Theoretical Analysis of News Article A Working Model Is...

Introduction The considered article is chosen from The Economist, dated 11th of August 2005 with the title â€Å"A working model† – Is the world experiencing excess saving or excess liquidity? In purpose of this article is to present the understanding of IS-LM model in macroeconomics by these are the convergence of two economic graphs, one representing the income and savings (IS0 and other liquidity and money (LM). Article Summary In this article, author defines the so-called IS-LM framework aggregate macroeconomic model that has the intuition use to describe money and markets. The author has also focused on the role of IS-LM model and its relation with the interest rate, short-term rates, monetary policy and the unusually expansion of†¦show more content†¦Businesses like consumer reduces their investment due to interest rate increase. This increase in interest rate reduces the current income/output as consumers and investors reduce consumption and investment. Generating the LM curve The author made assumptions that the money supplied is a fixed quantity in the short-run due to the fact that the demand for money is a function of prices, income and the interest rate. Using the equilibrium in the market the LM curve can be derived as shown in the graph which will show the relation (Thoma, 2013). Figure 2: Relation between interest rates and output As the graph reflects the increase in income (Y) increases in the demand of money. Very similar to the IS curve, the relation is captured by plotting the income (Y) on the X-axis and the interest rate on the Y-axis, this jointly relation that deprived from the market is called the LM curve. Conclusion The author tried to justify the fact but these two theories are not mutually exclusive as the rising income leads to higher demand of money that will affect the LM curve. He focuses mainly on the short-term analysis of the matter and reflects the after math of the monetary policy of US that has deprived by domestic liquidity and the settlements. However, the author has given relevant explanations about the IS-LM combination with the inflation effects with cheapShow MoreRelatedMergers and Acquisitions in Tea Industry16715 Words   |  67 Pagessupport during my study in U.K. 2 ABSTRACT This dissertation is aimed at finding motives and assessing the consequences of mergers and acquisitions, taking Tata Tea’s acquisition of Tetley into consideration. It overviews a vast amount of theoretical literature on mergers and acquisitions and presents empirical literature findings on company’s post-merger financial performance. Case study section of the dissertation considers the history of Tata Tea Ltd. for engaging in MA activities and measuresRead MoreTeaching Notes Robert Grant - Strategy 4th Edition51665 Words   |  207 PagesContents Introduction 3 1 Madonna 21 2 Laura Ashley Holdings plc: The Battle for Survival 26 3 The US Airline Industry in 2002 33 4 DaimlerChrysler and the World Automobile Industry 41 5 Wal-Mart Stores Inc., May 2002 49 6 Eastman Kodak: Meeting the Digital Challenge 62 7 Organizational Restructuring within the Royal Dutch/Shell Group 70 8 Harley-Davidson, Inc., January 2001 77 9 Online Broking Strategies: Merrill Lynch, Charles Schwab and E*Trade 83 10 11 12 Emi and the CT ScannerRead MoreMerger and Acquisition: Current Issues115629 Words   |  463 Pagesbe identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2007 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y. 10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan ® is a registered trademark in the United States, United KingdomRead MoreNokias Human Resources System144007 Words   |  577 PagesCompany Contact Person) Securities registered pursuant to Section 12(b) o f the Securities Exchange Act of 1934 (the â€Å"Exchange Act†): Title of each class Name of each exchange on which registered American Depositary Shares Shares (1) New York Stock Exchange New York Stock Exchange(1) Not for trading, but only in connection with the registration of American Depositary Shares representing these shares, pursuant to the requirements of the Securities and Exchange Commission. Securities registeredRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesMBA−10 General Management California College for Health Sciences MBA Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−58539−4 Text: Effective Behavior in Organizations, Seventh Edition Cohen Harvard Business Review Finance Articles The Power of Management Capital Feigenbaum−Feigenbaum International Management, Sixth Edition Hodgetts−Luthans−Doh Contemporary Management, Fourth Edition Jones−George Driving Shareholder Value Morin−Jarrell Leadership, Fifth Edition Hughes−Ginnett−CurphyRead MoreKraft Annual Report99993 Words   |  400 Pagesexecutive offices) (Zip Code) Registrant s telephone number, including area code: 847-646-2000 Securities registered pursuant to Section 12(b) of the Act: Name of each exchange on which registered Title of each class Class A Common Stock, no par value New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No  ¨ Indicate by check mark if the registrantRead MoreStrategic Marketing Management337596 Words   |  1351 PagesProfessor of Business Administration The Business School Loughborough University and Colin Gilligan Professor of Marketing Sheffield Hallam University and Visiting Professor, Northumbria University AMSTERDAM †¢ BOSTON †¢ HEIDELBERG †¢ LONDON †¢ NEW YORK †¢ OXFORD PARIS †¢ SAN DIEGO †¢ SAN FRANCISCO †¢ SINGAPORE †¢ SYDNEY †¢ TOKYO Elsevier Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 200 Wheeler Road, Burlington, MA 01803 First published 1992 Second edition 1997 Reprinted 1998Read MoreInternational Management67196 Words   |  269 PagesUniversity of Nebraska–Lincoln Jonathan P. Doh Villanova University INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright  © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions  © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrievalRead MoreMarketing Management 14th Edition Test Bank Kotler Test Bank173911 Words   |  696 PagesStrategic management E) Distribution management Answer: A Page Ref: 5 Objective: 2 Difficulty: Easy 3) Identify the correct statement about marketing management. A) It is primarily concerned with the systematic gathering, recording, and analysis of data about issues related to marketing products and services. B) It focuses mostly on monitoring the profitability of a companys products and services. C) It focuses solely on attaining an organizations sales goals in an efficient manner.