The Basics of Monetary Policy

The Basics of Monetary Policy Here is a basic information on what a monetary policy is and how it works. The topic of monetary policy is a very real part of the everyday life of people all over the world, but unfortunately, the people responsible for it – the world’s central bankers and economic ministers – seem to have a difficult time discussing it in anything other than the murky terms of hard economics that most ordinary people have a hard time understanding. For example, here’s a passage from The Federal Reserve System Purpose Functions, a guide for the American public published by the US Federal Reserve Board: â€Å"Often, a slowing of employment is accompanied by lessened pressures on prices, and moving to counter the weakening of the labor market by easing policy does not have adverse inflationary effects. Sometimes, however, upward pressures on prices are developing as output and employment are softening - especially when an adverse supply shock, such as a spike in energy prices, has occurred. Then, an attempt to restrain inflation pressures would compound the weakness in the economy or an attempt to reverse employment losses would aggravate inflation.† Good grief. All of that means, â€Å"Addressing a problem in one part of the economy sometimes creates problems in another part.† Monetary policy may indeed be an extremely delicate and difficult job to do well, but it is not really that difficult to understand or explain. But of course, the central banks and treasuries around the world are staffed with economics and finance graduates, not journalists or communications majors; which is probably for the best, but still leaves the average person a little confused about what, exactly, his government is doing to his money. SEASONAL EFFECTS IN STOCK MARKETS The Goal of Monetary Policy is Control of Prices So, what is a  monetary policy? â€Å"Monetary policy,† defined in as few words as possible, means â€Å"Managing the supply and movement of a nation’s money to keep the prices of goods and services from changing too rapidly or by too great a degree.† Every part of the economy – jobs, business productivity, consumer buying power, the credit or debt of the government – in one way or another is connected to prices, which are since the entire world now operates on a fiat money system, actually expressions of the value of the nation’s currency. There are two basic ways in which governments can control money supply and movement: by manipulation of the physical supply of money, and by controlling the flow of the money supply through the banking system. In most financial systems (the Eurozone, in which a common currency is shared by many countries, is a bit of an exception), the central bank serves as a bridge between the government’s treasury and the country’s banking system; the central bank is the government’s bank, and at the same time serves as â€Å"a bank for banks.† The actual supply of money is controlled by the treasury; the central bank controls its release into the financial system and also manipulates the movement of money already in the financial system. Prices are of course related to the supply of money. When there is too much money, prices become inflated, because the value of one unit of currency relative to goods or services decreases. When there is too little currency, prices deflate. In the case of inflation, it is the consumer that suffers the negative effects, because they are able to purchase less for the same amount of currency. In the case of deflation, the opposite problem occurs, and it is the producer (supply side) that is negatively affected. Governments aspire to prevent either problem from occurring because inflation or deflation affects spending, which eventually has an impact on production, employment, and even tax revenues. Maintaining absolutely stable prices – with no inflation or deflation – is practically impossible, so governments aim to control price inflation within a reasonable range; the ideal target differs from country to country depending on particular economic circumstances  but is usually around 2%. Thus in most places, monetary policy amounts to â€Å"a series of actions taken by the government to maintain prices at about a 2% rate of inflation†, and there are several ways in which they attempt to do that. MONEY MAKES THE WORLD GO AROUND Instruments of Monetary Policy Increasing the money supply This is the most drastic and risky method of exercising monetary policy, which is perhaps why the US government has given it the friendly-sounding name â€Å"quantitative easing†, or QE. QE simply means printing more money; the obvious risk to taking this step is that increasing the physical supply of money causes inflation. The basic idea behind QE is that providing more money for banks to loan and consumers and businesses to spend, the increase in economic activity will more than offset the inflationary effect of a greater money supply. Central bank interest rates These take two basic forms. Lending rates are interest rates charged by the central bank to commercial and retail banks for short-term (usually overnight) loans. Deposit rates are interest paid to banks on short-term deposits to the central bank. Banks are required to maintain reserves of funds against the deposits of their customers. At the end of each business day, the transactions a bank has made that day will usually leave it with a deficit or a surplus with respect to its required reserve, meaning that the bank will either have to borrow to make up the difference, or can deposit the extra amount with the central bank, paying or earning interest as the case may be. Interest rates set by government monetary authorities affect the flow of money in a couple different ways. First, the lending rate usually serves as a benchmark for commercial and retail loan rates; a decrease in interest rates usually creates greater demand for loans, which moves money out of the financial system into the market. Second, the deposit rate is used to manipulate the supply of money in the financial system, and as a consequence, the money’s value relative to other currencies. If the deposit rate is decreased, banks are either less likely to deposit their surplus funds, instead of lending them to other banks or to customers or will earn less – i.e., take less money out of the government account to put into the financial system – if they do deposit their surplus. Decreasing the deposit rate hypothetically weakens the value of the currency because more money will remain in the financial system. FINANCIAL CRISIS OF 2008 Market operations Principally, the sale of government bonds and other securities in the financial markets. Bonds and treasury bills are basically fixed-term loans to the government which has the effect of removing money from the financial system, though of course it usually appears again elsewhere in the form of government spending. In the US and other developed economies, government securities are usually the primary means by which monetary policy is exercised on a day-to-day basis. 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Writing Excuses 9 Actionable Tips to Overcome Writing Excuses for Good

Writing Excuses 9 Actionable Tips to Overcome Writing Excuses for Good Writing Excuses: 9 Actionable Tips to Overcome Writing Excuses for Good We all make writing excuses for various reasons and it slows down our progress for writing a bookPublilius Syrus once claimed: Every vice has its excuse ready. And writing is no different.In this article, we will uncover the kind of excuses we make and provide you tips on how to overcome your writing excuses.So stay put! Learn. Practice. And soar.Here are our tips for how to overcome writing excuses:Find your voiceAvoid the non-native speaker debateDevelop a writing habitCut back on social mediaDont procrastinateStop fearing the fallDisability is not inabilityStrive for progressGet rid of writers blockNOTE: Want to learn how to not only publish a book, but do so in a way that sets your book up for long-term success? We teach exactly that in our VIP Self-Publishing Program. Learn more about it hereWhat causes writing excuses?There are a plethora of reasons writers give for letting excuses take over their work.Sure, some are the real-life instances you may connect with, and others are cheesy ideas saved in your head.You are likely to find reasons like toddler trouble, age, illness, time, little knowledge, to creativity blocks still making headlines in the writing community as the biggest launchers to writing excuses.But do you know what? Only you can let go of all excuses- and we at Self-Publishing School are here to help you along the way. The common excuses which prevent us from writing or self-publishing: Im not a native English speaker, can I still write? What is the right age if you want to self publish? I am 14 years old; do I stand a chance? Writers block (which we cover solutions to below) I am still learning how to write. I have little vocabulary knowledge: what should I do first to be a writer? Life problems/disability. Waiting for the perfect time to write. Looking for good writing tips. Fear of failing or falling. Looking for a book genre or how to start a story. Laryngitis. I want to write a script; what should I do first? Ill do it later.How to over come writing excuses with easeThe late Great Louis La Moore, the prolific author of over 100 books, once said he could write on a busy street corner: that was years back where authors used a pen, a paper, or a typewriter to create text.Imagine the benefits you can add to your writing in this era of the iPhone, tablets, and cloud apps that allow you to write on the go? First.#1 Find your voiceUsually, we learn writing by imitation: but no matter how you view it, Laryngitis will only add poison to your book.I know you may love how JK Rowlings writes or Neil Patels variety, but I can tell you that drifting away from your voice will be a bane to your book.How?Remember the creativity slowdown I mentioned earlier?When the author completes his piece, you are blank, with no ideas for your essay. You have nothing fresh to add after you finish comparing your writing to the author you are reading.The magic to fighting ensuing excuse from Laryngitis is finding your voice in writing. But thats only half of it.Here are other kick-butt methods to find your writing voice:Writing more every day.Write your draft freely without editing or looking at another persons work.Write and research later: or research but take a break before you engage in the writing process.Plot all your plans for writing a novel and ideas on some paper or notebook whenever they pop.Read more from different authors, publications, and manuscripts.Get creative with your work or content.Write with the buyer persona in mind.Get laser-focused with your writing or content by selecting a niche and a language.#2 Avoid the native/non-native English speaking debateClient: Native English speakers only.Writer: But I am not native!I hear this phrase a lot in the writing community, especially from clients who want their book/content written by Anglophone writers.But frankly speaking, I have never understood the debate or the relationship between native and non-native speaking to writing unless one is writing on relig ion, culture, cuisine, or destinations nuance.What should you do then if you are not a native English speaker?Many great writers are native English speakers. However, writing should not only be in the English language but in other languages too! And being a native does not equal writing well.Here is how to win this debate: You can write in your native language and use a service like Google translate to translate phrases and words to other languages.If you want to focus on English, read English books, the dictionary, thesaurus, and journals on the niche you want to write.Practice writing in the English language.Watch English films and movies (not the Housewives thing).Stop using autocorrect while writing.Invest in your education, learning the language.Use online writing assistants like Hemingway editor to bring clarity in your writing.You can also seek inspiration from the likes of Prof Ngugi Wa Thiong and Chinua Achebe who are not native English speakers yet, have published books in the English language and even received international accords for their persuasive writing.#3 Develop a writing habit and strategyPlanning is a necessary process in any persons life not only for corporates but writers too.If you do not plan, you plan to make writing excuses! It is that simple.The building blocks you create in the planning process will inspire you to reach your goal of completing that book. It will help you avoid replacing writing with watching The Game of Thrones, buying groceries, browsing for advice and settling toddlers or cat mischief and excuses.Tip on making a successful plan:Designate a specific time for writing and reading.Set targets.Push yourself.Create a content calendar and a place where you find writing prompts or exercise to kill writers block.Test your progress after a week or a month.Make a list of what you want to achieve. It can be in sticky notes on a wall or laptop for affirmation.Set reminders to give you the push and inform you when its time to do groceries, shopping, or writing.Create realist goals on the number of words you want to write in a day. For me, I love using 750 words.com for setting and achieving my daily writing goals.Here too are our favorite writing software you can use in planning, time management, improve productivity, and kill those writing excuses:Chrome Plus Time Tracking AppToogllWunderlistGoogle calendarCoffitivityFocusMateEvernote#4 Use social media lessHow often do you use social media? Once a week? A day? Every minute?It is true social media has got a tremendous influence and opportunities these days. It has created jobs, made communication, information, and knowledge more manageable. But it has also contributed to time and resource wastage not forgetting making the world louder.Studies show on average; we spend close to three hours every day on social media slacking off watching memes or viral content yet, we could use this time to improve on our writing skills.Take, for example. You take an hour to write 1,000 words. You could reduce the number of hours you spend on social media to two, and the other on writing.Social media is also not just a place for watching memes, but thankfully, a platform to develop writing habits. You can write on LinkedIn writing, Tumblr, or even Facebook as you connect with friends and family.Other ways to get over being hooked on social media:Turning off notifications so you can concentrate on writing.Use an app like Zen writing app or the ones mentioned in #3, which keep track of what you do.Write before you engage in another activity. This will make you want to write faster since you want to move to the next commitment.Let your desire for writing be numero uno.Make the environment conducive for writing.Join writing groups like the Self-Publishing School Mastermind Community: an excellent place to find inspiration from those who share or overcome similar challenges and excuses.How to succeed in writing groups to get over writing excuses:Joi n relevant writing groups worth your time.Connect with authors and publishers through personal chats for advice and inspiration on places such as Scribophile.com or professional associations for writers and editors.Ask only relevant questions and be on point to get the most answers out of your questions.Build a rapport.Connect, network, and engage in each case.Never let social media take charge of your life.Take advantage of its hidden gem and use social platforms as an inspiration to arouse your creativity and bring back your writing mojo.#5 -Avoid procrastinationIf its not easy to start, it will be hell to finish. -  Niklas GÃ ¶keProcrastination is the biggest thief of creativity, progress, and success. It is an enemy you must conquer at all cost.Whatever it is that you may not want to write now, stop waiting for the right time, age, or when the right resources are available to start.Today, the community has got many great resources. You can write on your phone, table t, or a pocketbook. You can also use platforms like LinkedIn, Medium, or Tumblr to share your stories: or use a tool like Jami Gold Save to plan your novel if you are starting in this art.Remember also the Great Louis La Moore words on being able to write on any busy street corner.Any place, any time is an opportunity to write: not procrastinate.Note: For your writing to work, you need to be in the writing factory and not embrace the excuse factory.#6 Dont fear to fallThere is a lot that goes into self-publishing a book: drafts, outlines, revisions, finding a publishing company and eventually marketing and selling to the public who receives it with mixed reactions.Guess what happens during all this process?Frustrations, name shaming, trolls, in-your-face insults, and horrible reviews with straight-up lies.If this has been the case, keep the fire burning and kill the negative energy in this way:Make a list of all the life lesson and use them for motivation if you lack the inspirati on.Keep a list of your favorite motivational quotes.Take Sir Richard Bransons offer challenging readers to write letters to their younger self how to navigate life.Make a list of your habits positive and negative.Write of your failures and how you plan to succeed.Have faith which gives powers and action to thoughts. Most people develop excuses because they do not have faith in their writing.Finally, keep in mind that success waits on the other side of failure.#7 Disability is not inabilityAre you struggling with specific challenges in life? Maybe an illness, marital problems, family issues, anxiety, low mood, spouse abuse, or low self-esteem?Life has a unique way of furnishing us with problems- a thing the Bible captures: but it encourages us to overcome our challenges in a unique way.2 Corinthians 4:8-9: We are afflicted in every way, but not crushed; perplexed, but not driven to despair; persecuted, but not forsaken; struck down, but not destroyed.You may struggle with whatever challenges life throws at you, but do not turn them into writing excuses.Remember, excuses thrive well where problems exist. The many times you count the troubles you are experiencing, the more you will use them as a reason for not completing your book.To tow you out of the excuse mode, look up these five authors who succeeded in this art despite disabilities.Peter WinklerOctavia E. ButlerChristy BrownJean-Dominique BaubyFyodor DostoyevskyI also wish to encourage you to:Write a memoir or a biography, or on the challenges, you are experiencing.Write about your failures and shortcomings and how you plan to undo them.Find a mentor in writing groups, writing conferences, and co-working space.Ask an able sister, friend, or family member to assist where necessary.Use technology, especially those for voice, motion, and creativity.#8 Strive for progress, not perfectionWhen I started writing, I struggled to produce a well-polished draft. I hated rewrites and self-editing made me want to ram my head into a wall.But with time, I allowed myself to be scrappy.I realized that giving it all in my drafts held my back: it pushed me into the rabbit hole of procrastination, fear and made me look inept.You may aspire to be perfect at what you do, considering the good returns it brings. But perfection sometimes carries a poor reputation plagiarism, Laryngitis, and writers block.This is especially the self-judgment we impose on ourselves when we find our piece is not of the quality of bestsellers or garnered low reviews.While you may want to become a bestselling author; when starting, strive for progress and with time, harness the power of perfection through edits, second, or third editions. Remember the old saying of how to eat an elephant? One bite at a time.That your first piece never made headlines does not mean the next will experience the same fate.Aim for progress. Perfection is like success, a journey, having no destination: hence the doing is a lot more important than th e result.Here is a broad overview of how to aim for progress:Collaborate with other writers, making relationships with them, whether aspiring or professional.Seek reviews and feedback from beta readers.Find or pay an editor to help bring out your thoughts, ideas, and write more succinctly.Do an activity that will bring more clarity to your writing.Give yourself enough latitude to experiment and maybe fail a couple of times.#9 Writers block doesnt existIt is an excuse us writers use to shot our own feet when writing or publishing a book: then seek comfort in a community or in-crowds ailing of the same.Lets face it one more time: Writers block is a fancy term made up by whiners so they can have an excuse to drink alcohol. Steve Martin.Guess what? You can stop it.How? It often starts with finding the real ailment, some soul searching and admitting to yourself.The other list of things you can do to write without writers block goes here:Make a habit of writing ideas every day.Seek idea s from social media or writing groups.The Time is Now.Check out these story ideas to stir inspirationThese creative writing prompts.Ask your partner or friend for ideas if stuck.Go through some of these creative writing exercisesDo something unique at least every quarter. It can be a documentary, podcast, or something related to the writing you produce.So whats standing in your way from self-publishing? Not excuses, it is you. But we can fix that- here at Self-Publishing School- with a few shifts in the mindset.Ready to get rid of those excuses and get your book DONE?With this training, excuses are not a part of the equation. Basically, we help you work through your biggest excuses in order to achieve your main goal: write and publish your book.