Effects on Economic Growth by Financial Repression Essay

Effects on Economic Growth by Financial Repression - Essay Example The McKinnon-Shaw hypothesis recommended the liberalisation of the financial sectors from such restrictions to stop economic stagnation and initiate economic growth. This hypothesis, however, is not without its share of critics who pointed out that severe financial repression must be distinguished from mild repression or that the McKinnon-Shaw framework failed to take into certain factors such as inflation or that some of its basic components lacked empirical basis. Moreover, specific studies of countries that adopted this financial repression yielded unequivocal results that could lead one to assert that financial repression leads only to one and only one result - economic stagnation. In connection with this, the cases of India and China, both of which have experienced financial repression, are presented in this paper to shed light to the McKinnon-Shaw claim that financial repression negatively affects economic growth. This is timely considering that both, especially China, are pres ently considered emerging super economies of the world. Financial repression is a term that was first coined in the 1970s by McKinnon and Shaw, but was actually a condition that existed prevalently before that. As a matter of fact, financial repression was the norm and financial liberalisation, its opposing term, the exception prior to the 1980s. Financial repression, thus, refers to government intervention in the financial environment by substituting regular market variables and mechanisms with its own (Spratt 58). The existence of financial repression can be deduced from the presence of the following factors: unsystematic distortions in financial prices such as interest and exchange rates; interest rates with ceiling caps and nominal interest at fixed rates, which lead to low or even negative real interest rates.

The photograph in focus Essay Example | Topics and Well Written Essays - 750 words

The photograph in focus - Essay Example The picture of the macaque covers the immediate front upper half parts of the animal and also little of the front parts of both sides of the animal such as the protruding shoulders. It is a close up picture meaning the photographer must have been considerably near the animal. Although the picture was taken from a close range, the image of the macaque does not fill the parameters of the photograph. It allows for approximately 50% view of the background on its top, right hand and left hand sides respectively. The photograph’s position is not centrally balanced but a little shifted to right the hand side giving a greater view of the background on the left hand side. Such characteristics of the photographs could be as a result of taking the picture in a rush in order to capture that exact moment hence no time to properly balance and plan. Again, it may be a deliberate move by the photographer in order to show the environment of the animal. In the picture, the macaque is covered in brown fur with patches of grey on the front side. It appears to be in a seated position with its butt to the ground and fore arms firmly supported on the ground due to its frontal horizontal posture. Its mouth is wide opened depicting that the animal is making loud sounds characteristic of a form of communication to other animals. The wide mouth is displaying a set of big strong teeth and tongue to further depict that this animal can handle or even take hard foods that require hard biting into and tearing. An example of such a food would be the crabs. The teeth are also a symbol of the strength of the animal as tools such as in fighting with others. Some of the teeth at the inner end of the mouth have black patches on their upper side depicting they are experiencing a mild form of decay. This can be a show of the lifestyle and brain capacity of the animal in that it does not disinfect its mouth against decay but the tongue keeps the mouth as clean. Some of the teeth appear to be br oken while some are totally missing from their sockets. This could be a show of the tough to break or chew type of diet that the macaque follows. In addition, it could also be as symbols of injuries from fighting either with enemies or in pursuit of dominance within social groups. The face appears to be squelched backwards with its eyes closed, ears pushed backwards, and nostrils half closed. This facial expression on the macaque shows the intensity in which it is making the noise. Both this facial expression and the extremely wide opened mouth show the great intensity in which it is making the sound which might be assumed is intended to warn an enemy or alert its comrades. The background of the picture shows fresh, deep green bushy vegetation. This is as a show of the habitual environment of the macaque. This is consistent with the macaque’s habitual home of mangrove forests and other marshy regions. Light in the photograph appears to be subjectively focused on the macaque o n its right side while the left side is in partial darkness. The lack of a properly defined shadow depicts that the light is not very strong. On the background, the light appears to be of bright yellow color as the morning sunrise while from the view of the animal it appears to be bright white in color. This difference in color of the light on the macaque is attributed to the reflection and absorption by its outer grey colored fur. Again, the whole right