Does Inflation Tend to Perpetuate Itself? The Case of Latin America

The purpose of this study was threefold: (1) to test the existing theory which explains inflation as a result of its self-generating nature; (2) to investigate the contribution of foreign trade upon inflation; and (3) to test the casual relationship between the rate of inflation and the deficit. A system of four equations has been used to explain the relationship between the price level and the monetary expansion, between the rate of growth of the monetary base and the rate of the monetary expansion, the deficit and the monetary base, and, finally, between the deficit and the price level. As the existing model was exposed to open economy assumptions by introducing foreign reserves as another source of variation of monetary base, the explanatory power of the model increased. That is, as the results suggest, explaining the inflation/deficit chain in the context of a closed economy assumption leaves much of the process unexplained. Even though part of the increase in the monetary base is caused by foreign trade, a major portion of the expansion in monetary base is caused by the deficit. That is, a government\u27s expenditure exceeds its revenue in any given year, which results in financing that deficit through borrowing from the central bank--that is, monetizing the deficit. This study suggests that no generality can be made regarding the source of inflation in Latin America. In some countries, the source of inflation is only the deficit, while in others it is only foreign reserves and deficit contribute to the rate of inflation simultaneously, the effect of foreign reserves is less expansionary. This can be seen from the magnitude of the respective parameter estimates. In the last part of the study, the Granger test of causality has been used to test the causal relationship between the price level and the deficit. Again, countries exhibit heterogeneous results. In some, inflation apparently causes the deficit, while in others, the deficit is the cause of inflation. In several countries, strong feedback exists between these two variables. As a result, it can be concluded that the extent and sources of inflation for countries under study are different. In conclusion, a few policies are suggested which could be used to bring both deficits and inflation at least to some acceptable level

Disassembling the Replacement Analysis in Capital Budgeting

When teaching capital budgeting replacement projects, instructors often struggle to explain why the market value of the old machine is recognized in addition to its continued depreciation. Typical explanations about capturing the effect of replacing the old machine and its true impact on the project fall short of illuminating the rationale behind this traditional approach. We disassemble the analysis into two parts: keeping the old machine and purchasing the new machine. This separation shows students that the old machine’s sale is a benefit of purchasing the new machine and depreciating the old machine is associated with keeping the old machine

Organizational Agility

The current competitive environment is characterized by high-intensity rivalry in a dynamic and uncertain environment. The ability to respond swiftly and effectively to these changes is a necessity that separates successful organizations from those that flounder. This paper reviews the concept of organizational agility by exploring the current understanding of the concept, relevant literature and a conceptual framework. Potential avenues for further research are explored

Formal institutions and the development of entrepreneurial activity – the contingent role of corruption in emerging economies

© 2020, Emerald Publishing Limited. Purpose: The paper aims to analyse the interplay between formal and informal institutions' and their impact on entrepreneurship rates in emerging economies. Design/methodology/approach: This study expands previous research in examining the moderating effect of control of corruption on the relationship between formal institutions and the development of the entrepreneurial activity. The study utilizes longitudinal analyses of a dataset from 41 emerging economies over 11 years (2006–2016). Findings: Findings provided robust support for the study's hypotheses. The results suggested lower levels of corruption positively moderate the effects of a country's number of procedures and education and training on the rates of entrepreneurial activity, while negatively moderating the effects of firm-level technology absorption on the rates of entrepreneurial activity. Research limitations/implications: The study has considered only one particular aspect of high-growth entrepreneurship, which is newly registered firms with limited liability. Although newly registered firms are recognized as one of the critical drivers of entrepreneurial activity. Future research should seek to examine other aspects of growth-oriented entrepreneurship such as activities involving a high level of innovation, corporate entrepreneurship or technology developments. Practical implications: This study advanced the existing theories in the field of entrepreneurship and institutional economics as it merged the two theories as a driving framework in the design of the study in the context of emerging economies. Social implications: The study tested a theoretical model by expanding the number of emerging economies in the study and found comparable findings that explain factors that may influence the likelihood of individuals entering entrepreneurship. Originality/value: This article adds to the current literature as it highlights the importance of the interplay of formal and informal institutions in determining their impact on entrepreneurship rates in emerging economies. This is of particular importance to policy-makers, and the business world as the empirical results of this study show the benefits of control of corruption in boosting entrepreneurial rates in these economies, which strive for economic diversification in their developmental endeavours

First aid in acute stroke: Introducing a concept of first action to laypersons

OBJECTIVE: First aid training is well established to teach the public how to recognize a medical emergency and take appropriate action. Though it is now handled as a high priority emergency stroke is not among the main topics of first aid. We investigated if first aid training may be useful for enhancing stroke awareness. METHODS: We developed a 15–20 minute teaching session about stroke as an emergency including signs and symptoms and first hands-on measures. The session was integrated in standard first aid training of the St John Ambulance of Germany and participants were asked to fill out a questionnaire regarding their knowledge about stroke. Subjects were questioned before the stroke lesson and again at the end of the training. RESULTS: 532 participants of the training responded to the questionnaire (mean age 28.6 years, 53.6% male). There was a significant increase in proportion of subjects correctly defining what stroke is (28.4% vs. 69.9%, p < 0,001) and in the mean number of stroke symptoms listed (1.52 vs. 3.35, p < 0,001) by the participants. The number of participants unable to list at least 1 symptom decreased significantly (12.8 vs. 3.6%, p<0.001). CONCLUSIONS: In our study a teaching lesson integrated in first aid training was effective in improving stroke knowledge of participants. First aid training should be used for stroke information complementary to other activities like mass media campaigns as it is effective, could reach younger people that are not primarily interested in stroke and provides connections to other health topics

Response to symptoms of stroke in the UK: a systematic review

<p>Abstract</p> <p>Background</p> <p>The English National Stroke Strategy suggests that there is a need to improve the response of patients and witnesses to the symptoms of acute stroke to increase rapid access to specialist care. We wished to review the evidence base regarding the knowledge, attitudes and behaviours of stroke patients, witnesses and the public to the symptoms of stroke and the need for an urgent response at the onset of symptoms.</p> <p>Methods</p> <p>We conducted a systematic review of UK articles reporting empirical research on a) awareness of and response to the symptoms of acute stroke or TIA, and b) beliefs and attitudes about diagnosis, early treatment and consequences of acute stroke or TIA. Nine electronic databases were searched using a robust search strategy. Citations and abstracts were screened independently by two reviewers. Data were extracted by two researchers independently using agreed criteria.</p> <p>Results</p> <p>11 studies out of 7144 citations met the inclusion criteria. Methods of data collection included: postal survey (n = 2); interview survey (n = 6); review of hospital documentation (n = 2) and qualitative interviews (n = 1). Limited data reveal a good level of knowledge of the two commonest stroke symptoms (unilateral weakness and speech disturbance), and of the need for an emergency response among the general public and at risk patients. Despite this, less than half of patients recognised they had suffered a stroke. Symptom recognition did not reduce time to presentation. For the majority, the first point of contact for medical assistance was a general practitioner.</p> <p>Conclusions</p> <p>There is an assumption that, in the UK, public knowledge of the symptoms of stroke and of the need for an emergency response is lacking, but there is little published research to support this. Public awareness raising campaigns to improve response to the symptoms of stroke therefore may not produce an increase in desired behaviours. Further research is needed to understand why people who experience or witness stroke symptoms frequently do not call emergency services.</p

Stroke awareness decreases prehospital delay after acute ischemic stroke in korea

BACKGROUND: Delayed arrival at hospital is one of the major obstacles in enhancing the rate of thrombolysis therapy in patients with acute ischemic stroke. Our study aimed to investigate factors associated with prehospital delay after acute ischemic stroke in Korea. METHODS: A prospective, multicenter study was conducted at 14 tertiary hospitals in Korea from March 2009 to July 2009. We interviewed 500 consecutive patients with acute ischemic stroke who arrived within 48 hours. Univariate and multivariate analyses were performed to evaluate factors influencing prehospital delay. RESULTS: Among the 500 patients (median 67 years, 62% men), the median time interval from symptom onset to arrival was 474 minutes (interquartile range, 170-1313). Early arrival within 3 hours of symptom onset was significantly associated with the following factors: high National Institutes of Health Stroke Scale (NIHSS) score, previous stroke, atrial fibrillation, use of ambulance, knowledge about thrombolysis and awareness of the patient/bystander that the initial symptom was a stroke. Multivariable logistic regression analysis indicated that awareness of the patient/bystander that the initial symptom was a stroke (OR 4.438, 95% CI 2.669-7.381), knowledge about thrombolysis (OR 2.002, 95% CI 1.104-3.633) and use of ambulance (OR 1.961, 95% CI 1.176-3.270) were significantly associated with early arrival. CONCLUSIONS: In Korea, stroke awareness not only on the part of patients, but also of bystanders, had a great impact on early arrival at hospital. To increase the rate of thrombolysis therapy and the incidence of favorable outcomes, extensive general public education including how to recognize stroke symptoms would be important.ope