Inflation Rate And Gdp Growth Of Pakistan - Free Essay Example

Sample details Pages: 22 Words: 6509 Downloads: 1 Date added: 2017/06/26 Category Statistics Essay Did you like this example? CHAPTER 1: The topic of this research is relationship between inflation rate and GDP growth of Pakistan. Nowadays in Pakistan inflation rate is high, when inflation crosses logical limits, it has negative effects on GDP growth. It drops the value of money, resulting in uncertainty of the value of profit loss of borrowers, lenders, buyers and sellers. Don’t waste time! Our writers will create an original "Inflation Rate And Gdp Growth Of Pakistan" essay for you Create order The rising the uncertainty in saving and investment. In Feb 2009 CPI Inflation rate of Pakistan was 22.97% and GDP was 5.8%. GDP and inflation rate negative correlation present even when other factors are included to the study and the investment rate, population of growth, and the constant advances in technology and still when the factor in the effects of supply shocks features of a part of the observed period 1.2 PROBLEM STATEMENT: In this research determine how much rate of inflation affect the GDP growth of Pakistan. In this research also determine inflation rate significantly affect the GDP growth of Pakistan. GDP shows the economic performance of a country so it is of most importance for concerned departments and economists of that country. On the other hand rising inflation can impact negatively on GDP and the objectives that a country achieves can be demolished by rising inflation. 1.3 SIGNIFICANCE OF RESEARCH: If GDP growing fast and rate of inflation is falling down, it is good for the economy. More money comes in Pakistan and financer invests more and more capital. GDP indicates all sectors such as agriculture, telecommunication, services, manufacturing and Per Capita Income. These all indicators represent the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s economy. If these sectors were growing fast, countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s economy also grows faster. Foreign investors observe the market condition of Pakistan and foreign investors must see the GDP Inflation Rate of Pakistan. If the GDP growing faster and inflation going down, foreign investors invest more money into Pakistan. If GDP is growing faster, the investor earns more money and achieves good profit and aspires to keep doing business for long term and expects less risk for the loss. Investors also expect for greater dividend in real terms, if rate of inflation is dropping down. This research is also significant for foreign investor and domestic investor of stock market. If inflation is increasing, investors invest less in market because investors do not expect good profit and dividend for the shares and also expect huge risk in market for long term. If any countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s inflation rate is increasing, it is very difficult for financial institution to maintain the trust of investors because there is a chance of loss for the investors. This research is also significant for exporters. Exporters must see the inflation and GDP of Pakistan. If inflation is increasing, exporters export fewer goods because goods are expensive for exporters due to high inflation. Exporters export more goods, when inflation is low because goods are affordable for exporters and easy to export goods. This research is also significant for fresh graduate students. If inflation is high, there is less chance of jobs because the rate of unemployment is also high due to inflation rate. Fresh graduate also do not start business because it is carries more risk and there is chance waste of capital. 1.4 HYPOTHESES: H1: There is a negatively relationship between the Inflation rate and economic growth of Pakistan. H2: Inflation rate significantly effect on economic growth rate of Pakistan. 1.5 SUMMARY OF RESEARCH: The overall summary of this research defined in the following parts: First chapter is Introduction. In this part describe overview of all research, research problem, hypotheses of this research and definitions used in this research. Literature Review is second chapter. Describe summary of all articles, which related to this research. Third Chapter is Research Method. In this part describe data collection method, how sample size of this research and also describe technique of this research. Fourth Chapter is Results. In this part includes interpretations and findings in relevance to the hypotheses test. In this part also describe hypotheses assessment summary in table form. Fifth and last Chapter is Conclusion. In this part includes discussion based on this research finding in setting with the past research findings. In this part also describe some recommendations and implications of this research and also describe future research possibilities. Ending this part with conclusion. 1.6 DEFINITIONS: GDP and Inflation are the key macroeconomic indicators of the economic performance of any country. The relationship and cause affects are very important for any economic performance of the country. GDP Economic Growth: GDP indicates only currently produced goods and services. It is a flow measure of output per time period. For Example, per quarter or per year and indicates only goods and services produced during this interval. Such market transactions as exchange of previously produced houses, cars or factories do not enter into GDP. However, two types of goods used in the production process are counted in GDP. The first is Capital Goods and other type of goods is Intermediate Goods (Froyen, 2005). Components of GDP: GDP is broken down into the components. The first component is Consumption component of GDP. Consumption consists of the household sectors. Consumption can be further broken down into consumer durable goods (e.g., automobiles, television), nondurable consumption goods (e.g., foods, beverage, and clothing) and consumer services (e.g., medical services, haircuts) (Froyen, 2005). The second component of GDP is Investment. Investment is part of GNP (Gross National Product) purchased by the business sector in addition residential construction. Investment divided into three sub components. First is business fixed investment, second is residential construction investment and final id inventory investment (Froyen, 2005). The third component of GDP is government purchases. It is goods and services that are the parts of recent output that goes to the government sector such as federal government, state and local government (Froyen, 2005). The final component of GDP is Net exports. Net Exports equal total (gross) export minus imports. Gross exports are currently produced services goods and sold to foreign buyers, should be counted in GDP. Imports are purchases by domestic buyers of goods and services produced abroad and should not be counted in GDP. Imported goods and services are, however, included in the consumption, investment and government spending totals in GDP. Therefore, need to subtract the value of imports to arrive at the total of domestically produced goods and services (Froyen, 2005). Inflation: Inflation is when prices continue to keep rising, typically as a result of overheated economic growth or extra capital in the market search for too few opportunities. Wages usually creep upwards, so that companies can retain good workers (Amadeo, 2008). How Protection Inflation: If person are locking inflation protect alone, one best way to protect. Person purchase treasury bills and bonds; there pay fixed rates of interest. However, twice a year the governments readjust the principle in response to changes in the CPI, published monthly by the Statistics Bureau. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s mean, as inflation increases, the value of bonds increases. This is best way for protect inflation, when inflation increases (Amadeo, 2008). Aggregate Demand Theory: Aggregate Demand Theory shows that the negatively relationship between Inflation rate (price Level) and output/income (National Product). Aggregate Demand theory was developed by the English economist John Maynard Keyness (1883-1946). Term of à ¢Ã¢â€š ¬Ã‹Å"Aggregateà ¢Ã¢â€š ¬Ã¢â€ž ¢ was also used as à ¢Ã¢â€š ¬Ã‹Å"aggregate spendingà ¢Ã¢â€š ¬Ã¢â€ž ¢ and à ¢Ã¢â€š ¬Ã‹Å"aggregate expenditureà ¢Ã¢â€š ¬Ã¢â€ž ¢ (Case and Fair, 1992). How Aggregate Demand (AD) Curve deriving: The aggregate demand (AD) curve shows that the negative/inversely relationship between the aggregate output/income and the Inflation/price level and the aggregate demand (AD) curve is showing downward sloping (Case and Fair, 1992). Figure 1.1 INFL2 INFL1 Inflation Rate AD y2 y1Real Output/Income (National Product) (Source: Case and Fair, 1992) Reason for downward-slopping Aggregate Demand Curve: The increase price level/inflation causes the demand for money to increase, which cause the interest rate to increase and then the higher interest rate causes aggregation out to down (Case and Fair, 1992). The decrease in consumption brought about by a rises in the interest rate contributes to the generally fall in output. (Case and Fair, 1992). CHAPTER 2: LITERATURE REVIEW Metin (1998) analyzed the empirical relationship between inflation and growth for the Turkish economy by a multivariate co-integration analysis. Metin (1998) developed model shows that the scaled income growth significantly affects inflation in Turkey. The qualified model of inflation was constant and it estimated a model previously. In this paper developed model because if inflation change one percent so it significantly affect to Growth Rate. An extensive literature had examined the relationship between the budget deficit/Income growth and inflation. At a theoretical level, Sargent and Wallace (1981) showed that under certain conditions, if the times paths of government spending and taxes were exogenous, bond-financed deficits were non-sustainable, and the central bank should eventually monetize the deficit. Money supply and inflation was rising in the long run. These findings had subsequently been generalized for the open economy case and for alternative forms of financing. Increase money supply and inflation in the long run due to the government spending and economical condition were not sustainable (Scarth, 1987; Langdana, 1990). Metin (1995) analyzed inflation for Turkey using a general framework of sector relationships and found that fiscal expansion was a determining factor for inflation. The excess demand for money affected inflation positively, but only in the short run. On the other hand, imported inflation, the excess demand for goods, and the excess demand for assets in the capital markets had little or no effect on inflation. A key policy implication of was that Turkish inflation could be reduced rapidly by eliminating the budget deficit. The demand for money, assets and goods impact on inflation (Metin, 1995). The losses were automatically financed by the credits extended by the Central Bank to the SEEs, resulting in high money growth. For 1950 period in Turkish inflation rising and balance of Payment had difficulties. Most the private firm purchase commodities at official price and reached experienced losses (Aktan, 1964; Okyar, 1965; Fry, 1972; Krueger, 1974, Onis and Riedel, 1993). Metin (1958) implemented a fairly typical International Monetary Fund (IMF)-supported stabilization program, which improved the foreign-exchange situation and drastically reduced inflation. The most important component of the program was an increase in the prices of SEE goods, a component that was featured prominently in the 1970 and 1980 reforms as well. Raising those prices in 1958 resulted in an immediate and once-and-for-all increase in the price level, after which the reduced rate of expansion of Central Bank credits reduced inflation. Metin (1958) analyzed inflation dropped from 25% in 1958 to less than 5% in 1959, real gross domestic product (which had been declining) started growing immediately due to the greater availability of imports. Metin (1998) analyzed that Turkey was among the more rapidly growing developing countries during most of the 1960s, with an annual inflation rate of 5%-10%. The nominal exchange rate was kept constant after the 1958 devaluation. Investment spending increased and was financed mainly by foreign aid. In the late 1960s, foreign id did not increase, but the rate of investment spending was maintained. In addition, some difficulties appeared in obtaining imports, creating visible restraints on economic activity and growth. Turkeyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Economic volatility in deferent sectors such as in the late 1960s, foreign aid did not increase, but the rate of investment spending was maintained. In addition, some difficulties appeared in obtaining imports, creating visible restraints on economic activity and growth Barro (1995) studied that If a number of countries characteristics were held constant, in that case regression results shows that an raise in average inflation of ten proportion points per year reduces the growth rate of real per capita income GDP by 0.2 to 0.3 proportion points per year and lowers the proportion of investment to GDP by 0.4 to 0.6 proportion points. Over here come to know that some characteristics were stay constant but some of effected due to increase of inflation rate result reduce the growth rate of real per capita. Barro (1995) analyzed the result that inflation control on growth looks little; the long term inflation effects on standards of living were considerable. such as, a shift in monetary policy that increase the long-term average of inflation rate increase by ten percentage points per year was projected to down the level of real GDP after 30 years by 4% to 7%, more than enough to justify a strong interest in price constancy. The inflation rateà ¢Ã¢â€š ¬Ã¢â€ž ¢s influence intensively effected lives standard which identifies by the Monitory Policy, average inflation rate and GDP. To evaluate the effects of inflation on economic growth, Barro (1995) Regression Equation method used to which many other determinants of growth were held constant. The framework was one that in this paper had developed and applied previously. Barro (1995) identified that tool through in this paper assessed influence of inflation on the development of economy and to evaluate the effects of inflation on economic growth. Fama (1981) explained these anomalous stock return-inflation relations. The data were consistent with the hypothesis that the negative relations between stock returns and inflation positive relations between actual variables and stock returns, which were more fundamental determinants of equity values. The inflation had negative influence on stock return and also real variable Metin (1995) examined the relationship between the public- sector deficit and inflation. System co-integration analysis suggests three stationary relationships. Although weak relation does not hold for variables concerned (except Ay), one was still able to develop a conditional model for inflation. In that model, an increase in the scaled budget deficit immediately increases inflation. Real income growth had a negative immediate effect and positive second-lag effect on inflation. The shortfall affected inflation at a second lag. These dynamics were consistent with institutional and general knowledge of the economy. The conditional model of inflation was constant over the sample period, even though several significant structural breaks occurred during the period. Breaks included three devaluations, structural stabilization, and economic liberalization programs. The major finding from the new equation was that budget deficits (as well as real income growth) significantly affect inflati on in Turkey. Braun and Tella (2000) studied that there was a positive partial correlation between inflation and corruption for several countries for which data was available. Furthermore, argue that causality was from inflation variability to corruption. There was a positive relationship between corruption and inflation. Dornbusch and Frenkel (1973) had developed alternative approaches to be analysis of growth and inflation. found that the effect of inflation on per capita real balance, consumption and the capital-labor ratio remain ambiguous if the yield on capital was a function of per capita real balance or if consumption was an increasing function of the rate of inflation. That ambiguity was in general not entirely removed by consideration of maximization and a specification of the nature of the service of real balance. The alternative effects inflation on per capital real balance, consumption and the capital labor ratio. Fama (1981) tested out the hypothesis that the negative relations between real stock returns and inflation observed during the post-1953 period were the consequence of proxy effects. Stock returns were determined by forecasts of more relevant real variables, and negative stock return-inflation relations were induced by negative relations between inflation and real activity. This relation inflation, real activity and stock returns define through the money demand and the quantity theory of money. Barro (1995) evaluated the effect on investment shows up clearly only for inflation rates above 10%à ¢Ã¢â€š ¬Ã¢â‚¬Å"20% per year. For lower inflation rates, the estimated effect of inflation on the investment ratio tends not pointedly different from zero. The investment effects positively when inflation above 10% to 20% per year but lower inflation effect on investment negatively and zero inflation not significantly effect on investment. Barro (1995) analyzed that the Inflation effects on growth and investment were significantly negative and long term Inflation to reduce the value of growth and investment. The analysis was that the effects of inflation on growth were significantly negative relation and also the effects of inflation on investment were significantly negative relation. Barro (1995) the values of inflation for three periods (i.e. 1965-75, 1975-85 and 1985-90) were not differing significantly from one to another. If different coefficient of inflation test for each period, then resulting values was not significantly from one to another period. If the inflation rise 10% year, growth rate of real per Capita income of GDP by 0.2% to 0.3% point per year. Khan and Senhadji (2001) located that under floating exchange rates, growing domestic inflation can move up long-run output if credit was rationed (inflation was low). However, there exist inflation thresholds as were observed empirically inflation and output were positively (negatively) correlated below (above) the threshold. With fixed exchange rates, the scope for credit to be rationed depends in a relatively complicated way on the rate of foreign and domestic inflation, and increasing foreign inflation always reduces long-run output. Barro (1995) calculated the standard deviation and analyzed the result was that if the standard deviation of inflation was included in the regressions, then the estimated coefficient on average inflation changes little, and the estimated effect of the standard deviation of inflation was still around zero. Standard deviation of inflation included in the regression, result of estimated coefficient on average inflation was little and standard deviation was around zero. Results were directly related to the literature on the costs of inflation. Despite a long tradition of research on the subject, empirical estimates were scant. Following Bailey (1956) estimating the area under the money demand curve, Fischer and Lucas (1981) found that for the US, an inflation rate of 10-percent per annum would cost 0.3- 0.9 percent of national income each year. More recently, Fischer (1993) estimated in a cross-section of countries that an increase in the inflation rate of 100 percentage points would lead to a reduction in the annual growth rate of 3.9 percentage points. Barro (1997) found that the negative relation between inflation and growth was stronger for low levels of inflation, and that inflation variance was also negatively correlated with growth. The estimated in a cross section of countries that an increase in the average inflation rate of 10 percentage points per year leads to a reduction in the growth rate of GDP of 0.3 to 0.4 percentage points per year. Braun and Tella (2000) presented the cross section estimates of the correlation between inflation variability and corruption. Average the data for 1982-1994 to obtain a maximum sample. Document a positive and significant correlation between measure of noise in the price system (Inflation Variance) and corruption. The Positive and significant correlation between the inflation and corruption Barro (1995) analyzed that it was also possible that the inflation produce a positive and significant relationship between inflation and growth. This thing happen, when demand of goods increase. Braun and Tella (2000) analyzed the result was that the increase in the cost of audit leads to an increase in corruption and in the extant fixed cost of investing. This in turn leads to a decline in aggregate investment and growth. Using the evidence that relative price oscillations increase with inflation variability, assume that the cost of audit was an increasing function of inflation variability. If corruption was increasing, Growth and Investment was decrease because negatively impact on growth and investment. Inflation was increasing due to corruption was rising. Barro (1995) evaluated that in recent years, many central banks, including the Bank of England, more emphasis on price stability. One indicator concern, the Bank of England began in February 1993 to issue the Inflation Report. Central bank gave more importance on price stability and monetary policy defines in term of interest rate or growth with stable and low inflation. In this paper contributes to closing this perception gap. Find a theoretical and empirical link between inflation variability and corruption. Since corruption had been found to had a negative/inversely impact on growth and investment. There was an indirect, corruption affected cost of inflation. Estimate that a one standard deviation raise in inflation variability from the median can lead to a reduction in the annual growth rate of one third of a percentage point and a reduction in the investment rate of 1-percent. Corruption was negative impact on growth and investment. Corruption affected cost of inflation (Mauro, 1995; Knack and Keefer, 1995; Kaufmann and Wei, 1999). Fama (1981) found the result was that the negative relations between inflation and real activity predicted by the money demand-quantity theory model and observed consistently in the regressions were negative partial correlations. The relations between inflation and real activity predicted by the money demand quantity theory model Braun and Tella (2000) calculated that increase in inflation variability of one standard deviation from the median leads to an increase in corruption of 0.12 of a standard deviation. Repeating the above calculations obtain that an increase in inflation variance of one standard deviation leads to a decline in investment of 1.02 percent of GDP, and a decline in growth of 0.33 percentage points. Braun and Tella (2000) estimated for the impact of an increase in inflation variability of one standard deviation range from 1.02 percent to 2.72 percent of GDP for investment, and from 0.33 to 0.88 percentage points for growth. Increase in inflation of one standard deviation leads to decline in investment of 1.02 % of GDP and decline in growth 0.33 % points. Braun and Tella (2000) estimated the effects were also economically significant. Researcher basic cross section approximate suggests that a one standard deviation increase in the variance of inflation associated with an increase in corruption of up to 0.47 points, or 32-percent of the standard deviation of corruption. Braun and Tella (2000) estimated can be used to calculate an indirect cost of variable inflation that operates through corruption. Researcher find that an increase in inflation variability of one standard deviation from the median can lead to a decline in investment of 2.7-percent of GDP, and to a decline in the annual growth rate of 0.9 percentage points. Increase in inflation of one standard deviation leads to decline in investment of 2.7 % of GDP and decline in growth 0.9 % points. Braun and Tella (2000) calculated that increase in inflation variability of one standard deviation from the median leads to an increase in corruption of 0.12 of a standard deviation. Braun and Tella (2000) analyzed the result was that an increase in inflation variance of one standard deviation leads to a decline in investment of 1.02 percent of GDP, and a decline in growth of 0.33 percentage points. Braun and Tella (2000) estimated for the impact of an increase in inflation variability of one standard deviation range from 1.02 percent to 2.72 percent of GDP for investment, and from 0.33 to 0.88 percentage points for growth. Increase in inflation of one standard deviation leads to decline in investment of 1.02 % of GDP and decline in growth 0.33 % points. Fama (1981) analyzed two types of models for expected inflation were estimated and compared. One approach was interest rates into expected inflation rates and expected real returns. Since the interest rates were observed at the beginning of the time intervals of interest, this approach estimates the ex ante expected inflation rates which eventually allow to document the negative relations between ex ante expected stock returns and expected inflation rates. The negative relation between the expected stock returns and expected inflation rates Fama (1981) analyzed second approach, based on money demand and quantity theory of money, estimates conditional expected inflation rates as functions of money and real activity growth rates. Since measures of current money and current and future real activity growth rates were major explanatory variables, these conditional expected inflation rates were not ex ante measures. Fama (1981) also analyzed the money demand-quantity theory models of inflation provide the empirical economic story which explains why the ex ante expected inflation rates extracted from interest rates were also strongly related to current and future real activity. Inflation rate were strongly related to interest rate because of money demand theory and quantity theory of money. Fisher (1911) observed the relations between inflation and the measures of current and future real activity which this model presumes were important in the determination of stock market returns. The theoretical basis for the study of inflation-real activity relations was a rational expectations combination of money demand theory. The theory and empirical results were abstracted from my 1980 paper. In this paper presented just enough of the theory and evidence to document the inflation-real activity relations of interest. Verme (2004) was study the Walrasian equilibrium; changes in either the domestic inflation rate or in the world inflation rate had qualitatively similar effects. When credit was rationed, changes in the domestic inflation rate and the world inflation rate always affect the domestic capital stock differently. This occurs because credit rationing breaks the link between the marginal product of capital and the rate of interest on loans: what matters was how the domestic and foreign rates of inflation affect the self-selection constraint and researcher affect this differently. Whenever there were restrictions on capital availability, the domestic and foreign inflation rates react differently on the economy. Verme (2004) analyzed theory of Walrasian equilibrium was that changes in the domestic rate of inflation can had very different effects under credit rationing. Again, this happens because what matters was how the domestic inflation rate affects the self-selection constraint. Higher domestic inflation can actually relax this constraint by increasing the rate of interest on loans, and hence attenuating the incentives of agents to misrepresent the type. The domestic inflation can also cause dearth of capital if the interest rate rises for the reason of inflation. Verme (2004) presented a model of a small open economy where financial intermediaries make a real allocate function then consider the relative merits of different exchange regimes, focusing my attention on policies that had been implemented in Latin America and, particularly, in Argentina and Peru. This document puts forward an example of an open economy where financial intermediaries may cause situations where credit may not always be restricted. Verme (2004) observed that the inflation thresholds as were observed empirically: increasing inflation beyond the threshold level reduces domestic growth output. However in economies with fixed exchange rates, increases in the foreign (and domestic) rate of inflation always had adverse consequences for real activity. In case of variable exchange rates, inflation can encourage production if credit was limited, however if the inflation exceeds beyond a certain limit then it reduce the output. Mauro (1995) estimates may be used to derive an indirect, corruption-induced, cost of inflation variability. This cost can be calculated by multiplying estimated of the impact of inflation variability on corruption by exogenous estimates of the impact of corruption on investment and growth. Given that Mauro (1995) presented such estimates, this calculation was relatively straightforward. The cost of inflation can also increase if corruption impacts investment and growth. Fama (1981) explanation of the absence of positive simple relations between money supply and real activity growth rates during the post- 1953 period was an interesting topic for future research. This was especially so since the monetary measure used, the growth rate of the base, was the one most under the control of the monetary authorities. Studying the relationship between money supply and growth rate reveals that the said rate was under most control of the controlling authorities. Braun and Tella (2000) estimated that an increase in corruption of one standard deviation leads to a decline in the average investment rate of 8.5 percent of GDP. In this paper also estimates that GDP growth would decline by 2.76 percentage points per year. It was estimated that a slight increase in the corruption can greatly decline the investment. Fama (1981) tested that the effect hypothesis implies that actions of real activity should dominate dealings of inflation when both were used as explanatory variables in real stock return regressions. In monthly, quarterly, and annual data, growth rates of money and real activity eliminate the negative relations between real stock returns and expected inflation rates. In the annual stock return regressions unexpected inflation also loses its explanatory power when located in competition with future real activity. Sometimes inflation loses its quality of increasing growth rates when there was real economic growth in the future. Fama (1981) analyzed the hypothesis for both common stocks and bonds were that expected real returns were determined in the real sector. Spurious negative relations between inflation and expected real returns were then induced by a somewhat unexpected characteristic of the money supply process during the post- 1953 period, in particular, the fact that most of the variation in real money demanded in response to variation in real activity had been accommodated through offsetting variation in inflation rather than through nominal money growth. After the analysis of securities, it was accomplished that there exists a negative/inversely relationship between inflation and expected real returns. The severe drought in India during the current cropping season may put more pressures on international prices of a number of commodities i.e. international sugar prices had already risen substantially, which had also impacted domestic prices, which sufficient domestic availability, Increasing the international commodity prices as more pressure on inflation (State Bank Annual Repot, 2009). Fama (1981) described the theory of finance that the process generating capital investments with expected rates of return in excess of costs of capital, equivalently, investment projects whose market values exceed costs of acquisition, central in the determination of stock returns. Fama (1981) estimated of a full-blown investment model would be a formidable project. The more limited goal here was to study the relations proposed by a bare-bones model of investments in order to identify real variables which were potentially important in the determination of stock returns. These real variables can then be put against measures of expected and unexpected inflation in stock return regressions. Government had been declining energy related subsidies since 2008 causing production costs to raises. In 2009, the energy cost raise further and at a much upper pace affecting the real sector activities. The cut in development expenditures during 2009 contributed to the slowdown of domestic construction activities. Decline consumption because of removal subsidies and expenditure and also decline energy subsidies. Cut in Expenditure was effect on slowdown domestic construction activities (State Bank Annual Reports, 2009). Braun and Tella (2000) presented the cross section estimates of the correlation between inflation variability and corruption. Average the data for 1982-1994 to obtain a maximum sample. Document a positive and significant correlation between measure of noise in the price system (Inflation Variance) and corruption. The Positive and significant correlation between the inflation and corruption The liquidity problem by two implications first was oil refineries could not get enough liquidity to finance oil imports and were required to operate below capacity and second was liquidity shortage at the end of power plants did not allow optimal generation of electricity. Lower electricity generation amid an already broad demand-supply gap intensified energy slippages causing productivity reduce in a number of industries (State Bank Annual report, 2009). Oil refineries could not get enough finance oil and it operates below capacity and another was shortage of power plant electricity generator of electricity. Lower electricity power affect on productivity down in a number of industries (State Bank Annual report, 2009). Verme (2004) analyzed that the Peru and Argentina were small open economies that experienced episodes of severe inflation in the late 1980s and early 1990s. Both stabilization programs were successful in declining inflation rates and had some common aspects with respect to fiscal policies. Argentina implemented a currency board while in Peru the exchange rate was left to float freely, under the supervision of the Central Bank. Khan and Senhadji (2001) located that under floating exchange rates, growing domestic inflation can move up long-run output if credit was rationed (inflation was low). However, there exist inflation thresholds as were observed empirically inflation and output were positively (negatively) correlated below (above) the threshold. With fixed exchange rates, the scope for credit to be rationed depends in a relatively complicated way on the rate of foreign and domestic inflation, and increasing foreign inflation always reduces long-run output. Verme (2004) also found that endogenously arising volatility may be experiential independently of the exchange rate system. Private information with lofty rates of domestic inflation and raises the scope for indeterminacy and economic fluctuations. Raise the inflation cause of increase in economic fluctuation. Bruno and Easterly (1998) one possible theory consistent with results was that supply surprises were the major factor in rise inflation crises and those surprises explain the negative co-actions of inflation and growth. At high levels of inflation, there usually exists an indirect relationship between inflation and growth. Sometimes, supply reductions can also cause this relationship to arise. Alesina and Drazenà ¢Ã¢â€š ¬Ã¢â€ž ¢s (1991) classic model of stuck equilibrium made clear that the timing of inflation equilibrium was endogenous. Inflation equilibrium may arise at the instant when the largest growth increases can be realized, which may effect in a short-run negative association between high inflation and growth. When the inflation stuck due to the largest growth increases which may result in a short run negative association between high inflation and growth. Bruno and Easterly (1998) studied that high inflation was unstable for the economy condition. High inflation was bad for economy and unstable situation. Higher inflation stuck as certain period of time. Ball (1993) calculated large sacrifice ratios for predictable growth in inflation stabilizations in OECD 15 countries. The positive relationship between output growth and inflation in short run for developing countries. Bruno and Easterly (1998) analyzed that the power of growth and inflation relationships in the long-run. There was no confirmation of a long-run relationship for developing countries recover pre-crisis trend after resolving inflation crises (Bruno and Easterly, 1998). At high levels of inflation, there usually exists an indirect relationship between inflation and growth. Sometimes, supply reductions can also cause this relationship to arise. CHAPTER 3: RESEARCH METHODS 3.1 M ETHOD OF DATA COLLECTION In this research used secondary source for data collection. The data based on the Pakistanà ¢Ã¢â€š ¬Ã¢â€ž ¢s historical data. Data on GDP (Growth Rate) and Inflation Rate (CPI) has been taken from the Handbook of Statistics on State Bank of Pakistan, Pakistan Economy2005 (SBP) and Federal Bureau of Statistics. 3.2 SAMPLE SIZE: In this research data has been collected annually from 1987-88 to 2008-09. Sample size of this research is 22. 3.3 VARIABLES: In this research selected two variables for the regression model used, which include: Dependent Variable = GDP (Growth Rate) Independent Variable = Inflation Rate Table 3.1 Year GDP (Growth Rate) Inflation Rate 1987 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 88 7.62% 8.84% 1988 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 89 4.96% 7.88% 1989 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 90 4.45% 9.05% 1990 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 91 5.45% 12.63% 1991 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 92 7.83% 4.85% 1992 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 93 1.26% 9.83% 1993 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 94 3.74% 11.27% 1994 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 95 4.96% 13.02% 1995 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 96 4.85% 10.79% 1996 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 97 1.01% 11.80% 1997 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 98 2.50% 7.81% 1998 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 99 3.10% 5.74% 1999 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 00 3.90% 3.58% 2000 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 01 2.50% 4.41% 2001 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 02 3.60% 2.50% 2002 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 03 5.10% 3.10% 2003 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 04 6.40% 4.57% 2004 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 05 8.40% 9.28% 2005 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 06 6.60% 7.92% 2006 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 07 6.80% 7.77% 2007 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 08 4.10% 12.00% 2008 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 09 2.00% 20.78% (Source: www.sbp.org.pk/reports/annual) 3.4 STATISTICAL TECHNIQUE: In this research used the Linear Regression statistical technique. Linear regression is relationship between a scalar variable (i.e. y) and one or more variables denoted (i.e. x). Linear regression shows that the unknown parameters are projected from the data using linear functions. In this research determine the relationship between the inflation rate and GDP growth of Pakistan. Equation: In this research this is the following equation used: à ¯? ²GDP à ¯Ã¢â€š ¬Ã‚ ½Ãƒ ¯Ã¢â€š ¬Ã‚  Ãƒ ¯Ã¢â€š ¬Ã‚  Ãƒ ¯Ã¢â€š ¬Ã‚  Ãƒ ¯? ¡Ãƒ ¯Ã¢â€š ¬Ã‚  Ãƒ ¯Ã¢â€š ¬Ã‚ «Ãƒ ¯Ã¢â€š ¬Ã‚  Ãƒ ¯? ¢Ãƒ ¯Ã¢â€š ¬Ã‚  (Inflation) + U CHAPTER NO 4: RESULTS 4.1 FINDINGS AND INTERPRETATION OF THE RESULT: Table 4.1 Descriptive Statistics    Mean Std. Deviation N GDP 4.6223 2.07389 22 Inflation 8.6082 4.20592 22 Table 4.2 Correlations       GDP inflation Pearson Correlation GDP 1.000 -.237 Inflation -.237 1.000 Sig. (1-tailed) GDP . .144 Inflation .144 . N GDP 22 22 Inflation 22 22 Table 4.3 Variables Entered/Removedb Model Variables Entered Variables Removed Method 1 inflationa . Enter Table 4.4 Model Summary Model R R Square Adj. R Square Stand. Error of the Estimate Ch. Statistics F Ch. R Square Ch. df1 df2 Sig. F Change 1 .237a 0.0563 0.00916 2.06436 1.1942308 0.056347 1 20 0.287467 a. Predictors: (Constant), Inflation b. Dependent Variable: GDP The model summary table of the data analysis shows that the no relationship between the dependent variable and the model. R, the correlation coefficient, is the linear correlation between the observed and expected values of the dependent variable. Its value i.e. 0.237, which indicates has 23.7% correlation between the observed and predicted values. . R2, the coefficient of determination, shows that almost 5.63% of the deviation in the GDP is explained by the model. Level of significance is 0.287 shows that there is no negatively relationship between the inflation rate and GDP growth of Pakistan because significant value is greater than 0.05. Table 4.5 ANOVA Model Sum of Sq. Df Mean Sq. F Sig. 1 Regression 5.089339 1 5.089339 1.194 0.287 Residual 85.23208 20 4.261604 Total 90.32142 21 a. Predictors: (Constant), Inflation b. Dependent Variable: GDPThe Regression row of the ANOVA table reflects information regarding the variation taken into account by the model. The regression sum of squares suggests that almost 5.63% of the change in dependent variable is described by this research model. The insignificance value of the t statistic is greater than 0.05 i.e. 0.287, which shows that the no relationship between the variables. Table 4.6 Coefficients Model Un-standardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) Inflation 5.610 -0.118 1.030 0.108 -0.23659 5.444 -1.0889 0.0000 0.289 a Dependent Variable: GDP The constant coefficient in the above mentioned model predicts that with the current value of the predictors i.e. if there is no change in the independent variables than there be a change of 5.62983 units in the GDP of Pakistan. Furthermore, this model suggests that if there is an increase of 1 unit in Inflation of Pakistan, the GDP of Pakistan decrease by 0.11705. These result also shows that Inflation rate is insignificantly affect on GDP growth of Pakistan because of significant value is greater than 0.05 i.e. 0.287. Table 4.7 Coefficient Correlations Model Inflation 1 Correlations Inflation 1.000 Co-variance Inflation .011 Table 4.8 Collinearity Diagnostics Model Dimension Eigen value Cond. Index Variance Proportions (Constant) inflation 1 1 1.902 1.000 .05 .05 2 .098 4.416 .95 .95 Graph: Figure 4.1: Figure 4.2: 4.2 HYPOTHESES ASSESSMENT SUMMARY: Table 4.9 Hypo R R Square F Change Model B t Sig. Result H 0.237 0.0563 1.194 (Constant) Inflation 5.62983 -0.11705 5.51050 -1.09281 0.000 0.287 Reject CHAPTER 5: CONCLUSION, DISCUSSIONS, IMPLICATIONS, LIMITATIONS AND FUTURE RESEARCH 5.1 CONCLUSION: This research finds out the relationship between the Inflation and GDP growth of Pakistan with the help of model. In this research result shows that the there is no negatively relationship between the inflation and GDP growth in Pakistan. Result also shows that inflation is insignificantly affected on GDP growth of Pakistan. 5.2 DISCUSSIONS: The past researchers also showed that there was not relationship between inflation GDP and also showed that there was not negatively relationship between GDP and inflation rate. First researcher result was yearly data presented a positive and insignificant association between corruption and Inflation rate for 75 countries data and also increase in inflation rate can lead to increase in corruption and decline in growth rate and this result also showed that the negative and insignificant association between inflation rate and growth rate in yearly data for 75 countries data over.15 years (Branu and Tella, 2000). Second researcher result was significant relationship between industrial production growth rate and inflation rate was found only for five countries out of eighteen OECD countries, this result showed that another 13 OECD countries was found insignificant relationship between the inflation rate and growth rate of industrial production (Katsimbris, 1985). Third researcher result was the significant negative relation between inflation and growth only for high inflation rates; the relation was insignificant if the sample was limited to rates below 10% per year (Barro, 1995). In this research only 2009 CPI shows 20.78% but another 21 years data almost showed 10% per year. 5.3 IMPLICATIONS, LIMITATIONS AND RECOMMENDATIONS: Result might not be accurate and significant in this research because these are the following limitation. In this research did not cover all sectors of GDP growth rate individually. In this research also did not cover GDP and the sectorsà ¢Ã¢â€š ¬Ã¢â€ž ¢ amounts individually in US Dollars or Pak Rupees. In this research did not cover individual test on SPI, CPI and WPI or average of these entire three inflation measuring rates. In this research only included 22 year observation. If these limitations cover this research, result might be more accurate and result might be significant. 5.4 FUTURE RESEARCH: These research results will significance for foreign investors and domestic investors. Foreign investors and domestic investors will observe the market condition of Pakistan with the help of this research. This research will conduct more properly in future research with the help of this research finding.

Brief Article Teaches You the Ins and Outs of What Is Research Outline and What You Should Do Today

Brief Article Teaches You the Ins and Outs of What Is Research Outline and What You Should Do Today The New Angle On What Is Research Outline Just Released The coming of the research paper outline should have a thesis or hypothesis that illustrates the claim the paper is attempting to prove. A research paper outline, though, will additionally have a hypothesis or thesis as a portion of the introduction. Besides a report outline and a presentation outline, it is one of the most common types of outlines you're likely to encounter in any given field. Remember that it's an outline of your primary paper therefore it will cover all the essential facets of your paper. Guidelines exist to assist in organizing your contents and structure that will allow you to write a productive research paper. Possessing a Research proposal outline example provides the necessary boost to the success of the paper. Making an APA outline is the very first issue to do in developing a structure on what's going to be written in the paper and the way it's written. Developing a very good outline is important in a more composing of your research paper. An individual should realize that every Research Paper is a sophisticated writing because it must contain distinctive research and distinctive idea. Planning not only enters the research itself but into multiple phases of the draft. Research Paper preparation means handling a great amount of information. Research papers are almost always exciting to read. To begin with, you have to have an outline that will help you determine what precisely you are going to be searching for. As a variant, you can make a list of potential outline headings, and then, in the procedure for writing or even at the very last stages, you could decide on the most suitable choices. In case the structure of the primary body has many levels, it is preferable to use different numbering styles. The total sentence outline format is fundamentally the exact same as the Alphanumeric outline. You have the ability to write only its chief sections or present a thorough plan with several subsections. There you are able to learn to construct the structure and its elements. It's also logical to compose a more thorough outline for yourself even in case the requirements are different. Outlines for various topics will differ, but the primary points and structure will continue being similar. The War Against What Is Research Outline How to structure the outline is unquestionably a topic of private opinion. So, creation of an outline ought to be the next step after you've decided on your topic. It's only possible to produce an outline when you have familiarity with the subject. The topic outline includes short phrases. Research Paper isn't a task for a single day. Writing a research paper is as crucial as performing the true research or experiment itself and can seem to be an extremely daunting job. The typical research paper is a complicated document that's often betwee n 15 and 40 pages in length, based on this issue and class requirements. Naturally, there are loads of benefits of utilizing an outline. If making outline is part of your assignment, follow the directions you were given. An excellent outline has become the most significant step in writing a great paper. After all, you're making a paper outline so that you're able to guide yourself towards starting a research paper, so clearly, you won't need to enter the literature review approach. Try to remember that the chief goal of the research paper is to clearly show your abilities to work on your own and demonstrate the scope of your knowledge on several topics. Include here the strengths and importance of the paper instead of only the gaps you're attempting to fill in the current scholarly articles. If you've ever done a research before, then you know it is tough to find the best results if you don't use an outline. It is also feasible to emphasize the importance of the study and its part in the scientific branch. Conducting a research isn't any doubt an elaborate affair and with all these tasks to do, it isn't uncommon to shed consistency if there's no outline. Anyone who's reading your example of a research paper will want in order to replicate your study effortlessly. For research papers, an outline may assist you in keeping tabs on considerable amounts of information. The research outline helps to ensure that all your ideas flow in a concise and effective method.

Medical Marijuana Free Essays

string(105) " of the two ailments that marijuana was being used for at that time, nausea, is a direct symptom of TBI\." Dustin Flynn Assn# 5 Example/Comparison/Argumentative Inductive TREAT THE SYMPTOMS, NOT THE INJURY For centuries marijuana has been used by the top doctors of their time. And until recently, the past thirty years, the actual physical effects were unknown. Over the past three decades Science and Medicine have been researching what useful and healing effects this herb has, if any. We will write a custom essay sample on Medical Marijuana or any similar topic only for you Order Now Through my research I have found what I had only thought to be true. Marijuana does have great medicinal use. It is currently being used for an array of illnesses and injuries. But its most effective uses are focused in treating the onsets of AIDS and the symptoms from chemotherapy in the treatment of cancer. Those onsets and symptoms are anxiety, declining appetite, nausea, and general pain. These ailments bare a strong resemblance of the symptoms of Traumatic Brain Injury, or TBI. It is because of these resemblances that I have come to the conclusion that marijuana could be the best treatment for the symptoms associated with TBI. In this article I am going to explain the historical uses of marijuana, the symptoms of TBI, the current treatments for TBI, how marijuana works, and the valued effects that marijuana can provide for persons diagnosed with TBI. As I said before, marijuana has been used for centuries for medicinal use. The first uses are dated back before 4000 BCE, (Before Common Era), as a food source because of its protein and omega 3 content. â€Å"The first recorded medicinal use was in 2737 BCE. Emperor Shen-Nung of China suggested it be used for the treatment of constipation, menstruation cramps, rheumatism, malaria, gout, and absentmindedness. †(Sanna, 18) Now if we look at some of these ailments and diseases and take some of the symptoms that are associated with them. We can see that they are similar to symptoms associated with TBI. Take rheumatism for example, most people associate rheumatism with rheumatoid arthritis or osteoarthritis. But in its most simple diagnosis it is described as general pain and weakness, which is a common symptom with a major diagnosis of TBI. Patients with a major diagnosis can be in, sometimes, constant pain, because the receptors in the brain that regulate pain are damaged due to their TBI. So centuries before things were the way they are now, there was a suitable prescription for one major symptom associated with TBI. Now lets look at absentmindedness, we cannot be sure what the exact definition of this could have been in 2737 BCE. But what we can take from this is that even back then it was acknowledged that marijuana was a suitable prescription for issues concerning the brain. The Emperor was able to see a beneficial change in mood, memory, or thought process. Something made a significant change for him to recommend marijuana. Marijuana became very popular medically in China and eventually made its way to Europe. Around 500 BCE marijuana reached Europe, and with its long reputation as a medicating plant, the Europeans immediately put it into personal testing. â€Å"Doctors of that time separated marijuana into two groups, weedy, and cultivated. †(Sanna 18) The weedy marijuana was best used for curing hard tumors. And the cultivated marijuana was best used for soothing and curing coughs. Now that might seem like a big difference in the severity of symptoms, but the Doctors of that time tested marijuana with almost every ailment and disease that was brought to their attention. Again as before, if we look at one of these symptoms and compare it with symptoms of TBI we can see the benefits. As a patient with any severity of TBI there is a higher risk of developing cancerous and malignant tumors in the brain. â€Å"Doctors and Scientists are unsure of why this is associated with TBI†(Chew 851-878), but their research shows that the risks are there. Marijuana has certain properties called â€Å"Cannabinoids† (Richmond) that actually convince tumors anywhere in the body to commit suicide. The reason this is so beneficial for patients with TBI, patients who are at higher risk of developing tumors in the brain, is because the â€Å"Cannabinoids† in marijuana link up with our bodies own â€Å"Endocannabinoid System†, (Richmond) a system which naturally produces cannabis in our bodies, and fight tumors in the brain. â€Å"Tumors in the brain are the hardest forms of tumors in the body to cure, because they are so hard to treat. (Chew 851-878) It is extremely dangerous for Doctors to operate on the the brain, and normal chemotherapy will usually kill the patient before it kills the tumor due to what is called the â€Å"blood/brain barrier†. (Chew 851-878) â€Å"The blood/brain barrier† is a filter of sorts, the brain has to have whole blood and oxygen to operate properly. The â€Å"blood/brain barr ier† filters out toxins such as the ones used in chemotherapy, and is very selective in what it lets in the brain. The â€Å"Cannabinoids† found in marijuana are able to pass through that â€Å"blood/brain barrier† freely which allows it to do its job and destroy tumors, naturally. Let us skip ahead to around the ninth century. Marijuana has gained popularity as a medicine everywhere east of the Atlantic. And in â€Å"India it was claimed to cure dandruff, Sexually Transmitted Diseases, leprosy, insomnia, and tuberculosis. † (Sanna 18) As far as these ailments and diseases go, insomnia is the one symptom that is shared with patients of TBI. Many patients with any severity of TBI experience insomnia, or other sleeping disorders. Research today supports the Indians theories that marijuana can and does treat insomnia. Now to bring it home, in the United States from 1850 to 1942 marijuana was actually listed in the U. S. Pharmacopeia, which is the list of government approved and recommended drugs for use in treatment of patients. At that time marijuana was stilled called cannabis and was being used in the treatment of labor pains and nausea. But in 1942 the United States Government declared cannabis, (marijuana), a level one narcotic and was made illegal to prescribe, posses, or cultivate. Out of the two ailments that marijuana was being used for at that time, nausea, is a direct symptom of TBI. You read "Medical Marijuana" in category "Papers" Patients with any severity of TBI can have chronic nausea brought on by a injured equilibrium. This injury can have the affects of severe motion sickness even when a patient is standing or sitting still. Finally in 2003, â€Å"Canada became the first country in the world to offer medical marijuana to patients† (Sanna 18), initially if was for the treatments of symptoms associated with cancer and AIDS. Since 2003 some states in the United States have followed that example, California being the first, but since medical marijuana is still Federally illegal patients, Doctors, and pharmacies can be arrested, closed, and have their licenses removed. Which makes the freedom of prescribing and receiving medication difficult. â€Å"More than 5. 3 million people, or approximately two percent of the U. S. Population, are living with disabilities resulting from Traumatic Brain Injury. † (Chew 851-878) Here is a list of some of the difficult symptoms, both mentally and physically, that these patients could be facing on a daily basis. Mentally; Attention Deficit Disorder, memory loss, depression, easily agitated, irritability, unprovoked acts of aggression and violence, mania, psychoses, and mood swings. These are just the main mental struggles these patients possibly face suffering from TBI. Physically; Random loss of consciousness, disorientation, headaches, general pain, loss of balance, nausea and vomiting, blurred vision, ringing in the ears, bad taste in the mouth, sensitivity to light and sound, sleeping disorders, seizures, and loss of bladder and bowel control. With all of these symptoms these patients could be facing it is hard to think of the cocktail of medicine that these patients could be forced to take on a daily basis. Currently pharmaceutical companies try only to treat one symptom at a time, it makes for a bigger business and more profits, which leaves the patient, especially in this case, on the long road to recovery. Currently there are over thirty one different drugs being used just to treat the mental symptoms associated with TBI, with no one drug being able to treat multiple symptoms. So that means in most cases these patients are using at least two drugs on a trial basis at any given time, and if there is no change in symptoms they are simply switched to another medication until they achieve satisfactory effects. Just imagine the strain these patients are putting on their livers just to ease the symptoms of a Traumatic Brain Injury. And this is how it is for every patient, Doctors are still unable to come up with what works best for certain symptoms. With that uncertainty, patients become human test subjects, and each Doctor becomes a researcher. And in some cases of mild TBI, the medication that is prescribed has side effects that out weigh the patients initial symptoms. Why would anyone want to take medicine to stop vomiting if the outcome was constipation; and if someone has loss of balance, the medicine prescribed could make them extremely drowsy and have them sleep all day. The world of pharmaceuticals is expensive, representatives from these companies turn Doctors in to salesmen and spokesman. And the outcome is high cost prescriptions that cost the patient and the insurance companies millions of dollars every year, not to mention the huge amount of money that these companies receive from the government every year to research and produce new â€Å"miracle† drugs. Marijuana is made up of over 421 natural chemicals, of which over sixty are Cannabinoids†. (Richmond) Now as I mentioned earlier, we all have what is called a â€Å"Endocannabinoid System†, which regulates the â€Å"Cannabinoids† that are body naturally produces, that is right our bodies produce cannabis. The natural â€Å"Cannabinoids† in our body are used almost like our immune system. When there is something wrong in our bodies an alarm goes off, like when we get a cold, and our immune system rushes in and attacks that bad thing trying to kill it. Our â€Å"Endocannabinoid System† works almost the same way but it is able to fight many bad things at once, while also protecting our good cells, regulating proper brain function, and leveling our anxiety. Our â€Å"Endocannabinoids System† is very advanced, it is mostly gathered in the brain, but it spans through the liver, the bones and the nervous system. There are four main â€Å"Cannabinoids† that Doctors and Scientists have been able to focus on because of there over all medicinal uses. The first and most recognizable is Delta 9-Tetraydrocannabinol or THC. THC is a psychoactive component that mimics and enhances the bodies own Endocannabinoids System† (Richmond); which widely effects mood, appetite, sleep, and good cell protection. So for patients who have been diagnosed with TBI that have appetite loss, sleeping disorders, and mood swings, this component of marijuana can greatly help. The second main â€Å"Cannabinoid† is Cannabidol or CBD. à ¢â‚¬Å"CBD is a non-psychoactive component that enhances the sedative effect† (Richmond), which is good for patients diagnosed with TBI specifically dealing with insomnia. It also is an excellent anti-inflammatory, and bone growth stimulant. It has anti-diabetic and anti-bacterial capabilities, it also has anti-proliferative anti-cancerous capabilities, which means it helps to kill malignant tumors. It is a anti-spasmodic, which fights against muscle spasms and seizures. It is a neuroprotectant that helps regulate pain due to nerve damage, and it is a anti-psychotic, which helps in the fight against schizophrenia, these last three symptoms are directly associated with TBI. The third main â€Å"Cannabinoid† is Tetrahydrocannabivarin or THCV. THCV is a non-psychoactive component† (Richmond) that helps the other main â€Å"Cannabinoids† to be delivered faster, and to the correct spots where the â€Å"Endocannabinoid System† is possibly running low on ammunition. This component could extremely help patients diagnosed with TBI to get the correct â€Å"Cannabinoids† where they are needed quicker. But its downfall can be that if there is to much THCV in the certain strain of marijuana, that the effects of the other â€Å"Cannabinoids† will be short lived. It is also a very effective protective/preventive against type two diabetes. The last main â€Å"Cannabinoid† is Cannabichromene or CBC. â€Å"CBC is a psychoactive component that is a lower strength Cannabinoid† (Richmond) which is a excellent anti-depressant, anti-inflammatory, bone growth stimulant, that strongly prohibits tumor growth in Leukemia and breast cancer. There are few solid arguments against the evidence that has been shown in today’s scientific research. The most popular argument about using marijuana medicinally is that when smoked we are actually introducing tar and other cancer causing agents into our body. But research shows that there is absolutely, one hundred percent, no evidence to support the theory of that. In fact it is quite the opposite. Also to help against that argument, there are now ways of ingesting marijuana without smoking it, it can be made into a butter and cooked into everyday foods. It can be made into a spray form that is applied directly under the tongue, and it also comes in a very low dosage pill form which is currently used only for nausea and vomiting associated with cancer and AIDS treatments. Another argument is that there is no way to regulate the dosage on marijuana because there is such a difference between strains of the marijuana plant, someone could overdose. Scientist have proven that if someone was to overdose on marijuana that the initial reaction the body will put off is to just go to sleep, that is it. The patient would just sleep it off as if it were a hangover, minus the headache in the morning. Also the longest possible side effects will last with marijuana is only a few hours, even if there is a overdose situation. In the thousands of recorded years of marijuana use, for recreation or medically, there has not been one recorded death, no one has died just from using marijuana. In fact scientists have come up with what it would take for a person to actually die from smoking marijuana. â€Å"A person would have to smoke 1500 pounds of marijuana in about fifteen minuets, and they would probably die of asphyxiation. † (Richmond) The only other argument that has any solid ground is that, at least in the United States, marijuana is still federally illegal to posses, cultivate, and distribute. And to that argument, the only thing I can say is that it will take the states themselves to stand up and take care of their own people, and provide them with the medicines they need, then eventually the federal government will have to fall in line. In seeing this evidence of marijuana and its scientifically proven medicinal uses, most people can not believe it is true. People cannot believe that there is one drug that is able to treat so many things at once. The truth is that for thousands of years our body has produced this drug on its own, and with the growth of humans not only intellectually but physically, and industrially. We have created a world that has taken our â€Å"Endocannabinoid System† and made it in some cases useless. We are introduced to so many toxins in our food, in our air, and even in our medications that we have not been able to upgrade our â€Å"Endocannabinoid System†, like we have with our immune system ,with the introduction of vaccines and certain pollutants. Thousands of years ago, before we created most of the toxins of today’s world, our â€Å"Endocannabinoid System† was perfectly able to combat along with our immune system against most of the ailments and everyday aches and pains. We have not steadily increased our intake of â€Å"Cannabinoids† like we have with other things. We are still operating at a level suitable for life thousands of years ago. With the introduction of marijuana into our bodies we will not only be able to fight against these tough symptoms associated with TBI, but we could possibly be able to prevent and possibly cure diseases like cancer, rheumatoid arthritis, osteoporosis, and many other everyday symptoms that we are all faced with in our life. Thesis Statement: marijuana could be the best treatment for the symptoms associated with Traumatic Brain Injury. OUTLINE I-TREAT THE SYMPTOMS; NOT THE INJURY A-Historical uses of marijuana B-Symptoms of TBI C-Current treatments of TBI D-How marijuana works E-The valued affects that marijuana can provide for persons diagnosed with TBI II-Historical uses of Marijuana A-Before 4000 BCE a-used as a food source B-First recorded medical use in 2737 BCE a-Emperor Shen-Nung of China makes suggested uses C-Marijuana in Europe around 500 BCE D-Marijuana in India around the Ninth Century E-U. S. Between 1850 and 1942 a-Marijuana is listed in U. S. Pharmacopeia F-2003, Canada become first country to legalize Marijuana for Medical use III-Symptoms of TBI A-Mental Symptoms B-Physical Symptoms IV-How Marijuana Works A-A brief description of the Endocannabinoid System B-The affects of marijuana on the Endocannabinoid System C-Four main Cannabinoids found in marijuana V-The valued affects that marijuana can provide for persons diagnosed with TBI A-The four main Cannabinoids and there healing powers VI-Arguments against the use of medical marijuana A-Marijuana smoke is bad for you B-No way to regulate dosage, possible overdose C-In the U. S. It is still federally illegal to posses, cultivate, and distribute VII-Marijuana and its overall affect on our body A-Marijuana is a great natural substance that cannot only heal us but prevent us from acquiring new ailments B-Marijuana is the best treatment for the symptoms associated with TBI REFERENCES Fogarty, A; Rowstone, P; Prestag, G; Crawford, J; Grierson, J; Kippax, S. â€Å"Marijuana as a Therapy for People Living with HIV/AIDS: Social and Health Aspects. AIDS Care February/19(2) 2007: 295-301 WEB August 15, 2011 www. cinahl. com/cgi-bin/refsvc? jid=914accno=2009490500 Cotter, J. â€Å"Efficiency of Crude Marijuana and Synthetic Delta-9-Tetrahydrocannabinol as Treatment for Chemotherapy-Induced Nausea and Vomiting: A Systematic Literature Review† Oncology Nursing Forum May/36(3) 2009: 345-352 WEB August 15, 20011 www. cinahl. com/cgi-bin/refsvc? jid=293accno=2010421156 Chew, E; Zafonte, R. â€Å"Pharmaco logical Management of Neurobehavioral Disorders following Traumatic Brain Injury-A State-of-the-Art Review†¦ Research to Improve the Lives of Veterans: Approaches to Traumatic Brain Injury; Screening, Treatment, Management, and Rehabilitation in Arlington, Virginia, April 30 to May 2, 2008. † Journal of Rehabilitation Research and Development June/46(6) 2009: 851-878 WEB August 15, 2011 www. cinahl. com/cgi-bin/refsvc? jid=1009accno=2010544758 Sanna, E. J. Mind Altering Weed Broomall: Mason Crest, 2008 Print What if Cannabis could Cure Cancer. Dir. Lee Richmond. Lee Richmond Films LLC 2010 Film How to cite Medical Marijuana, Papers Medical Marijuana Free Essays Marijuana is the most commonly used drug in the United States. However, it has singular distinction of being both a commonly used illegal substance and also a legally prescribed medical substance. Marijuana will always be used for private reasons or for medical purposes. We will write a custom essay sample on Medical Marijuana or any similar topic only for you Order Now Isn’t it a good thing that children not even four years of age are offered medical marijuana to cure diseases such as epilepsy? Seth Ammerman and Courtney Williams are writers for New’s Digital weekly. These articles were published in December of 2012. Courtney and Seth state their point of view about medical marijuana. Should medical marijuana be prescribed to children? People who are against medical marijuana say that there is not enough scientific research to support prescribing cannabis. Medical Marijuana is only legalized in some states because everyone has their own right to state their own opinion. Not every state agrees. In every cannabis plant there are cannabinoids, which are the THC and CBD chemicals. THC is the chemical that drug cartels use illegally. Cannabidol is the chemical that is put into medical marijuana. Most dispensaries do not get tested for there cannabinoid content. The chemical is usually unknown. One of the major issues to prescribing a child medical marijuana is the cause of addiction. Marijuana can alter the brain into wanting the drug all the time. The younger a child starts to use cannabis, the child may never want to stop. (Ammerman 2) Of course there are side effects that may give you a negative feeling about using medical marijuana, such as anxiety, paranoia, and depression. While some people say what if. There are others who take a risk and take a chance. Parents who have chosen cannabis to treat their child have raised their eyebrows. A two year old had to go through 39 hours of surgery, while under anesthesia for 42 days. The doctor sent the child home on hospice and morphine. The child’s pediatrician suggested cannabis. The two year old is now alive and free of cancer. (Williams 2) Marijuana contains of Vitamin C and Vitamin D. Vitamin F is also found in medical marijuana that contains a cannabinoid acid, which allows the cells in your brain to treat the disorder. (Williams 2) In my own opinion, I’m for medical cannabis. Children can always stop themselves from becoming addicted if they use the drug correctly and they do not abuse it. There are millions of people today using cannabis as medicine. While children are throwing a million and one pills down their throat and nothing is working. You can never doubt medical marijuana. Medical marijuana will be able to cure anything. Should medical marijuana be prescribed to children? Yes, it should. Medical marijuana is a touchy subject. There may not be enough scientific evidence, but who needs evidence when there is proof. All you have to do is take one look at a child who is free of cancer from using medical marijuana. That child is the proof. How to cite Medical Marijuana, Papers