Relationship between oil price rise and the recession in modern world Essay

Relationship between oil price rise and the recession in modern world economy - Essay Example This paper is one of the best examples of analysis of the quantitative relationship between oil prices and economic recession. Conceptual framework advocated by different economists were evaluated and three models for understanding the impact of oil price fluctuations were assessed. These models, despite differing approaches, converge to the same conclusions. For this study the AS/AD model has been chosen in preference to those developed by Mankiw and Blanchard and Sheen. The present situation of change in oil prices was assessed and there is an attempt in the paper to predict what the sharp increase in oil prices is likely to lead to for the major economies of the world. Increases in oil prices have been held responsible for recessions, periods of excessive inflation, reduced productivity and lower economic growth in the past. As the development rates of the world economy reach all time highs the recession that another oil price hike may cause will be difficult to control by traditional methods, since simultaneously interest rates are already very low and further tightening of money supply would yield very marginal results. While the demand for oil has risen, this is primarily due the push by emerging economies like China and India, the dependence of the economy on oil has reduced considerably with the strengthening of the IT and services sectors. It is concluded that the rise in oil prices will definitely result in an across the board change in prices and thus inflation rates will continue to be high.

EMPLOYMENT AND SOCIETY Essay Example | Topics and Well Written Essays - 2000 words

EMPLOYMENT AND SOCIETY - Essay Example The employees also get a first hand understanding of the essential issues which crop up within the aegis of a workplace setting. Therefore a culture is very important in order to understand where the employees can be controlled and what efforts can be made to take care of their work regimes within the organizational domains. This paper takes a keen look at the exact mechanisms that are employed within an organizational setting as far as its cultural issues are concerned. An effort has been made to study the same within the aegis of controlling the employees that work in an organization. Moving on, any organization would appreciate the idea of developing an organizational culture which comprehends the basis of properly finding out where the combined beliefs, values and principles of the organization exist and what can be done to have a first hand understanding of the grave issues that arise within the workplace domains. These matters are deemed as important because these signify the very essence of success within the organizational quarters and discern the basis of outlining the strengths that exist within any organization. The organizational culture controls the employees as it deciphers the exact ways and means through which the employees would get inter-connected with one another, and their one-to-one relationships that develop over a period of time at work (Schein 1996). It also pinpoints the basis of understanding where the people would communicate with one another and what kind of feedback mechanisms are in place to thwart the basis of any shortcomings which e xist in essence. If these shortcomings and weaknesses do arise, the top management has a definitive role to play, since it asks the human resources management department to outline the incorporation of the relevant policy within a correctional setting. The