Analyzing Factors Affecting AUD/EUR Exchange Rate

by | Mar 10, 2024 | business

How the impact of historical data, relative interest rates, relative economic growth, relative inflation rates affect and non-economic factors affect AUD/EUR

 

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Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Sample Answer

Sample Answer

Title: Analyzing Factors Affecting AUD/EUR Exchange Rate
Introduction
In the world of foreign exchange markets, the relationship between different currencies is influenced by a wide array of factors. When it comes to the AUD/EUR currency pair, various economic and non-economic factors play a crucial role in determining its exchange rate. In this essay, we will delve into how historical data, relative interest rates, relative economic growth, relative inflation rates, and non-economic factors impact the AUD/EUR exchange rate.
Historical Data
Historical data can serve as a significant indicator of future currency movements. By analyzing past trends in the AUD/EUR exchange rate, traders and analysts can gain insights into potential future movements. Factors such as past performance during economic crises, political events, or significant policy changes can all influence market perceptions and impact the exchange rate.
Relative Interest Rates
Interest rates set by central banks have a direct impact on currency valuation. In the case of AUD/EUR, if the Reserve Bank of Australia raises interest rates relative to the European Central Bank, the Australian Dollar may strengthen against the Euro as higher interest rates attract foreign investment in Australian assets, increasing demand for the AUD.
Relative Economic Growth
Economic performance is a fundamental driver of currency strength. When comparing the economic growth rates of Australia and the Eurozone, a stronger economy typically leads to a stronger currency. Higher levels of economic growth in Australia compared to the Eurozone may lead to an appreciation of the Australian Dollar against the Euro.
Relative Inflation Rates
Inflation erodes the purchasing power of a currency. If Australia experiences lower inflation rates compared to the Eurozone, the Australian Dollar may appreciate against the Euro as goods and services become relatively cheaper in Australia. Investors seek to protect their purchasing power by holding currencies with lower inflation rates.
Non-Economic Factors
Beyond economic indicators, non-economic factors can also influence currency movements. Geopolitical events, government stability, trade relations, and market sentiment can all impact the AUD/EUR exchange rate. For instance, political instability in Australia or the Eurozone can lead to uncertainty and currency depreciation.
Conclusion

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