Long-term Purchasing Power Parity Essay Example | Topics and Well Written Essays - 3750 words

Long-term Purchasing Power Parity - Essay Example The study compares the currency exchange factors between US Dollars ($) and Euro (â‚ ¬). The first part of the paper is a design of a framework for testing for the absolute PPP and relative PPP following monetary approach. The second part is a brief summary of the interest rate parity conditions and their underlying logics and implications. This displays the application of the exchange rate used in forward contracts differ from the current spot rate. The emphasis is on the reasons for difference between the forward rates and the future spot rate expected by investors.This study investigates the absolute and the relative PPP for international currencies including the US $ and the EURO in order to test the PPP hypothesis. The currencies support the PPP between the US and European Union with great emphasis considering that earlier studies refused to adopt the PPP hypothesis for the US and the EU countries (Mixon, 2005). Studies give evidence of the co-integration between the Euro and the US dollar rate as well as the prices of the two countries. The test for Long term PPP is conducted as an equilibrium connection using the multivariate co-integration method designed by Mixon.  This model allows various long-term links, short-term dynamics, and the adjustment certain regime shifts. If the short-term dynamics differ from the long-term links, the explicit measurement of the short-term dynamics is fundamental for a success in estimating the long-term relations of the time movement to the equilibrium.

Essay 2 Example | Topics and Well Written Essays - 1500 words - 3

2 - Essay Example It is difficult to differentiate ‘fake news’ from ‘real news’ in the current society. This is especially true because reliable news comes from unreliable sources. The news from social media has negative effects for audience. Jason Zinser explores the impact of fake news to the American society. So-called fake news programs present a potential problem of deception and dilution. He cites The Daily Show as an example of a program that is likely to misguide Americans because it has no accurateness, impartiality, or journalistic honesty. Although such traits characterize it, it is still widely regarded as among the main sources of information on national events for the population. Entertainment dilutes the news, and fails to highlight its seriousness. In the end, Americans fail to get important information from the news, or derive clues on pertinent information such as terror attacks. Social media at times shape people’s perception of the outside world in a negative manner. This calls for the need of quality information for viewers because it determines their actions and interactions with other cultures that they view on television. Social media should not hold itself to similar journalistic standards that traditional news outlets hold. It is difficult to enhance integrity and responsible news coverage is a station solely focuses on improving its ratings. Jason cites the example of The Daily Show, which uses comedy in trivial news issues that require utmost seriousness. It may be difficult for viewers to differentiate between newsworthy events and pure entertainment. In a similar note, negative consequences result from particular forms of media. Sexist music videos are examples of media forms that may have a negative impact on the society, even though that may not have been the original intention of its creators. Program creators must demonstrate accountab ility