Neither do rapid growth in government debt, declining interest rates, or rapid Increases in a central bank’s balance sheet
By Richard Vague – Monetarist theory, which came to dominate economic thinking in the 1980s and the decades that followed, holds that rapid money supply growth is the cause of inflation. The theory, however, fails an actual test of the available evidence. In our review of 47 countries, generally from 1960 forward, we found that more often than not high inflation does not follow rapid money supply growth, and in contrast to this, high inflation has occurred frequently when it has not been preceded by rapid money supply growth.
The purpose of this paper is to present these findings and solicit feedback on our data, methods, and conclusions.
To analyze the issue, we developed a database of 47 countries that together constitute 91 percent of global GDP and looked at each episode of rapid money supply growth to see if it was followed by high inflation. In the majority of cases, it was not. In fact, the opposite was true—a large percentage of the cases of high inflation were not preceded by high money supply growth. These 47 countries all rank within the top 70 largest economies as measured by GDP and include each of the top 20 countries. If a country was not included, it was because we could not get a complete enough set of historical data on that country.
There are several reasons to want to better understand the causes of inflation. Currently, central banks in Japan, Europe and elsewhere are trying to engender a moderately higher level of inflation in order to stave off the drift toward deflation and under the belief that it will add to job and economic growth. Also, both public and private debt have reached such high levels in ratio to GDP that some policymakers are beginning to reflect on potential paths to deleveraging, and inflation is one such path. Lastly, a number of countries are trying to moderate levels of inflation that are deemed too high. For these countries, too, a deeper understanding of the mechanisms of inflation is important. more>
Posted in Business, Economic development, Economy, Education, History, Regulations
Tagged Banking reform, Capital, Debt, Financial crisis, Inflation, Money creation, Skills
Adaptive Learning is the Future of Education. Are Education Networks Ready?
Educators are increasingly leaning on EdTech and Adaptive Learning tools that personalize and improve the student learning experience. Ciena’s Daniele Loffreda details the critical role the network plays in making these disruptive new learning tools a reality.
By Daniele Loffreda – As teachers and administrators strive to improve student performance and graduation rates, they’re increasingly leveraging new Educational Technology (EdTech) to deliver a higher quality learning experience. Digital applications such as streaming video, mixed-reality, gamification, and online global collaboration enable a “learning beyond the classroom walls” environment.
However, educators are quickly realizing that even with EdTech innovations, the traditional “one-size-fits-all” approach to education fails to make the grade. Student populations are increasingly diverse in terms of culture, location, economic background, and learning styles. Educators are increasingly aware that not everyone can absorb the lesson plan in the same way, and that teaching needs to be more personalized to the individual student. To provide more personalized learning experience to students, while ensuring adherence to government performance standards, educators are turning to Adaptive Learning systems.
Adaptive Learning uses computer artificial intelligence algorithms that adjust the educational content to the student’s learning style and pace. Based upon a student’s reaction to content, algorithms detect patterns and respond in real-time with prompts, revisions, and interventions based upon the student’s unique needs and abilities. Combining Adaptive Learning platforms with predictive analytics and other EdTech applications helps to transform the learning experience for both the student and the teacher. more>
Posted in Broadband, Business, Communication industry, Economy, Education, Net, Technology
Tagged Broadband, Business improvement, Ciena, Fiber optics, Internet, Skills
Transformation in uncertain times: Tackling both the urgent and the important A sprint-based transformation approach can help organizations achieve full potential.
By Darius Bates, David Dorton, Seth Goldstrom, and Yasir Mirza – In ordinary times, successful leaders continually strive to master the balance between the urgent and the important, both in their organizations and their daily schedules. But today’s CEOs face unprecedented financial, health and safety, and operational challenges. For them, the problem isn’t balancing the urgent with the important. It’s that most everything is both urgent and important and, given the ongoing uncertainty about COVID-19 and its aftershocks, that’s not likely to change anytime soon.
To address these challenges in the present and in the next normal, some leaders will instinctively pick two or three top priorities. Then, on the assumption it’s better to focus an already-stressed organization on must-win battles, they will launch major efforts to realize such goals.
Choosing your priorities is a good idea, but that’s just the starting point. To sustainably transform an organization’s trajectory, leaders will need to efficiently implement improvements across the whole of the organization. Our research has shown that bold programs focused on a granular set of initiatives achieve more than limited efforts do: for example, our analysis of 100-plus transformations shows that 68 percent of their initiatives are worth $250,000 or less and that, on average, each initiative owner manages no more than two of thousands of initiatives. In our experience, the best-performing transformations focus on driving change by moving pebbles, not just boulders.
So how does a company tackle the urgent and the important while also delving into sufficient detail to achieve a step change in performance and value creation? In recent years, we’ve seen several organizations achieve these goals through a structured, sprint-based approach we refer to as “road-mapping.” more>
Posted in Business, Economy, Education, History, How to, Net, Technology
Tagged Business improvement, Internet, McKinsey, Skills, Technology