Assignment 01 Example | Topics and Well Written Essays - 500 words

01 - Assignment Example If teachers lack protection and hence start being fired regularly, the students’ learning process will be disrupted. They will take time adopting and warming up to a new teacher. They will also be insecure to get close to the teachers in case they are fired and this will affect their psychological well-being. The judge let emotions take the center stage in the ruling and not fully acted on the evidence presented. I do not refute that some of the teachers are ineffective but ruling based on only 1-3% of the teachers is seemingly unfair and unjust to the teachers themselves bearing in mind over 90% of them are effective ones (Blume and Ceasar, 2014). The judge should have been more objective in his ruling. A child’s right to education is important but so is the child’s right to happiness and peace of mind which will not be the case if the teachers are constantly being fired hence disrupting the education of the students. Innocent teachers will be negatively affected by the end of the tenure and they are the majority ones. The ruling should have ensured a middle ground to accord the good teachers’ appreciation. A child’s life is not dependent 100% on school life and hence the private life at home and with friends may also contribute to his or her performance. By having the teachers take all the blame for the failure of the students is an ignorance of the other life outside school children have. Whether a teacher can be fired or not is not directly related to a child’s life outside of school. The court failed to consider this side of the argument. I think that after the courts and educators who supported the court’s ruling finally realize that the teacher’s tenure did not have everything to do with the learning and performance outcome of students; they will finally revisit this case and ruling and realize the

Explain The Relationship between money supply and inflation Essay

Explain The Relationship between money supply and inflation - Essay Example Since high inflation rate decreases the nominal value of money, demand for money decreases (Gafar 2003, p. 101; International Monetary Fund 1996, p. 106). This makes demand for money less sensitive to high inflation rate (Sussman and Zeira 2003). High inflation could impede the overall economic growth in UK. Each time UK is facing high inflation rate, it is expected that the real value of money decreases. At this point in time, abundant supply of money circulates in the entire UK economy. For this reason, the prices of local goods and services tend to increase. Since the nominal value of money decreases, interest rates and minimum wage requirements could increase (International Monetary Fund 1996, p. 101). In order to control the adverse economic effect of high inflation rate, monetary policy should be use in order to control the supply of money that circulates in UK. To allow the readers have a better understanding about this subject matter, this report will focus on discussing the relationship between money supply and inflation. After discussing the relationship between money supply and inflation, this report will discuss how increasing or decreasing the interest rate could affect the increase or decrease in money supply. Relationship between Money Supply and Inflation In general, central banks do not have a direct power to improve economic growth. Given that money supply has a significant role in the movements of inflation rate (Basco, D'Amato and Garegnani 2009), central banks control the money supply by manipulating the levels of short-term interest rates at the point wherein the central banks could control high inflation rate from increasing (Gafar 2003, p. 103). Specifically in the case of European Union, the European Central Bank (ECB) was made responsible in keeping the market prices of basic commodities stable by preventing inflationary growth (Hossain 2010). High inflation rate contributes to low economic growth as a result of increasing the interest rates and minimum wage requirements (Gafar 2003, p. 102). Since the market price of basic commodities is high at times when inflation rate is high, more people will have difficulty in purchasing basic commodities. Because of high minimum wage requirements, more local businesses will not be able to sustain its daily operational costs in times when sales are down (Laing, Li and Wang 2007). To avoid bankruptcy, a large number of the local businesses are likely to cut down the number of its employees. In the end, this increases the unemployment rate. Monetary equation assumes that a significant increase in the supply of money could result to a significant increase in price provided that velocity and Y are constant [MV = PY]. In line with this, several studies revealed that the velocity of money is highly correlated with growth in money supply under high inflation and vice versa (Basco, D'Amato and Garegnani 2009; Dwyer and Fisher 2009). As part of controlling the money supply, ECB repo rted that it is necessary to maintain the Harmonized Index of Consumer Prices (HICP) â€Å"below but close to 2% inflation rate† (ECB 2007b; ECB 2003). Maintaining inflation rate close or below 2% inflation rate is necessary to ensure that the EU economy will benefit from stable market prices. Likewise, keeping the inflation rate below or close to 2% inflation rate could protect the EU economy from the risk of having