Oedipus the King Essay Example for Free

Oedipus the mightiness Es vocaliseMan is the mari unrivaledtte in the hands of destiny. It is the circumstances and fate which bring tragic incidents in his life sentence. The wayfaring tragedies are gener completelyy based on this attitude. According to Aristotle catastrophe is the representation of action. Common meaning of tragedies is the poignant end of the walkaway. Here we are going to plow about the two different tragedies which took place in different era. The prototypical tragedy is the tragedy of queer Oedipus which happened approximately 2000 years before and the second tragedy is the tragedy which belongs to the modern era. It is Arthur milling machines Death of a Sales valet de chambre. They are different from each other but apart from a long rift of about 2000 years, but yet some resemblances are there in them. We are going to discuss on the resemblances and differentiations. Let us consider King Oedipus first According to the rule of Aristotelian p push- down store Oedipus the King is divided into two different parts, one is simple plot and another is complex plot. In simple plot the changes in the fortune of King Oedipus take place without Peripety and discovery. It is a journey from ignorance to knowledge.He has to confront with the consequences of the miserable truth. At first he is not ready to accept the fact but at the end the circumstances compel him to accept the reality. The protagonist, along with the other characters, totally becomes powerless in the hands of destiny. He is a king but the qualities of normal hu spell beings are present in him. The tragedy takes place because of the sin he has connected inadvertently. According to the opinion of Aristotelian tragedies the hero of the play is neither perfectly good nor entirely bad. Oedipus thus is the man of ordinary weaknesses.He has had all the eminence but here he has shown falling into ruin from this distinction and it is unfortunately not because of any deliberate s in but because of the error committed by him in his ignorance. Like the protagonist the other characters in this play are also good but not perfect. For example Laios, father of King Oedipus who is of course a good soul but still he commits a sin of attempting the murder of his son at the infant stage of his life because of the fear that his son would one day kill him. Laios had the feet of this child bound and pinned.Someone tossed it in a mountain wilderness. So there. Apollo didnt cause this boy to be his fathers killer. Laios didnt bear the terror he feared from his son. Thats what the words of prophecy defined. (Line 717, Scene 3, Oedipus the King) The theory of tragedy of Arthur Miller is based on the life of an ordinary man. Miller was rejected by many critics because his tragedy was not based upon the Aristotelian concept of tragedy where the tragic hero is always a king or a prince. On the contrary the hero is a common man and so according to the critics he is unable to ar ise the tragic sentiments.But it was the tactual sensation of Miller that the common man is as apt a subject for tragedy in its highest sense as kings were. On the face of it this ought to be unmistakable in the light of modern psychiatry, which bases its analysis upon classific formulations, such as the Oedipus and Orestes complexes, for instance, which were enacted by royal beings, but which apply to everyone in similar emotional situations. (an essay by Arthur Miller, Tragedy and the Common Man) With the same viewpoint Arthur Miller has depicted the tragic story of a very simple ordinary man, Willy. Willy is an ordinary soulfulness by occupation as well as by nature.Not only Willy but rests of the characters are the exact mirror image of the ordinary man in the modern society who is constantly pursuing the materialist happiness. According to Miller it is not only the kings that can be the tragic heroes but the common man can also play the role of a tragic hero. As far as the issue of morality is concerned both plays are slenderly similar and somewhat reverse to each other. Morality plays a very important role in both of this play but still it defers from one another. Many people believe that Oedipus is an immoral person but it is not a premeditated immorality.Oedipus tragic fall, which later leads to tragedy was absolutely not his sin. He slays his biological father and marries to his biological mother. It is actually the height of immorality but at the time of committing this sin Oedipus was totally unaware about the reality. In utterly he is the immoral man by his predestined actions. The concept of morality is deliberate in Millers Death of Salesman. Here the hero of this play Willy Loman flouts all the rules of morality. He is charlatan, flirt and a liar. The lack of morality finds there in the Lomans family itself.He goes on deceiving his wife by keeping outlaw(a) relationship with another woman. He goes on deceiving his son and wife by making h is false image and by pretending to be an important person. They dont extremity me in New York. Im the New England man. Im vital in New England. (Act 1, Part 1, pg. 4, Death of Salesman) But it is an illusion. Pride is there in both Oedipus and Willy but assumption of Oedipus is at least genuine unlike to that of Willy which is just a fake. The heroes of both of the plays have to pay a lot and both of them have suffered a lot due to the mistakes they have done either ignorantly or deliberately.Both Oedipus and Willy in the end succeed in getting the sympathy of the audience. I dont say hes a great man. Willy Loman never made a lot of money. His name was never in the paper. Hes not the finest character that ever lived. But hes a clement being, and a terrible thing is happening to him. So anxiety must be paid. Hes not to be allowed to fall into his grave like an old dog. Attention, attention must be finally paid to such a person. (Act 1, Part 8, pg. 40) Apart from being an ordin ary man Willy like Oedipus deserves the sympathy of the audience.

Is Torture a Necessary Evil Essay Example for Free

Is Torture a Necessary Evil Essay14th September 2013Torture is a essential evil.After interpret this article and evaluating both sides of the argument, my opinion persists the same. I disagree that torture is necessary it is a barbaric breach of human rights. After looking at statistics, only 8% of Guantanamo detainees were Al Qaeda fighters, this is a shockingly low percentage in proportion to the 517 Guantanamo that were detained. British laws have deemed torture illegal and tho at least 6 detainees alleged that British forces were involved in the torture. Torturing can non go on the pros do not outweigh the cons of torture. In portentous circumstances, lives may be saved, but at what cost? Where does it end, as stated in the article, will family members become torture victims? As the initial suspect may not have value for their own life, they turn to his/her loved ones? If a suspect has been detained, regardless of what their crime may be, they still have the right to re main wordless. Any forced extraction of data goes against the fundamental human rights, and even if information is gained, what assurance do we have that it will be correct information? In the heat of the moment, it may seem that the information is true, to end the pain that the victim is in, yet it may all be fiction.These are clearly not risks worth taking, and in my opinion, anyone who is willing to submit a fellow human being to that amount of pain and discomfort, does not fill me with confidence in the accompaniment that they are in a position of power. In recent news, countries like the UK or the USA are undecided whether to involve themselves in the business of Syria they strike that involvement, in the sense of morals, is the right thing to do. Yet there is still a debate on whether torture should be legal, does one not neutralise the other(a)? It seems extremely hypocritical that on one hand, the armed forces have a sense of human rights in one way, yet on the other ha nd, claims that torture is necessary, which completely abolishes human rights in another way. In conclusion, regardless of the arguments in favour of torture, I still disagree that torture is a necessary evil it dehumanises victims, stripping them of their human rights, regardless of whether they may be Al Qaeda fighters, they still have the basic human right to remain silent during questioning, any way of obtaining information by forced means is morallywrong.

Statement of Purpose Essay Example for Free

Statement of Purpose EssayI am unhinged at the prospect of pursuing a Masters in bill weapons platform (MAC) at North Carolina State University. I am confident that this program which integrates Accounting, Finance and Business studies is the most appropriate choice for me. Graduating from this program will enable me to carve out a career path in Accounting that I hold in always envisioned for myself here in the United States. My parents, who possess advance degrees in Business Administration, have been the biggest source of inspiration for me and have always encouraged me to pursue ammonium alum level education in the United States. As a child, I was always fascinated with numbers and my post in Math developed early in my academic career. I decided to further my interest in numbers by pursuing a Bachelors degree in Business with a minor in computer education from one of the most reputed colleges in the state of Andhra Pradesh, India. I chose to do a majority of my courses in Finance and Accounting.These courses enabled me to refine my problem-solving and analytical abilities. The multitude of group projects that I undertook as a part of my finance and method of accountancy course work enabled me to refine and strengthen my leadership and inter-personal skills. I thoroughly enjoyed the challenge and experience of leading two projects with teams of 3-5 members. These projects were acknowledged as the best in class which in turn increased my self-confidence. After completion of my bachelors degree, I decided to broaden the scope of my knowledge and experience. I roaringly completed a one year Graduate level program in Financial Management together with a 6 month co-op at one of the India offices of Bank of America. My responsibilities at Bank of America included processing home loans and auditing mortgage documents.I was fascinated by the global mountain chain of this company which opened a world of possibilities for me. My consistent interaction with the employees in the U.S enabled me to build effective communication skills and people skills. Now, having migrated to the United States, I am horny about exploring career opportunities at Bank of America. I strongly believe that pursuing the MAC program at North Carolina State University will shell out as a perfect launch pad to achieve this goal.In order to lay a strong foundation of knowledge in accounting systems prevalent in the United States, I have completed 18 hours of Certificate of Accounting Program (CAP). The 6 graduate level courses included national Income Tax, Auditing, Accounting Information Systems, Intermediate Accounting I II and Management Accounting. By completing these courses, I have satisfied all the pre-requisites that I overtop to pursue the MAC program at North Carolina State University. I am excited that my dream of pursuing graduate education and a successful career in accounting here in the United States is at the cusp of fruition, and I look forward to being a proud graduate of MAC class of 2013.

Structuralist and Modernist Theories of Development

Structuralist and Modernist Theories of DevelopmentThis essay is going to look at the rather broad question which theory of victimization I find most persuasive. It will look at the different theories of outgrowth and then critically assess the theories to show that I opine Modernisation theory to be the most persuasive, using examples to back up my argument. To fully engage with the question the essay will start by look at and assessing Modernisation theory, secondly the essay will look at a structuralist approach and how it differs to modernisation theory. The essay will then look at political development theory and the differences between the theories, before concluding to try and show that overall the most persuasive theory of development is Modernisation.After public War Two we saw a departure from Classical Economics and Growth Theory to Modernisation Theory. The Theory reflected both a changing planetary political circumstance and developments made in social science ci rcles with the journal Economic Development and Cultural Change publishing the social scientists findings of their Modernisation look . Walt Rostow presented his thesis on Modernisation theory look at it as a five-stage process, showing countries moving from traditional societies to modern societies, the last stage for Rostow macrocosm The age of high mass consumption (Hopper, 2012), which is when a country maintains high economic growth for an appropriate length of time. It follows the general principles of the Modernisation theory that it is a bilinear process of changing older traditions, methods and structures that countries have previously followed. Rostow believed that a way for Developing countries to benefit from Modernisation was for aid from developed countries to be sent to these countries so that they could gain many productive investments. The Marshall plan and the Alliance for Progress in Latin America were programs that were influenced heavily by Rostows theory. The Alliance for Progress was constituted between America and Latin America to promote economic and political development within the countries (Ish-Shalom, 2004). The Alliance had a few successes, for example growth in regional output in Latin America increased by 0.4% per capita, however during the 1960s 13 of the governments within the alliance were taken over by a military dictatorship leading an abrupt failure of the alliance. By the end of the 1960s the theory of Modernisation was under attack, a main savvy being because many believed that the theories linear view dismisses the extent to which societies can be very diverse and different to other countries, especially those in the west, as these countries may fight change and resist changing their traditions, as it is assumed by authors that Third World Countries are traditional whilst Western countries are developed. In his book, jakes Martinussen talks about how some Modernisation theorists assume that because the model ha s worked in developed countries it will automatically transfer to work in evolution countries (Hopper, 2012). Similarly, these ideas of development hugely downplay the level to which internationalistic conditions could impede development in the South. Structuralists would argue that developing countries are powerless to control their own futures because modernisation theory was to focused upon endogenous factors that it overlooked external factors out-of-pocket to the international economic order. Structuralists focused on the structure of the international economy to look for patterns of the level of development in countries around the world. The theory is influenced by Keynesian which is a critique of classical economics and talks about how states rely upon government intervention and having a mixed economy, and that to become developed states should focus on achieving this, as the sentiment was that it would stimulate the economy and development within the country. The belief relied heavily upon governments in developing countries encouraging industrialisation through support such as financial help. Therefore, like modernisation theory we can see that structuralism shares a belief in industrialisation in a countries development. Also, the structuralist approach is rooted in Latin American experience, where the countries were very critical of international trade and there were attempts to upon) and explain the lack of development in the area. Raul Prebisch looked at the idea of there being a structural rift in the international economy (Edgar J. Dosman, 2012) in which Latin America sat on the edge of this rift as it had the function of being able to provide natural resources, mainly serving those countries in the centre. With assistance from Prebisch CEPAL developed a theory of economic development for Latin America. This approach was based upon the ideas that development should not be copied from Western countries but kinda established so that it repr esents the reality within the developing country. It also believed that protectionist policies should be adopted, such as importing tariffs on imported goods, as without such policies these countries would cope to survive in the international free trade grocery as they would be in direct competition with western countries. CEPAL concluded that development, in Latin America at least, needs to take place within a Capitalist system and that countries that produced industrial goods would grow faster than those which specialised in elementary commodities. Some structuralists held that countries of the Global South could overcome the unintentional restraints put on them by the already developed countries through trading between themselves (Hopper, 2012). Therefore, Structuralists would advocate a policy of Import-substitution industrialisation (ISI) described by Valpy Fitzgerald as being state-led industrialization, when CAPEAL was formed the organisation continued to push ISI as it wa s dealing with the shocks felt within Latin America from the disruption of international trade because of the Great Depression through World War Two, and by the 1950s CEPAL wanted to create a region-wide market that would capture economies of scale in production. (Love, 2005). Manufacturing in Latin America increased yearly by 6.3% (Sheahan, cited in Hopper 2012), showing that this structuralist approach had a arbitrary effect in this area of the Global South, however some manufacturing industries in countries with small domestic markets struggled as they had limited population size to market their goods as well and were further limited by the populations low incomes, leading to reductions in foreign exchange earnings so these industries would struggle to afford the technology needed to make out their goods which ISI was reliant on to work. ISI also ignored bureaucracy and corruption that have been a part of the states and governments throughout the world. Overall there were too m any faults with some structuralists ideas and Latin America abandoned ISI after the debt crisis in the region in 1982.After the slow dissolution of ISI in Latin America, with a worsening debt crisis and call of trade for primary products deteriorating a new approach, Dependency Theory, began to come to light from radical and neo-Marxists who began with critiquing both Modernisation and Structuralist theories. Their general argument is that Capitalism in the international community produces increased inequalities in levels of development allowing the North to exploit and extract wealth from the South. Paul Baran, a Development academic, considered this structure as the morphology of backwardness. (Bellamy Foster, 2007). inside Latin America Andr Gunder Frank argued that the lack of development within these countries can be directly connected to development in other areas of the world, this is through looking at a Capitalist world system characterised by a centre-periphery wave-parti cle duality where Latin America sits on the periphery with the countries of the North in the centre, the head of this dichotomy being an unequal exchange in the international market with the North becoming developed and dominating and the South being underdeveloped and dependent. A conclusion from settlement theorists seemed to be that capitalism needs to be abolished if underdevelopment is the result of a capitalist society. However, a challenge to the theory emerged when newly industrialised countries could approximately be seen to be bridging the gap in the dichotomy, Immanuel Wallerstein disagreed slightly with dependency theory and stated that the dichotomy had three levels centre, semi-periphery and periphery, Wallerstein developed World-systems theory. This theory sought to explain the central-periphery dichotomy produced by the Capitalist system, Wallerstein offer a more fluid concept of the dichotomy saying that it is possible for countries to move in and out of these ca tegories whether it be due to development or economic decline, this can account for the change in countries such as China and India (Hopper, 2012). However, critics would argue that despite Wallersteins theory that Dependency theorists underplay internal and natural causes of underdevelopment. During the 1980s Latin America witnessed an economic crisis leaving the areas gross domestic product growth rate as 1.1% whereas its overall growth rate of its per capita GDP was negative (Shixue, 2008). This was due to flaws from the ISI model and corruption within the region by officials. Also, many claim that the theory fails to provide answers to developing countries predicament, as the theory states that dependency is a root cause of their underdevelopment but provides no escape. There is either a need for developed countries to disconnect themselves from the international market or for a creation of a new international economic system. Therefore, Dependency theory provides little hope t o developing countries.In conclusion when analysing the different theories of development it is plain that all the three main theories can be recognised as having some influence within developing countries.

Study on Monetary Policy and the Stock Market

Study on fiscal Policy and the Stock MarketM cardinaltary polity is the regulation of the interest estimate and coin communicate of a coun canvass by its Central Bank or national Reserve in other to achieve the major(ip) economic goals which intromit price stability, full employment, economic growth etc. The blood line commercialize on the other fade is often considered a primary index number of a countrys economic strength and development as it is a major source of savings and income for most individuals. score has shown that the thrift of any country moves strongly to movements in tenor prices and is replete with examples in which large swings in stock, ho utilize and exchange rate grocerys shinecided with prolonged booms and busts (Cecchetti, Genberg, Lipsky and Wadhwani, 2000). young happenings even confirm this as the latest economic recession was preceded by a crash in the stock market.As a result of the birth between the stock market and the economy, it is v ery important to the Central bank building that the stock market performs well as bad performance can bad disrupt the economy. This is because the stock market serves as a primary source of income and retirement savings to many and movements in stock prices can have a major effect on the economy as it exercises legitimate activities such as consumption, investments, savings etcWhile some economists say that fiscal polity decisions consider on stock price movements, some others believe that stock price movements depend on financial constitution decisions. In this paper, we disassemble both sides of the coin by looking at how stock markets react to monetary indemnity and how monetary policy reacts to movements in stock markets. This research work is aimed at determination out which granger causes which using the Granger Causality test. We depart also analyze the consanguinity between both interest rank and monetary policy and that between money supply and monetary poli cy.In section II, a thorough review of the relevant literature of the topic is carried out as we try to understand to a greater extent(prenominal) about the family between monetary policy and the stock market and the set up of both components (money supply and interest judge) of monetary policy 0n the stock market. In the next section, we describe the variables and information set use in the study and the empirical model is developed. Results are presented and discussed in the next section. We cogitate the paper in section V and suggestions for further studies are pointed out and policy implications are considered.REVIEW OF RELEVANT LITERATUREMonetary policy is one of the most effective tools a Central Bank has at its disposal (Maskay, 2007) and is used to achieve the macroeconomic goals set by the government. This is done by regulation the two components of monetary policy which are interest place and money supply to maintain balance in the economy. The stock market is an i mportant indicator of the wellbeing of the economy as stock prices reflect whether the economy is doing well or non. Movements in stock prices have a prodigious impact on the macroeconomy and are thitherfore likely to be an important operator in the determination of monetary policy (Rigobon and Sack, 2001). The stock market is a financial market where equities are bought and sold either as an IPO (Initial Public Offer) in the primary market or exchange of existing shares between interested parties in the secondary market. Although stocks are claims on strong assets and researchers have found considerable evidence that monetary policy can regard veritable stock prices in the short run (e.g Bernanke and Kuttner, 2005), monetary neutrality implies that monetary policy should non affect real stock prices in the long run (Bordo, Dueker and Wheelock, 2007).To understand the kinship between monetary policy and the stock market, we must first understand what monetary policy is. Lam ont, Polk and Saa-Requejo (2001), Perez-Quiros and Timmerman (2000) among others use change in market interest rates or official rates as their rhythms of monetary policy. This measure of monetary policy, however, coincides with changes in business cycle conditions and other relevant economic variables. Christiano, Eichenbaum and Evans (1994) extracted monetary policy as the orthogonalized innovations from VAR models proposed by Campbell (1991) and Campbell and Ammer (1993). Research orderology based on this has shown that the response of US stocks returns to monetary policy shocks based on federal playfulness rates show that returns of large firms react less strongly than those of small firms (Thorbecke, 1997), that the overall policy for stock returns is quite low ( Patelis, 1997) and that international stock markets react to both to changes in their local monetary policies and that of the United states ( Conover, Jensen and Johnson ( 1999). Monetary policy shocks that are ext racted from structural VAR models or from changes in interest rates using monthly or every quarter selective information are likely to subject to the endogeneity problem i.e they are unlikely to be purely exogenous ( Ehrmann and Fratzscher, 2004). Another VAR-based method was used by Goto ad Valkanov (2000) to condense on the covariance between inflation and stock returns while Boyd, Jagan and Hu (2001) considered the linkages between policy and stock prices. Their analysis did not focus directly on monetary policy rather it focused on markets response to employment news (Bernanke and Kuttner, 2005).In their own research paper, Ehrmann and Fratzscher (2004) find that SP euchre shows a strong effect of monetary policy on equity returns, that the effect of monetary policy is stronger in an environment of annexd market uncertainty, that that negative surprises ( i.e monetary policy has tightened less and loosened to a greater extent than anticipate) has larger effects on the stock market than incontrovertible surprises, that small firms are react more to policy shocks than large firms, that firms with low cash flows are affected more by US monetary shocks and that firms with poor ratings are more prone to monetary policy shocks than those with good ratings. They find that firms react more strongly when no change had been expected, when there is a directional change in the monetary policy stance and during periods of high market uncertainty.There has also been cross-sectional dimensions of the effect of monetary policy on the stock markets in literature though few. Hayo and Uhlenbruck (2000), Dedola and Lippi (2000), Peersman and Smets ( 2002), Ganley and pink-orange (1997) etc are some economists who have analyzed this and overall, their findings show that the stock prices of firms in cyclical industries, capital-intensive industries and industries that are relatively open to trade are affected more strongly by monetary policy shocks (Ehrmann and Fratzscher , 2004).According to Bernanke and Kuttner (2005), changes in monetary policy are transmitted through the stock market via changes in the determine of private portfolios (wealth effect?), changes in the cost of capital and by other mechanisms. In their paper, they analyzed the stock markets response to policy actions both in the aggregative and at the level of industrys portfolios and they also tried to understand the reasons for the stock markets response. Their findings show that monetary policy is, for the most part, not directly attributable to policys effects on the real interest rate instead it seems to come either through its effects on expected future excess returns or expected future dividends.While economists commonly associate restrictive/expansive monetary policy with higher/ displace levels of economic activity, financial economists discuss various reasons why changes in the discount rate affect stock returns. (Durham, 2000) Changes in the discount rate affect the expe ctations of corporate profitability ( Waud, 1970) and discrete policy rate changes influence forecasts of market determined interest rates and the equity cost of capital ( Durham, 2000).Modigliani (1971), suggests that a decrease in interest rates boosts stock prices and therefore financial wealth and lifetime resources, which in turn raises consumption through the welfare effect. Mishkin (1977) on the other hand suggests that lower interest rates increase stock prices and therefore decrease the likelihood of financial distress, leading to change magnitude consumer durable expenditure as consumer liquidity concerns abate (Durham, 2000).Tobins q is the equity market value of a firm divided by its book value. It can also be defined as the ratio of the market value of a firms existing shares to the successor cost of the firms physical assets. Higher stock prices reduce the yield on stocks and reduce the cost of financing investment spending through equity issue (Bosworth, 1975). Tob ins q explains on e of the mechanisms through which movements in stock prices can affect the economy the wealth channel. The other channels of monetary policy transmission allow in the interest rate channel and the exchange rate channel. The wealth channel has the investment effect, wealth effects and balance sheet effects (www.oenb.at/en). Bernanke and Blinder (1992) and Kashyap, stein and Wilcox (1993) show that a tightening of monetary policy has a very strong impact on firms that highly depend on banks loans to financing their investments as banks reduce their overall supply of credit. Deteriorating market conditions affect firms by also weakening their balance sheets as the present value of collateral falls with salary increase interest rates and that this effect can be stronger for some firms than for others (Bernanke and Gertler 1989, Kiyotaki and Moore 1997). These two arguments are based on information asymmetries as firms for which more information is publically lenda ble may find it easier to collect loans when credit conditions become tighter (Gertler and Hubbard 1988, Gertler and Gilchrist 1994).Stock returns of small firms generally respond more to monetary policy than those of large firms ( Thorbecke 1997, Perez-Quiros and Timmermmann 2000).Some economists (Sprinkle (1964), Homa and Jaffee (1971), burger and Kochin (1972)) in the early 1970,s alleged that past data on money supply could be used to predict future stock returns. These finding where not in line with the efficient market hypothesis which states that all available information should be reflected in current prices (Fama, 1970) meaning that anticipated information should not have any effect on current stock prices. Most economists believe that stock prices react differently to the anticipated and unanticipated effects of monetary policy ( Maskay, 2007).The Keynesian economists lay out that there is a negative relationship between stock prices and money supply whereas real activit y theorists argue that the relationship between the two variables is verifying (Sellin, 2001). The Keynesian economists believe that a change in money supply or interest rates will affect stock prices only if the change in the money supply alters expectations about future monetary policy while the real activity economists argue that increase in money supply means that money imply is increasing in anticipation of increase in economic activity (Maskay, 2007). Another factor discussed by Sellin (2001) is the risk premium hypothesis proposed by Cornell i.e higher money supply indicates higher money demand and higher money demand suggests increased risk which leads investors to demand higher risk premiums for holding stocks making them less attractive. The real activity and risk premium hypothesis is combined by Bernanke and Kuttner (2005) who argue that the price of a stock is a function of the present value of future returns and the perceived risk in holding the stock.While advocates of the efficient market hypothesis hold that all available information is included in the price of a stock, the opponents argue otherwise and that stock prices can also be affected by unanticipated changes in money (Corrado and Jordan, 2005). The effect of anticipated and unanticipated changes in money supply on stock prices was analyzed by Sorensen (1982) who found out that unanticipated changes in money supply have a larger impact on the stock market than anticipated changes. Bernanke and Kuttner (2005) on the other hand analyze the impact of announced and unannounced changes in the federal funds rate and find that the stock market reacts more to unannounced changes than to announced changes in the federal funds rate which is also in line with the efficient market hypothesis. Studies by Husain and Mahmood (1999) have opposing results. They analyze the relationship between the money supply and changes (long run and short run) in stock market prices and find that changes in money s upply causes changes in stock prices both in the short run and long run implying that the efficient market hypothesis does not always hold.Maskay(2007) analyzes the relationship between money supply and stock prices. He also seperates money supply into anticipated and unanticipated components and adds consumer confidence, real GDP and unemployment rate as control variables. The result from his analysis shows that there is a positive relationship between changes in the money supply and the stock prices thereby supporting the real activity the theorists. The result from his analysis on the effect of anticipated and unanticipated change in the money supply on stock market prices shows that anticipated changes in money supply matters more than unanticipated changes. This supports the critics of the efficient market hypothesis.According to Cecchetti, et al. (2000), macroeconomic performance can be improved if the central bank increases the short-term nominal interest rate in response to temporary bubble shocks? that raise the stock price index above the value implied by economic fundamentals. On the other hand, Bernanke and Gertler (2001) delusive in their research that the Central Bank cannot tell whether an increase in stock prices is driven by a bubble shock or a fundamental shock.This study will analyze both exogenous and endogenous components of the relationship between monetary policy and the stock market i.e the effect of monetary policy on the stock market and the the effect if any of the stock market on monetary policy decisions. This particular analysis will be done using the federal funds rate as a representative of monetary policy. We also follow the methodology used by Maskay (2007) nigh as we try to find the effect of money supply on the stock market. Although Maskay used M2 as a measure of money supply, this study will separate money supply into M1 and M2 and analyze their relationship with the stock prices.Following from the theory and review of l iterature, this paper is aimed at answering the next questionsHow do movements in the stock market affect monetary policy decisions on federal funds rates?How does monetary policy affect stock market prices?Do stock market prices react differently to the M1 and M2 components of money supply?RESEARCH METHODOLOGYThe effect of stock market prices on monetary policy.In this section, I test for the relationship between monetary policy and stock prices using the Taylor rule. The Taylor rule is a monetary policy rule that stipulates how much the central bank would or should change the nominal interest rate in response to the divergence of positive inflation rates from channelize inflation rates and of developed GDP from potential GDP. The rule is written asit = r*t + ( t *t) + (yt t).. (1)Where it = target short-term nominal interest rate.r*t = pretended equilibrium real interest rate.t = the observed rate of inflation.*t = the desired rate of inflation.yt = the logarithm of real GD P.t = the potential production.But, to analyze the doings of monetary policy, the following lapse equation is estimatedit = + Et( t+i *t+i) +Et (yt+i+ t+i)+t ..(2)WhereEt = the expected value conditional to information available at the time.A good conduct of monetary policy should have and each equal to 0.5 as suggested by John Taylor.To conduct our study, we use the following equationit = + Et( t+i *t+i) +Et (yt+i+ t+i)+k t-k + t ..(3)Because the monetary authorities target variables other than inflation and output deviations from the target (asset prices in this case) thereby making equation (2) mis-specified. A standard Taylor rule is well specified when the monetary authorities target only inflation and output deviations from the target. The addition to this variable is the lagged change in asset prices which is added in order to determine the relationship between monetary policy and stock prices.The data for the cost-of-living index (Consumer Price Index), real GDP ( unr efined Domestic Product) and the federal funds rate are obtained from the IMF Washington website while the data for SP 500 Index are obtained from the federal official Reserve Economic Data (FRED) of the federal official Reserve Bank of St Louis website www.federalreserve.gov.The effect of monetary policy on stock market prices.In this section, we test whether movements in stock prices are sometimes aquiline on monetary policy. This test is carried out by regressing the actual change in federal funds rates upon the SP 500 index. We us the following simple model for this purposeSP500 = 1 + 2*actual change in federal funs rate + 3*real GDP + 4* unemployment rate.Real GDP and Unemployment rate are added as control variables. The data for real GDP is obtained from IMF, Washington while the data for unemployment rates in obtained from www.federalreserves.gov.We add GDP because it is an important determinant of the stock prices as most industries react to changes in the economy and do we ll as the economy does well and vice versa i.e they are procyclical in nature. When the GDP is low, the stock prices generally tend to be low, as the companys performance would be worse than before. A direct, positive relationship is expected between stock prices and the GDP.Unemployment rate is also used as a control variable in this model because it is one of the major factors that determines the demand for stocks thereby either driving the stock prices up or down. When the unemployment rate is high, demand for stock reduces as less people can reach to buy them and this subsequently drives down stock prices and vice versa. The unemployment rate is also a proxy for for overall aggregate demand in the economy ( Maskay, 2007) and when it is low, aggregate demand is high. We expect an inverse relationship between the unemployment rates and stock prices.The effect of M1 and M2 components of money supply on stock prices.In this section, we test the relationship between monetary policy and stock prices from the money supply angle of monetary policy. We use the M1 and M2 components of money supply for this analysis. This is done by first exam the relationship between the percentage change in M1 and the stock prices and then testing the relationship between M2 and the stock market.The simple empirical model used for this test isSP500 = 1 + 2*%M1 + 3*Real GDP + 4*Unemployment rate.. (1)SP500 = 1+ 2*%M2 + *3Real GDP + 4*Unemployment rate.. (2)Unemployment rate and real GDP are also used here as control variables for the kindred reasons disposed above. The data on percentage change in M1 and M2 were obtained from Federal Reserve Economic Data from the website of the Federal Reserve Bank of St. Louis. We were able to get the monthly data of M1 and M2 and then got the quarterly averages to produce the quarterly data.selective information DESCRIPTIONIn this section, we define and describe the various data used in this study. We used quarterly data from 1990 to 2009. T he variables used in this analysis includeThe Federal Funds RateThe federal funds rate is a monetary policy tool used by the Central Bank/Federal reserve of the country to regulate the economy. Economists believe it has an inverse relationship with stock prices as because when there is an upward movement in stock prices above the enviable level, the federal reserve increases (contractionary) the federal funds rate . This leads to a decrease in the amount of money demanded by individuals thereby causing a lower demand for stocks and pushing down stock prices. We obtained data on the federal funds rate from the website of the federal reserve bank of Louisiana.2. The Consumer Price IndexA consumer price index (CPI) is an index that estimates the average price of consumer goods and services purchased by households. It is used in our study to calculate inflation. We do this using the eviews software (100 (cost-of-living index cpi ( -4)). We obtained the quarterly data on CPI from the website of the International Monetary fund in washington. The CPI has an inverse relationship with monetary policy actions.3. Real Gross Domestic Product (Real GDP)This can be defined as a measure which adjusts for inflation and reflects the value of all goods and services produced in a given year, expressed in base year prices. Real GDP provides a more accurate figure as it accounts for changes in the price level. The quarterly data on Real GDP is obtained from the website of the International Monetary Fund, Washington.4. SP 500It is a capital weighted index of the prices of 500 large-cap common stocks actively traded in the United States. It is believed to have an inverse relationship with monetary policy as an expansionary (interest rate reduction) monetary policy leads to an upward movement of the sp500 index. The quarterly data for the sp500 is obtained from the federal reserve bank of Louisiana.5. Unemployment RateThe unemployment rate is used as one of the control variables. It is an important indicator of the wellbeing of an economy. The lower the unemployment rate, the higher the aggregate demand for stock thereby pushing up stock prices. The quarterly data on unemployment rate is obtained from the website of the Federal Reserve Bank of Louisiana. We get the quarterly data by finding quarterly averages from the monthly data provided.6. Monetary aggregates M1 and M2M1 is a monetary aggregate and it includes the transaction deposits of banks and cash in circulation and all other money equivalents that are easily convertible into cash while includes M1 plus short-term deposits in banks and 24-hour money market funds. Money supply has a positive relationship with stock prices because the higher the money supply, the higher the demand for stock which eventually increases stock prices. We split money supply into M1 and M2 to find out if they have the same relationship with stock prices. The quarterly data on percentage change in monetary aggregates is obta ined from the website of the federal reserve bank of Louisiana. We also had to calculate the quarterly averages of the monthly data given.DATA ANALYSIS cast 1 The Taylor ruleit = r*t + ( t *t) + (yt t)+ tDependent Variable FED_FUNDS_RATE system to the lowest degree SquaresDate 07/05/10 condemnation 2019Sample(adjusted) 19911 20094Included observations 76 after adjusting endpointsVariableCoefficientStd. Errort-StatisticProb.C3.6155131.2207832.9616340.0041INFLATION0.6842640.1562124.3803480.0000OUTPUT_GAP-1.42E-069.83E-07-1.4428030.1534R-squared0.249642 call up hooklike var3.860658 adjust R-squared0.229085S.D. dependent var1.686064S.E. of regression1.480394Akaike info criterion3.661167Sum squared resid159.9844Schwarz criterion3.753170Log likelihood-136.1244F-statistic12.14348Durbin-Watson stat0.181830Prob(F-statistic)0.000028The musical theme results areit =3.62 + 0.68( t *t) 1.42 (yt t)The coefficient associated to inflation is positive, 0.68, but is statistically significant with a p-value of 0.00. The coefficient associated with the output gap is negative (-1.42) and statistically significant. The estimated stabilizing rate of interest (c) is positive (3.61) and statistically significant. An R-squared of 0.25 means that we are only able to explain about 25% of the variability in the interest rate.The augmented taylor rule modelit = + Et( t+i *t+i) +Et (yt+i+ t+i)+1 t-1 + t one lagDependent Variable FED_FUNDS_RATEMethod Least SquaresDate 07/05/10 Time 2130Sample(adjusted) 19913 20094Included observations 74 after adjusting endpointsVariableCoefficientStd. Errort-StatisticProb.C8.2989611.2808936.4790440.0000INFLATION_F0.5489990.1811983.0298250.0034OUTPUT_GAP_F-9.10E-061.51E-06-6.0419260.0000S(-1)4.24E-057.35E-065.7757670.0000R-squared0.442430Mean dependent var3.809595Adjusted R-squared0.418534S.D. dependent var1.678852S.E. of regression1.280190Akaike info criterion3.384432Sum squared resid114.7220Schwarz criterion3.508976Log likelihood-121.2240F-statist ic18.51494Durbin-Watson stat0.214690Prob(F-statistic)0.000000InterpretationThe estimated regression isit = 8.30 + 0.55Et( t+i *t+i) -9.10Et (yt+i+ t+i)+4.24t-kThe coefficient associated to expected inflation is positive (0.55) but is statistically significant because it has a p-value of 0f 0.003, the coefficient associated with expected output gap is negative (-9.10) and is statistically significant (p-value = 0.000). The coefficient associated with the change in asset prices (lagged by 1 for better estimation) which is denoted by S (-1) is negative and it is statistically significant therefore we reject the null hypothesis. The measure of goodness of fit (R-square) is 0.44 meaning that we are able to explain about 44% of the variability in the interest rateOur model consistently overestimates the actual interest rate and the residuals do not seem to be independently and identically distributed. We therefore conduct some tests which include1. The Jacque-Bera test This is a statistic that measures the end of the skewness and kurtosis of the series with those from a normal distribution.By simply looking at the histogram, we can see that the distribution is roughly normal and the jarque-bera statistic of 0.58 shows that it is not statistically significant and we should accept the null hypothesis.The white test This is used to test whether the errors are heteroskedastic or not. In the presence of heteroskedasticity, OLS estimates are consistent but efficient. unobjectionable Heteroskedasticity TestF-statistic3.846209Probability0.000621Obs*R-squared25.97528Probability0.002062Test EquationDependent Variable RESID2Method Least SquaresDate 07/06/10 Time 0041Sample 19913 20094Included observations 74VariableCoefficientStd. Errort-StatisticProb.C-35.2896124.46199-1.4426300.1540INFLATION_F-5.4196573.008210-1.8016220.0763INFLATION_F20.3072310.2002861.5339610.1300INFLATION_F*OUTPUT_GAP_F5.95E-062.83E-062.1055860.0392INFLATION_F*S(-1)-2.78E-051.73E-05-1.6033610.1138OUTPUT_ GAP_F9.90E-055.34E-051.8525580.0686OUTPUT_GAP_F2-6.19E-112.74E-11-2.2572880.0274OUTPUT_GAP_F*S(-1)3.35E-101.43E-102.3372900.0226S(-1)-0.0003090.000140-2.2052820.0310S(-1)2-7.97E-115.33E-10-0.1496790.8815R-squared0.351017Mean dependent var1.550298Adjusted R-squared0.259754S.D. dependent var1.968439S.E. of regression1.693596Akaike info criterion4.016674Sum squared resid183.5692Schwarz criterion4.328034Log likelihood-138.6169F-statistic3.846209Durbin-Watson stat0.580160Prob(F-statistic)0.000621According to the two test statistics knotted in the regression result, we can say that the distribution is statistically significant so we can reject null hypothesis.The Durbin-Watson test This is used to test for resultant correlation. Autocorrelated residuals means that OLS is no longer best, linear, unbiased estimators and that the standard errors computed using the OLS formula are not correct. The Durbin-Watson statistic of 0.214690 shows that there is positive serial correlation as DWModel 2SP500 = 1 + 2 federal funds rate + 3real GDP + 4unemployment rate.The aim of this model is to determine if the federal funds rate has any impact on the stock market. Real GDP and unemployment rate are used as control variables for reasons given in the research methodology.Dependent Variable SP500Method Least SquaresDate 07/06/10 Time 0138Sample 19901 20094Included observations 80VariableCoefficientStd. Errort-StatisticProb.C-115.7008222.2313-0.5206320.6041FED_FUNDS_RATE0.99030112.964360.0763860.9393REAL_GDP010.1595380.01032715.449160.0000UNEMPLOYMENT_RATE-119.567417.42177-6.8631010.0000R-squared0.872734Mean dependent var924.0339Adjusted R-squared0.867710S.D. dependent var378.2205S.E. of regression137.5651Akaike info criterion12.73478Sum squared resid1438237.Schwarz criterion12.85388Log likelihood-505.3912F-statistic173.7244Durbin-Watson stat0.350064Prob(F-statistic)0.000000InterpretationThe estimated regression issp500 =-115.78 + 0.99*actual change in federal funds rate + 0.16*rea l GDP 119.57* unemployment rate.The coefficient associated with the federal funds rate is negative and is not statistically significant. The coefficient associated with the real GDP is positive and is statistically significant while the coefficient associate

The Introduction Of Entry Market Strategy

The Introduction Of Entry Market StrategyIntroduction of opening securities industry place systemStrategy is planning through companies achieve their goals and move forward. A company fools a decision to enter an international grocery, this strategy whole caboodle to smash its wings. Company could use many ways to get it. These ways can be a shade of companys strength, potential and the level of interest in calling. Exporting is main main course strategy in international bena which can be used remove or indirect mode. A companys baffle to international foodstuff can require minimal investment and be limited to infrequent exporting with title thought given to market development. Or a company can make large investments of capital and management effort to get strength of its sh bes in foreign markets. Both approaches can be remunerative. Entry market strategy can be fulfilled through these mechanisms.A company can decide to enter foreign market by exporting from home co untry. This means of foreign market development is the easiest and most common approach employed by companies taking their first international steps because the risk of the financial loss can be minimised. Many companies engage in exporting as their major market entranceway method. Generally betimes motives are to skim the cream from the market or gain job to absorb overheads. Even though such motives might appear opportunistic, exporting is laboured and permanent from of operating in international marketing.PiggybackingPiggybacking occurs when a company (supplier) sells its product abroad development an different companys (carrier) distribution facilities. This is quite common in industrial product but all types of product are sold using this method. Normally piggybacking is used when the companies involved have complementary but non- competitive product. near companies use this method to share transportation costs and some companies do it purely for the profits as they can m ake profit on other companies (suppliers) products. This method also can be used a first step towards a companys own international activities to test the market. This particularly advantageous for bantam firms as they often lack the necessary resources. Once they realise the market potential, they can start their own exporting.Ref hik.diva-portal.org/smash/get/diva21138/FULLTEXT01Ref Ghauri, p,cateora(2006)international marketing (2nd edition)McGraw-HillLicensingA mean of establishing a foothold in foreign markets without large capital outlays is licensing patent rights, trademark rights and the rights to use technological processes are granted in foreign licensing. It is favourite strategy for small and medium-sized companies although by no means limited to such companies. Not many companies confine their foreign operations to licensing alone. It is in general viewed as a supplement to exporting or manufacturing rather than the only means of entry into foreign market. The Advanta ges of licensing are most apparent when capital is scarce, when write restrictions forbid other means of entry, when a country is sensitive to foreign ownership or when it is necessary to protect patents and trademarks against cancellation for non use. Although this whitethorn be the least profitable way of entering a market but the risks and headaches are less than for direct investments.FranchisingFranchising is a rapidly growing form of licensing in which the franchiser pass ons a quantity package of products, systems and management services and the franchise provides market knowledge, capital and personal involvement in management. The combination of skills permits flexibility in dealing with local market condition and yet provides the parent firm with a reasonable degree of control. Potentially the franchise system provides an effective blending of skills centralisation and operational decentalisation and has become increasingly important form of international marketing.Joi nt surmisalJoint ventures one of the more important types of collaborative relationship, have accelerated astutely during the past 20 years. Besides serving as a means of lessening political and economic risks by the amount of the partners contribution to the venture, joint ventures provide a less risky way to enter markets that pose legal and cultural barriers than would be the case in the acquisition of the existing company. Joint ventures are established divided legal body. Joint ventures should also be differentiated from minority holdings by an MNC in a local firm. It enables a company to utilize the specialised skill of a local partner. A joint venture can be attractive to an international marketer when the firm lacks the capital or personal capabilities to expand its international activities.ManufacturingAnother means of foreign market development and entry is manufacturing deep down a foreign country. A company may manufacture locally to capitalise on low cost labour to avoid high import taxes to reduce the high cost of transportation to market to gain access to raw materials and or as means of gaining market entry. Seeking lower labour costs offshore is no longer an ludicrous strategy. A hallmark of ball-shaped companies today is the establishment of manufacturing operations throughout the world. This is a trend that will increase as barriers to free trade are eliminated and companies can locate manufacturing wherever it is most cost effective.Ref Ghauri, p,cateora(2006)international marketing (2nd edition)McGraw-HillForeign direct investmentForeign direct investment is a higher(prenominal) risk strategy as compare to other modes but it has positive impact for the companies which want to get new markets for their product so that they can make profit. FDI strategy helps to strengthen economic relationship with another country where the investment is made. It requires participation of joint venture, management, transfer of technology and capital. India and China are big markets where this strategy is being used a lot.Illustration of entry strategies related some organisationsWe can classify the organization in four types.Manufacturing firmsA hallmark of global companies today is the establishment of manufacturing strategy throughout the world. There are three types of manufacturing investment by firms in foreign countries.Market seeking Investment in china where companies are attracted by the size of the market.Resource seeking investment in India, especially by a number of fashion garment manufacturer such as Mexx and Marc O Polo.Investment seeking Investment in Malaysia and Singapore by electronics manufacturers such as Philips and Motorola.Example Renault, the French auto-maker entered India with joint venture and became partner with Mahindra, the Indian tractor and SUV maker to launch its Logan. The four door saloon car which is already sold in Romania and is a low-cost car worthy for emerging market purchasing power. Logan entered Indias mid-market and competed head to head with TATA, Ford and HyundaiService firmsThese types of organizations provide facilities to others on some fee basis. They might use joint venture, licenses and franchising entry strategy.Example Starbucks entered in UK, was the first European country. The UK provided facilitation this company to expand its business in Europe. That has been a milestone of its achievements and to go into a foreign market. Strategy was interpreted by Starbucks to enter and fulfil new or all sort of market, encourage countrys culture and traditions. Recently three different strategies are used in starbucks. Joint venture, licenses and wholly-owned subsidiaries.Ref Ghauri, p,cateora(2006)international marketing (2nd edition)McGraw-HillGeneral electronic or big retailer as wall-mart or Tesco to sell their products abroad, use exporting (carrier) strategy as a way of broadening the product lines that they can offer to their foreign customers. These companies believe that offering a broader range of products will help them in boosting the sales of their own products.Vodafone is a mobile telecom company working in Africa, Asia, USA, Europe and Middle East entered in India with joint venture. They didnt use their existing strategy which they use in UK and rest of the world.Telenor is a Swedish telecom company which used direct investment strategy in Pakistan. Now telenor has become a 2nd largest telecom company in Pakistan.McDonald KFC including soft drinks, motel, retailing, fast foods, car rental and automotive services using Franchising for fastest growing market entry strategy.Multinational and Global firmsThese types of organizations sell their product globally and have branches all over the world. They might use foreign direct investment strategy.Example Coca-cola Pepsi using foreign direct investment strategy to grow their business in the world. They take all measures to fulfil companys strategy.Unilever PG use foreign di rect Investment to expand their business in the world. This entry market strategy has been successful for these sorts of multinational companies.Barclays bank is a financial service provider entered in Pakistan with foreign direct investment strategy.Pfizer pharmaceutical company has merged with four other research companies to get good economical growth.Small firmsThese types of organizations have limited resources to expand their business globally. They might use joint venture and merger strategy to grow.Example General Mills has been in Europe since 1920 and controls about half of the Kelloggs cereal market entered in Europe with joint venture Nestle. Although the cereal business uses cheap commodities as it raw materials but Kelloggs has earned significant profit in Europe.A sager industry has been in Pakistan for last 40 years making soaps and detergents has merged in unilever to gain sufficient profit.Igloo ice-cream is a very famous in Pakistan has been working well in Pakist an now has merged unilever to achieve successful companys goal.Ref Ghauri, p,cateora(2006)international marketing (2nd edition)McGraw-HillAnalysis of Market conditions and RiskWe can discuss market conditions through these financial and political-legal factors.Economic-Financial RiskAmount of foreign debt carriedIncome distribution within the marketAmount of foreign investment already in the market immanent resource baseInflation ratePolitical-Legal FactorsRole of government in business activities (free or not free markets)Stability of governmentBarriers to international trade (whether or not favourable trade policies)Laws and regulations affecting the marketing mix (marketing regulations)Laws and regulations affecting business activities (acceptance of foreign investment, etc.)Stability of the workforcePolitical relations with barter partnerAnalysis of cultural factorsWe can discuss cultural factors through cultural and geographic distanceCultural distanceStyle of business within the marketAttitudes toward bribes and questionable paymentsLanguage, race and nationalities, geographic divisionsRole of institutions, religious groups, educational system, mass media, familySocio cultural (social interaction, hierarchies, interdependence, etc.)Geographic distanceNumber of organizations within the market size and quality of workforcePopulation size and growth rateComposition of house holdsGeographic distribution and density of population

Seniors Driving Essay -- Elderly Drivers Dangers Driving Old

Seniors Driving Courtney Caldwell, a writer for Road and Travel Magazine, express in one of her articles that, My m separate, insisted her driving skills were as sharp as ever. However, after a few life-threatening trips to the grocery store as her passenger, I knew she had to closure driving. She was driving dangerously close to the curb, her reaction time was poor and she was missing stop signs and traffic lights. Her driving was so bad that I forbade my 32-year-old adult missy to ever ride as a passenger with her. (roadandtravel.com) Ms. Caldwell is referring to her mother, an elderly widow, who must depend upon, as she has no other means of transportation.In the States to daytime, more and more peck are driving for each one day. Currently, there are more cars on the road now, then at any point in Americas past. With all of this new traffic, more and more accidents occur everyday. The group siemens most responsible for these accidents is the group of drivers age lambert-f ive and older. Currently these quite a little make up twenty five per cent of the driving population, and account for eighteen per cent of current auto accidents. (aarp.org) With all of these accidents, there is still no restrictions or limitations placed on a person, age fifty-five and overs license. It is my opinion that, at the least, restrictions should be placed on licenses for all pot age fifty-five and older.Currently across the United States, there are very few laws regarding the elderly and driving. In Florida a new law states that people over the age of sixty-five must pass a road test. Florida is the only state to implement such a measure. With the exception of Florida, every other state still puts its elderly drivers at risk. John Nelson the president of the American health check association said that, A woman in her eighties in good health may be a safer driver than her twenty year old grandson who happened to be on pain medication for an injury.(aarp.org) As we age, our bodies age too, and as a result of that we lose some of the most important senses that we use to drive. The most important sense to drivers is vision. More then fifty per cent of people age fifty-five and older have some sort of problem with their eyesight.(aarp.org) These problems can make it difficult to see at night, and it can cause them to have difficulty judging distances. Another useful sense... ...is program might be successful at teaching major(postnominal) citizens how to bide by the traffic law, that is all it does. It still does not prevent senior citizens from getting into accidents. As more and more drivers are on the road each day, we need to be ever cautious of our fellow drivers. One such group of drivers is those who are aged fifty-five and older. Since they are getting older, their ability to drive safely has diminished. Senior citizens are also more likely to be severely injured or killed in an auto accident. By age, they are the second biggest accident g roup. Studies have proved that the 55 ALIVE driver-training programs were not effective in reducing the number of traffic crashes. Therefore, license restrictions are the answer. The times of day that senior citizens drive and the distances they can drive should be limited. Senior citizens that choose to continue driving should also be made to undergo routine medical exams to test their vision and hearing. An attempt should also be made to expand the ability and lower the cost of public transportation. By doing this, we can protect the lives of our senior citizens, and reduce the number of accidents on the road.