This form of independence varies significantly among countries as it depends on how strong in the law in each country and the degree to which it is followed. However, the degree of legal independence, namely LVAW, as it will be shown below, has been used by many as a major index of measuring the degree of CBI. Goal independence refers to the case where the central bank is allowed to set its own goals, e.g. price stability, money supply, inflation targeting. However in most cases under this type of independence, the bank will decide on its goals with the confirmation of the relevant governmental departments. In this way, goal independence helps avoiding conflicts among fiscal and monetary policies, and increases the level of transparency and credibility of the central bank over its goals. Operational independence is the most common form of independence and is followed by many central banks around the world, for instance, the Bank of England since 1997. It involves the government setting the banks goals e.g. a 2% level of inflation, but the central bank being free to choose the instruments e.g. interest rates, to meet the targets set by the government. Another form of independence is managerial independence, by which the central bank has the power of appointing its own stuff, set its budget, etc. This form is a necessity for the existence of the other abovementioned forms of central bank independence and is therefore granted to all central banks that can call themselves independent. 2.3 The case for central bank independence There is a huge surge towards central bank independence by both the public and the governments, in the belief that independent central banks will not only achieve low inflation rates and price stability, but will subsequently lead to long-term economic growth and development. However CBI is an issue that needs further research before determining whether it should be adopted by all countries. This depends on the economic state of the country, whether it is a developed or a developing country or even on the demand of autonomy by the political parties within the country since by granting independence the government must pass to the bank the responsibilities of e.g. controlling the interest rates, etc. over which it used to have the power. Another issue that needs to be examined before granting independence to a central bank is the political stability and the degree of uncertainty within the country. This is because in times of uncertainty and instabilities, e.g. prior to elections, the public favours CBI as an independent central bank is more objective in its role and always forward looking without ignoring the long-term effects of its decisions. The majority of the parties affected by the actions of an independent central bank, i.e. the government as well as the general public are attracted by CBI because of the greater accountability and transparency the bank is equipped with when adopting a greater degree of autonomy. Moreover, it is expected to bring lower levels of inflation and this is the main reason why people welcome CBI and the number of central banks becoming independent has been increasing over the years. The main reason behind this expectation is because a central bank generally acts in favor of the public and in addition to the fact that it becomes free from the government and any political pressures, it is in a position to avoid short-term temptations regarding low interest rates which the government usually uses prior to electoral periods, for the sake of long-term low inflation and price stability, which in combination with other exogenous factors can result in economic growth. Moreover, when a central bank gains its independence through institutional reform it becomes capable of appointing its own governor thus it moves away from political interference, and can also set an explicit inflation target. Additionally and as Carlstrom, T.C. and Fuerst, S.T. (2006) explain independence helps a central bank in constraining the behavior of fiscal authorities. That is, it can prevent people and especially the government following fiscal policy from acting in their short-term best interests, recognizing that any actions taken in the short-term e.g. lowering the interest rates to attract investments, may become undesirable in the long-term, e.g. rising inflation levels as with higher demand from low interest rates, the prices will likely increase. In this way, CBI also prevents the fiscal authorities from inflating the short-term for delivering e.g. favorable exchange rates. Hence, monetary policy can run in a more credible way and following the targets set, markets w ill know what to expect thus shocks will be limited. However an independent central bank is also likely in extreme cases to bring so low levels of inflation that can be harmful to the economy. According to Epstein, G. (2007), the 3.5% drop in inflation levels by countries adopting an inflation-targeting monetary policy (IMF, 2006) is questionable as to whether this decline will improve economic growth. Explicitly, if the inflation level of a country is already low and the central bank adopts an inflation-targeting monetary policy then the resulting lower inflation level might prove dangerous to the economy by generating economic cycles. Cukierman (1996) has developed two separate approaches for reasoning the urge towards central bank independence and explaining the benefits that can be enjoyed from independence. These include; the theoretical approach according to which in the short-run monetary policy can be conducted in such a way that it allows for some inflation so that it can achieve employment, high economic activity and low interest rates. Hence, policy makers can expect some degree of inflation which they will present in the form of nominal wage and capital market contracts. In this way however, policy makers will have to keep inflation at a level that would balance the real equilibrium if they had been committed to zero-inflation. As a result of this discretionary use of monetary policy, this is subject to inflationary bias, and this bias can only be minimised if monetary policy is delegated to an independent central bank because only this institution is free to choose how to operate monetary policy and takes interest mostly if not only to price stability. And the empirical approach by which the case of CBI lies on empirical evidence showing that countries with an independent central bank have lower inflation rates and higher growth rates per capita output. An example of such a country is New Zealand: 2.3.1 The case of New Zealand New Zealand is a country whose central bank managed to drop the inflation level after being granted with greater independence. The Reserve Bank of New Zealand was granted independence in 1989 following the Reserve Bank of New Zealand Act of 1989 and had therefore established an explicit inflation target. The result was to reduce inflation levels from 7.6% during the years 1955-1988 from when the reserve bank was not independent, down to just 2.7%, after becoming independent, during the period 1989-2000. The latter rate is now considered one of the lowest among industrialized countries. It is obvious that among all OPEC countries, the central bank of New Zealand managed to achieve the lowest inflation rate, especially during the 1990s. What happened during the period of the inflation reduction was that the reserve bank of New Zealand went through a reform that resulted in it being granted with independence and a greater degree of autonomy, leading to low inflation. Specifically, prior to 1989 it used to be an arm of the government. Monetary policy used to be subject to the ministry of finance and therefore the government. As a result, the level of independence was one of the lowest among industrialized countries, while the level of inflation was of the highest. Even then, the relationship between central bank independence was negative, even though the results were the reverse of what is considered optimum, i.e. greater independence, lower inflation. In 1989, the Reserve Bank of New Zealand Act was passed by law. This act codifies inflation targeting and gives more autonomy to the countrys central bank in order to meet its objectives. According to the Act the central banks primary function is: to formulate and implement monetary policy directed to the economic objective of achieving and maintaining stability in the general level of prices. (Reserve Bank of New Zealand Act, 1989 as quoted in Carlstrom T.C. and Fuerst, S.T., 2006, p.3). The impact of the Act on New Zealands economy and specifically the Reserve Banks autonomy can be seen in figure 2 below, which compares the degree of independence across different time periods and among different countries. The findings of the New Zealand case show that if the country had adopted independence earlier then its average inflation rate would be 3.4% rather than 7.6% that it actually used to be, assuming all other things being equal. Following this assumption, CBI itself would be sufficient to reduce worldwide inflation levels from 5.6% down to 3.8%. Despite the considerable drop in New Zealands inflation rate it is still questionable whether this drop was caused solely by CBI, and it is difficult, if not impossible, to quantify by how much the inflation reduction was due to CBI. Firm conclusions cannot be made yet since the data used in this case is of limited sample size and comparisons would therefore be insufficient. What is true is that the relationship between CBI and inflation is similar across time. Any changes to the strength of this relationship are mostly due to macroeconomic and other factors such as the state of the economy, the state of the government, e.g. democracy, etc. and others that will be explained later in this paper. 3. Measuring Central Bank Independence The degree of CBI for each central bank varies according to the state of each country and to compliance with the law. As Cukierman explains, in developing countries where compliance with the law is poor, a suitable proxy for CBI would be the turnover of central bank governors, whereas in industrialised countries such a proxy would be legal independence. Generally, when the appropriate index of independence is used, the results indicate an inverse relationship between CBI and inflation. However, care should be taken not to mistake legal independence with actual independence, as legal independence is necessary but does not guarantee actual independence; legal independence is a necessary, but not a sufficient condition for a truly independent CB. (Cukierman, A., 2001; 7). Exceptions exist, like developed countries, where legal independence seems to be a good proxy because law is highly complied. For a clearer picture of the effectiveness of CBI on the economy, it is preferred that some variables that make up the CBI index are used in combination, or that some indices are used only for a specific purpose. For instance, legal independence is a good proxy for actual independence in developed countries rather than in developing ones. 3.1 The Cukierman Index of CBI The method that will be used the most in this paper to measure the degree of central bank independence and its relationship with inflation will be Cukierman Index (1992), the most widely accepted and used index for this purpose. Initially, the exact definition of the Cukierman Index according to Siklos, P. (1992; 65) is: An indicator of the degree of autonomy enjoyed by several central banks. Cukierman Index to demonstrate graphically the measures of CBI and inflation during two different decades, namely the 1980s and the 1990s: As can be seen in the above graphs during the 1980s even though CBI was not common across countries, there was a negative relationship between CBI and inflation level. This means that the greater the level of independence of a central bank, the lower the level of inflation within the particular country. It is thus obvious that the correlation between CBI and inflation is negative, whereas the errors overall are not fitted closely on the regression line. We should note however that the decade of 1980s was before central banks especially those within industrialized countries underwent major reforms in their statutes which then allowed them a greater degree of autonomy. During the 1990s as Siklos, P. (2002) explains, most central banks went through a reform, as there was a trend towards CBI. As a result the overall degree of CBI increased and all index values were revised upwards, the government granting more autonomy to central banks, in the belief that greater independence would just be adequate for lowering the level of inflation. However, the relationship between CBI and inflation during the 1990s turned out to be the reverse of that of the previous decade. That is, the correlation between CBI-inflation now became weaker but positive since the regression line on the scatter gram in figure 3b has an upward slope, meaning that inflation increases with the degree of independence. It is hard to explain what was wrong with the findings of the 1990s that caused the correlation to be positive, however one might argue that CBI increased for all countries during the 1990s and so it also reflects the inflation performance of the previous decade, although the more independent central banks have delivered lower inflation levels in the 1980s. Furthermore, the Cukierman Index used is believed to contain some inaccuracies concerning the measurements of the degree on independence and thereafter the relationship of that with inflation because it was extended from the 1980s towards the 1990s in a different way than the one initially specified. For this reason more tests will be carried out to explain and compare the effectiveness of measuring CBI using the Cukierman Index in contrast to other indices developed for the same purpose, for instance Alesina and Summers Index. The Cukierman Index will also be used to test the effect of CBI on inflation in transition economies, based on Ilieva and Gregoriou (2005) paper regarding inflation performance, i.e. average inflation and inflation variance, and CBI in transition economies during the period 1991-2003. 3.2 The determinants of the CBI index The degree of independence varies across countries. This is not only due to factors such as the type of independence of each bank, although the most common is operational independence, the degree of law compliance in each country, and tradition, but some other systematic factors as well. Such factors are described and categorized by Cukierman, who presents some hypotheses on these factors: Hypotheses about the determinants of CBI Initially, it is widely accepted that any form of inflationary bias raises the independence of central banks to the degree that politicians wish to grant to the CB. The main idea behind this concept is that the benefits of delegating monetary policy to an independent central bank will be higher when inflation bias is higher in instances of e.g. employment reaction to inflation shocks. This delegation according to Cukierman helps in preventing the competing political party from taking on activities not favoured by the government. Secondly, Cukierman et al (1992, 2001) make the hypothesis that: the wider are the financial markets and the more elastic the supply of funds to government with respect to the interest rate, the more likely is the CB to be independent. (2001; 19). Additionally, Maxfield (1995) supports that political authorities favour CBI where there is need for funds. When this need is high as he explains, the government delegates more authority to the central bank in order to signal the nations creditworthiness. Finally, the cases of countries that have experienced extremely high levels of inflation in the past, like Germany, Austria, and Brazil, show that such countries are more likely to delegate independence to a central bank so that politicians do not interfere with monetary policy. 3.3 The measurement of the CBI Index Due to the widespread concept that the degree of independence of a nations central bank plays a crucial role upon the policy actions and inflation, Cukierman (1992) presents an analysis of the effects of CBI on inflation and provides various indicators of CBI. However, as he explains, the degree of CBI is determined by several factors from legal to cultural some of which are difficult to measure and quantify, therefore the impact of CBI on inflation varies among countries and there is a certain degree of uncertainty about the level of CBI. As a result, the measurement and the creation of an index of CBI have been based on legal independence, as the degree of CBI also depends on the degree of independence granted to the bank by the law. Despite the variations in the degree of CBI, it can be deduced that a low degree of CBI is linked with higher levels of inflation and inflation variability, while the level of credibility of a central bank with a low degree of CBI will be lower. Cukierman presents three different sets of indicators of CBI; a proxy for legal independence and proxies for the deviations of actual from legal independence. Independence measured under these proxies is limited specifically to the Central banks ability to meet a single objective; price stability. The reason for using several proxies in measuring CBI is because each proxy is a noisy indicator that captures a somewhat different aspect of CB independence (Cukierman, 1992; 370), so using a combination of them reduces this noisiness of the overall measure 3.3.1 Measuring and Coding Legal Central Bank Independence Using a proxy of legal independence is vital in making comparisons with previous studies on the impact of CBI on economic issues because all existing attempts on the features of an independent central bank rely on the banks legal independence. Cukierman presents the indices of legal aspects of CBI by separating into four groups the variables which make for a legally independent central bank. These groups are: Chief executive officer: CEO Policy formulation: PF Final Objectives: OBJ Limitations on lending: LLand codes them by the degree of independence of each group for the central bank of each of the countries included in the study. The main assumptions made are; the central banks whose single objective is price stability are considered to be more independent, so are central banks with stricter limitations on lending from the CB. The coding involves sixteen different variables in a scale from 0 (least independence) to 1 (maximum independence), during the time period 1950-1989, separated into four different decades. Due to the narrow definition of each of the variables used and the consequent lack of precision and multicollinearity problems that may arise, these variables are aggregated into eight legal variables by just calculating the unweighted mean of the codings used. Furthermore, it is necessary to have an additional single index of legal independence for each country to assess the aggregate legal independence of the CB. This index can have two alternatives, the LVAU and the LVAW, that are computed by calculating the average of the codings of the first eight variables as described above. Table 1 in Appendix A shows the ranking of the countries according to the legal independence of their central banks as measured by the LVAU during the eighties decade. The LVAW would also give a similar picture. Looking at the table of results one can see that among the seven most highly-ranked countries four are developed (Switzerland, West Germany, Austria and U.S.), while among the seven least-ranked countries four are less developed (Morocco, Panama, Yugoslavia and Poland). Generally, the top 10% of the rankings is comprised of developed countries, whereas the bottom 10% is concentrated with less developed countries. One should also note that there had been no hyperinflation experienced by developed countries during the 1980s, while some of the Latin America countries have, e.g. Brazil and Bolivia with a rate of 230%. This according to Cukierman may suggest that legal CBI may be neither necessary nor sufficient for low inflation. (1992; 382). 3.3.2 The turnover rate of Central Bank governors as a proxy for actual independence As already explained, the legal status of the central bank is just one of the several determinants of actual CBI. There is no clear systematic indicator of actual CBI, but Cukierman (1992) presents two sets of such indicators. One is based on the actual turnover rate of the central banks governor, and the other is based on the answers given to a questionnaire on CBI. Table 2 in Appendix B shows the CB governors turnover rates for the period 1980-1989. It is assumed that the lower the turnover rate the higher the degree of actual independence. Although the results are chronologically old, it is obvious that turnover rates in less developed countries occupy a range that has never been experienced by developed countries. It is indicative that more than half of the less developed countries have a turnover rate higher than the maximum of the rate of developed countries. It is clear that less developed countries experience higher inflation rates, on the grounds of lower actual CBI. On the other hand, low turnover does not necessarily imply a high level of CB independence on the grounds that a relatively subservient governor will tend to stay in office longer than a governor who stands up to the executive branch. (Cukierman, 1992; 385) Critically assessing the results, since the maximum turnover rate for developed countries is 0.2 (.e. five years) suggests that the turnover proxy may not be effective proxies for actual CBI for the sample of developed countries, whereas this proxy can be considered indicative for the sample of developing countries since these have turnover rates exceeding 0.2. 3.3.3 Central Bank Independence from answers to a questionnaire Another aspect of characterizing CBI is the questionnaire. Under this method, answers were obtained from qualified central bankers from twenty-four countries during the period 1980-1989. The main questions asked covered the issues of; legal independence, final monetary policy objectives, monetary policy instruments, actual independence and its divergence from the law and intermediate targets and their indicators. In coding the variables of the questionnaire, the bank is assumed to be more independent, all other things being equal, if the following hold; the term of office of the CB governor is longer than that of the government, limitations exist on lending from the CB which the government is in no position of altering, and in cases where stock targets exist because these mean that the CB is more free to meet its price stability target. Table 3 in Appendix C shows the ranking of central banks by aggregate indices of independence according to questionnaire responses. The aggregate indices of QVAU and QVAW reflect the law and the way it is implemented in practice respectively, as well as important information about actual independence, and are very similar (à ?=0.99). The rankings agree to earlier studies that central banks of developed countries are more independent. However, the median of QVAU for developed countries, that is 0.6 for Britain and Lebanon, is greater than the median for less developed countries, that is 0.49 for Uruguay, and this contradicts the above findings for legal independence using the LVAU. When measuring the degree of CBI it should be taken into account that the measures used above fail to quantify all the aspects of CBI as some are difficult to quantify. Such aspects are the quality of the banks research department and its standing in comparison to other economic research institutions within the public sector (Cukierman, 1992). Independence is generally higher in countries with highly-developed financial markets according to Cukierman because the supervision of financial institutions is under the authority of the CB, so the larger the market the more wide the span of the CBs authority. 4. Central Bank Independence and Inflation Targeting In this section the impact of central bank independence on inflation, inflation variability and the economy overall is analyzed using a model to test whether CBI can actually lower inflation, and comparing the effects of CBI by using both the Cukierman and the Alesina indices of CBI. Additionally, the costs of achieving lower inflation through central bank independence are also explained. MacCallum, B. (1995) believes that it is strong will that is necessary for proper policy behaviour by central banks, not rules and regulations. A policy maker, i.e. a central banker in this case should act immediately to an inflation shock to restore the problem without letting any sp Effects of Central Bank Independence on Inflation Rates Effects of Central Bank Independence on Inflation Rates Abstract This paper analyses and explains the effects of central bank independence on a countrys inflation rates and its economic performance thereafter. It deals with the benefits believed to come along with independence and the delegation of monetary policy to the central bank, the determinants and accuracy of the index of central bank independence (CBI), and the different impact that CBI has on developed and developing countries. The studies and test conducted have shown that CBI lowers inflation in developed countries but in developing countries it might have the reverse effects, mainly due to the degree of independence, and factors like traditions, the law, and the statue of the economy which vary across countries. 1. Introduction This paper intends to study the relationship between central bank independence (CBI) and inflation levels among different countries; developing and industrialized. The main research problem that I intend to examine is whether central bank independence can lower the inflation rates of the countries that grant independence to their central banks, and whether this can lead to improved economic performance. What is discussed in this paper is not only whether central bank independence (CBI) can lower inflation and hence inflation variability, but also whether this can be achieved at low cost. The economies presented in the study include both those of the developed countries, e.g. the U.K., as well as those in transition e.g. Russia that have recently gained entrance in the EU. In this paper I analyze the impact of CBI on inflation, the benefits that are believed to come along with CBI and the factors used in measuring CBI. You will see that CBI can have different forms of measurement that produce slightly different results, hence the effectiveness of the CBI index is also analyzed. The reason for choosing this topic for further study is simply because during the past two decades there has been a considerable move towards central bank independence across several countries, with the belief that this will improve their inflation levels and thus contribute to economic growth. However, as you will see further on, this is not always the case, as some studies have revealed contradicting results, and economists and academics continue their studies to get a clerer picture of this issue. 2. The Spread of CBI and The Reasons for It To begin with, it is amazing how fast CBI has spread among countries and governments since the late 1980s. One simple explanation of this spread is A.Alesinas (1988; 845) statement: independent central banks have been associated with a lower average inflation rate and may have been responsible for reducing politically induced volatility of monetary policy and inflation 2.1 Should a central bank become independent? Folder (2005) explains that CBI was adopted to avoid possible disputes between political parties as a central bank is seen as a provider of information. Many economists have expressed their opinion on the spread of CBI; others have linked it to a way of avoiding the blame of political failure by some governmental parties (Miller, G. 1998, White 1994). Others have linked it to the infrequent changes of the government (de Haan and vant Hag, 1995). That is, central bank independence in many cases was adopted after periods of high inflation in order to reduce it, due to the inflation targeting function a central bank is capable of pursuing. It can also be associated with the attraction of foreign investment and hence economic growth as a consequence of the targets set and the autonomy with which the bank can then operate (Maxfield, 1997). In countries within the European Union, CBI is a perquisite following the Maastricht Treaty (1992) for adopting the euro currency. Overall and according to Folder (2005), independence has always been related to the adoption of anti-inflationary measures for pursuing monetary policy, but its explanation lies within the sociology of the financial elites and the politics legitimizing their policy preferences. The reasons behind achieving price stability through gaining central bank independence, Cukierman (1996) explains are several and include; the breakdown of other institutions like the European Monetary System (EMS) that had been responsible for maintaining price stability which is considered as the single and most significant objective of a central bank. Ilieva and Gregoriou (2005) suggest that in transition economies central bank independence has increased mainly due to the desire of such countries like e.g. Czech Republic, Poland, Romania, etc., to join the European Union and the acquis communautaire that applicant countries should adopt. As they continue to reason the addiction to CBI, they add that another incentive for CBI is the international financial institutions such as the IMF (International Monetary Fund) that require certain criteria to be met before making unconditional loans, and these criteria are feasibly met with the help of CBI. Also, countries are attracted to CBI as this will attract potential investors by improving the nations creditworthiness. Cukierman, A. (1996) analyses developments since the late 1980s to the legal independence of central banks and to its meaning; the measurement of CBI, the interaction of central banks with the government, its effect on the economy, its determinants, etc According to Cukierman, the trend towards CBI is due to a quest for price stability which is due to the following two reasons: First, following the stagflation of the seventies and the adverse economic performance of some high inflation countries, in Latin America and elsewhere, conventional wisdom concerning inflation and real growth has changed. Whereas during the sixties the accepted view was in line with Keynesian dogma, that some inflation is good for growth, during the eighties and nineties became that inflation and the associate uncertainties retard growth. (1996; 3) The good economic performance of Japan and Germany, countries with already low inflation added more value to the above concept. Second, the rapid growth and internationalization of capital markets raised the importance of price stability as governments and private investors sought to enhance their access to broadening world financial markets. (1996; 3) 2.2 Types of Central Bank Independence Independence with regards to central banking can be categorized into different groups, depending on the degree of freedom and the subject from which the central bank becomes independent. The major types of independence are; Legal independence, where the bank is partly accountable to the government and legislation provides a framework within which the central bank and the government cooperate on certain issues. This form of independence varies significantly among countries as it depends on how strong in the law in each country and the degree to which it is followed. However, the degree of legal independence, namely LVAW, as it will be shown below, has been used by many as a major index of measuring the degree of CBI. Goal independence refers to the case where the central bank is allowed to set its own goals, e.g. price stability, money supply, inflation targeting. However in most cases under this type of independence, the bank will decide on its goals with the confirmation of the relevant governmental departments. In this way, goal independence helps avoiding conflicts among fiscal and monetary policies, and increases the level of transparency and credibility of the central bank over its goals. Operational independence is the most common form of independence and is followed by many central banks around the world, for instance, the Bank of England since 1997. It involves the government setting the banks goals e.g. a 2% level of inflation, but the central bank being free to choose the instruments e.g. interest rates, to meet the targets set by the government. Another form of independence is managerial independence, by which the central bank has the power of appointing its own stuff, set its budget, etc. This form is a necessity for the existence of the other abovementioned forms of central bank independence and is therefore granted to all central banks that can call themselves independent. 2.3 The case for central bank independence There is a huge surge towards central bank independence by both the public and the governments, in the belief that independent central banks will not only achieve low inflation rates and price stability, but will subsequently lead to long-term economic growth and development. However CBI is an issue that needs further research before determining whether it should be adopted by all countries. This depends on the economic state of the country, whether it is a developed or a developing country or even on the demand of autonomy by the political parties within the country since by granting independence the government must pass to the bank the responsibilities of e.g. controlling the interest rates, etc. over which it used to have the power. Another issue that needs to be examined before granting independence to a central bank is the political stability and the degree of uncertainty within the country. This is because in times of uncertainty and instabilities, e.g. prior to elections, the public favours CBI as an independent central bank is more objective in its role and always forward looking without ignoring the long-term effects of its decisions. The majority of the parties affected by the actions of an independent central bank, i.e. the government as well as the general public are attracted by CBI because of the greater accountability and transparency the bank is equipped with when adopting a greater degree of autonomy. Moreover, it is expected to bring lower levels of inflation and this is the main reason why people welcome CBI and the number of central banks becoming independent has been increasing over the years. The main reason behind this expectation is because a central bank generally acts in favor of the public and in addition to the fact that it becomes free from the government and any political pressures, it is in a position to avoid short-term temptations regarding low interest rates which the government usually uses prior to electoral periods, for the sake of long-term low inflation and price stability, which in combination with other exogenous factors can result in economic growth. Moreover, when a central bank gains its independence through institutional reform it becomes capable of appointing its own governor thus it moves away from political interference, and can also set an explicit inflation target. Additionally and as Carlstrom, T.C. and Fuerst, S.T. (2006) explain independence helps a central bank in constraining the behavior of fiscal authorities. That is, it can prevent people and especially the government following fiscal policy from acting in their short-term best interests, recognizing that any actions taken in the short-term e.g. lowering the interest rates to attract investments, may become undesirable in the long-term, e.g. rising inflation levels as with higher demand from low interest rates, the prices will likely increase. In this way, CBI also prevents the fiscal authorities from inflating the short-term for delivering e.g. favorable exchange rates. Hence, monetary policy can run in a more credible way and following the targets set, markets w ill know what to expect thus shocks will be limited. However an independent central bank is also likely in extreme cases to bring so low levels of inflation that can be harmful to the economy. According to Epstein, G. (2007), the 3.5% drop in inflation levels by countries adopting an inflation-targeting monetary policy (IMF, 2006) is questionable as to whether this decline will improve economic growth. Explicitly, if the inflation level of a country is already low and the central bank adopts an inflation-targeting monetary policy then the resulting lower inflation level might prove dangerous to the economy by generating economic cycles. Cukierman (1996) has developed two separate approaches for reasoning the urge towards central bank independence and explaining the benefits that can be enjoyed from independence. These include; the theoretical approach according to which in the short-run monetary policy can be conducted in such a way that it allows for some inflation so that it can achieve employment, high economic activity and low interest rates. Hence, policy makers can expect some degree of inflation which they will present in the form of nominal wage and capital market contracts. In this way however, policy makers will have to keep inflation at a level that would balance the real equilibrium if they had been committed to zero-inflation. As a result of this discretionary use of monetary policy, this is subject to inflationary bias, and this bias can only be minimised if monetary policy is delegated to an independent central bank because only this institution is free to choose how to operate monetary policy and takes interest mostly if not only to price stability. And the empirical approach by which the case of CBI lies on empirical evidence showing that countries with an independent central bank have lower inflation rates and higher growth rates per capita output. An example of such a country is New Zealand: 2.3.1 The case of New Zealand New Zealand is a country whose central bank managed to drop the inflation level after being granted with greater independence. The Reserve Bank of New Zealand was granted independence in 1989 following the Reserve Bank of New Zealand Act of 1989 and had therefore established an explicit inflation target. The result was to reduce inflation levels from 7.6% during the years 1955-1988 from when the reserve bank was not independent, down to just 2.7%, after becoming independent, during the period 1989-2000. The latter rate is now considered one of the lowest among industrialized countries. It is obvious that among all OPEC countries, the central bank of New Zealand managed to achieve the lowest inflation rate, especially during the 1990s. What happened during the period of the inflation reduction was that the reserve bank of New Zealand went through a reform that resulted in it being granted with independence and a greater degree of autonomy, leading to low inflation. Specifically, prior to 1989 it used to be an arm of the government. Monetary policy used to be subject to the ministry of finance and therefore the government. As a result, the level of independence was one of the lowest among industrialized countries, while the level of inflation was of the highest. Even then, the relationship between central bank independence was negative, even though the results were the reverse of what is considered optimum, i.e. greater independence, lower inflation. In 1989, the Reserve Bank of New Zealand Act was passed by law. This act codifies inflation targeting and gives more autonomy to the countrys central bank in order to meet its objectives. According to the Act the central banks primary function is: to formulate and implement monetary policy directed to the economic objective of achieving and maintaining stability in the general level of prices. (Reserve Bank of New Zealand Act, 1989 as quoted in Carlstrom T.C. and Fuerst, S.T., 2006, p.3). The impact of the Act on New Zealands economy and specifically the Reserve Banks autonomy can be seen in figure 2 below, which compares the degree of independence across different time periods and among different countries. The findings of the New Zealand case show that if the country had adopted independence earlier then its average inflation rate would be 3.4% rather than 7.6% that it actually used to be, assuming all other things being equal. Following this assumption, CBI itself would be sufficient to reduce worldwide inflation levels from 5.6% down to 3.8%. Despite the considerable drop in New Zealands inflation rate it is still questionable whether this drop was caused solely by CBI, and it is difficult, if not impossible, to quantify by how much the inflation reduction was due to CBI. Firm conclusions cannot be made yet since the data used in this case is of limited sample size and comparisons would therefore be insufficient. What is true is that the relationship between CBI and inflation is similar across time. Any changes to the strength of this relationship are mostly due to macroeconomic and other factors such as the state of the economy, the state of the government, e.g. democracy, etc. and others that will be explained later in this paper. 3. Measuring Central Bank Independence The degree of CBI for each central bank varies according to the state of each country and to compliance with the law. As Cukierman explains, in developing countries where compliance with the law is poor, a suitable proxy for CBI would be the turnover of central bank governors, whereas in industrialised countries such a proxy would be legal independence. Generally, when the appropriate index of independence is used, the results indicate an inverse relationship between CBI and inflation. However, care should be taken not to mistake legal independence with actual independence, as legal independence is necessary but does not guarantee actual independence; legal independence is a necessary, but not a sufficient condition for a truly independent CB. (Cukierman, A., 2001; 7). Exceptions exist, like developed countries, where legal independence seems to be a good proxy because law is highly complied. For a clearer picture of the effectiveness of CBI on the economy, it is preferred that some variables that make up the CBI index are used in combination, or that some indices are used only for a specific purpose. For instance, legal independence is a good proxy for actual independence in developed countries rather than in developing ones. 3.1 The Cukierman Index of CBI The method that will be used the most in this paper to measure the degree of central bank independence and its relationship with inflation will be Cukierman Index (1992), the most widely accepted and used index for this purpose. Initially, the exact definition of the Cukierman Index according to Siklos, P. (1992; 65) is: An indicator of the degree of autonomy enjoyed by several central banks. Cukierman Index to demonstrate graphically the measures of CBI and inflation during two different decades, namely the 1980s and the 1990s: As can be seen in the above graphs during the 1980s even though CBI was not common across countries, there was a negative relationship between CBI and inflation level. This means that the greater the level of independence of a central bank, the lower the level of inflation within the particular country. It is thus obvious that the correlation between CBI and inflation is negative, whereas the errors overall are not fitted closely on the regression line. We should note however that the decade of 1980s was before central banks especially those within industrialized countries underwent major reforms in their statutes which then allowed them a greater degree of autonomy. During the 1990s as Siklos, P. (2002) explains, most central banks went through a reform, as there was a trend towards CBI. As a result the overall degree of CBI increased and all index values were revised upwards, the government granting more autonomy to central banks, in the belief that greater independence would just be adequate for lowering the level of inflation. However, the relationship between CBI and inflation during the 1990s turned out to be the reverse of that of the previous decade. That is, the correlation between CBI-inflation now became weaker but positive since the regression line on the scatter gram in figure 3b has an upward slope, meaning that inflation increases with the degree of independence. It is hard to explain what was wrong with the findings of the 1990s that caused the correlation to be positive, however one might argue that CBI increased for all countries during the 1990s and so it also reflects the inflation performance of the previous decade, although the more independent central banks have delivered lower inflation levels in the 1980s. Furthermore, the Cukierman Index used is believed to contain some inaccuracies concerning the measurements of the degree on independence and thereafter the relationship of that with inflation because it was extended from the 1980s towards the 1990s in a different way than the one initially specified. For this reason more tests will be carried out to explain and compare the effectiveness of measuring CBI using the Cukierman Index in contrast to other indices developed for the same purpose, for instance Alesina and Summers Index. The Cukierman Index will also be used to test the effect of CBI on inflation in transition economies, based on Ilieva and Gregoriou (2005) paper regarding inflation performance, i.e. average inflation and inflation variance, and CBI in transition economies during the period 1991-2003. 3.2 The determinants of the CBI index The degree of independence varies across countries. This is not only due to factors such as the type of independence of each bank, although the most common is operational independence, the degree of law compliance in each country, and tradition, but some other systematic factors as well. Such factors are described and categorized by Cukierman, who presents some hypotheses on these factors: Hypotheses about the determinants of CBI Initially, it is widely accepted that any form of inflationary bias raises the independence of central banks to the degree that politicians wish to grant to the CB. The main idea behind this concept is that the benefits of delegating monetary policy to an independent central bank will be higher when inflation bias is higher in instances of e.g. employment reaction to inflation shocks. This delegation according to Cukierman helps in preventing the competing political party from taking on activities not favoured by the government. Secondly, Cukierman et al (1992, 2001) make the hypothesis that: the wider are the financial markets and the more elastic the supply of funds to government with respect to the interest rate, the more likely is the CB to be independent. (2001; 19). Additionally, Maxfield (1995) supports that political authorities favour CBI where there is need for funds. When this need is high as he explains, the government delegates more authority to the central bank in order to signal the nations creditworthiness. Finally, the cases of countries that have experienced extremely high levels of inflation in the past, like Germany, Austria, and Brazil, show that such countries are more likely to delegate independence to a central bank so that politicians do not interfere with monetary policy. 3.3 The measurement of the CBI Index Due to the widespread concept that the degree of independence of a nations central bank plays a crucial role upon the policy actions and inflation, Cukierman (1992) presents an analysis of the effects of CBI on inflation and provides various indicators of CBI. However, as he explains, the degree of CBI is determined by several factors from legal to cultural some of which are difficult to measure and quantify, therefore the impact of CBI on inflation varies among countries and there is a certain degree of uncertainty about the level of CBI. As a result, the measurement and the creation of an index of CBI have been based on legal independence, as the degree of CBI also depends on the degree of independence granted to the bank by the law. Despite the variations in the degree of CBI, it can be deduced that a low degree of CBI is linked with higher levels of inflation and inflation variability, while the level of credibility of a central bank with a low degree of CBI will be lower. Cukierman presents three different sets of indicators of CBI; a proxy for legal independence and proxies for the deviations of actual from legal independence. Independence measured under these proxies is limited specifically to the Central banks ability to meet a single objective; price stability. The reason for using several proxies in measuring CBI is because each proxy is a noisy indicator that captures a somewhat different aspect of CB independence (Cukierman, 1992; 370), so using a combination of them reduces this noisiness of the overall measure 3.3.1 Measuring and Coding Legal Central Bank Independence Using a proxy of legal independence is vital in making comparisons with previous studies on the impact of CBI on economic issues because all existing attempts on the features of an independent central bank rely on the banks legal independence. Cukierman presents the indices of legal aspects of CBI by separating into four groups the variables which make for a legally independent central bank. These groups are: Chief executive officer: CEO Policy formulation: PF Final Objectives: OBJ Limitations on lending: LLand codes them by the degree of independence of each group for the central bank of each of the countries included in the study. The main assumptions made are; the central banks whose single objective is price stability are considered to be more independent, so are central banks with stricter limitations on lending from the CB. The coding involves sixteen different variables in a scale from 0 (least independence) to 1 (maximum independence), during the time period 1950-1989, separated into four different decades. Due to the narrow definition of each of the variables used and the consequent lack of precision and multicollinearity problems that may arise, these variables are aggregated into eight legal variables by just calculating the unweighted mean of the codings used. Furthermore, it is necessary to have an additional single index of legal independence for each country to assess the aggregate legal independence of the CB. This index can have two alternatives, the LVAU and the LVAW, that are computed by calculating the average of the codings of the first eight variables as described above. Table 1 in Appendix A shows the ranking of the countries according to the legal independence of their central banks as measured by the LVAU during the eighties decade. The LVAW would also give a similar picture. Looking at the table of results one can see that among the seven most highly-ranked countries four are developed (Switzerland, West Germany, Austria and U.S.), while among the seven least-ranked countries four are less developed (Morocco, Panama, Yugoslavia and Poland). Generally, the top 10% of the rankings is comprised of developed countries, whereas the bottom 10% is concentrated with less developed countries. One should also note that there had been no hyperinflation experienced by developed countries during the 1980s, while some of the Latin America countries have, e.g. Brazil and Bolivia with a rate of 230%. This according to Cukierman may suggest that legal CBI may be neither necessary nor sufficient for low inflation. (1992; 382). 3.3.2 The turnover rate of Central Bank governors as a proxy for actual independence As already explained, the legal status of the central bank is just one of the several determinants of actual CBI. There is no clear systematic indicator of actual CBI, but Cukierman (1992) presents two sets of such indicators. One is based on the actual turnover rate of the central banks governor, and the other is based on the answers given to a questionnaire on CBI. Table 2 in Appendix B shows the CB governors turnover rates for the period 1980-1989. It is assumed that the lower the turnover rate the higher the degree of actual independence. Although the results are chronologically old, it is obvious that turnover rates in less developed countries occupy a range that has never been experienced by developed countries. It is indicative that more than half of the less developed countries have a turnover rate higher than the maximum of the rate of developed countries. It is clear that less developed countries experience higher inflation rates, on the grounds of lower actual CBI. On the other hand, low turnover does not necessarily imply a high level of CB independence on the grounds that a relatively subservient governor will tend to stay in office longer than a governor who stands up to the executive branch. (Cukierman, 1992; 385) Critically assessing the results, since the maximum turnover rate for developed countries is 0.2 (.e. five years) suggests that the turnover proxy may not be effective proxies for actual CBI for the sample of developed countries, whereas this proxy can be considered indicative for the sample of developing countries since these have turnover rates exceeding 0.2. 3.3.3 Central Bank Independence from answers to a questionnaire Another aspect of characterizing CBI is the questionnaire. Under this method, answers were obtained from qualified central bankers from twenty-four countries during the period 1980-1989. The main questions asked covered the issues of; legal independence, final monetary policy objectives, monetary policy instruments, actual independence and its divergence from the law and intermediate targets and their indicators. In coding the variables of the questionnaire, the bank is assumed to be more independent, all other things being equal, if the following hold; the term of office of the CB governor is longer than that of the government, limitations exist on lending from the CB which the government is in no position of altering, and in cases where stock targets exist because these mean that the CB is more free to meet its price stability target. Table 3 in Appendix C shows the ranking of central banks by aggregate indices of independence according to questionnaire responses. The aggregate indices of QVAU and QVAW reflect the law and the way it is implemented in practice respectively, as well as important information about actual independence, and are very similar (à ?=0.99). The rankings agree to earlier studies that central banks of developed countries are more independent. However, the median of QVAU for developed countries, that is 0.6 for Britain and Lebanon, is greater than the median for less developed countries, that is 0.49 for Uruguay, and this contradicts the above findings for legal independence using the LVAU. When measuring the degree of CBI it should be taken into account that the measures used above fail to quantify all the aspects of CBI as some are difficult to quantify. Such aspects are the quality of the banks research department and its standing in comparison to other economic research institutions within the public sector (Cukierman, 1992). Independence is generally higher in countries with highly-developed financial markets according to Cukierman because the supervision of financial institutions is under the authority of the CB, so the larger the market the more wide the span of the CBs authority. 4. Central Bank Independence and Inflation Targeting In this section the impact of central bank independence on inflation, inflation variability and the economy overall is analyzed using a model to test whether CBI can actually lower inflation, and comparing the effects of CBI by using both the Cukierman and the Alesina indices of CBI. Additionally, the costs of achieving lower inflation through central bank independence are also explained. MacCallum, B. (1995) believes that it is strong will that is necessary for proper policy behaviour by central banks, not rules and regulations. A policy maker, i.e. a central banker in this case should act immediately to an inflation shock to restore the problem without letting any sp