Evolution and Stages of Development of Self-Managed teams Essay

One of the most effective means of extracting the unutilized portion of the healthcare industry has been the self-managed team. This has been a recently identified area, and healthcare organizations are beginning to use it for their advantage in improving the health outcomes of the patients. Self-managed teams are also known as ‘self-directed teams’, ‘natural teams’, or ‘semiautonomous teams’. They are a group of employees that have to do daily responsibilities along with managing themselves. They would perform several tasks including managing work responsibilities, planning, problem solving, decision-making, scheduling the work, etc. The self-management teams would be having several characteristics including interacting with other working groups, responsibility providing the services, performing interdependent activities and managing the operations of the team (Schrubb, 1992 & Silverman, 1996). The basic evolution of a self-managed team occurs in five stages. Zawacki and Norman framed this in the year 1994. With a different situation arising due to the workflow, the team can revert to an earlier situation. A self-managed team would be having several roles to play with relation to patient care, and each of these roles would be in one of the seven stages of development. It is important to note that each of these roles played by the team members, would be in any of the seven stages of team development. The stages of self-managed team development include: – In the first stage, when the team is new and do not know the skills and the knowledge of the work, a leader who is familiar with the work processes and competent with the work skills, would be providing supervision and would train the staff to perform the daily tasks. The leader once actually trains the staff members to perform the tasks, slowly shifts his role from a supervisor to a manager. He would now be slowly managing the activities of the team. Slowly the manager would begin to coordinate all the activities of the team. He/she would be training the staff members to perform tasks that would involve leading the lower staff members. Most of the members of the team take up certain responsibilities concerned with management. The manager acts as an interface between the self-managed team and the administration or the portfolio management. Slowly the manager of the team becomes an additional resource that would not only perform the tasks that the members of the group would be performing, but would also be invoked in interacting with the administration (Silverman, 1996). It is important that the organization moves thought all these stages in the self-management development process. The specific reasons for having a self-management development process include: – To ensure that the patient is satisfied with the treatment To ensure that the team members get the feedback directly from the customers rather than from the managers and the supervisors. This would help the team to continuously develop over a period of time. The customer satisfaction levels would improve with time. To ensure that further responsibilities and roles for the staff members are incorporated in an appropriate manner. The organization, which has dynamic objectives, is able to function better if self-managed teams are existent. The managers and the supervisors, who play an important role guiding the staff members, can be utilized to engage in growth-related activities of the origination (Silverman, 1996).

Cross-Cultural Communication Essay

To participate effectively in today’s world, we must recognize that communication is profoundly related to culture. To achieve effectiveness in social and professional life, we need to be sensitive to culture difference and adapt our interaction to people of varied culture background. The following scenario highlights the importance of adapting interaction to people with different culture. Five years ago, when I just came to Singapore, I came across an incident which made me realize that different cultures may influence people behaves differently under the same circumstance. After we finished a school group project, all the team members Wu Gang (Chinese), Samuel (Singaporean) and I (Chinese) decided to have a dinner together at a Chinese restaurant for celebration. When the dinner came to the end, Wu Gang took out his wallet and would like to pay the bill. At that moment, Samuel asked Wu Gang how much he should pay for his share. â€Å"No need, no need! It’s my treat.† replied by Wu Gang. Seeing this, I tried to took the bill from Wu Gang and insist that I pay the bill this time. Wu Gang stopped me, saying to me â€Å"Leave it to next time†. Meanwhile, he stood up and approached to casher for payment. Samuel still insisted on paying his own share and left the money to him after Wu Gang came back. At the end, Wu Gang accepted Samuel’s money unhappily. Samuel was confused and uncomfortable with Wu Gang’s reaction. At that time, I didn’t understand Samuel’s insistence either because it is so common in China for one to pay for everybody in dinner. People pay the bill for you to treat you as a close friend as if you were a family member. Rejection means that you reject to be a close friend. That’s why Wu Gang was unhappy to Samuel in the above scenario. The appropriate respond in China culture is to treat your friend back next time. Now, after living in Singapore for several years, I understand that Singaporeans are more comfortable to split the bill even they are close friends. In Singapore culture, it reflects respect and fairness to your friend that each one pays his/her own share. In this incident all of us chose our own â€Å"correct way† to deal with the situation but ignore others’ different cultural background. Many people evaluate others based on the standards of their own culture. Some people think their standards reflect universal truths. They aren’t aware that they are imposing the yardstick of their particular culture and ignoring the yardsticks of other cultures. Devaluing whatever differs from our own ways limits human interaction and leads misunderstanding. . In China, one preson usually pays for __6__ . In Western countries, one preson pays if he or she is entertaining clients , but __7__ friends eat together , they usually share the cost. This is called ‘going Dutch’.

Alzheimer’s Disease Biological Causes

Alzheimers Disease Biological Causes Alzheimer’s disease is driven by two processes: extracellular deposits of beta amyloid and intracellular accumulation of tau protein.[9] â€Å"It is characterized by accumulation of amyloid-ÃŽ ² peptide, generated by proteolytic processing of the amyloid precursor protein (APP) by ÃŽ ²- and ÃŽ ³-secretase.†[10p554] The APP gene provides instructions for making APP. This protein is found in many tissues and organs including the brain and the spinal cord. It plays a role in cell growth, formation of new synapses, differentiation of neurons, cell adhesion, calcium metabolism, and protein trafficking.[10] The length of APP varies between 695 to 770 amino acids. Protein breakdown generates AÃŽ ², a 39- to 42-amino acid peptide. This form is the primary component of amyloid plaques found in the brains of AD.[10] APP may be processed via a non-amyloidogenic pathway that prevents AÃŽ ² formation or through a toxic, amyloidgenic pathway, resulting in AÃŽ ² plaque formation. In the non-amyloidogenic pathway, APP is processed in peripheral cells. In this pathway, APP is cleaved by an enzyme called ÃŽ ±-secretase followed by ÃŽ ³-secretase. These are integral membrane proteins where cleavage by ÃŽ ±-secretase occurs within the AÃŽ ² domain. Cleavage by ÃŽ ±-secretase prevents AÃŽ ² formation and releases the extracellular secreted APP ÃŽ ± fragment.[11] Research shows that secreted APP ÃŽ ± protects neurons, regulates stem cell production, plays a role in brain development, and promotes the formation of synapses and cell adhesion. The remaining C-terminal fragment of APP then undergoes either lysosome degradation or ÃŽ ³-secretase cleavage, which generates p3 and the APP intracellular domain.[11] In the amyloidogenic pathway, APP is primarily processed in neuronal cells. Within this pathway, APP is cleaved by ÃŽ ²-site APP cleaving enzyme 1 ( BACE1 ), followed by ÃŽ ³-secretase. BACE1 initiates the production of the toxic AÃŽ ² that plays a crucial role ea rly in the pathogenesis of AD.[11] Cleavage of APP by BACE1 releases the extracellular secreted APP ÃŽ ² fragment which is thought to assist with axon pruning and cell death.[12] BACE1 cuts APP to produce a membrane-bound C-terminal fragment C99 that is further processed by ÃŽ ³-secretase to generate AÃŽ ². The site of ÃŽ ³-secretase cleavage within the transmembrane domain of APP can vary and determines the type of AÃŽ ² that is produced, AÃŽ ² 39-42. Once produced, AÃŽ ² is usually secreted into the extracellular space via exocytosis.[12] AÃŽ ² is a major component of plaques that are found in both intracellular and extracellular locations. AÃŽ ² 42 is considered to be one of the main causes of these plaques because it clumps together more quickly than other isoforms, forming clusters and fibrils.[10] In individuals with AD, elevated concentrations of AÃŽ ² plaques can lead to many cellular dysfunctions. The presence of AÃŽ ² plaques alone is not enough to diagnose AD since ma ny people without cognitive decline have plaques. Tau is a protein in the microtubule-associated protein family. It has several physiological functions in healthy axons including microtubule assembly and stability, vesicle transport, neuronal outgrowth and neuronal polarity. This protein consists of 352 to 441 amino acids and presents in various isoforms in the brain.[10] In AD, tau protein is hyperphosphorylated, causing disruption in microtubule transport and loss of neuronal transmission. Tau phosphorylation is the addition of phosphate to a tau protein through regulation of tau kinases. In humans, the tau gene is positioned on chromosome 17. In a normal brain, there are two to three moles of phosphate per one mole of tau, indicating that this amount of phosphorylation is necessary for tau to perform its normal biological functions. When tau becomes hyperphosphorylated, the ratio of phosphate to tau increases three to four fold compared to normal phosphorylation levels. This incr eased amount of phosphate alters the function of tau, making it insoluble and lacking affinity for microtubules. This leads to the degradation of the microtubules and neuronal cell death.[10]

Colorism in African American Women Research Paper

Colorism in African American Women - Research Paper Example Indeed, colorism is an issue that should be extremely discouraged within various people. This essay explores deeply and widely on colorism, specifically colorism with respect to African American women, drawing references from various movies including the film question of color and other relevant sources. The film, ‘A question of color unearths almost everything about color discrimination among African American women. Discrimination by color is not an issue that began just recently. A general study of American history reveals that discrimination against color has lived and thrived ever since African immigrants invaded America either by the slave trade or any other means and the movie depicts just that. The film, a question of color, actually more of a documentary, begins with a sequence in which a group of black men and women of different complexions. From high yellow and blue-black to chocolate, right from the start this movie depicts color consciousness among the black people. Somebody could be forgiven to think that is a course for color equity among the people, that all citizens belonging to various racial origins are entitled to equal opportunities. As the film progresses, prevalence is seen to be made to the people whose looks come closest to European standards of attractiveness and tend to fare much better than the people who look more African or black to be precise. The film also explores the tensions generated by colorism, is actually an internalized expression of white racism, leaving everyone else feeling terribly insecure. The dark skinned women are prompted to feel less desirable mates and also tend not to do so well financially, or economically in general (Felder 284). The economic issue brings a whole new issue regarding colorism with the African American women. The only reason that can effectively explain why the African American women are not financially endowed like their white counterparts is because they may not be as better educated as the white to secure jobs, even then, the education background of these women is only questionable because perhaps they did not get enough equal opportunities to access quality education. Conclusions can be conclusively drawn that the dark skinned women do not get enough employment opportunities as the white skinned are entitled to. The film states that the only moment in the history of America when the white-oriented consciousness among the dark skinned seemed to be falling apart was in 1962, when the black conscious movement made many people adopt the afro hair style. With their slogan, black is beautiful, they achieved considerable success even though it lasted for a short period. Either way, the afro hair style success was not received well by some the white skinned women as is evidenced when a Ms. Sandler, a news anchor, almost risks losing her job just for wearing the afro hair style introduced by the black conscious movement to work (Sinclair 654). Besides the instances cover ed in the plot of this family, there are many other occasions in which colorism in Africa American women is depicted. According to actor and singer Tyrese, colorism in dark skinned people is evident in the entertainment industry. Music videos are also an integral part of the visual arts subject. Unfortunately, the music video industry has also borrowed the color discrimination issue. This is clearly seen by the

History and Laws of Abortion in the US Research Paper

History and Laws of Abortion in the US - Research Paper Example Abortion has always been a controversial but frequently performed practice in nearly all parts of the world whether it is legal or not. Despite all the moral considerations, abortions were performed legally before 1880 in United States of America. After that most of the states banned the practice with the exception of the case for saving a mother’s life. Anti-abortionist movements, politics, and birth control efforts facilitated anti-abortionist or restrictive legislation throughout history. However, the case of Roe v. Wade and Supreme Court’s decision turned the history in favor of abortion forever in 1973.The abortion history before and after Roe v. Wade is entirely different. The law legalized the practice throughout United States considering it the privacy and right of a woman. The paper explores the history of abortion and laws involved with special emphasis on 1973 Roe v. Wade case. According to Webster’s New International Pocket Dictionary 1998,â€Å"The expulsion of a fetus prematurely, miscarriage, the defective result of a premature birth; a monstrosity, and a person or thing that fails to progress or develop normally or as expected† (as cited in Krieg, 1999, p.4).On the other hand, Webster’s New International Pocket Medical & First Aid Dictionary, 1998 refers abortion as, â€Å"The ultimate termination of a pregnancy, either by natural or artificial means† (as cited in Krieg, 1999, p.4). In United States, Abortions became legal after Supreme Court’s decision of the case Roe v. Wade in 1973.But the history of abortions dates back to the time when earliest settlers of this land arrived. In American colonies, English â€Å"Common Law† was adopted that prohibited abortion. It was considered a â€Å"misdemeanor† if performed before â€Å"quickening† while after quickening, it was considered to be â€Å"felony†. In early 1800s, the discovery about conception and

What is freedom of speech and why, if it all, is it a good thing Essay

What is freedom of speech and why, if it all, is it a good thing - Essay Example Freedom of speech is a right that is cherished all over the world. However it is quite limited or nonexistent in some countries or regions and this has resulted to constant struggle to expand or attain it. Currently, Middle East and Northern African countries like Bahrain and Libya respectively, are undergoing revolutions that aim at liberalising people from decades, if not centuries, of infringement of human rights one of them being freedom of speech. Although these current cases have received huge media, political and humanitarian attention, struggles of this nature happened in the western countries for people to enjoy the freedom currently enjoyed here. Freedom of speech is heavily attributed to the European enlightenment which revolved around numerous historical, socio-political and intellectual transformations. This enlightenment resulted to every person being regarded as a rational being who is in a position to make sensible decisions at will. The state has the obligation of cr eating conditions that facilitate the enjoyment of such liberties within the confines of set laws in consideration of general state of peace. This paper looks into what constitutes freedom of speech and why, if at all, it is a good thing. An individual’s right to freely present their views if discontented with the status quo and when they wish to see changes happening is referred to as freedom of speech (Feinberg 1994). Freedom of speech is increasingly becoming a benchmark of creativity and advancement of societies and countries at large. It is difficult for people to express their creativity and bring forth innovation where freedom of speech is hugely curtailed. The basic reason behind this is that a society deficient of freedom of speech limits people’s willingness to offer their views and explore choices to situations facing them. Speech in this understanding basically translates to the message that one is transmitting or intending to convey. In the last four decad es freedom of speech has gained correlation with freedom of press with increased roles of the media. Looking into the US laws for example, The Congress is disallowed from making legislation that hinders ‘†¦ the freedom of speech, or of the press’ (Feinberg 1994). Based on the definition offered above, freedom of speech threatens governments’ actions hugely making it a highly likely target for curtailment. A good scenario lies in the events occurring in the Arab World where citizens of countries are holding persistent demonstrations demanding for resignations of their presidents/leaders and cabinets while seizing government property like oil fields in Libya. This shows that speech needs to be protected at all cost in order to ensure societal transformation and coherence with the changing times. There has been wide debate as to whether some forms of speech need to be prohibited. This debate for years has led to development of various principles that assist in elaborating the above statement. The Harm Principal is one which originated from enlightenment thinkers. They argued that a person has the right to express their opinion or convey a message as long as in doing so no one is harmed. This principal came about as a result of British-American constitutionalism and it is well portrayed in the United States constitution where, as briefly stated earlier, Congress is to make no law that is based on respect of religious establishments or that which abridges freedom of speech or press (Warburton 2001). The French Revolution also brought with it a law that states that a person shall not be discriminated against based on their opinions and religion as long as these are in line with public order and the existing laws. A notable thinker, John Stuart Mill stated that freedom is important towards realisation of truth and that suppressing opinions is tantamount to infallibility (Schauer 1982). He also stressed that even if an opinion seems untrue it may still hold some degree of truth therefore its suppression will hold the little truth in it. However,

Human Rights in Vietnam Research Paper Example | Topics and Well Written Essays - 1000 words

Human Rights in Vietnam - Research Paper Example Every country has to abide with human rights laws. Every constitution has to focus on human rights. Rights have been described by the United Nations in the Universal Declaration of Human Rights in 1948. There are also many other accounts of human rights that are present in other countries' governments and organizations. Vietnam is considered to be a country that is poor in human rights. The Communist Party of Vietnam governs the Socialist Republic of Vietnam. "Vietnam insists that human rights are a part of its own internal affairs and are inherently connected with the country's history, culture, tradition, and socioeconomic conditions" (Alagappa 457). There are no other legal political parties. The elections of 2002 were considered unfair as all candidates were chosen by the CPVs Vietnam Father Front or the VFF. The VFF was a group that monitored the country's popular organizations. The control of the security forces was maintained by the civil authorities. The Vietnamese government's human rights record has remained unsatisfactory. Abuses committed by local government official continued despite efforts made by the central authorities to monitor abuse concerns, particularly religious freedom. The Vietnamese people could not change the government, though several organizations that fought for this cause were not suppressed completely. The government wanted to enforce its control over the internet and press. "Human Rights Watch (HRW) has condemned Vietnam for its witch-hunt of those trying to disseminate information about democracy via the internet and urges the release of cyber prisoners" (Boobbyer, Spooner and O'TAilan 245) There were instances when police officials abused people during arrests, interrogation, and detention. Prison conditions were harsh but yet did not terrorize the lives of prisoners. Many prisons faced problems like insufficient diets, overcrowding, and poor sanitation. Prisoners were made to work but did not receive any wages for their duties. Prisoners were also reported to be moved to solitary confinement. The government did not grant permission to international organizations like the Red Cross or other non-governmental organizations to visit the prisons. Many citizens were detained for political activities at random. Citizens were deprived of the right to fair trials. Many other human rights were constantly monitored by the government and the government placed their limitations on human rights. Some of these rights included the right to freedom of press, freedom of speech, freedom of expression, freedom of assembly and association. The government also maintained its ban on human rights organizations. Women in Vietnam suffered many threats; they faced plenty of discrimination and violence. Trafficking of women and children, and child prostitution remained prevalent, though the government made efforts to fight trafficking. Government monitored workers' rights, in particular organization that functioned independently. The Vietnamese government officially grants the freedom of religion. However, non-sanctioned groups usually face plenty of harassment. Additionally, the government constantly monitors these groups, justifying the act saying it is for the benefit of national unity. The Vietnamese government also lacks in the process of political trials, like, persecution of unauthorized religious organizations, independent journalists, labor union activists, land

Roman Consul and Congress Essay Example | Topics and Well Written Essays - 2250 words

Roman Consul and Congress - Essay Example However, the Roman empire was not stable in its earlier foundations, part of the Roman army mutinied against the empire and seized Reghium, a Roman city and held it against the Romans for over ten years, however, in 270 BC, a Roman commander named Hieron crushed the rebellion. In the period 443, the Roman Empire established the Consularship. This institution was to help the Roman Empire in governance and enact laws. The Roman form of government had differences and similarities to the modern system of Governance in America which has the executive, the legislature and the judiciary, each performing different kinds of work and independent of one another. The United States congress is bicameral in nature, and it consists of the senate and House of Representatives, each playing different roles but supplementing each other (Waide, 17). This paper analyzes the features of the Roman counsel, its roles and significance to the Roman Empire. It also analyzes the features of the United States Co ngress, its roles and significance to the United States in regard to governance and policy making. In doing this, this paper explains major differences and some aspects of similarities between the American Congress and the Roman counsel, which is the main objective of this paper.This paper has a conclusion, which gives brief disadvantages of these systems of government. The paper, in meeting its objectives, analyzes the roles of the consuls in the Roman Empire, and of the senate. The paper has identified the different assemblies that characterized the Roman consularship and how they relate to the senate. In doing this, the paper has managed to portray the differences between the Roman consularship and the United States Congress. A consul was the highest ranking officer in the political environment of Rome. Each year, two consuls were appointed to govern Rome, and each had a veto against one another. This was to prevent the rise of dictatorship. With the rise of the emperors, in 27 B C, the Roman consuls lost their powers since they were subject to the emperor. Consuls were called Praetors, which meant leaders, and had authority in administrative, judicial and legislative matters. In periods of War, consuls were military commanders and were elected by Commitia Centuriata, a committee of local people who composed of one hundred men. These men were elected by the people and had military backgrounds therefore this committee was a representation of the people. Consulship was reserved for the ethnic group of Patricians but after a long period of time, the Plebeians were allowed to become consuls. During a period of conflict, qualifications of becoming a consul was military skills and a good reputation in terms of bravery and wisdom. During a period of time, there was need to elect more consuls, and the Comita Centuriata ceased to do this, and thus the consuls were elected by the Senate.Consuls had executive powers and were heads of government, and in the year 443 BC, several responsibilities were taken from the consuls and given to censors and praetors. Censors were responsible for taking taxes while praetors were judicial officers. Consuls were responsible for carrying out decisions of the senate and could convene the senate and attend its meetings, since they were

Bussiness Management and Outsourcing Essay Example | Topics and Well Written Essays - 3000 words

Bussiness Management and Outsourcing - Essay Example Moreover, the threat of significant job losses allows large firms to demand changes to labor legislation that further weaken labor. In addition to endangering jobs, wages, labor standards and union powers, globalization also hastens the decline of social safety nets (Becker, 1993). Citing international competitiveness, business has been able to shift the tax burden to labor. But job losses and low wages will erode this tax base, reducing governments' ability to finance welfare programs. Globalization thus undermines labor strength, reinforcing the impact of higher levels of overall unemployment on capital's ability to control the workplace in the developed economies (Bateman and Snell 2004). Service Industry Analysis At the beginning of the 21st century, IT is viewed as a strategic tool which helps organizations to expend their activities and increase profits. IT outsourcing is often seen as an opportunities to provide a competitive advantage and increased value for the enterprise. The absorptive capacity based on appropriate technology related skills needs to be measured against both the demands of the international economy and the local environment where a skills base for using IT is even more important. Changes in management philosophy are giving opportunities to the small and medium-sized enterprises that cater to the demands of national and internationally operating companies (Cullen and Willcocks, 2003). However, the businesses that fare well under the new management organizational scenario are those which acquire the necessary business, commercial, and technological skills. The main causes of outsourcing are prices and wages, communication and transportation costs. For many companies, cap acity building to develop appropriate skills is a dynamic process. As... It is stated that today, the UK economy mostly depends upon international labor supply and international business relations. Taking advantage of technology transfer opportunities, their rapid industrialization has been aided by the introduction of advanced technologies that result in labor costs substantially below those in similar industries in the developed economies. This in itself would contribute to the surge in exports to the developed economies. There are several problems with outsourcing faced by the state and companies. Recent years, a large number of engineers have been sent abroad by SMEs and TNCs. Thus, critics admit that the UK needs these research projects to be kept at home. In conclusion, IT outsourcing helps companies to improve their main operations and service quality, gain competitive advantage and save costs. It proposes company opportunities to reduce labor costs and increase service volumes and a number of traditional services proposed to customers, restructure business and invest in personal growth and development. Companies are increasingly finding that, if they combine their information assets with those of other companies, the combined information resource is considerably more useful to all sides. In this new environment, small companies may have advantages created by outsourcing, because their contact with customers will mostly be channeled through the telephone, or increasingly e-mail, they will be able to record and keep track of their customer's preferences and needs much more effectively.

Kennedy as the President of United States Essay

Kennedy as the President of United States - Essay Example Talking about his family background, Kennedy was born in Brookline Massachusetts. Jack Kennedy joined military services during the Second World War. Although he was first rejected because of his chronic backache, he somehow got himself in the naval services due to his father’s influence. During the Second World War, Jack Kennedy served in motor torpedo squadron and got himself a medal due to his bravery and presence of mind during a patrol when they got attacked by a Japanese submarine and he got all his crew members safely on an island instead of surrendering to the Japanese. Kennedy had to represent his family politically after his brother who was the torch bearer of the family got killed in action. Kennedy had been the mayor of Boston and got elected three times as a member of The Congress. He represented the congress party in the elections of 1960 and defeated his opponent Richard Nixon to be elected as the president of the United States. It should be called as unlucky for the young president that he came at the time when everything in the country was unstable. The country was facing international crisis as well as it was also on the verge of a civil war. The cold war, the Cuban missile crisis, the bay of pigs, the rights of the African Americans, all these were the problems that the newly elected president had to face during his stay at the oval office. But, it always had been his utmost priority to work for the nation. From the very first day of him as a president, he had been following the very rule set by Theodore Roosevelt, i.e. â€Å"a president is bound to be as big a man as he can† (Reston 1963). President Kennedy always advocated for non violent solutions of all the issues. He was a pacifist. It had been his utmost priority throughout his time as the president to pacify all the violent actives happening around him (Reston 1963). It was in his time as the president that the civil rights bill was passed. He was the one to speak for the equity and justice for all. Before he was elected as the president, in his election campaign he spoke for the rights of African Americans which gave them a little hope. His efforts to stop both internal and external violence are very significant in stabilizing the situation of the country. Kennedy gave protection to the African American community of the United States. He gave them their rights. Once he used his father’s influence for the release of King jr. when he was arrested during a protest. His efforts for non violence in the country were acknowledged by all. â€Å".It ought to be possible†¦ for American students of any color to attend any public institution they select without having to be backed up by troops.† â€Å"It ought to be possible for American consumers of any color to receive equal service in places of public accommodation, such as hotels and restaurants and theaters and retail stores, without being forced to resort to demonstrations in the stree t, and it ought to be possible for American citizens of any color to register and to vote in a free election without interference or fear of reprisal.† â€Å"It ought to be possible, in short, for every American to enjoy the privileges of being American without regard to his race or his color. In short, every American ought to have the right to be treated as he would wish to be treated, as one would wish his children to be treated. But this is not the case†¦

Biology is Beauty Essay Example for Free

Biology is Beauty Essay The article â€Å"Biology is Beauty† by Geoffrey Cowley touches on the aspects behind beauty. The article states that everyone shares a sense of what is attractive. Basically, Cowley is stating that people are attracted to what is on the outside, even if we do not know it. Even though points of attraction can vary over societies, beauty is an innate quality we all think of. The article touches on a few examples that the author feels explains. First, Cowley says that humans love symmetry; people prefer other people whose physical features are symmetric. These findings on symmetry were proven to be true despite race or gender. To prove this point, the author provided data from a study at the University of Texas. The study took 3 and 6 month old children and showed them series of photos. There were sets of photos with 2 photos at a time, one considered attractive and another considered unattractive. The study showed that the babies spent considerably more time staring at the photos of attractive people. The study was run multiple times using female and males of different races. This study is trying to show that humans are prewired to favor more attractive people. Further into the article the author mentions the connection between beauty and body type. Men and women have tendencies to like people with better body types, more so with men. Certain animals choose their mates off which is the most physically dominant, and the article suggests humans are not so far off. The article provides the views of the skeptics but states their research proves their assumptions. The article has a few positive and negative aspects. A pro to this article is fact that men are attracted to women with better bodies. This is generally true in society for both men and women. However, this statement is not always true. Humans are not so much attracted to a person with the best body type, but more so the body type that suites their needs the best. People are individuals and attractiveness to body types is not so much an innate quality. There is some truth to fact that symmetrical faces are more appealing. Physical attractiveness does first ignite interactions between two people but it is not the most overlaying factor as the article suggests. Beauty does not begin and end on the outside; a person’s inner qualities define them just as much, if not more, than their physical beauty. Humans do share qualities with animals as the article states, but overall the individuality of people is truly what  defines their beauty. When it comes to accredit this article to be published, I feel that it should. Even though I do not fully agree with all the aspects of this article, the statistical data the author shows holds some merit. This article brings up controversy as well, putting people at odds on how much beauty really matters.

Selection and Decision Making in Recruitment Essay Example for Free

Selection and Decision Making in Recruitment Essay For this assignment I am required to produce an information leaflet, for a newly appointed manager, which will describe how to plan for effective selection interviews in order to appoint the perfect individual/s for the job. My chosen organisation is Tesco who conduct different selection processes for different jobs; I will be concentrating on the floor manager of a Tesco store. Newly appointed floor managers for my chosen organisation Tesco will have to plan ahead, communicate effectively and make discuss selection and decision making. One of the main things the manager has to do before the selection process even starts is prior planning, below is what the manager has to do before the interview takes place: The manager of Tesco has to plan prior to the interview; he/she has to select the interview panel. The manager of Tesco can select a supervisor and executive manager for the panel as these people are already working within the store and the manager doesnt have to go and get other human resources from headquarters which waste valuable time. Having a interview panel is effective as it makes sure discrimination against the applicant/s doesnt happen and also the panel can check if the level of techniques such as communicational skills are used throughout all the interviews, it makes sure standards dont slip. Types of interview: The manager has to decide what sort of interview he/she will have to under take, considering in this case the manager is a Tescofloor manager he/she should only consider group interviews if employing staff on a large scale such as floor staff, (shelf stackers, costumer service assistance etc) this will save time as larger number of applicants are interviews quicker, however, having group interview means not all skills of an individual may be known to the manager but this does not matter as much as these applicants are only floor staff. Also one-to-one interviews should be considered because these interviews discover a lot about the applicant as it is only one person and not a group, a one-to-one interview is suitable for a higher ranking job such as assistant manager as more skills are required compared to a shelf stacker. Tescos do not need to  conduct any other types of interviews such as telephone interviews because it is not suitable for the job they advertise. The amount of stages in the interview has to be considered, for Tesco the manager has a choice between singular staged or multiple staged interviews, it is suitable to have a multiple staged interview which Tesco currently do than a one staged interview, more stages means the applicant goes through intense testing and interviews meaning he/she is more likely to be suitable for the job. Doing a singular staged interview doesnt find out all the skills of a person and the wrong person may be selected for the job and also that person may perform bad on that one interview, whereas, having more than one stage means the performance can be averaged which is more fair. However, the more stages in interviews the more time, so, the manager has to consider time as it will take more time for multiple staged interviews. Other selection methods will have to be considered, Tesco currently undertake Psychometric Tests which measure the sensitivity or memory or intelligence or aptitude or personality of the applicant, this should be undertaken by the floor manager of Tescos as most of the staff will need good personality, memory etc for their job as they will be working with costumers. There are also multiple choice questions which are a series of question and usually four possible answers where one answer is correct, this usually finds out the technical knowledge of the applicant of the job. Finally, the manager must consider during the planning equal opportunities, he/she will have to undertake measures to make sure each applicant is treated equally and not discriminated; having an interview panel solves this problem as there is more than one person conducting the interview and less chance of discriminations. Also, a tape recorder can be used so if the applicant protests to the way he/she was treated, the tape can be used as evidence. Communicational Skills The manager has to consider his/hers/interviewers communicational skills; this is a vital role in an interview as it can make the applicant reject the  job due to inappropriate language used. Firstly, the manager has to decide whether to use effective, ineffective or a combination of both questions because asking too many ineffective questions may bore the applicant, whereas, having too many effective questions may make the applicant feel uncomfortable, so, I would recommend to use a combination of both effective and ineffective question so the applicant is neither bored or uncomfortable throughout the interview. As the floor manager will be looking for certain skills from his potential employees, asking various types questions would be ideal to find out the skills, this is an indirect way of knowing the applicants skills and is another way to check the applicant is not lying about his/her skills, a direct way of finding out about the skills is to look at the applicants CV, ask previous employer and/or ask direct questions to the applicant. I would recommend the manager to use various types of questions, below is what the manager should use or tell the interviewer to use during the interview itself: Open questions These are questions without a particular answer and makes the applicant feel less under pressure as its an indirect question, an example of an open question is Why do you want the job? or How do you handle stress?, the advantage of using these types of questions is that it lets the interviewer know the creative side of the applicant and is a way not making the applicant uncomfortable. Closed questions These are basically yes or no questions. They are very direct and I wouldnt recommend the manager to make use of these very much as they make the applicant feel uncomfortable, however, they do find out the relevant information and an example of a closed question is Do you have a criminal record? or Can you work in a group?. Hypothetical/ Situational These are similar types of questions, these are used to see if you would do the right thing during a situations e.g. the interviewer may ask what would you do if you saw someone stealing? this would be an ideal question as this person would be working in Tescos were stealing is quite common and the applicants answer should be something like I would inform security instead of saying something like I would ignore it which would send the wrong message out to the interviewer. The manager has to consider how personal information such as criminal records could be checked; he/she could either directly ask the applicant during the interview, check the applicants CV before the interview and/or check with the criminal records bureau to confirm any spent convictions. The manager of Tescos will also have to make sure the interviewer or himself make use of good body language, this means using the right tone of voice and not being rude, this makes the applicant feel welcomed and feel he/she is an ideal environment rather than in an environment where he/she is under pressure. At the same time the manager has to make sure that the interviewer listens to the applicant, it is always important to ask the applicant if he/she has anything to say rather than ending the interview with a goodbye. Furthermore, the interview is about the applicant not the interviewer, so, the applicant should be speaking more than the interviewer, and about 80% of the interview should be the applicant speaking. Analysis and summarisation of information gathered in the interview is vital as it is needed during short listing candidates, there are several ways in which the interviewer can gather information, firstly via a tape recorder, and this does not waste the interviewers time as he/she doesnt have to write much down. Secondly, the interviewer her/himself can simply use a pen and paper to gather information during the interview, however, this is time consuming and all information may not be accurate and finally, there could be two interviewers, on asking questions and the other gathering and analysing information, this is a good idea as this system also makes sure discrimination doesnt take place.

Exchange Rate and Inflation in Pakistan Economy

Exchange Rate and Inflation in Pakistan Economy Inflation exchange rate are two main factors of macro-economics. Inflation is an increase in the level of prices of goods services in an economy by the passage of time. Exchange rate is very important factor in economic which impact imports exports of country. A country does not always want the exchange rate to fluctuate because an exchange rate influences the levels of its imports exports, which are the component of fiscal policy. Policy makers want to hold rate at a particular level or within a certain range in order to achieve given domestic policy goals related to the level of growth of GDP. In the perfect mobility the exchange rate movements and an adjustment of goods market is relative to asset market and consistent expectations. The extends that output responds to a monetary expansion in the short run, this acts as an effect on exchange depreciation which lead to an increase in interest rates (Dornbusch, 1976). There are three types of ways which gives stickiness in prices, the prices set by the firms in that currencies, the firms set the prices for currencies of consumers, or firms set the prices in the currencies of producers (Engel, 2001). When the exchange rates changes, the changes appear in the relative prices and make to generate additional uncertainty for equilibrium in markets. However, there is also defining that the changes in terms of trade play the larger role of changes in the exchange rates which affect the variability of exchange rates (Stockman, 1980). Inflation is one of the key indicators of the country and provides important information on the state of the economy and sound macroeconomic policies that govern it. Inflation is the production of the expenses of manner of things arise which leads to the advancement of the last in the price of meals. For example, if the matter is hardy and this leads to the increment of the price of the production of the costs of increasing, and in turn this leads to increasing prices to keep the crowd his profits. The discretionary nature of the existing monetary policy in Pakistan is inflation, and it is targeting to hit on the Pakistani economy by focusing attention on the monetary policy. So the government of Pakistan is to make monetary policy more transparent for achieving the explicit goal, and decreasing the inflation. Therefore, it is increasing the public understanding of the strategy of central bank to deliver the target, so the State Bank of Pakistan helps to provide an anchor for inflati on expectations in the economy. The State Bank of Pakistan (SBP) has achieving a low rate of inflation in a high priority, and also aims to support the national country objectives of Pakistan to meet the economic diversification and competitiveness in the form of export from the world. 1.2 Problem statement This study is to examine the impact of exchange rate on inflation in Pakistan economy. 1.3 Hypothesis H1: The Exchange rate explains the inflation. 1.4 Outline of the Study The variability of industrial production output higher in the regime of fixed exchange rates instead of regime of flexible exchange rates (Flood Hodrick, 1986). The effect of consumption goods purchases by the government is not the private utility, but per capita real government expenditure are the composite of individual consumption of goods. So notice that the demand of money depends on consumption of goods rather than income and that is the important distinction of closed economies (Obstfeld Rogoff, 1995). Pakistan major import is crude oil which is purchased in dollars. If foreign exchange rate increases, it has increased the cost of oil that has adverse impact on the economy of Pakistan. Inflation is also caused by international loans and the national debt. As nations borrow money, have to deal with the interest that the final prices increase as a way to keep up with debts. The main problem of Pakistan is external debt, which has altered the economic balance. The most immediate effect of inflation is the declining purchasing power of the rupee and its depreciation. This study has been helpful for economic policy makers, foreign investors, economic analysts, business students who are interested in macro-economics studies. This study identifies how two macro-economic factors are related with each other. 1.5 Definitions Variables: For this study the following variables have utilized:- Exchange Rates à ¢Ã¢â€š ¬Ã¢â‚¬Å" Independent Variable: The exchange rates are foreign exchange rate between two currencies. Every country has a foreign exchange market and is one of the largest markets in all countries of the world. It converts 3.2 trillion USD currency conversion. It has two types i.e. fixed and floating exchange rates. Meese and Rogoff (1988), it depends on fundamentals such as money supplies, real incomes, interest rates and inflation. Listen Read phonetically Dictionary View detailed dictionary Inflation à ¢Ã¢â€š ¬Ã¢â‚¬Å" Dependent Variable: Inflation has increased the level of prices of commodity, goods and services in an economy by the passage of time. Price inflation measure is the rate of inflation, the annual percentage change in general price index (usually the Consumer Price Index) over time. Effects of inflation on the economy have manifold and simultaneously positive and negative. Negative effects of inflation include a decrease in the real value of money and other monetary items over time, uncertainty over future inflation which discourages investment and savings, and high inflation leads to shortages of goods if consumers begin hoarding out of concern that prices increase in the future. Positive effects include a development of economic recessions, and debt assistance by reducing the real level of debt. CHAPTER 2: LITERATURE REVIEW The analysis of the monetary determinants of inflation is of obvious interest for the nations that pursue a policy of inflation targeting. This study focuses on Pakistani economy that is currently following an Inflation targeting approach or did so in the recent past. Currency stability plays an important role for the monetary authorities in this economy. Exception of real money growth rule is included in the estimation of Phillips curves for the four economies Bayesian model averaging (McCallum, 1999). Entrepreneurs seek stability in the course says that keeps the price of imported items from growth due to rupee depreciation, which is not only support the economy in general, but also producers who use huge amounts of imported cases in the production of exportable surplus. Since the start of this fiscal year, while the rupee has lost about 2.5 percent of its value beside the dollar and its depreciation rate is unlikely to accelerate in the coming months due to continued inflow of foreign capital and funds. Also include the support of IMF, partial release of the fund, a coalition of U.S., which is part of its payment obligations by the Friends of Democratic Pakistan, extremely strong inflow of return of foreign workers of portfolio investments and possible raise up in exports and foreign direct investment in the third quarter of fiscal year. The current stability of the rupee has helped to contain imported inflation and the weakening of inflationary expectations. Bankers expect that trend continues throughout this financial year, a national unit is depreciated more than 7.0-7.5 percent during the entire fiscal year, against 19.5 percent last year. Businesses verify that the bankers are the forward currency cover in accordance with this expectation. What Pakistan needs today is not a platform to launch an à ¢Ã¢â€š ¬Ã…“economic revival programà ¢Ã¢â€š ¬? but what people need is an actual à ¢Ã¢â€š ¬Ã‹Å"economic revival.à ¢Ã¢â€š ¬Ã¢â€ž ¢ The main problem of Pakistan is the foreign debt which has risen to unmanageable proportions in the last decade and the repayment of which has created turbulence in external balance of Pakistan to such an extent that it does not meet its minimum necessary development requirements. At present Pakistan cannot survive without fresh borrowings from foreign donor agencies. As emphasized by Choudhri and Hakura (2006), an important policy debate for the contemporaneous monetary and exchange rate policy implementations is to reveal the degree to which changes in exchange rates or import prices impact or pass-through into domestic consumer prices. Presently there are three rates of exchange i.e. the bank rate, the inter bank rate and the open market rate. The overall effect on the foreign exchange rates should not be more than 5 to 6 per cent as the increased inflow of foreign exchange have neutralize the effect of the increased demand of private imports. If the foreign exchange earners and remitters keep on getting a fair exchange rate for earnings, it is visualized that in the next few years exports can touch the $15 billion mark and overseas Pakistani remittances can fetch $5 billion. It was concluded that the exchange rate feed shock on domestic inflation, first at the level of prices of the manufacturer and then the level of consumer prices and the im pact of shocks on the variables of price the various stages of the supply is different. The purchasing power parity theory doctrine means different things to different people. There are two versions of this theory that is called the à ¢Ã¢â€š ¬Ã‹Å"absoluteà ¢Ã¢â€š ¬Ã¢â€ž ¢ and the à ¢Ã¢â€š ¬Ã‹Å"relativeà ¢Ã¢â€š ¬Ã¢â€ž ¢ interpretation. The first version of purchasing power theory calculated as a ratio of consumer goods prices for any country that has tended to the equilibrium rates of exchange. In the second version of relative interpretation the rate of exchange rate have been determined between the two countries and quoted with general levels of prices of two countries. This version amend the international trade theory which have been the part of PPP, in which the non-traded goods (services) has been introduced, but the advantage is greater in regards of traded goods than non-traded goods, because of the assumptions of marginal rates of transformation. The correlation among purchasing power parity and exchange rates provides the international comparison of national incomes and living standards (Balassa, 1964). Lawrence (1976) gave another review of this purchasing power parity theory. It has define two applications in economics, the first application use of the conversion factor to transfer the data in one national way to another. The use of PPP is mainly the body of (index number theory) and applications of GDP that have improved over the years and path breaking studies in the area continue to appear. The second application of PPP did not have the widespread acceptance, which has remained the unsophisticated applications. Stockman (1980) develops the model of determination of prices of goods and exchange rates. The changes in commodity prices due to supply and demand affect the change in exchange rates by purchasing power parity deviations.The changes in exchange rates have failed to resemble the changes in prices of goods, because exchange rates more volatile than prices levels and inflation rates. The study proposes the equilibrium of exchange rates behavior and different international goods that have been traded. This relationship cannot exploited by the government, because greater the changes in terms of trade the larger the changes in exchange rates variability. The deviations from PPP persists that variation of exchange rates more than ratios of price indexes. The results found the two interpretation of the relationship between exchange rates and terms of trade. In the first, the causes that affect the changes in exchange rates also affect the change in terms of trade because prices of goods do not adjust to clear the markets. This interpretation also found in the research of Dornbusch (1976), and Isard (1977), the analysis formally differentiates the system with respect to exchange rates and allow prices to change but not the changing in asset stocks. The interpretation presented the elasticity approach of the foreign exchange market and the relation between the trade and exchange rates. Real supply and demand shocks affect prices and the derived demand of exchange rates. These changes in demand for foreign exchange result the supply and demand shocks and that should affect the equilibrium of exchange rates. In second interpretation the expected rate of change of exchange rates revealed on the forward foreign exchange market. This should be related the anticipated change in the terms of trade and the inflation differentials. A persuasive argument about the level of exchange rates is only associated with not causes of the relative prices changes. Bilson (1985) gives the empirical findings about macroeconomic and flexible exchange rate of the U.S dollar related to PPP theory. From the perspective of this research, the sluggish price adjustment in the commodity markets resulted in increased variability in exchange rates. For the demonstration of result it is important because the instability of floating exchange rate is due to the inherent differences between commodity and foreign exchange markets. The determination of the expected future rate is impossible, because it is more difficult to reject the forward parity condition. The major part of the forward parity is the variation in the premium is due to the forecast. The object of this study is to determine that if the forward parity failed is the cause of instability in the same way that the failure of purchasing power parity. The findings develop that currency risk premium is the important factor relative to floating rate system, and movement in the exchange rate are dominate d by the non speculative activity and it has the adverse effect on world economy. Meese and Rogoff (1983) analyzed the outcome of sample forecasting accuracy on various models. The study estimated the horizons of the dollar with different country currencies, like Dutch mark, Japanese yen, and Britain pound that traded to weight the dollar exchange rates. It has also studied the flexible exchange rates with the monetary models of sticky price, so the model of sticky price, which incorporates the current account. The first model is structural models in which it requires to generate the forecasts of exchange rates and explanatory variables. It contains the explanatory power, but it is predicted badly because the explanatory variables are difficult to predict. The second is the univariate time series model in which it identifies a variety of prefiltering techniques involves differencing, de-seasonalizing and removing time trends. The relative performance of these techniques is of interest in itself. The third model use is the random walk model. It is also linked with this univariate time series model. It is used as the predictor of the current spot rate with the entire future spot rate, and it requires no estimation. In this study the performance of estimated univariate time series models or candidate structural model is no good instead it is worst. From a methodological stand point the view that the outcome of sample model fit is an important criterion when evaluating exchange rate, but the estimation of out of sample is failure with time series models that are well approximated the major country exchange rates. Feinberg and Kaplan (1992) evaluated and interact the real exchange rates index expectations is developed and used to explore the role of determination on domestic producer prices. The fact that time path of the exchange rate has directly affected the input costs, and the price of substitutes strongly. To examine the links between both actual and anticipated movements in the dollar and relative domestic producer prices, it chooses to analyze price responses to real exchange rate changes. The effect is dependent on the nature of substitutability between imports and domestic goods. The major finding is that the period of appreciation and depreciation over the past 10 years to inhibit the pass through in to domestic prices. In depreciation the market share to enjoy the continued good times kept prices other than expected. The theory of optimum currency areas, which is usually presented by the other name called flexible exchange rate system, but it is proponent as a device of depreciation that takes place of unemployment when the balance of payment is deficit and appreciation when it replaces inflation when it is surplus. The problem can be exposed and more revealed by defining a currency area within when exchange rates are fixed. Three answers can be given, first certain parts of the world are going through the process of economic integration, so new experience can be made and what constitutes the optimum currency area can be given the meaning of these experiments. Second those countries that have flexible exchange rates are likely to face problems with the theory of optimum currency areas, so these do not coincide the optimum currency areas with the national currency. Third the idea that illustrates the functions of currencies which have been treated in economic literature, and sometimes neglected in the problems of economic policy. In the currency area, countries with different currencies including national country currencies interact pace of employment in deficit, because there is the haveingness to inflation by the surplus countries. The argument for flexible exchange rate system is based on national currencies, and is valid about mobility of factor, so if it is high in the country and low in the foreign countries, the flexible exchange rates system on home country currencies has to work effectively. The concept of optimum currency area has practically applicable only in those areas, where the state has the political organization in the country. The factor mobility is most considered and is more relative rather than absolute concept, with both industrial and geographical factors. It is likely to change the alterations with time over time in conditions, with the conditions of political and economic stability. Money is the convenience that restricts the optimum number of curre ncies, so in terms of this argument the optimum currency area which is composed in number of countries (Mundell, 1961). In another review, the author defines the stabilization of capital mobility policy under the exchange rates which is fixed and flexible in the currencies markets. It concerns the theoretical and practical approach of the increased mobility of capital. Obstfeld and Rogoff (1995) analyses the global macroeconomic dynamics to supply framework based on competition and nominal prices. The effects of macroeconomic policies on output and exchange rates have not been yet persuaded to abandon. The framework which integrated exchange rates dynamics and current account yields is a new perspective, it realize that when prices are sticky the government should spend on shock raises short run output and long run output. The assumption is that home and foreign government purchases the consumption goods that do not directly affect the private utility, but the per capita real government consumption expenditure is a composite consumption of individual goods. It explains that the composite consumption for the services is to balance the opportunity cost and notice that the money depends on consumption rather than income, that distinction is more important in closed economies. The results of this study develop framework that give new foundations about some of the fundamentals problems in international finance. It realizes that the existing Keynesian model is incomplete to offer a satisfactory treatment of exchange rates, output and the current account, but the model which is used in this study is more complex, because it yields simple and intuitive insights of monetary and fiscal policies. It can be extended in a number of dimensions, including non traded goods, market behavior, government spending, and labor market distortions and so on. It goes beyond the essentially statistical approach that handles the current account and exchange rates issues, most importantly this approach allows to analyze the welfare implications of policies. Melvin (1985) has regarded and focused that how the choice of an exchange rate system can affect the stability of the economy. The appropriate nature of the exchange rate system has differed of the disturbance to the economy. It presented the evidence that indicate that the approach is more consistent according to practice by actual country. The other approach is to reach the desirable price stability, in which some mechanism tells the floating rates superiority has become less in the face of monetary shocks. It finds that the flexibility in exchange rates depends not on openness and less important in the mobility of capital, but its positive effects were found for the economic development. The purpose of this study is to consider the determinants of exchange rates system choice, which indicates the theoretical approach with the country choices. The result found that the choice of an exchange rate system has the role of the disturbance to the economy. It suggests that the money shock s are the key of exchange rate system choice in an economy, in which it seeks to minimize the fluctuations in the country price levels. It also suggests that the greater the price shocks the more is a float, so it affects greatly domestic money shocks. Lothian and Taylor (1996) examine the real exchange rate behavior, and explain the variations in sample of stationary univariate equations in real exchange rates. The study investigates the additional insight in the exchange rates behavior that can be gained by considering the floating rate from the perspective of the data. These issues can be best understood on the subject of real exchange rates stability among the currencies of the major developed countries. Some of the pre-float studies support the fairly stable exchange rates in the long run. Subsequently, Dornbusch (1976), and Frenkel (1981), gave largely as the result of studies published, and reject the hypothesis of random walk performance of real exchange rates. The PPP shows the empirical movements in real exchange rates were highly persistent and effective. Although the PPP is reject the hypothesis of non-stationary behavior of exchange rates in long run. The result of this study shows that the longest span of two countrie s exchange rates are significantly mean reverting. The first model result indicates the 80 percent of the variation in the exchange rates of the history data of two countries. By using of another model, the results explaining the performance of remarkably well in the floating, so that this model produce better forecasts of the actual exchange rates. In line with recent studies, it fined that this process of mean reverting is quit slow, with estimated adjustment of data. In the long run the PPP equilibrium is remaining a useful empirical approximation. Gerlach (1988) examine the dynamic interrelationship between innovations in monthly industrial production in a set of economies, specifically this study attempt the output fluctuations that have been correlated during the periods of fixed and flexible exchange rates. The current has to manage exchange rates flexibility that has reduces the interdependence across countries. It should follow the recent article of Flood and Hodrick (1986) in which it is argued that the variability have been higher during a regime of fixed exchange rates instead of flexible exchange rates, but the conclusion of author is striking so sharply. The results of this study of multiple country output movements under fixed and flexible exchange rates are clear. The variances of growth rates should be higher in the flexible exchange rates and in the fixed exchange rates periods. These variances are statistically significant related to the degree of openness and national income. Thirdly the output movements are co rrelated across countries under exchange rate regime, particularly the co movements in output are more important in the business cycle frequently during the recent years of managed exchange rates flexibility. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection The Data of Consumer price index (Inflation) has been collected from federal bureau of statistics while the data of exchange rate has been collected from Pacific Exchange Rate Service, both are the secondary, published source of data. 3.2 Sampling Technique The sampling technique that has been applicable is à ¢Ã¢â€š ¬Ã…“convenience samplingà ¢Ã¢â€š ¬? as it is easily accessible to collect the relevant information from the source and it is inexpensive and hence, gets a gross estimate of the results. (What is The Advantage of Convenience Sampling, 2007-2010). 3.3 Sample size The sample size is selected on the basis of limitations and scope of the research therefore, Last 54 years i.e., 1947 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2010, data of inflation and exchange rate is decided to be examined. 3.4 Research Model developed From the above defined and explanations of both the dependent i.e. inflation and independent i.e. exchange rates variables and also discussing the effects of exchange rate on inflation and how it have affects on economic of a country. In this study first analysis is the correlation between these two variables, and identifies the significant relationship. Then it analyzes and evaluates the empirical investigation in regression model as a statistical tool. The simple regression model which can be defined in the equation that represented below: Inflation = ÃŽÂ ²Ãƒ Ã‚ ¾ + ÃŽÂ ²(exchange rate) + ÃŽÂ µ Whereas, ÃŽÂ ²Ãƒ Ã‚ ¾ = the intercept of the equation. ÃŽÂ ² (exchange rate) = the changing coefficient of exchange rate. ÃŽÂ µ = the error term of the equation. From the above explained model, the study develop the following estimation and used for the establishment of the model. Therefore, all the compatible data has entered in to SPSS for statistical analysis. 3.5 Statistical Technique The statistical test that has been applied is single linear regression. This is because only one independent variable and one dependent variable to be used in this research. Frankel (1979) defined that most of the recent work on floating exchange rate goes under the name of the monetary or asset view. The exchange rate is moving to equilibrate the international demand for assets, rather than the international demand for the flow of goods. But with the asset view there is à ¢Ã¢â€š ¬Ã‹Å"Chicago Theoryà ¢Ã¢â€š ¬Ã¢â€ž ¢ in which assumes that prices are perfectly flexible. As the consequences when nominal interest rate changes, it has also reflect the changes in expected inflation rate, so as the domestic currency expected to lose value through inflation and depreciation. This is the rise in the exchange rates and gets the positive relationship between positive exchange rate and inflation. CHAPTER 4: RESULTS 4.1 Findings and Interpretation of the result The simple linear regression technique is used to determine the explanation of dependent variable i.e. inflation due to independent variable i.e. exchange rate. The analysis of the result is defined below: Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 Model Summary Model R Square Adj. R Square F Sig. 1 .226 .211 15.207 .000 The table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 shows that the regression model is best fit to predict as F test value is significant. The variation of regression model is explained by 22.6% i.e. the change in inflation is 22.6% by the exchange rate. Table à ¢Ã¢â€š ¬Ã¢â‚¬Å"4.2 Coefficients Model Un-standardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1(Constant) Exchange Rate 121.725 .794 6.887 .204 .476 17.673 3.900 .000 .000 Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.2 the coefficients results show that there is the positive affiliation between exchange rates with related to inflation in Pakistan. The results reflect that the exchange rates beta has the positive value and the T-value of both the variables is significant statistically at 0.05. From the above applied regression model, the result concludes in the way that it explains the relationship of both the dependent and independent variables significantly. The Inflation and exchange rates result shows that the beta value of the variable and T-value is significant at the 0.000 level. So the results conclude that the exchange rates value should significantly play its role in the relationship with related to inflation, but the exchange rates should not individually play a significant role in the relationship with inflation. The hypothesis is not rejected and that the exchange rate explains the inflation by 22.6%. The equation of regression model is written below: Inflation = 121.725 + 0.794 (exchange rate) + ÃŽÂ µ 4.3 Hypothesis Assessment Summary Hypothesis R Square F Sig. Regression Coefficient ÃŽÂ ² T Empirical Conclusion Exchange rate explains inflation. .226 15.207 P .794 3.900 Accepted The hypothesis of this study is that exchange rate explains the inflation, which is being accepted and exchange rate is explaining inflation by 22.6%. These findings support to recent theories that suggested the foreign exchange market efficiency with the existence of risk at equilibrium. Wihlborg (1982) examined the relation of interest rates, exchange rate and currency risks in this study. It identifies the test which empirically shows the impact of currency on interest rates and exchange rates. In this study there are three different ways in which the importance of currency risks for interest rate and exchange rate determination. The results presented here that substantiate the changes in the level of currency risk have a non-negligible impact on the changes of exchange rates and on rates of interest of relative between currencies. CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion This study is concluded to examine the dependency of exchange rate on inflation by using the data of consumer price index (CPI) as inflation and the data of exchange rate on yearly basis. The result of this study is highly significant so that the hypothesis of this study is not rejected. The result shows that 22.6% variation in inflation is due to the exchange rate in Pakistan. The analysis of this study also shows that if exchange rate becomes zero, the inflation exist to some extent. For example, if one unit of exchange rate increases, the inflation increases only by 0.794 times. 5.2 Discussions This study has applied exchange rate as independent variable and consumer price index (CPI) as dependent variable. For the availability of data, all the data should be available on daily monthly and yearly basis, but the data is used in order to consistent as yearly basis. The regression model has been formulated for these variable relationship investigations. The study developed the hypothesis that the exchange rate explains the inflation in Pakistan, and the findings are supported by the analysis done by Balassa (1964), Meese Rogoff (1983), Frankel (1979), and Mc Callum (1999) etc. 5.3 Implications and The result also accompanies that the exchange rates are the strength of character of foreign exchange market in Pakistan, and it should effect on each of the related variables as an inflationary basis. Therefore the State Bank of Pakistan and Government officials should realize the role of exchange rates in the economy and try to maintain exchange rates to stop or decrease the consumer price index in Pakistan, so that the price range of every thing should be in range of common men. Also Government should addres Exchange Rate and Inflation in Pakistan Economy Exchange Rate and Inflation in Pakistan Economy Inflation exchange rate are two main factors of macro-economics. Inflation is an increase in the level of prices of goods services in an economy by the passage of time. Exchange rate is very important factor in economic which impact imports exports of country. A country does not always want the exchange rate to fluctuate because an exchange rate influences the levels of its imports exports, which are the component of fiscal policy. Policy makers want to hold rate at a particular level or within a certain range in order to achieve given domestic policy goals related to the level of growth of GDP. In the perfect mobility the exchange rate movements and an adjustment of goods market is relative to asset market and consistent expectations. The extends that output responds to a monetary expansion in the short run, this acts as an effect on exchange depreciation which lead to an increase in interest rates (Dornbusch, 1976). There are three types of ways which gives stickiness in prices, the prices set by the firms in that currencies, the firms set the prices for currencies of consumers, or firms set the prices in the currencies of producers (Engel, 2001). When the exchange rates changes, the changes appear in the relative prices and make to generate additional uncertainty for equilibrium in markets. However, there is also defining that the changes in terms of trade play the larger role of changes in the exchange rates which affect the variability of exchange rates (Stockman, 1980). Inflation is one of the key indicators of the country and provides important information on the state of the economy and sound macroeconomic policies that govern it. Inflation is the production of the expenses of manner of things arise which leads to the advancement of the last in the price of meals. For example, if the matter is hardy and this leads to the increment of the price of the production of the costs of increasing, and in turn this leads to increasing prices to keep the crowd his profits. The discretionary nature of the existing monetary policy in Pakistan is inflation, and it is targeting to hit on the Pakistani economy by focusing attention on the monetary policy. So the government of Pakistan is to make monetary policy more transparent for achieving the explicit goal, and decreasing the inflation. Therefore, it is increasing the public understanding of the strategy of central bank to deliver the target, so the State Bank of Pakistan helps to provide an anchor for inflati on expectations in the economy. The State Bank of Pakistan (SBP) has achieving a low rate of inflation in a high priority, and also aims to support the national country objectives of Pakistan to meet the economic diversification and competitiveness in the form of export from the world. 1.2 Problem statement This study is to examine the impact of exchange rate on inflation in Pakistan economy. 1.3 Hypothesis H1: The Exchange rate explains the inflation. 1.4 Outline of the Study The variability of industrial production output higher in the regime of fixed exchange rates instead of regime of flexible exchange rates (Flood Hodrick, 1986). The effect of consumption goods purchases by the government is not the private utility, but per capita real government expenditure are the composite of individual consumption of goods. So notice that the demand of money depends on consumption of goods rather than income and that is the important distinction of closed economies (Obstfeld Rogoff, 1995). Pakistan major import is crude oil which is purchased in dollars. If foreign exchange rate increases, it has increased the cost of oil that has adverse impact on the economy of Pakistan. Inflation is also caused by international loans and the national debt. As nations borrow money, have to deal with the interest that the final prices increase as a way to keep up with debts. The main problem of Pakistan is external debt, which has altered the economic balance. The most immediate effect of inflation is the declining purchasing power of the rupee and its depreciation. This study has been helpful for economic policy makers, foreign investors, economic analysts, business students who are interested in macro-economics studies. This study identifies how two macro-economic factors are related with each other. 1.5 Definitions Variables: For this study the following variables have utilized:- Exchange Rates à ¢Ã¢â€š ¬Ã¢â‚¬Å" Independent Variable: The exchange rates are foreign exchange rate between two currencies. Every country has a foreign exchange market and is one of the largest markets in all countries of the world. It converts 3.2 trillion USD currency conversion. It has two types i.e. fixed and floating exchange rates. Meese and Rogoff (1988), it depends on fundamentals such as money supplies, real incomes, interest rates and inflation. Listen Read phonetically Dictionary View detailed dictionary Inflation à ¢Ã¢â€š ¬Ã¢â‚¬Å" Dependent Variable: Inflation has increased the level of prices of commodity, goods and services in an economy by the passage of time. Price inflation measure is the rate of inflation, the annual percentage change in general price index (usually the Consumer Price Index) over time. Effects of inflation on the economy have manifold and simultaneously positive and negative. Negative effects of inflation include a decrease in the real value of money and other monetary items over time, uncertainty over future inflation which discourages investment and savings, and high inflation leads to shortages of goods if consumers begin hoarding out of concern that prices increase in the future. Positive effects include a development of economic recessions, and debt assistance by reducing the real level of debt. CHAPTER 2: LITERATURE REVIEW The analysis of the monetary determinants of inflation is of obvious interest for the nations that pursue a policy of inflation targeting. This study focuses on Pakistani economy that is currently following an Inflation targeting approach or did so in the recent past. Currency stability plays an important role for the monetary authorities in this economy. Exception of real money growth rule is included in the estimation of Phillips curves for the four economies Bayesian model averaging (McCallum, 1999). Entrepreneurs seek stability in the course says that keeps the price of imported items from growth due to rupee depreciation, which is not only support the economy in general, but also producers who use huge amounts of imported cases in the production of exportable surplus. Since the start of this fiscal year, while the rupee has lost about 2.5 percent of its value beside the dollar and its depreciation rate is unlikely to accelerate in the coming months due to continued inflow of foreign capital and funds. Also include the support of IMF, partial release of the fund, a coalition of U.S., which is part of its payment obligations by the Friends of Democratic Pakistan, extremely strong inflow of return of foreign workers of portfolio investments and possible raise up in exports and foreign direct investment in the third quarter of fiscal year. The current stability of the rupee has helped to contain imported inflation and the weakening of inflationary expectations. Bankers expect that trend continues throughout this financial year, a national unit is depreciated more than 7.0-7.5 percent during the entire fiscal year, against 19.5 percent last year. Businesses verify that the bankers are the forward currency cover in accordance with this expectation. What Pakistan needs today is not a platform to launch an à ¢Ã¢â€š ¬Ã…“economic revival programà ¢Ã¢â€š ¬? but what people need is an actual à ¢Ã¢â€š ¬Ã‹Å"economic revival.à ¢Ã¢â€š ¬Ã¢â€ž ¢ The main problem of Pakistan is the foreign debt which has risen to unmanageable proportions in the last decade and the repayment of which has created turbulence in external balance of Pakistan to such an extent that it does not meet its minimum necessary development requirements. At present Pakistan cannot survive without fresh borrowings from foreign donor agencies. As emphasized by Choudhri and Hakura (2006), an important policy debate for the contemporaneous monetary and exchange rate policy implementations is to reveal the degree to which changes in exchange rates or import prices impact or pass-through into domestic consumer prices. Presently there are three rates of exchange i.e. the bank rate, the inter bank rate and the open market rate. The overall effect on the foreign exchange rates should not be more than 5 to 6 per cent as the increased inflow of foreign exchange have neutralize the effect of the increased demand of private imports. If the foreign exchange earners and remitters keep on getting a fair exchange rate for earnings, it is visualized that in the next few years exports can touch the $15 billion mark and overseas Pakistani remittances can fetch $5 billion. It was concluded that the exchange rate feed shock on domestic inflation, first at the level of prices of the manufacturer and then the level of consumer prices and the im pact of shocks on the variables of price the various stages of the supply is different. The purchasing power parity theory doctrine means different things to different people. There are two versions of this theory that is called the à ¢Ã¢â€š ¬Ã‹Å"absoluteà ¢Ã¢â€š ¬Ã¢â€ž ¢ and the à ¢Ã¢â€š ¬Ã‹Å"relativeà ¢Ã¢â€š ¬Ã¢â€ž ¢ interpretation. The first version of purchasing power theory calculated as a ratio of consumer goods prices for any country that has tended to the equilibrium rates of exchange. In the second version of relative interpretation the rate of exchange rate have been determined between the two countries and quoted with general levels of prices of two countries. This version amend the international trade theory which have been the part of PPP, in which the non-traded goods (services) has been introduced, but the advantage is greater in regards of traded goods than non-traded goods, because of the assumptions of marginal rates of transformation. The correlation among purchasing power parity and exchange rates provides the international comparison of national incomes and living standards (Balassa, 1964). Lawrence (1976) gave another review of this purchasing power parity theory. It has define two applications in economics, the first application use of the conversion factor to transfer the data in one national way to another. The use of PPP is mainly the body of (index number theory) and applications of GDP that have improved over the years and path breaking studies in the area continue to appear. The second application of PPP did not have the widespread acceptance, which has remained the unsophisticated applications. Stockman (1980) develops the model of determination of prices of goods and exchange rates. The changes in commodity prices due to supply and demand affect the change in exchange rates by purchasing power parity deviations.The changes in exchange rates have failed to resemble the changes in prices of goods, because exchange rates more volatile than prices levels and inflation rates. The study proposes the equilibrium of exchange rates behavior and different international goods that have been traded. This relationship cannot exploited by the government, because greater the changes in terms of trade the larger the changes in exchange rates variability. The deviations from PPP persists that variation of exchange rates more than ratios of price indexes. The results found the two interpretation of the relationship between exchange rates and terms of trade. In the first, the causes that affect the changes in exchange rates also affect the change in terms of trade because prices of goods do not adjust to clear the markets. This interpretation also found in the research of Dornbusch (1976), and Isard (1977), the analysis formally differentiates the system with respect to exchange rates and allow prices to change but not the changing in asset stocks. The interpretation presented the elasticity approach of the foreign exchange market and the relation between the trade and exchange rates. Real supply and demand shocks affect prices and the derived demand of exchange rates. These changes in demand for foreign exchange result the supply and demand shocks and that should affect the equilibrium of exchange rates. In second interpretation the expected rate of change of exchange rates revealed on the forward foreign exchange market. This should be related the anticipated change in the terms of trade and the inflation differentials. A persuasive argument about the level of exchange rates is only associated with not causes of the relative prices changes. Bilson (1985) gives the empirical findings about macroeconomic and flexible exchange rate of the U.S dollar related to PPP theory. From the perspective of this research, the sluggish price adjustment in the commodity markets resulted in increased variability in exchange rates. For the demonstration of result it is important because the instability of floating exchange rate is due to the inherent differences between commodity and foreign exchange markets. The determination of the expected future rate is impossible, because it is more difficult to reject the forward parity condition. The major part of the forward parity is the variation in the premium is due to the forecast. The object of this study is to determine that if the forward parity failed is the cause of instability in the same way that the failure of purchasing power parity. The findings develop that currency risk premium is the important factor relative to floating rate system, and movement in the exchange rate are dominate d by the non speculative activity and it has the adverse effect on world economy. Meese and Rogoff (1983) analyzed the outcome of sample forecasting accuracy on various models. The study estimated the horizons of the dollar with different country currencies, like Dutch mark, Japanese yen, and Britain pound that traded to weight the dollar exchange rates. It has also studied the flexible exchange rates with the monetary models of sticky price, so the model of sticky price, which incorporates the current account. The first model is structural models in which it requires to generate the forecasts of exchange rates and explanatory variables. It contains the explanatory power, but it is predicted badly because the explanatory variables are difficult to predict. The second is the univariate time series model in which it identifies a variety of prefiltering techniques involves differencing, de-seasonalizing and removing time trends. The relative performance of these techniques is of interest in itself. The third model use is the random walk model. It is also linked with this univariate time series model. It is used as the predictor of the current spot rate with the entire future spot rate, and it requires no estimation. In this study the performance of estimated univariate time series models or candidate structural model is no good instead it is worst. From a methodological stand point the view that the outcome of sample model fit is an important criterion when evaluating exchange rate, but the estimation of out of sample is failure with time series models that are well approximated the major country exchange rates. Feinberg and Kaplan (1992) evaluated and interact the real exchange rates index expectations is developed and used to explore the role of determination on domestic producer prices. The fact that time path of the exchange rate has directly affected the input costs, and the price of substitutes strongly. To examine the links between both actual and anticipated movements in the dollar and relative domestic producer prices, it chooses to analyze price responses to real exchange rate changes. The effect is dependent on the nature of substitutability between imports and domestic goods. The major finding is that the period of appreciation and depreciation over the past 10 years to inhibit the pass through in to domestic prices. In depreciation the market share to enjoy the continued good times kept prices other than expected. The theory of optimum currency areas, which is usually presented by the other name called flexible exchange rate system, but it is proponent as a device of depreciation that takes place of unemployment when the balance of payment is deficit and appreciation when it replaces inflation when it is surplus. The problem can be exposed and more revealed by defining a currency area within when exchange rates are fixed. Three answers can be given, first certain parts of the world are going through the process of economic integration, so new experience can be made and what constitutes the optimum currency area can be given the meaning of these experiments. Second those countries that have flexible exchange rates are likely to face problems with the theory of optimum currency areas, so these do not coincide the optimum currency areas with the national currency. Third the idea that illustrates the functions of currencies which have been treated in economic literature, and sometimes neglected in the problems of economic policy. In the currency area, countries with different currencies including national country currencies interact pace of employment in deficit, because there is the haveingness to inflation by the surplus countries. The argument for flexible exchange rate system is based on national currencies, and is valid about mobility of factor, so if it is high in the country and low in the foreign countries, the flexible exchange rates system on home country currencies has to work effectively. The concept of optimum currency area has practically applicable only in those areas, where the state has the political organization in the country. The factor mobility is most considered and is more relative rather than absolute concept, with both industrial and geographical factors. It is likely to change the alterations with time over time in conditions, with the conditions of political and economic stability. Money is the convenience that restricts the optimum number of curre ncies, so in terms of this argument the optimum currency area which is composed in number of countries (Mundell, 1961). In another review, the author defines the stabilization of capital mobility policy under the exchange rates which is fixed and flexible in the currencies markets. It concerns the theoretical and practical approach of the increased mobility of capital. Obstfeld and Rogoff (1995) analyses the global macroeconomic dynamics to supply framework based on competition and nominal prices. The effects of macroeconomic policies on output and exchange rates have not been yet persuaded to abandon. The framework which integrated exchange rates dynamics and current account yields is a new perspective, it realize that when prices are sticky the government should spend on shock raises short run output and long run output. The assumption is that home and foreign government purchases the consumption goods that do not directly affect the private utility, but the per capita real government consumption expenditure is a composite consumption of individual goods. It explains that the composite consumption for the services is to balance the opportunity cost and notice that the money depends on consumption rather than income, that distinction is more important in closed economies. The results of this study develop framework that give new foundations about some of the fundamentals problems in international finance. It realizes that the existing Keynesian model is incomplete to offer a satisfactory treatment of exchange rates, output and the current account, but the model which is used in this study is more complex, because it yields simple and intuitive insights of monetary and fiscal policies. It can be extended in a number of dimensions, including non traded goods, market behavior, government spending, and labor market distortions and so on. It goes beyond the essentially statistical approach that handles the current account and exchange rates issues, most importantly this approach allows to analyze the welfare implications of policies. Melvin (1985) has regarded and focused that how the choice of an exchange rate system can affect the stability of the economy. The appropriate nature of the exchange rate system has differed of the disturbance to the economy. It presented the evidence that indicate that the approach is more consistent according to practice by actual country. The other approach is to reach the desirable price stability, in which some mechanism tells the floating rates superiority has become less in the face of monetary shocks. It finds that the flexibility in exchange rates depends not on openness and less important in the mobility of capital, but its positive effects were found for the economic development. The purpose of this study is to consider the determinants of exchange rates system choice, which indicates the theoretical approach with the country choices. The result found that the choice of an exchange rate system has the role of the disturbance to the economy. It suggests that the money shock s are the key of exchange rate system choice in an economy, in which it seeks to minimize the fluctuations in the country price levels. It also suggests that the greater the price shocks the more is a float, so it affects greatly domestic money shocks. Lothian and Taylor (1996) examine the real exchange rate behavior, and explain the variations in sample of stationary univariate equations in real exchange rates. The study investigates the additional insight in the exchange rates behavior that can be gained by considering the floating rate from the perspective of the data. These issues can be best understood on the subject of real exchange rates stability among the currencies of the major developed countries. Some of the pre-float studies support the fairly stable exchange rates in the long run. Subsequently, Dornbusch (1976), and Frenkel (1981), gave largely as the result of studies published, and reject the hypothesis of random walk performance of real exchange rates. The PPP shows the empirical movements in real exchange rates were highly persistent and effective. Although the PPP is reject the hypothesis of non-stationary behavior of exchange rates in long run. The result of this study shows that the longest span of two countrie s exchange rates are significantly mean reverting. The first model result indicates the 80 percent of the variation in the exchange rates of the history data of two countries. By using of another model, the results explaining the performance of remarkably well in the floating, so that this model produce better forecasts of the actual exchange rates. In line with recent studies, it fined that this process of mean reverting is quit slow, with estimated adjustment of data. In the long run the PPP equilibrium is remaining a useful empirical approximation. Gerlach (1988) examine the dynamic interrelationship between innovations in monthly industrial production in a set of economies, specifically this study attempt the output fluctuations that have been correlated during the periods of fixed and flexible exchange rates. The current has to manage exchange rates flexibility that has reduces the interdependence across countries. It should follow the recent article of Flood and Hodrick (1986) in which it is argued that the variability have been higher during a regime of fixed exchange rates instead of flexible exchange rates, but the conclusion of author is striking so sharply. The results of this study of multiple country output movements under fixed and flexible exchange rates are clear. The variances of growth rates should be higher in the flexible exchange rates and in the fixed exchange rates periods. These variances are statistically significant related to the degree of openness and national income. Thirdly the output movements are co rrelated across countries under exchange rate regime, particularly the co movements in output are more important in the business cycle frequently during the recent years of managed exchange rates flexibility. CHAPTER 3: RESEARCH METHODS 3.1 Method of Data Collection The Data of Consumer price index (Inflation) has been collected from federal bureau of statistics while the data of exchange rate has been collected from Pacific Exchange Rate Service, both are the secondary, published source of data. 3.2 Sampling Technique The sampling technique that has been applicable is à ¢Ã¢â€š ¬Ã…“convenience samplingà ¢Ã¢â€š ¬? as it is easily accessible to collect the relevant information from the source and it is inexpensive and hence, gets a gross estimate of the results. (What is The Advantage of Convenience Sampling, 2007-2010). 3.3 Sample size The sample size is selected on the basis of limitations and scope of the research therefore, Last 54 years i.e., 1947 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2010, data of inflation and exchange rate is decided to be examined. 3.4 Research Model developed From the above defined and explanations of both the dependent i.e. inflation and independent i.e. exchange rates variables and also discussing the effects of exchange rate on inflation and how it have affects on economic of a country. In this study first analysis is the correlation between these two variables, and identifies the significant relationship. Then it analyzes and evaluates the empirical investigation in regression model as a statistical tool. The simple regression model which can be defined in the equation that represented below: Inflation = ÃŽÂ ²Ãƒ Ã‚ ¾ + ÃŽÂ ²(exchange rate) + ÃŽÂ µ Whereas, ÃŽÂ ²Ãƒ Ã‚ ¾ = the intercept of the equation. ÃŽÂ ² (exchange rate) = the changing coefficient of exchange rate. ÃŽÂ µ = the error term of the equation. From the above explained model, the study develop the following estimation and used for the establishment of the model. Therefore, all the compatible data has entered in to SPSS for statistical analysis. 3.5 Statistical Technique The statistical test that has been applied is single linear regression. This is because only one independent variable and one dependent variable to be used in this research. Frankel (1979) defined that most of the recent work on floating exchange rate goes under the name of the monetary or asset view. The exchange rate is moving to equilibrate the international demand for assets, rather than the international demand for the flow of goods. But with the asset view there is à ¢Ã¢â€š ¬Ã‹Å"Chicago Theoryà ¢Ã¢â€š ¬Ã¢â€ž ¢ in which assumes that prices are perfectly flexible. As the consequences when nominal interest rate changes, it has also reflect the changes in expected inflation rate, so as the domestic currency expected to lose value through inflation and depreciation. This is the rise in the exchange rates and gets the positive relationship between positive exchange rate and inflation. CHAPTER 4: RESULTS 4.1 Findings and Interpretation of the result The simple linear regression technique is used to determine the explanation of dependent variable i.e. inflation due to independent variable i.e. exchange rate. The analysis of the result is defined below: Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 Model Summary Model R Square Adj. R Square F Sig. 1 .226 .211 15.207 .000 The table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.1 shows that the regression model is best fit to predict as F test value is significant. The variation of regression model is explained by 22.6% i.e. the change in inflation is 22.6% by the exchange rate. Table à ¢Ã¢â€š ¬Ã¢â‚¬Å"4.2 Coefficients Model Un-standardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta 1(Constant) Exchange Rate 121.725 .794 6.887 .204 .476 17.673 3.900 .000 .000 Table à ¢Ã¢â€š ¬Ã¢â‚¬Å" 4.2 the coefficients results show that there is the positive affiliation between exchange rates with related to inflation in Pakistan. The results reflect that the exchange rates beta has the positive value and the T-value of both the variables is significant statistically at 0.05. From the above applied regression model, the result concludes in the way that it explains the relationship of both the dependent and independent variables significantly. The Inflation and exchange rates result shows that the beta value of the variable and T-value is significant at the 0.000 level. So the results conclude that the exchange rates value should significantly play its role in the relationship with related to inflation, but the exchange rates should not individually play a significant role in the relationship with inflation. The hypothesis is not rejected and that the exchange rate explains the inflation by 22.6%. The equation of regression model is written below: Inflation = 121.725 + 0.794 (exchange rate) + ÃŽÂ µ 4.3 Hypothesis Assessment Summary Hypothesis R Square F Sig. Regression Coefficient ÃŽÂ ² T Empirical Conclusion Exchange rate explains inflation. .226 15.207 P .794 3.900 Accepted The hypothesis of this study is that exchange rate explains the inflation, which is being accepted and exchange rate is explaining inflation by 22.6%. These findings support to recent theories that suggested the foreign exchange market efficiency with the existence of risk at equilibrium. Wihlborg (1982) examined the relation of interest rates, exchange rate and currency risks in this study. It identifies the test which empirically shows the impact of currency on interest rates and exchange rates. In this study there are three different ways in which the importance of currency risks for interest rate and exchange rate determination. The results presented here that substantiate the changes in the level of currency risk have a non-negligible impact on the changes of exchange rates and on rates of interest of relative between currencies. CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS AND FUTURE RESEARCH 5.1 Conclusion This study is concluded to examine the dependency of exchange rate on inflation by using the data of consumer price index (CPI) as inflation and the data of exchange rate on yearly basis. The result of this study is highly significant so that the hypothesis of this study is not rejected. The result shows that 22.6% variation in inflation is due to the exchange rate in Pakistan. The analysis of this study also shows that if exchange rate becomes zero, the inflation exist to some extent. For example, if one unit of exchange rate increases, the inflation increases only by 0.794 times. 5.2 Discussions This study has applied exchange rate as independent variable and consumer price index (CPI) as dependent variable. For the availability of data, all the data should be available on daily monthly and yearly basis, but the data is used in order to consistent as yearly basis. The regression model has been formulated for these variable relationship investigations. The study developed the hypothesis that the exchange rate explains the inflation in Pakistan, and the findings are supported by the analysis done by Balassa (1964), Meese Rogoff (1983), Frankel (1979), and Mc Callum (1999) etc. 5.3 Implications and The result also accompanies that the exchange rates are the strength of character of foreign exchange market in Pakistan, and it should effect on each of the related variables as an inflationary basis. Therefore the State Bank of Pakistan and Government officials should realize the role of exchange rates in the economy and try to maintain exchange rates to stop or decrease the consumer price index in Pakistan, so that the price range of every thing should be in range of common men. Also Government should addres