Study On Quantitative Easing And Krishnamurthy Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1493 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Quantitative easing, also known as large scale asset purchases (LSAP), is a specific monetary policy used by central banks to add to the supply of money by increasing reserves of the banking system. In certain economic situations, such as a low inflationary environment like the one we are experiencing today, targeting a low interest rate is not sufficient to maintain the level of money supply desired by the Federal Reserve, and so quantitative easing is employed. Through the quantitative easing process, the central bank purchases securities-most likely longer-dated Treasury Bonds and mortgage backed securities-in an effort to push longer-term interest rates lower and expand the money supply by making it cheaper for individuals to borrow and for businesses to raise capital. Don’t waste time! Our writers will create an original "Study On Quantitative Easing And Krishnamurthy Finance Essay" essay for you Create order This works because the borrower receives about 93 percent more money than the bank holds in reserves (money creation). Krishnamurthy We build on the regression analysis from KVJ to estimate the effect of a purchase of long-term securities via the safety channel. We focus on the safety channel because it appears to be a dominant effect from the event studies. In KVJ, we mainly focus on the effect of changes in the total supply of Treasuries, irrespective of maturity, on bond yields. For evaluating QE, we are interested more in asking how a change in the supply of long-term Treasuries will affect yields. The larger effects obtained from the QE1 event study than the regression approach suggest that changes in Treasury supply have much larger impact on the safety premium in times of unusually high safety demand than they do in average times. Gagnon, et. al, (2010) report that in 10-year equivalents the Fed had purchased $169bn of Treasuries, $59bn of Agency debt, and $573bn of Agency MBS by Feb 1, 2010. The total purchase up to this date was $1.625tn and the anticipated total was $1.725tn. We scale up the n umbers up to Feb 1, 2010 by 1.725/1.625 to evaluate the effect of the total purchase. Important (Theoretical) Takeshi Kimura and David Small (2004) (Finance and Economics Discussion Series Divisions of Research Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C. Quantitative easing was expected to have three effects on financial markets. First, it would lower longer-term interest rates because the Banks announcement that the new policy regime would be maintained until CPI inflation became zero or more would lower expected short-term rates. If this so-called commitment effect also contributed to diminishing uncertainty over future short-term interest rates, term premiums also would be reduced and hence longer term rates would be lowered further. 8 Such announcement effects would tend to be reinforced by the observed increase in current account balances. Second, the abundant provision of liquidity would make money market participants feel more secure about the ongoing availability of funds, thereby preserving financial market stability. Uncertainties about conditions in money markets might, at times, lead to elevated demands for liquidity, boosting the rates of illiquid assets relative to those of liquid assets. In such circumstances, the elevated levels of current account balances would reduce the probability of a liquidity shortage, and consequently would reduce liquidity premiums. Third, an open market operation by a central bank would change the relative supplies of assets held by the public and, thereby, may lead to changes in the relative prices of assets. This so-called portfolio-rebalancing effect has been described as follows: Suppose that a representative bank holds multiple assets and rebalances its portfolio so as to maximize its objective function under the constraint of containing overall risk amount below a certain limit. For example, if we assume that a utility function with given absolute risk aversion, the expected return and its variance from the portfolio become explanatory variables of utility. Risk constraint crucially depends on the capital position of the bank. Then, let us think of a case where, as a result of the outright purchase of long-term JGB by the BOJ, a portion of the long-term government holdings of the representative bank is converted to monetary base. The reduction on portfolio risk, that is, interest rate volatility risk of government bonds, generates room for new risk taking, and thus part of monetary base should be converted to some type of risk assets. At equilibrium, utility is kept constant by marginally increasing the amount of holding risk assets, and the marginal increa se in the expected profits offsets increased risk. In this rebalancing process, the risk premium of risk asset prices will be decreased. Although quantitative easing supported that improvement of Japans economy, the Banks drastic quantitative easing has not been quite strong enough by itself to boost the economy and prices, as stated by Governor Fukui (2003). In particular, it did not seem to have a strong beneficial effect on the corporate financing environment, such as on corporate bond rates. (See Figure 3 (panel 1).) The weakening role of banks as financial intermediaries made it especially important for easier monetary policy to benefit capital markets. However, the spread between interest rates on corporate bonds and risk-free government bonds declined only marginally after March 2001. And those firms that did feel the benefits of monetary easing were limited to those with high credit ratings. Credit spreads on low-grade corporate bonds rose after October 2001. The prices of other financial assets also did not seem to benefit from quantitative easing. Even after the introduction of quantitative easing, stoc k prices continued to decline until the summer 2003. (See Figure 3 (panel 2).) As for foreign exchange rates, the yen rate against the dollar depreciated rapidly from November 2001 until February 2002. (See Figure 3 (panel 3).) However, this depreciation seems to be attributable not only to monetary easing but also to a change in the economic outlook; while expectations for recovery of the US economy strengthened, uncertainty over prospects for Japans economy intensified, including financial system stability. Thereafter, on net, the yen appreciated. In the context of the Bank of Japans policy of quantitative easing, we have explicitly considered portfolio-rebalancing effects and how they may be affected by the attempts of portfolio holders to diversify business-cycle risk. In this framework, an outright purchase of long-term government bonds does not necessarily reduce the portfolio risk of financial institutions and other private-sector investors and thereby generate room for ne w risk taking as has been suggested. Indeed, the portfolio risk associated with the business cycle may have increased as the BOJs purchases of long-term government debt reduced the private-sectors holding of this asset whose returns are counter-cyclical, If we focus only on the portfolio-rebalancing effects, and neglect the other effects such as the BOJ using quantitative easing to demonstrate resolve to keep short-term rates low, the BOJs quantitative easing may have increased the demand for those JGB substitutes whose returns also are counter-cyclical. But these policy actions may have decreased the demand for assets whose returns are pro-cyclical and thus may have increased the risk premium for pro-cyclical assets. The following chart summarizes these estimation results. Doh (2010) See the paper conclusion Oda, N., and Ueda, K. (2007). The effects of the bank of Japans zero interest rate commitment and quantitative monetary easing on the yield curve: A macro-finance approach. The Japanese Economic Review. We have examined empirically the effects of the ZIRP and QMEP in Japan on mediumto long-term interest rates using a macro-finance model. We tentatively conclude that the BOJs monetary policy under the zero interest rate environment since 1999 has functioned mainly through the zero rate commitment, which has led to reduced medium- to long-term interest rates. More specifically, the commitment has been effective in lowering the expectations component of interest rates, especially with short- to medium-term maturities, while it has been less effective in lowering the risk premium component. In contrast, the portfolio rebalancing effect either by the BOJs supplying liquidity beyond the required level to keep the short-term policy rate at virtually zero (i.e. the expansion of the CAB at the BOJ) or by the BOJs purchases of JGBs on the risk premium component of the interest rates has not been found significant. There is some evidence that raising the target for the CABs has been percei ved by the market as a signal indicating the BOJs greater willingness to carry on RZIRP and has thus enhanced the effects of the zero rate commitment, although this interpretation is subject to further examination. Stroebel, J. C., and Taylor, J. B. (2009). Estimated impact of the feds mortgage-backed securities purchase program. National Bureau of Economic Research. We examine the quantitative impact of the Federal Reserves mortgage-backed securities (MBS) purchase program. We focus on how much of the recent decline in mortgage interest rate spreads can be attributed to these purchases. The question is more difficult than frequently perceived because of simultaneous changes in prepayment and default risks. When we control for these risks, we find evidence of statistically insignificant or small effects of the program. For specifications where the existence or announcement of the program appears to have lowered spreads, we find no separate effect of the size of the stock of MBS purchased by the Fed.

Why The Security Program Should Be Implemented Into An...

The definition of â€Å"Core Competencies† is the fundamental ability a protective program needs in order for it to deliver services. These needs will vary according to the type or organization, its size and geography, recent history, criticality of resources, vulnerability to losses, and other factors (McCrie, R. 2007). Reading this definition I can say that, there is a lot to be said about what can be implemented into an organizations security programs. I will start by saying, that the size of the organization is something that I believe will vary the degree to what the managers will add into their security program. A large organization will have to add several different security programs to be effective in protecting staff, protecting†¦show more content†¦All these factors are in addition to the recruitment of members. The recruitment packet should detail the qualifications, salary, benefits and minimum required experience. When the security is outsourced, what com pany will we bring in to accomplish this task? Are there any discrepancies with the outside security firm that will create resistance to the organization goals? Should the organization contract with an armed or unarmed security firm and what trainings have they been given as armed guards. The uniform should represent professionalism as well as display authority. The staff that are contracted to work in the facility should be well groomed and have the ability to appropriately interact with the staff. The contracted guards are hired by their respective company, however, who within the workplace should the guards have to answer to. There should be an, on location supervisor to address their concerns and needs. There should be a staff member available to address staffs concerns, if they have any, about any security matters. Security has always been an important issue that large and small organizations have been dealing with to protect their staff and assets. However, the security indust ry did not come into fruition until later on in the 19th century (McCrie, R. 2007). During this time the major security programs were developed, investigations, guarding, executive protection, alarm monitoring to name a few (McCrie, R. 2007). During the 1950’s the model of

Counter Terrorism Strategy In India- Research Essay Topic - Literature

Question: Make a research essay topic, " Counter Terrorism Strategy in India". Need essay as deeply explained manner with literature English. Can use the Mumbai terrorist attack as an example here but make sure you look at Indias counter-terrorism strategy rather than ways to improve how they handled specific attacks and focus on the broad national counter-terrorism policy rather than the security forces counter-terrorism practices. Answer: Introduction This paper described the several aspect of counter terrorism strategy in India. The main aim of this paper is to evolution and strategies of counterterrorism strategies in India. Indeed, counterterrorism is the technique, tactic and strategy which prevent from terrorism. In the other words, the terrorism is called a war or revolution, then counterterrorism trends to be described in the term of military responses. On the other hand, terrorism means crime. Then, counterterrorism defined in the term of police and law enforcement work. Counter terrorism is called as against the terrorism activity which contains acquire, prevent and react to the unlawful terrorism exercise. (Sheehan 2007) Further, the first counterterrorism campaign was created by William Harcourt in 1880 for helps of Irish fenians. Irish branch was established as field of criminal investigation department of the London Metropolitan Police in the year of 1883 to conflict Irish republican terrorism by penetration and subve rsion, but in the India counterterrorism strategy emerged after the 2008 Mumbai attack and attack on the Indian Parliament in 2001 when several intelligence and operational failures revealed against the terrorism. Mohammad Ajmal Kasab was main accused of Mumbai attack. (Borgeson Valeri 2009) The National Counter Terrorism Center (NCTC) was created as anti-terror agency in the India on the basis of National Counterterrorism Center model of the USA. (Kraft Marks 2013) Existing terrorism groups in India There are several kinds of terrorism and insurgent group operating in India which is recognized by Foreign Terrorist Organization (FTO) of the US state that are following below: Lashkar-e-Taiba (LeT): Lashkar-e-Taiba names mean Army of the Pure. This Islamist groups are operating in Pakistan and also from Jammu and Kashmir. This group is accused for many high terrorist attacks in India, including Mumbai commuter rail in the year of 2006. It is getting funds from Pakistan for run their terrorist and criminal activities. (Tankel 2009) Nowadays, it is expanding in the worldwide. Jaish-e-Muhammad: Jaish-e-Muhammad group name means Army of Mohammad. This is another terrorist groups which operating in Jammu and Kashmir. This was founded by Harkat-ul-Ansar in 2000. The main aim of this group is to transfer Jammu and Kashmir area control to Pakistan. (Rana 2009) Harakat-ul-Mujahadeen (HuM): This terrorism group was established in the 1985 as anti-Soviet team conflicting in the Afghanistan. Pakistan based HuM concentration transfer to Jammu and Kashmir when they withdrew from Soviet in the 1989. The Communist Party of India (Maoist): This group is looking to build a revolutionary zone of control expanding from the Nepalese boundary down to Andhra Pradesh state. (Hutt 2004) This group was emerged by the merger of Nexalite groups in 2004. Harakat-ul-Jihad-I-Islami (HUJI): This terrorist group was established in 1980 to fight against Soviet, but currently it has focused on Jammu and Kashmir. Initial stage they are targeted Indian military, but they killed five foreign tourists in Jammu and Kashmir in 1995 which belongs to western country. (Khurshchev 2009) Jamiat ul-Mujahadeen: This is small terrorist group of pro-Pakistan Kashmiri which is blamed for a grenade attacks against India political targets in 2004. The United Liberation Front of Assam (ULFA): It was founded in 1979 as socialist state in Assam. In the 1990s, they started to target the political leader and security forces in the Assam state. Through the above terrorist and insurgent groups, the major territory was affected by terrorist activities in the India that are following below: Jammu and Kashmir: This state was central point of terrorist activities when British colonial rule ended from this states. India claims that Pakistan is using this territory for expanding their insurgent through several groups of insurgent and terrorist. One third of the total terrorist attack occurred in this territory. (Kalpan Bajoria 2008) Andhra Pradesh: Many terrorist attacks occurred in this area through Naxalites. Naxalites are revolutionary groups which are affecting around 10000 member lives every year. Naxalites are expanded their area from thirteen states to twenty eight states of the India. (Tickell 2013) The state of Andhra Pradesh, Jharkhand, Bihar, Orrisa and West Bengal are highly affected from Naxalites activities, but Chhattisgarh is mostly affected by the Maoist violence in 2006. Northeastern states: Most of northeastern states are affected by the violence activities after the Bangladesh was separated off in 1947. Conflicts are expanding most of the Assam and Nagaland states in India. Poverty is major problem in this area and many groups are demanding independent so many terrorist and insurgent activities are occurred in these areas. (Kalpan Bajoria 2008) Counterterrorism strategy in India Due to a lot of terrorist and insurgent groups activates in the India such as Jammu and Kashmir, Northeastern state and Andhra Pradesh. India will have to take special decision against terrorist so they are created counterterrorist strategies. Indeed, India population has cross 1 billion in the current years. India has many ethnic groups, seven major religious with many kinds of organized religious and sub organized religious and around 68 socio-culture sub regions. There are constantly increasing social, economic and political desires of groups in its cultural, lingual, social and communal social system. (Marwah 2012) Further, India has become largest victims of terrorism, but nowadays it has handled terrorism smartly in Mizoram, Punjab and other kinds of nation. India adopted comprehensive strategy to counterterrorism. Counterterrorism will be affective when they adopted national consensus strategy to prevent the terrorism. Indias counterterrorism strategy addresses terrorism as a process with economic, operational, political, psychological, perceptual and diplomatic aspect. India believes to encourage a good governance, healthy, well-functioning democracy, secular and liberal mind set which no difference between majority and minority. They treat everyone equal level on the basis of law concern. We need a local level counterterrorism strategy to prevent terrorism in India. (Curtis 2008) The few significant points need to be highlighted that are following below: First, in the regard of ideological level, this conflict is between terrorist groups which dont trust in value of religious tolerance, multi-cultural and democracy. The counterterrorism strategy is followed by several nations with large defeat and denies factors. An ideological and political counterterrorism factor plays an important dominant role which believes that ideologues should be considered in the plan and operational conflict against terrorism. (Singh 2008) Second, we need to adopt the collaborative plans at the highest level. Although, top-down strategy cannot be apply everywhere. (Mitchell 2008) Counterterrorism operational plan must be worked out for specific area. Third, counterterrorism strategy must deal with all aspect of worldwide terrorism. It connects with transnational organized crime, drug, illegal arms trafficking, money laundering, illicit and nuclear, biological, chemical and other deadly materials and their delivery. It should look the organization action and dedication to meet cross-border threats arranged by the terrorist. Forth, terrorism is not an armed forces problem because it is socio-cultural and socio-economic problem. In the regard of counterterrorism strategy, we should combat and isolate the ideology that is not acceptable to present culture or society. We must use all factors of national power, not only armed forces but also economical, political and other types of opinion and pressures. In the concern, we should use hard power as well as soft power because hard power deals with violent armed terrorist and soft power deals with humanely with cultures, traditions and society. Further, the psychological and intellectual aspects of the terrorist and counterterrorism are significant as its physical attribute. Womens empowerment, youth firms, local development initiative and education network must play a significant role with government as a helpful partner. (Singh 2008) These are some more counterterrorist strategies which adopted by India government through several government bodies and agencie s that are following below: State strategies and its intelligence set-up: In the regard of counterterrorist strategies, Indias federal laws have responsibilities to create policing and maintenance of law for individual states. The Indias central government has rights to give advice them about the financial help, training program and develop their professional caliber and share with the intelligence agencies. (Menezes 2003) The national intelligence community: The national intelligence agencies divided into two parts such internal and external agencies. So, ministry of home affairs and intelligence bureau presented the internal agency. And Cabinet secretariats research and analysis wing to protect from terrorist activities of countries people presented the external intelligence agencies. The IB and RAW: The IB consist internal terrorist intelligence and RAW consists the external related intelligence. The DIA collects tactical intelligence in the regard of counterterrorist operation in the specific areas such as Nagaland and Jammu and Kashmir. (Burch 2007) Physical security agencies: The Central Industrial Security Force provides physical security at Indian airport and sensitive areas. The National Security Guards forces provides safety from hijacking the plane activities. Further, Special Protection Group handled prime minister and former prime minister Security which is very necessary in the globalization world. Paramilitary forces: Its play an important role in the counterterrorism strategy. The Border Security Force and Central Reserve Police Force are known as paramilitary forces which help the police in counter-terrorism operation when they called for this specific work. (Amritsar 2010) The Army: Indian government takes army assistance when the paramilitary and the police are not able to protect with a terrorist attacks. Due to large scale of Pakistan infiltration in Jammu and Kashmir, the army plays an important role in this area for counterterrorism operations. India is not only facing terrorism in Jammu and Kashmir, but also a proxy war by the Jihadi representative. (Menezes 2003) In the recent years, there have been two extra counterterrorism strategies following by the Indian governments that are discuss below: Multi-disciplinary centre: It is headed by the experienced IB officer. These kinds of agencies handled intelligence collection work and counterterrorist strategy will work under general umbrella. Ministry of external affairs: This ministry will be responsible for diplomatic aspect of counterterrorism such as other nations on mutual legal help, Pakistans patronization of terrorism, servicing the work of several mixes working groups and processing requests for extradition. (Prakash 2008) Prevention of Terrorism Act (POTA): In 2002, government approved the Prevention of Terrorism Act (POTA) to increasing the government power against terrorism. Through this act, India governments have rights to keep suspected people in custody without any trial. This law was looked as death certificate of crime and terrorism activities, but the law was canceled in 2004 due to allegations that some people are mis-using their power. Although, politicians are wanted to repair the law because of this kinds of activities are raised. Due to POTA act, we are able to take more strict decision against the terrorist such as Kasab. It was the main blamed of Mumbai attack. (Lokaneeta 2011) Further, some states of India such as Karnataka and Maharashtra have some different law. The name of the law was Maharashtra Control of Organized Crime Act (MCOCA) and the Karnataka Control of Organized Crime Act which used to track suspected terrorists. MCOCA is tougher than POTA and it is generally abused by t he scrutiny agencies. Other states such as Rajasthan, Andhra Pradesh, Gujrat and Uttar Pradesh are looking same counterterrorism law. Conclusion From the above discussion, it can be concluded that there are no fast solution for counterterrorism because it is a long term process. There are not single military solutions available for terrorist, secessionist and insurgency problem. Counterterrorism in India needs a comprehensive strategy that covers social, psychological, operational, economical, political and diplomatic issues. Because most of terrorist groups such as Lashkar-e-Taiba, The Communist Party of India, The United Liberation Front of Assam and Jaish-e-Muhammad members are direct or indirect related to society, culture and political. For example kasab was the main accused of Mumbai attacks which belongs to human society and culture, but due to bad guidance they killed many innocent people. So, terrorist is not exactly our problem rather than reason of terrorism is main problem with us. Therefore, when we got the reason behind the terrorism then we would able to make proper counterterrorism strategies for all aspect o f terrorism. It is necessary for the government of the specific region to cooperate, look informed helps from their people, legitimate, provide responsive, build trusted networks and engage closely with international community. References Amritsar, S, 2010, Effect of physical training on pulmonary function tests in border security force trainees of India, J Life Sci, 2(1), 11-15. Borgeson, K, Valeri, R, 2009, Terrorism in America, Jones Bartlett Publisher, Canada. Burch, J, 2007, A domestic intelligence agency for the United States? A comparative analysis of domestic intelligence agencies and their implications for homeland security, DTIC. Curtis, L, 2008, After Mumbai: Time to strengthen USIndia counterterrorism cooperation, Heritage Foundation Backgrounder, 2217. Hutt, M, 2004, Himalayan People's War: Nepal's Maoist Rebellion, Indiana University Press, Bloomington. Kalpan, E, Bajoria, J, 2008, Counterterrorism In India, view 12 January, 2015 from: https://www.cfr.org/india/counterterrorism-india/p11170 Khurshchev, ST, 2009, "HuJI in India: An Assessment," p 182-190. Kraft, K Marks, E, 2013, U.S. Government Counterterrorism: A Guide to Who Does What, CRC Press, Florida. Lokaneeta, J, 2011, Transnational Torture: Law, Violence, and State Power in the United States and India, NYU Press, New York. Marwah, V,2012, India in Turmoil, Rupa Publications, New Delhi. Menezes, L, 2003, Indias Counter-Terrorism Strategy, view 12 January, 2015 from: https://www.rediff.com/news/2003/apr/05spec.htm Mitchell, D, 2008, Bridging Strategic Asia: The United States, Japan, and India, Central for Strategy and International Strategy, Washington. Prakash, V, 2008, Terrorism in India's North-east: A Gathering Storm, Gyan Publishing House, New Delhi. Rana, MA, 2009, Taliban insurgency in Pakistan: A counterinsurgency perspective, Pakistan Institute for Peace Studies, 9-31. Sheehan, IS, 2007, When Terrorism and Counterterrorism Clash: The War on Terror and the Transformation of Terrorist Activity, Cambria Press, New York. Singh, CH, 2008, South Asia Defence And Strategic Year Book, Pentagon Press, New Delhi. Tankel, S, 2009, Lashkar-e-taiba: From 9/11 to Mumbai, Developments in Radicalisation and Political Violence, 6. Tickell, A, 2013, Terrorism, Insurgency and Indian-English Literature, 1830-1947, Routledge, New York.

Writing Types Essays - Writing, Prewriting, Outline, Essay

Writing Types Despite all of the increasing technological advances, writing is still a main form of communication. Beginning in grammar school and continuing through high school and college, thousands of students spend hours preparing essays for class. The majority of students usually begin drafting those essays merely by staring at a blank sheet of paper and contemplating what to write. However, writing essays can be simplified by using four types of prewriting: free writing, clustering, specifying, and outlining. The first type of prewriting is free writing. It is used to help writers select a topic to write about. The key to free writing is to disregard correct spelling and punctuation, and just write down everything that comes to mind. To begin free writing, simply choose a subject and start writing about it. Take nature, for example. The word ?nature? evokes many diverse images. Ranging from outside surroundings, personal relationships with nature, the beach, a beautiful sunset, a peaceful waterfall, or even the many environmental concerns that we are faced with today. Environmental concerns could stem out an excellent idea that could lead to a topic such as the need to recycle. Images of nature can inspire creativity, which leads to a variety of different topics. The next type of prewriting is clustering. Once a topic has been selected, clustering helps to accumulate the essential support for the paper. Clustering begins with a sheet of paper that has only one topic written and circled in the center. Anything that relates to the topic is then written down with a line branching off from the original topic. This process is continued until enough information is brainstormed. If the original topic is movies, the support branches would include different types of movies such as comedy, drama, romance, action, and horror. Then a list of different movies that fall into each one of these categories extends out from the first support branches. A paper is not complete without ample support, and clustering is a great way to gather it. Another type of prewriting is specifying. It is used to change a topic idea to a more specific thesis statement. Simple questions such as who, what, where, when, and why will add more description and detail to the writing. To specify, the topic idea is written down on paper and simple questions are asked to make it more specific. For instance, the topic "Camping is exciting" can be specified into a more descriptive sentence such as: ?Many new and different experiences such as hiking, cooking over an open flame, and sleeping under the night sky are fun to experience when camping in the mountains with friends." The thesis is the most important aspect of an essay, and specifying helps develop a strong thesis statement to be supported throughout the paper. All papers must be organized in a logical order, and outlining is used precisely for this. For example, a process essay tells the steps of how to do something, so chronological order is the best way to organize this type of essay. An outline places the thesis on top and then presents the framework of the essay. The outline for a process essay about how to cook a grilled cheese sandwich would designate the introduction, as Roman numeral one, and then a consecutive Roman numeral for each step of the process. For example, heating the skillet would be Roman numeral two, and gathering the ingredients would be Roman numeral three, and so on. A final Roman numeral would designate the conclusion. Writing will always be a main form of communication. Therefore, students throughout their years of school will still have to compose numerous essays. However, writing those essays can be simplified through prewriting. With the increase in technology, there is an increase in communication. Through Telephones, fax machines, computers, e-mail, and the Internet, communication is made much easier and is used worldwide by many people. However, for students, writing papers will always remain. Although computer assistance is available, papers will always have the need to be organized and thought out. Using free writing, clustering, specifying, and outlining to plan a paper will make writing essays much simpler, and will better ones performance as a writer.