The positive environment for nurse staffing forms an excellent topic for a research project. Quality nursing care and nurse-to-patient ratios are more challenging now than they were a few years ago. A wide range of circumstances influences nurse-to-patient ratios. Concerns about healthcare spending, the aging population of both patients and nurses and competing agendas contribute to this challenge.
According to several studies, the expense of recruiting more nurses will put a strain on hospitals’ finances if state legislators mandate minimum nurse staffing ratios. According to other studies, insufficient nursing staffing can result in patient deaths and medical blunders, leading to increased legal concerns and higher expenditures to compensate for turnover rates. To solve this problem, the healthcare system resorts to the PICOT system, which is designed to facilitate the work of a nurse and avoid risks. The main idea of PICOT implies the mandatory implementation of a policy that would ensure an adequate ratio of nurses and patients (1 RN: 4 patients). They are trying to show the effectiveness of this concept by the example of recruitment for industrial engineering.
Patient safety has become essential due to the increase in the staff of nurses. Many conclusions based on the available data are currently uncertain. Four systematic reviews achieved the goal with specific search parameters, inclusion criteria, and full findings descriptions. Thirty AHRQ papers were found in the PubMed and CINAHL databases between 2002 and 2003 (Neves et al., 2021). The process of gathering data for the review was simplified by the use of databases. This review looked mainly at nursing studies; however, it found few exceptions. Quantitative research was sought to see what affects safe nurse staffing. The research used quantitative methodologies and only current publications was considered for this evaluation.
Nursing staffing is a severe concern according to the study’s inclusion criteria. The inclusion method allows one to create an infinite number of research variables. Several papers related nurse staffing to patient outcomes, whereas others expressed diverse opinions. Legislation from the federal and state governments can secure enough workers. Staffing, managerial support, and patient care were highlighted (acuity, patient needs) (Juvé-Udina et al., 2020). Professionally, exclusion rules reduced the number of registered nurses on staff. This study must involve observational methods and questionnaires conducted by or for registered nurses to be considered valid data. Although they work under identical conditions, this group was excluded from the analysis.
A three-year (2015-2017) long-term longitudinal study was conducted in the department, department, and patient groups of the Swiss University Hospital. Shin et al. (2018) were interested in determining whether shifts with low or high staffing levels of nurses affect mortality. The study involved 55 institutions, 79,893 adult inpatient patients, and 3,646 nurses (Shin et al., 2018). Regression models combined with a staffing model to study the relationship between nurses on duty and mortality rates. However, an increase in mortality risk by 10% was associated with insufficient staffing. Mortality and the number of personnel of other groups had a minor relationship, for example, higher mortality rates were associated with increased unlicensed and administrative workers. According to the results of using this method as an experiment at the patient level, the number of registered nurses employed at work may be associated with death. The key finding was that more registered nurses improved patient outcomes, but fewer nurses had the opposite effect.
Quality of Nursing Care
Another study determined that the qualitative proportion of nurses and patients can be used to improve patient safety. Therefore, certified nurses should not be replaced by any groups where employees without education are present (Cho et al., 2020). It is in line with PICO’s statement, as it adheres to the procedural and consistent implementation of strategies to have a favorable structure for cost-effectiveness analysis and quality selection of medical personnel.
The quality and safety of patient care are directly related to the ratio of nursing staff. The quality of nursing care is directly related to the treatment results of patients in most hospitals. Using this data to study the impact of changing patient-nurse ratios on patient outcomes, nurse satisfaction, and quality of care indicators is exemplary; if so, we will bet on it (Carlisle et al., 2020). Information from the National Press Ganey database showed that the results of this experiment were positive, with daily personnel records associated with this data (Carlisle et al., 2020). In September 2017, the ratio of nurses to patients decreased from 1:1.75 to 1:1.5. Study participants with a high ratio of nurses and patients were more likely to experience burnout.
According to research results, widely available indicators can use to monitor nursing staff and results that consider the needs of nurses in nursing departments (Musy et al., 2020). Measurements can provide a new perspective on optimizing the ratio of nursing staff. Staff turnover is essential so as not to overload nurses. This experiment corresponds to PICO’s general idea that the fewer patients per nurse, the more effective their treatment is.
It is essential to analyze the impact of the number of qualified nurses (RN) and their assistants on responding promptly to patients with impaired physiology. The study used data from 32 general emergency departments in England from 2012 to 2015. The study results showed that the level of staffing with qualified personnel, but not assistants, has an impact on the untimely response (Smith et al., 2020). The lower the number of qualified nurses, the higher the risk of patient death during hospitalization.
Generalization of Data and Search for Relationships
A large number of studies on the relationship between the recruitment method and the results of their work need to be evaluated and generalized. Important decisions are made based on the generalization of evidence. A literature search was performed using PubMed and Web of Science databases, and others to analyze the data. Thirty different studies were identified that analyzed several critical results of the staff’s work (Wynendaele et al., 2019). The results confirmed the existence of a relationship between the ratio of patients and nurses and the results of their work. Additionally, according to research, the quality of medical care is influenced by factors such as a combination of skills and working conditions. These studies should become guidelines in the healthcare system in the future.
Comparison of Studies
Each of the eight articles reviewed offers a comprehensive assessment of past research using quantitative methods (data analysis, observation, and survey). Common to all articles is built based on PubMed, Web of Science, and other databases. Similarly, this included assumptions about the limitations of using an approach that never recognizes the need to use the methods of ordinary propositions in their most basic abstraction. The authors of the studies also applied nurses’ analysis in the nursing environment. As an adverse consequence, research processes are limited to the methods used to collect data. The parameters of participants and sample size are narrow in the range of nurses participating in the study.
Some studies have been conducted for a long time, while others have been conducted briefly. It can be assumed that in surveys conducted in an intensive care unit or a long-term care facility, the quality of treatment, and satisfaction of nurses may vary. Each of the researchers collected data for their scientific papers with the help of educational equipment and not just observed them in the field. Registered nurses can focus on more practical nursing procedures when delegating patient care responsibilities to nursing assistants. Each of the articles reviewed confirmed the relationship between the ratio of patients and nurses and some of the results concerning staff. Many other properties need to be considered (for example, working conditions) to guarantee patients the best treatment.
According to the authors, scientists should concentrate on unit-level data in the future, combine fresh approaches, and strive to demonstrate comparability between diverse clinical settings and healthcare systems worldwide (Carlisle et al., 2020). It is required to conduct a nurse-to-patient ratio study to find the optimal nurse-to-patient ratio level in terms of nursing outcomes. By using the findings of these studies, hospitals will be able to prevent adverse nurse outcomes and retain nursing staff.
To benefit from the help of supportive personnel, it is vital to divide up the duties of care. There should be a clear separation between direct and indirect care and between personal time and irrelevant costs. In a neurological rehabilitation center in London, these characteristics were used to measure and quantify nurse care hours. Predicting workforce levels based on assignable tasks was done. Examples of indirect care activities include phone calls and documentation. Direct patient care includes monitoring vital signs, administering medications, and healing wounds as a healthcare practitioner. Employee evaluation, lunch breaks, professional development, and other non-work-related tasks can take personal time. For nurses, patient care is a priority, and most of the above actions can be transferred to other competent staff, freeing up the nurse’s time.
Carlisle, B., Perera, A., Stutzman, S. E., Brown-Cleere, S., Parwaiz, A., & Olson, D. M. (2020). Efficacy of using available data to examine nurse staffing ratios and quality of care metrics. The Journal of Neuroscience Nursing: Journal of the American Association of Neuroscience Nurses, 52(2), 78–83. Web.
Cho, S.-H., Lee, J.-Y., You, S. J., Song, K. J., & Hong, K. J. (2020). Nurse staffing, nurse’s prioritization, missed care, quality of nursing care, and nurse outcomes. International Journal of Nursing Practice, 26(1), e12803. Web.
Juvé-Udina, M.-E., González-Samartino, M., López-Jiménez, M. M., Planas-Canals, M., Rodríguez-Fernández, H., Batuecas Duelt, I. J., Tapia-Pérez, M., Pons Prats, M., Jiménez-Martínez, E., Barberà Llorca, M. À., Asensio-Flores, S., Berbis-Morelló, C., Zuriguel-Pérez, E., Delgado-Hito, P., Rey Luque, Ó., Zabalegui, A., Fabrellas, N., & Adamuz, J. (2020). Acuity, nurse staffing and workforce, missed care and patient outcomes: A cluster-unit-level descriptive comparison. Journal of Nursing Management, 28(8), 2216–2229. Web.
Musy, S. N., Endrich, O., Leichtle, A. B., Griffiths, P., Nakas, C. T., & Simon, M. (2021). The association between nurse staffing and inpatient mortality: A shift-level retrospective longitudinal study. International Journal of Nursing Studies, 120(103950), 103950. Web.
Neves, T. M. A., Parreira, P. M. S. D., Rodrigues, V. J. L., & Graveto, J. M. G. N. (2021). Impact of safe nurse staffing on the quality of care in Portuguese public hospitals: A cross-sectional study. Journal of Nursing Management, 29(5), 1246–1255. Web.
Shin, S., Park, J. H., & Bae, S. H. (2018). Nurse staffing and nurse outcomes: A systematic review and meta-analysis. Nursing outlook, 66(3), 273–282. Web.
Smith, G. B., Redfern, O., Maruotti, A., Recio-Saucedo, A., Griffiths, P., & The Missed Care Study Group. (2020). The association between nurse staffing levels and a failure to respond to patients with deranged physiology: A retrospective observational study in the UK. Resuscitation, 149, 202–208. Web.
Wynendaele, H., Willems, R., & Trybou, J. (2019). Systematic review: Association between the patient–nurse ratio and nurse outcomes in acute care hospitals. Journal of Nursing Management, 27(5), 896–917. Web.
Human Nature Is A Barrier To A Perfect Utopia
Utopists see man as a product of his social surroundings rather than an independent being. The term utopia was coined by Thomas Moore in 1516, and it refers to an imaginable society where everything is perfect (Bertolami 1). Utopian philosophy provides a guiding concept for humanity, a worldwide element striving to live the best life possible in a complicated yet damaged world. Additionally, it is a global component striving to attain the most extraordinary life feasible in a complicated and nevertheless fragmented environment.
Everyone has fantasized about or at least yearned for a better world free of crime, sickness, and poverty, in other words, the most pleasing possible existence. Humanity shares this goal, but the way it is perceived or what utopia means to each individual differs and is dependent on their unique idea of what life should be. However, since the dawn of time, humankind has been in pursuit of more. In every circumstance, man searches for something more than what he has. Regrettably, the majority of humanity has become unethical in the pursuit of significant money, pleasure, and power, creating an imperfect dystopic environment.
The undying nature of man in quest for power in the society has made the notion of a perfect utopia unachievable, for example. Stock accentuates that governments and political institutions in dystopian civilizations occur in a variety of shapes and sizes (698). In particular, anarchism, bureaucracy and excessive capitalism, and other types of political, social, and economic control are examples of these systems. They do, nonetheless, have one political element in common, the political system strives to execute one dominant philosophy at the expense of all others. These regimes wield enormous power over civilians to impose the dominant paradigm. The government’s utilization restriction to advance its political ideology is a corollary to the enforcement of social authority. The government prevents individuals from engaging in critical thinking that would cause them to question authority.
Moreover, the urge to place significant social limitations on the characters’ life is a defining trait of most human desires. Thus, it might manifest as social stratification, in which social class is clearly outlined and imposed, and social migration is non-existent. The less fortunate, in particular, are secluded in slums, whereas the affluent reside in mansions. Additionally, the desire to comply, often phrased as a duty not to excel, is another aspect of social control. The society depicted in these texts is relentlessly impartial, with ability and success and professionalism, prohibited or vilified as manifestations of injustice. Since most individuals are eager to embrace the dystopia, and the rebellion against it is primarily among intellectuals, the dystopia restrains people with great vigor.
In addition, man’s nature of developing anti-social behavior has massively created an imperfect culture that has, in turn, influenced diverse undesirable surroundings. Nevertheless, anti-social behavior has ramifications for entire communities, as it frequently leads to the deterioration and abandonment of places. The condition of existence in an area declines, destroying community spirit and pride and making people feel abandoned and helpless. People begin to leave the region, and companies begin to close. More anti-social behavior is likely to occur, and an ecosystem is created in which more heinous crimes can thrive; as a result, rendering the utopic culture unachievable.
Moreover, the human nature of being excessively scientific has created a utopic environment; unfortunately, it has turned into a dystopic one. For example, the drive for technological advancement for the first time in history, major technological advances, medical development, and a higher sense of social duty has given rise to the notion that war, disease, and hunger are solvable problems. However, technology has not yet progressed to the point where it can cure disease and alleviate world famine, as depicted in science fiction. Instead, it has been used to monitor and control people. Technical advancements have introduced new security issues throughout history, which all societies have adapted to.
Advances in information and networking technology have been transformative, and they have transpired rapidly in the past 30 years that a swarm of critical inventions has emerged as a result of this fast evolution. For instance, to develop more lethal weapons and new systems of discrimination and victimization and deepen the divide between governments and their citizens. Instead of enabling the effective use of peace, technology would hasten for brutal and more gruesome violence, undesirably leading to an imperfect world created by man.
Recently, the deadly Covid-19 virus appeared and wreaked havoc around the globe. It has been hypothesized that the testing of new technology brought about the now-famous fatal illness. Furthermore, others speculated that it was formed as a consequence of conflicting philosophies coming together. As a result, it induced dread and terror among people, resulting in the formation of an imperfect society driven by man’s capacity to develop in the technological area.
Many of the most significant technical developments in the past were the product of military initiatives that produced goods later discovered to have civilian uses. Aeronautics technology such as jet engines, microwave ovens, and GPS systems, now included in almost every vehicle and smartphone, were all designed with military technology in mind. In the United States, military expenditure, has been a significant driving factor for technical innovation for many years. As a result, the military power has created war environment with nations such Russia.
The Capacity of Human to Change
What keeps life moving is the capacity to modify and adapt to it. Human experience shifts on a daily basis, in a variety of ways, and frequently numerous times each day. Human nature is difficult to change; in this perspective, it can be deduced that the process can take millenniums (Stock and Adam 697). In this change notion, climate breakdown, mass extinctions, and high inequality are just a few issues that threaten the earth’s diverse fabric of life and make humanity’s future increasingly uncertain. As a result, people have been dreaming of change that will ultimately lead to a utopian future.
During great social, political, and ecological upheaval times, these problems do not exist for ages. In reality, people have been fantasizing about such a change in the world for centuries. Such dreams are frequently regarded as nothing more than meaningless imaginations; however, the yearnings can be impossibly ideal for communities. In this sense, the majority of these assertions are erroneous. Utopianism is the lifeblood of social change, and it has already motivated a limitless population and organizations to make positive changes in their communities and around the world (Midgley 10). For centuries people have fancied the perfect world; at the same, it can be deemed unachievable; hence it can be concluded that utopia is a fantasy since a human cannot entirely change their ways.
In this perspective, dystopias and utopias are reflections of human nature and the potential that exists within is it at their most fundamental level. According to Steele, same capability has enabled people to build cities, kill animals, and substantially enhance human life expectancies and enhance them to develop the nuclear bomb (28). Inevitably, humans have altered and molded the planet to their liking, for better or worse, in a way that might either lead to extinction or new levels of good fortune. For several individuals, great wealth will be preceded by severe devastation in the near future, as they envision the world to be. The good and the evil in utopia and dystopias, respectively, as in human nature, are closely entwined with each other (Steele 60). In this regard, it is impossible to know good without also knowing evil. The assertion is that by confronting evil one succumbs to temptation, despite that, true goodness can manifest; therefore, changing human nature can simultaneously lead to good or bad.
Factually, unpredicted change in human nature is the reasons why utopias and dystopias inevitably endure and continue to captivate society. Further, it can be insinuated that they reflect the severe polarization of human nature of excessive brutality, annihilation, powerful healing and unity that mirror the polarity of human nature. A trip through Utopias and dystopias, in other words, is a study of those extremes, a journey by which civilization comes to comprehend its boundaries and possible drawback better (Claeys 58). People are captivated by utopian visions of themselves that act and behave like them while being distinct from them. Thence, people are intrigued by this picture of themselves that acts like them while remaining distinct from them. Similar to this, dystopias have the ability to show society precisely what it is that it fears the most about itself, and this is the power that the abject has over society.
In the imagination of many people, utopias have long thrived as a fantasy of what community would be like if man’s nature were flawless, and many religions have sought to depict this vision. For instance, The Garden of Eden and Heaven are both supposed to be devoid of wickedness, as though God had thoroughly cleansed the inhabitants of both environments. Hence, religion has also imagined the worst features of human nature, culminating in the most severe form of the post-apocalyptic world depicted by hell, which is the most extreme version of the post-apocalyptic world.
Similarly, the portrayal of humanity’s good and evil, and the investigation of what that might look like, have also taken on newer forms in more modern contexts. Among the themes explored are the propensity for human nature to oppress and the ability to withstand hardship. Notably, the novel explored in The Hunger Games emphasizes the natural character of humans, which elicits the question of what human beings are capable of in search for power, adversities and fame (Hasbullah and Muhammad 9). The good of human nature is also depicted as a spark that cannot be extinguished no matter how vast the darkness is (Hasbullah and Muhammad 9). Furthermore, the notion that humanity’s nature is a spectrum of emotions, both good and bad, distinguishes us as humans. These realities of existence, such as light and darkness, must work in concert in order to establish the three-dimensionality of human experience and the meaning that may be derived from it.
Notably, dystopias and utopias are intriguing since they represent humanity’s potential magnified globally; hence, change is impossible. It is possible to achieve paradise by multiplying the possibilities of a single human being who is proactively decent by a million actively good persons. The delicate balance that is tipped depends on society and its beliefs about whether human nature is good or wicked and the best ways to convey good and evil effectively. For a fact, this confusing combination of human nature demotes both utopia and dystopia to the domain of fantasy (Bertolami 2). In this way, it forbids them from becoming a fact in the actual world. Thus, this is one of the reasons why perfection and apocalypse have become such critical philosophical topics of debate; it is hard to harmonize the absolute perfection of utopia with the dualism of human nature.
To reach a flawless paradise, there is need to transform human nature for a superior form of being to be realized. When it comes down to it, human are all a mash-up of good and evil, right and wrong, and unpleasant events resulting from the best intentions. Humans were responsible for both the terror act of September 11th at the same time, provided the first rescuers. Due to this combination, perfect world and pure dystopia will never arise in their best forms. Conversely, humanity will always be a mash-up, and individuals must not only come to grips with but also enjoy the repercussions of this reality in man’s everyday lives.
The Formation of a Perfect Utopia
A perfect society can only be as excellent as its citizens. Participants of this ideal culture must think about their well-being and the growth of their community. There is a detailed analysis of the key elements of a thriving community in Thomas More’s utopia, works of a perfect society. Further, his notion underscores that the citizens of utopia feel it is “wrong to deprive someone else of a pleasure so that you can enjoy one yourself (Bertolami 3)”; hence, people must not pursue interests at the expense of other people. In this way, people’s interests, joys, or wants be valued more than others. Regardless of one’s abilities, strengths, or advantages, there is no significant variation in one person’s worth over another. As a result, it is proper to treat everyone fairly and not obstruct someone else’s endeavor to achieve one’s own goals. More claims that assisting others is an inherent aspect of a person’s essence and that nature desires that people should assist one another because no human being has exclusive control over their passions.
Furthermore, it is preferable for everyone to be content rather than for some to be happy while others are unhappy; this is particularly relevant when there is a significant gap between these two feelings in a community. Moreover, equitable contentment would diminish citizen jealousy and hostile rivalry, whether in terms of investment or politics. Citizens will recognize that their fellow community’s collaborative activity will protect them in times of adversity and boost their businesses for expected growth. Citizens like this contribute to the creation of an ideal society since every one of its members seeks improvement and development for themselves and each other in every element of life, from economic security to peace and stability politically.
However, to achieve this magnificent citizen brotherhood, a significant shift in how individuals deal with each other’s discrepancies is required. If someone steals, uses obscene language, or is abusive, it is natural if they do not like them. On the other side, it is undesirable if someone ignores someone because they have a different skin color, are from a different nation, or are of a different gender. The distinction between these two cases is that the first illustrates assessment based on an individual’s decisions, while the second exhibits opinion based on uncontrolled fate results. An individual’s actions, values, and mindset should be used to determine who they are. Color and physical characteristics should not limit an individual’s quality. Similarly, an ideal society will be a great nation if individuals emphasize character and activity over inherent characteristics such as race. This shift in thinking would make it easier for people to seek out the growth of others, contributing to the establishment of a perfect society.
Despite this, a good ship requires a competent commander or captain. To ensure the success of their residents and the support of each other’s businesses, the leader or leaders of an ideal society must be strict and open with their rules. Leaders must maintain rigorous supervision over residents because individuals might rapidly return to seeking self-interest despite the previously indicated shift in thinking. For example, it can be seen in some of the renowned philosophical thought of Niccolo Machiavelli, as his notion accentuates that rulers must be unbiased. By being severe, a leader can avoid major transgressions that might otherwise go undetected because persons who have perpetrated a crime but received little punishment diminish the fear of others doing the same crime. Still, some may object to a leader’s forcefulness, but once the benefits of this feature are seen, they will comprehend. To preserve law and peacefully govern the state for the benefit of the people, a leader must be rigorous with the legislation.
A considerable majority of individuals on the planet must also want a wealthy and fair future for everyone to achieve a perfect world in a technological corporation. Thus, people desire their children to grow up in a safe, healthy, and educational environment, which they consider a utopian one. To solve this problem, the international community has developed the 2030 Agenda, which contains specific Sustainable Development Objectives; these goals will harness revolutionary technological breakthroughs that will benefit everyone in society, including the poor. However, to attain these lofty and revolutionary objectives, individuals must be able to pioneer daring and strong ideas and open-minded partnerships, therefore establishing an atmosphere that is favorable to life.
In conclusion, an ideal society would be one with little or no conflict. The vigorous enforcement of justice results from the presence of firm and fair leaders who vigorously maintain the law and citizens who welcome intrinsic variety while also supporting the expected growth of their people within it. As previously said, only a concerted, joint effort on the part of leaders and individuals would be able to bring about this ideal society. At the same time, a perfect society does not exist, and as a result, society should strive to achieve a balance between the two schools of thought to succeed. Since there is nothing intrinsic in man’s psychological makeup, thence, no inherent fault in his nature or original sin precludes him from being perfection, or at the very least much improved if the social framework that molds character is correctly reordered.
Bertolami, Orfeu. “Utopia: Utopian and Scientific.” Available at SSRN 3874980 (2018). P. 1-5).
Claeys, Gregory. “Dystopia.” The Palgrave Handbook of Utopian and Dystopian Literatures. Palgrave Macmillan, Cham, 2022, p. 53-64.
Hasbullah Sofian, and Muhammad Fadjri. “An Analysis Of The Social Value In Novel From Suzzane Collins Entitled The Hunger Games.” Indonesian Journal of Social Sciences and Humanities, vol. 1, no. 1, 2020, pp. 1-10.
Midgley, Mary. Beast and man: The roots of human nature. Routledge, 2021, pp. 1-279, 29.
Steele, Wendy. Planning Wild Cities: Human–Nature Relationships in the Urban Age. (2nd edition). Routledge, 2020, p. 1-158.
Stock, Adam. Human Nature and Politics in Utopian and Anti-Utopian Fiction. 2021, p. 696-699.
Financial Intermediation And Instability Studies
Review of Financial Articles
This paper is a presentation of a review of articles that talk about financial theories. The first article is titled Theory and Policy in response to “leaden age” financial instability: Comment on Felix written by Pollin (1997). The second article is named Measuring the Impact of financial intermediation: Linking contract theory to econometric policy evaluation by Townsend and Urzua (2009). The articles have given concrete information concerning the financial evolution from ancient to modern society, where the transformation of the economy has been evident but with key challenges and metrics that one needs to understand. Through the articles, a reader understands the link between finance and globalization and the key features that have played roles in changing global economy phenomena.
The Purpose of the Articles
The two papers were written in a financial tone and presented in academic prose. Pollin’s article is written to enlighten the reader about the financial constraints that have seen society hurt the economy. For example, in his paper, there is mention of high rates of unemployment, poor standards of living among many people, and financial insecurity. The purpose expands further to explain to the reader the difference that has been noticed between the Golden and Leaden Ages in terms of financial perspectives. The author intends to analyze a previous article by David Felix on the growth and development of financial systems (Pollin, 1997). He proposes to establish the grounds for financial issues from the currency crises and regulatory policies that have been applied in various parts of the world, such as Mexico, the US, and the UK. The audience learns a raft of issues regarding the theories that led to financial instability, such as short-term liquidity crisis, lack of stable exchange rates, and loans and security grants that did not settle the magnitude of the crisis.
The other article by Townsend and Urzua is about financial intermediation and how it relates to productivity by factoring credit challenges into occupational choice and risks. The authors have applied static and dynamic structure and ordinary least squares (OLS) in the paper to make readers understand the magnitude of these factors when measuring the impact. Additionally, the article seeks to link contract theory to econometrics. Throughout the paper, the two authors have the intention to show that there is a possibility of alternative models that can assist in searching for instruments that can leverage financial intermediation (Townsend & Urzua, 2009). The article elaborates on the causal effect of interest when it comes to occupation choice and intermediation by linking state variables and multiperiod contracts that affect monetary resources and cash flow in the given countries.
The two works have major findings that can help an individual to understand the issues behind financial perspectives that have changed the world. Regarding the first article, Pollin (1997) discovers that the major findings, as seen in Rollin’s paper, cover leaden-age speculative finance as the cause for low growth. Through asset trading, there have been excessive resources that have been absorbed, which leads to short-term bias in the priorities for investment. In the case of Mexico’s 1995 financial crisis, debt-led growth was the key challenge that led to uncertainties in the economy (Pollin, 1997). The other major finding involves the burden of policy design which in this case is heterodox. Their financial markets have changed due to a lack of extensive government regulation since there seem to be low activities that are undertaken to control domestic and international currency markets. The capital controls and adjustable rates of exchange created room for the floating of the economy hence causing weakness in financial systems (Pollin, 1997). The Keynesian approach appears to be the key theory here as it gives a government a guideline on how stability can be attained.
In the other article, the authors have discovered key findings that would help the audience understand how financial intermediation affects the financial system. One of the major findings is that intermediaries offer a risk-return combination for the investment of capital, hence limiting those which may not require a link leading to augmentation of the economy’s productivity. Therefore, according to the authors, intermediation pools capital and spreads risk, hindering productivity in a given economy. By use of the Lloyd-Ellis and Bernhardt occupational choice model, there is a possibility that financial infrastructure creates growth per capita. Other aspects that are evident include quality and quantity in welfare gains as well as cash flow inequality (Townsend & Urzua, 2009). By use of an empirical approach, the effect of occupational choice can be leveraged, particularly on whether it brings profits or losses. Therefore, their article shows that intermediation is a concept determined by a country’s economic policy.
Directions for Further Research
While reading the article, the reader is probed to read further to understand the concepts articulated by the authors. In the first article, Pollin (1997) gives a glimpse into the Mexican Tequila crisis. Through that aspect, there is a need to research the effect of currency depreciation on a country’s reserve and its connection to the growing economy of many yet-to-industrialized economies. There is a need to research more on that because the author has introduced the perspective of foreign capital. Still, it remains unclear how emerging markets might be prevented from falling prey to financial instabilities (Eslamloueyan & Fatemifar, 2021). By reading Pollin’s work, one is equipped with the knowledge of the overvaluation of a given currency. Still, there is a need to dig more to justify how a country may be vulnerable due to dollar-dominated markets (Pollin, 1997). For example, research on the fluctuation of the dollar in a given market and the impacts it may have on the production of fast-moving consumable goods may help. That means a business or country will understand how to leverage the market niche before investing or expecting high returns.
The second article has rich content about measuring financial intermediation and econometric levels. There is a need to continue with research on financial parameters that lead to paralyzed productivity by focusing on macro and microeconomic determinants. If that research is conducted, it will be clear how a country having a high-level real income may suffer from the exchange rate and interest rates, as learned from Townsend and Urzua (2009). Additionally, while reading the paper, the authors have analyzed how financial intermediation is affected by the transition of economies. However, little is covered about the short- and long-term effects of financial control variables. The is a need to offer research on the same so that a person can justify the impediment of inflation toward economic growth (Yakubu et al., 2021). Financial matters are handled keenly so that there is an empirical relationship that can show the correlation between what exists and that which does not.
Valuation of Strengths and Weaknesses
Pollin’s paper has rich content concerning the transition from the Golden to Leaden Age. By reading the article, a person will be introduced to aspects of transformation that have been determining the financial market until today. Pollin combines Felix’s work to help the reader understand what a currency crisis means to a country’s economy (Pollin, 1997). Through that exploration, a person can relate to the current monetary issues faced by the governments due to impunity and lack of policy controls, as many officials are embezzlers of state funds (Yakubu et al., 2021). The author has articulated his points well since there is a call to assign financial stability to public policy through legal means. Additionally, the article is well-formatted since the content is presented in professional prose and with the correct attribution of work to various authors.
In the other article, the authors have perfected a glimpse of what affairs are undertaken regarding the intermediation of monetary resources and economic growth inhibitors. The article shows a need to have controlled business intermediation that requires foreign policies and exchange and interest rates (Townsend & Urzua, 2009). The article is written in an academic format and shows linear contexts in the paper.
While reading the first article, there is challenging to relate the major findings to current economic issues. The article was written in the late 1990s, and the author did not include room for uncertainties of time. For example, he talks about the causal effect of interest, which is linked to the optimization of multi-period contracts. Today that may not be possible since the world has grown to be digitally powered real, which has led to the implementation of matters in a short-term range. Additionally, the article is more aligned with econometrics, focusing on industrialized economies while sidelining the low-economy states. The other article lacks the recognition of the risk management role, more so from foreign market perspectives. There seem to be market imperfections that stem from the asymmetry of information that the authors have used.
Eslamloueyan, K., & Fatemifar, N. (2021). Does deeper financial integration lead to macroeconomic and financial instability in Asia? Economic Analysis and Policy, 70(8), 437-451.
Pollin, R. (1997). Theory and policy in response to “leaden age” financial instability: Comment on Felix. Journal of Post Keynesian Economics, 20(2), 223-233.
Townsend, R., & Urzua, S. (2009). Measuring the impact of financial intermediation: Linking contract theory to econometric policy evaluation. Macroeconomic Dynamics, 13(S2), 268-316.
Yakubu, I., Abokor, A., & Balay, I. (2021). Re-examining the impact of financial intermediation on economic growth: evidence from Turkey. Journal of Economics and Development, 23(2), 116-127.