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Central Bank and Monetary Policy Comparison
Central Bank and Monetary Policy Comparison: US and China
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1. Introduction
Every economy in the world has a number of support systems that have a mandate to maintain control to ensure that the economic conditions are within optimal levels. One of the main pillars of a stable economy is a central bank system. According to McKinnon, Lee, and Wang (2010, 255), central banks are majorly tasked with conducting monetary policies that are aimed at achieving price stability and assist in the management of economic fluctuations. Policy frameworks that are the main operating structures of central banks have gone through major changes in recent years. Since the end of the 20th century, monetary policies have utilized inflation targeting as the leading framework. For example, the central banks in New Zealand, the United Kingdom, Canada and the euro economies have introduced explicit inflation targets to manage monetary policies. Similarly, a report by Taylor (2019, 107) has identified that a number of emerging economies are switching from monetary aggregate targeting to an inflation targeting structure. These activities provide evidence of the role that central banks play in ensuring that an economy is stable. They conduct monetary policies through an adjustment of money supply and other open market operations (Edge and Liang 2019). For example, the US Federal Reserve System may decide to reduce the supply of money in the economy through selling government bonds. The purpose of such operations in the open market would be to drive short-term interest rates to influence overall economic activity. In this report, the conduct of monetary policy by the US federal reserve will be pitted against the Chinese equivalent in terms of regulating the economy. The comparison is important in showing which system works well under what circumstances. Overall, the role of central banks in conducting monetary policies cannot be understated as seen in the way it helps economies to recover from slumps and to initiate economic activities that result in positive outcomes for an economy, and the different methods employed by the Federal Reserve in the US and the People’s Bank of China were uniquely suited to the two economies due to their different structures and economic systems.
2. Data and Methodology
This report will use empirical data from the US Federal Reserve and the Chinese Central Bank to show the conduct of these institutions with regard to monetary policies. Data from primary and secondary sources will be used for purposes of a comparative analysis on how the two nations use their central banks to formulate monetary policies. The report uses a qualitative comparative analysis to analyze the causal contribution of conditions used by the US federal reserve and the Chinese central bank. The report begins by first documenting different configurations of the conditions linked to the individual economies with every case of observable outcomes. The minimization procedure is preferred to identify the simplest sets of the conditions that account for observable outcomes. Equifinality is observed in each of the cases for the Chinese and US central banks where more than a singular way that results to outcomes on monetary policies can be observed (Correa et al. 2021, 89-91). In this report, monetary policy conduct following the 2007-2009 Great Recession for the US and China will be compared.
Data shows that the central banks, from a neutral point of view, often use policies that stimulate a given economy in anticipation of or during a recession (Williamson 2020, 199). In such instances, the expansion of money supply is done to bring about reduced borrowing costs and lower the interest rates, with the objective being to boost investment and consumption.
The Great Recession started towards the last quarter of 2007 and ended in mid-2009, making it the longest global recession since the Second World War. In the US, data from Menno and Oliviero (2020, 103568) assert that the real GDP dropped 4.3% from its peak in the last quarter of 2007 to the trough in mid-2009. In 2007, the unemployment rate in the US was only 5%, a phenomenon that changed in 2009 with a rate of more than 9% and at 10% in the last quarter of 2009 (Mian and Sufi 2010, 54). Similarly, the prices of homes fell roughly 30% from their peak in 2006, while the S&P 500 index reduced 57% from 2007 to 2009 (Mian and Sufi 2010, 54). The total net worth of US nonprofit organizations and households fell from $69 trillion to $55 trillion between 2007 and 2009 (Mian and Sufi 2010, 54). The 2009 American Recovery and Reinvestment Act and the 2008 Economic Stimulus Act were effective in reviving the US economic growth.
In China, from 1978 to 2010, GDP share in the global economy rose from 1.7% to 9.5% (Jiang 2015, 361). The negative effects of the Great Recession on the Chinese market were considerably stronger. However, the effects were largely unrealized because China, amidst the recession, continued to record high economic growth rates. In 2008, the country recorded a 9.6% growth rate and a 9.2% growth rate in 2009 (Dai 2006, 201). However, these figures, albeit impressive by global standards, were bad news for the Chinese economy which had previously recorded a 14% growth in 2007 (Cabestan, Meglio, and Richet 2012, 48). Table 1 below summarizes the annual GDP growth rate in China from 2005 to 2011, revealing the trends leading up to the Great Recession.
Year 2005 2006 2007 2008 2009 2010 2011
China’s GDP 11.30 12.70 14.20 9.60 9.22 10.33 9.47
Table 1: China’s Annual GDP growth rate
Source: IMF World Economic Outlook.
3. Analysis
3.1 Conduct of Monetary Policy by the Federal Reserve System of the US
The US federal reserve influences cost and availability of credit and money in an effort to ensure a healthy economy. The federal reserve is mandated with two coequal objectives of ensuring maximum employment and ensuring stable prices (Thorbecke 2002, 259-260). In simple terms, the US federal reserve has a mandate to ensure low and stable inflation. The dual obligation of the federal reserve spills over to include a third objective: provide moderate long term interest rates. The basic tool available for the Federal Reserve to use in conducting monetary policy include the funds rate. Funds rate are the rate that financial institutions such as banks are charged for overnight borrowing in the government (federal) funds market (Kuttner 2001, 530). Any changes in the funds rate would influence other forms of interest rates that also affect the borrowing costs for businesses and individuals and the entire financial conditions. For example, the federal reserve may lower interest rates, triggering several effects such as the ability of people to borrow more as households and business get credit facilities at cheaper rates. Similarly, businesses have more purchasing power to expand, are able to hire more, thus influencing employment. The improved demand for products would push wages and other costs upwards, influencing inflation.
As the US economy continues to change, the interpretation of stable prices and maximum employment objectives have shifted to accommodate changes. For example, the 2007-2009 global financial crisis aftermath led to a long expansion that did not trigger notable rises in inflation even after labor market conditions strengthened. Data shows that the federal reserve system de-emphasized previous concerns on employment thus going beyond the maximum levels, in order to focus instead on the shortfalls of employment under the minimum levels (Lane and Milesi-Ferretti 2017). These examples point to evidence that the US federal reserve system has the role of interpretating and redefining new parameters that apply to monetary policies that would ensure the health of the economy. Maximum or minimum employment are objectives that can be modified to suit the needs of the economy.
The US federal reserve views maximum employment as an inclusive and broad-based objective that cannot be directly measured and is influenced by shifts in the dynamics and structure of the US labor market. Therefore, the federal reserve does not automatically specify fixed objectives for employment (Gorton and Metrick 2013, 47). The assessment of the federal reserve on the shortfalls of US employment levels from maximum points are based on uncertain indicators. Instinctively, however, whenever the economy attains maximum employment, this means that a job is available to anyone who desires one. Policymakers in the Federal Reserve perceive a 2% inflation rate is most consistent in the long run in its mandate for stable prices measured through yearly changes in the prices index for the expenditures of personal consumption (Bundick and Smith 2021, 11). Therefore, whenever inflation persists below 2%, the federal reserve aims for inflation to be slightly above 2% for a short period. These adjustments in the rate of inflation are meant to maintain stable prices, not just in the short run, but overtime through sustained control of the interaction between employment, interest rates, and prices.
Following the Great Recession, the US federal reserve undertook expansionary monetary policies to boost investment and consumption. Figure 1 below shows an expansionary policy curve where a reduction of taxes and an increase in the government spending led to a shift in the aggregate demand curve to the right to increase output. The price level changes from P1 to P2 leading to an expansion of the aggregate demand.
Figure 1: Expansionary policy US Federal Reserve (Source: Bordo, Choudhri, and Schwartz 2002, 21)
Prior to the recession, the federal reserve had steadily increased interest rates to maintain stable inflation rates in the US economy. Market interest rates rose as a response, leading to a moderation of real estate prices. The rates on adjustable mortgages and exotic loans reset at higher rates than expected. The consequence was a bursting of the housing bubble. The interest rates were lowered to zero by the US federal reserve. As the housing prices started to reduce significantly in 2007, the economy slowed. To solve the issue, the US federal reserve cut its discount rate from 5% to 0% (Cuba-Borda 2014). The federal reserve also purchased government securities. This was in an effort to promote liquidity. The federal reserve further offered more than $7.7 trillion to banks as emergency loans in an quantitative easing move (Flemming 2012, 162).
3.2 Conduct of Monetary Policy by the Chinese Central Bank
As of 2020, China was the fastest growing economy in the world. The country uses a very unique open-market economy that also has aspects of a socialist system. The government retains significant control of the economy, yet operates a fairly free-market policy. Primarily, the nation is an export and manufacturing driven market that retains tremendous levels of forex capital due to exports (Jiang 2015, 361). The People’s Bank of China, its central bank, controls the money supply of the country with an aim of ensuring that the capital availability, price levels, economic cycle, and inflation in the country are stable. China’s money supply policy is different from other nations like the US due to its unique economic structure.
China operates with a trade surplus due to its export and manufacturing driven economy. It sells more than it buys from the rest of the world (Chan 2012, 199). Exporters get paid in US dollars for their products but use local yuan to pay for wages and expenses. Due to the population of the nation, the high consumption, the increased US dollar supply in China and the demand for the yuan causes the yuan to rise against the dollar. Such situations lead to exports from China being costlier and a loss of competitive advantage in pricing in the global export market. This would lead to lower sales of the manufactured products, high unemployment, and significant stagnation of the economy (Hodson and Quaglia 2009, 941). The central bank intervenes by keeping exchange rates lower using artificial measures.
The relationship between the yuan and the economy is strange partly because of the government actions on controlling the same and due to its dependence on exports and manufacturing. From the Great Recession in 2010 to 2020, major market reforms have raised the market orientation of China opening up the economy. China controls its money supply via control of the forex rates, sterilization actions, printing currency, discount rates, and the reserve ratio. Control of the forex rates allows the Chinese central bank to absorb large inflows resulting from foreign capital due to the trade surplus. The central bank purchases foreign currency from Chinese exporters and issues the same in yuan (Dai 2006, 201). It also practices publishing of currency and exchanges it for forex as a way of retaining a tight or fixed forex rate. Sterilization actions are also common as the central bank increases the supply of local currency to increase chances of inflation. Reserve ration and discount rates are used similar to the rest of the world to mitigate money supply in the economy.
28634785934500China’s high dependence on export was reflected in the Great Recession as it suffered immensely. Towards the end of 2007, export demand came crashing due to the financial crisis in China and the country suffered a shift from inflation to deflation as shown in figure 2 below.
Figure 2: Growth rate of exports and investment (Source: Vincelette et al. 2010)
In response, data shows that the government of China intended to mitigate its falling GDP growth through monetary expansion (Hodson and Quaglia 2009, 941). The country introduced a stimulus package through interest rate subsidies and direct grants. The Chinese central bank increased its expenditure, provided tax reductions, performed a VAT reform, cut back on business tax, increased the export rebate rates, and raised the individual income tax threshold. The differences between China and the US in terms of conduct and response during and after the 2008 financial crisis are evident. China’s banking system was relatively safe after non-performing loans were written off and capital injected into the economy (Cabestan, Meglio, and Richet 2012, 48). Consequently, China had no liquidity shortage, the monetary multiplier was not significantly affected, and there was no evidence of a credit crunch compared to the United States. As a result, the dramatic increase in the liquidity in the inter-bank system and market was translated into an increase in the broad money and bank credit.
4. Conclusion
In this discussion, the data and evidence presented has shown the conduct of monetary policy by the US federal reserve and the Chinese equivalent in terms of regulating the economy amidst the Great Recession. The comparison is important in showing which system works well under what circumstances. In the end, the discussion has established that the role of central banks in conducting monetary policies cannot be understated as seen in the way it helps economies to recover from slumps and to initiate economic activities that result in positive outcomes for an economy. China and the US used different monetary policies to stimulate growth after the Great Recession. While the objectives of the policies were relatively the same, the setup of the two economies made it impossible to employ the same strategies. The different methods employed by the Federal Reserve in the US and the People’s Bank of China were uniquely suited to the two economies due to their different structures and economic systems. The discussion establishes that none of the methods are superior to the other, as both nations were able to achieve economic growth shortly after the recession.
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Motivation is the strength that kicks off
Motivation is the strength that kicks off, guides and sustains goal-oriented conducts. It is what instigates people to get going, whether to seize a snack to decrease hunger or register in college to get a degree. The compelling aspects that lie under motivation can be natural, social, poignant or cognitive in nature. Analysts have developed numerous different hypotheses to clarify motivation. Each individual hypothesis tends to be somewhat partial in scope. Though, by examining the key thoughts behind each hypothesis, one can get a better comprehension of motivation all together.
Instinct hypothesis of Motivation
Regarding instinct hypotheses, people are aggravated to behave in definite ways since they are evolutionarily intended to do so. Avery good and apparent example is the seasonal migration in the animal kingdom. The animals are not born with the acquaintance and knowledge to do this but they somewhat happen to subconsciously migrate. William James established a catalog of human characters that comprised of such aspects as affection, play, disgrace, anger, terror, wariness, humility and love. The key problem with this hypothesis is that it never expounded on behavior, it merely portrayed and expounded it. By the 1920s, these hypotheses were shoved aside in support of other motivational hypothesis, but modern evolutionary psychologists currently research on the control of heritable traits and inheritance on human conduct.
Human deeds such as mocking others can be considered to be similar an animal being aggressive to a much smaller younger creatures of the identical genus in order to dishearten them from attempting to usurp the head in the bunch. It is frequently this that presents an elucidation for why an individual would act in his desired actions. Infidelity is an additional outline of this aspect. Instinct gives animals the desire to assume the simplest path to continued existence. If a noteworthy other does not create offspring or adequately satisfy an individual, that individual might search for an additional way to bring about the geneses or to live extra easily. It is an superior feature of basic animal behavior. The perception of instinct hypothesis enjoyed colossal reputation and maintenance in the belatedly 19th century. Two extremely diverse instinct hypotheses of motivation were established by the therapist Sigmund Freud, as well as, William James who was a functionalist. Critics attacked instinct hypothesis of motivation for simply labeling yet deteriorating to give details of behavior. Furthermore, instincts are never visible and are never subjected to experiential testing or behaviorist appraisal.
Adult Education in the U.S
HYPERLINK “javascript:HighlightAll(‘form1.report’)” Adult Education in the U.S
1). INTRODUCTION
In adult education, The concept of central learning theory is self-directed learning. He (1985) said that because the concept is so central to what adult education is all about, self-directed learning has been one of the field’s high-interest topics for more than a decade (Mezirow, 1988).
Many people like researchers theorists and so on have all asked the pistons: what is self-directed learning? What kinds of people are engaged in it? How can we properly provide it to educator and learner. How can we improve learners’ ability as using it?
We know that we must define the mission of education as to produce competent people who are capable of applying their knowledge under changing social and survival conditions. Adult education must be primarily concerned with providing the resources and support for self-directed inquirers.
One role of the adult education can be stated positively as helping individuals to develop the attitude that learning is lifelong process and to acquire the skills of self-directed learning. Another ultimate need of individuals is to achieve complete self-identity. A third ultimate need of individuals is to mature.
In this paper, the researcher is approaching methods to help adult learners to develop themselves with strong confidence. So it is very important to develop skills increasing adult learners through self-directness and self-efficacy.
Since Brandura¡¯s (1997) original paper, self-efficacy theory has been applied in education settings to various grade levels (e.g., Elementary, Secondary, Post-secondary), content domains, and student ability levels.
The author will not apply self-efficacy to adult education field but to treat the relation between self-directedness and self-efficacy to improve adults¡¯ attitude for participating education as a re-learner. The paper may treat of basic knowledge about self-efficacy and reciprocal relation between both two.
2). SELF – DIRECTEDNESS
1. SELF – DIRECTED LEARNING
A. What is Self – Directed Learning
An estimated 70 percent of adult learning is self-directed learning (Cross 1981). Self-directed learning has been described as “a process in which individuals take the initiative, with or without the help of others,” to diagnose their learning needs, formulate learning goals, identify resources for learning, select and implement learning strategies, and evaluate learning outcomes (Knowles 1975).
Whether or not learning is self-directed depends not on the subject matter to be learned or on the instructional methods used. Instead, self-directedness depends on who is in charge-which decides what should be learned, who should learn it, what methods and resources should be used, and how the success of the effort should be measured. To the extent the learner makes those decisions, the learning is generally considered to be self-directed.
Perhaps only degrees of self-directedness are actually possible, given the frequent necessity of maintaining institutional standards and, as Mezirow (1985) points out, the impossibility of freely choosing among objectives unless all possible objectives are known. Some writers have pointed out that Mocker and Spear’s model could be viewed as a continuum rather than as a matrix
Some self-directed learning takes place in comparative isolation in secluded libraries. Other self-directed learners engage in more interpersonal communication (with experts and peers, for instance) than is typically available in conventional classroom education.
B. Who is Engaged in Self – Directed Learning
About 90 percent of all adults conduct at least one self-directed learning project per year. Typical learners engage in five, spending an average of 100 hours on each project (Tough 1978). It is important to bear in mind that most of the research that has been conducted on self-directed learning has investigated the activities of middle-class adults.
Many self-directed learners are attempting to obtain new skills, knowledge, and attitudes to improve their work performance. Others conduct their self-directed learning to improve finally life and health, enjoy the arts and physical recreation, participate in a hobby, or simply develop their intellectual capital.
Adult educators have found that some adults are not able to engage in self-directed learning because they lack independence, confidence, or resources. Not all adults prefer the self-directed option, and even the adults who practice self-directed learning also engage in more formal educational experiences such as teacher-directed courses (Brookfield 1985).
Perhaps no aspect of andragogy has accepted so much attention and debate as the premise that adults are self-directed learners. That adults can and do engage in self-directed learning is now a foregone conclusion in adult learning research.
In the twentieth century, It is no longer functional to define education as a process of transmitting what is known; if must now be defined as a lifelong process of continuing inquiry. And so the most important learning of all is learning how to learn the skills of self-directed inquiry.
2. THE CONCEPT OF SELF – DIRECTED LEARNING
Self-directed learning is the most important and well-researched topic in the field of adult education. While the reasons for this are surely complicated, one important reason has to be the intuitively appealing desire to be in control of deciding what to learn and how to learn it. It also fits with the desire and need felt by most adults to continue to learn. These congenitally human characteristics are inherent in the concept of self-directed learning. As he stated, self-directed learning is not an educational fad, but a ¡°basic human competence-the ability to learn on one¡¯s own¡± Knowles (1975).
The apparent need to ¡° learn on one¡¯s own¡± has been a persistent theme in self-directed learning. For this reason, it is not surprising to find that self-directed learning has its genesis in independent and informal adult learning contexts (Tough 1971). An important turning point in conceptualizing the construct occurred with the recognition that it lacked a cognitive perspective (Mezirow, 1985). He said that a critical awareness of meaning and self-knowledge is a key dimension to self-directedness.
Long (1989) identified three dimensions of self-directed learning: the sociological, pedagogical, and psychological. He described that much of the discussion around self-directed learning has focused on the sociological (independent task management) and pedagogical (application in educational contexts) issues. He stated amazement at the fact that the psychological (cognitive) dimension had been generally ignored, stating that the ¡°critical dimension in self-directed learning is not the sociological variable, nor is it the pedagogical factor. The main distinction is the psychological variable¡± (Long, 1989)
While the social context for learning has been and should remain an important factor, the lack of a specific psychological or cognitive dimension has been somewhat ironic, considering the humanistic origins of the concept. Rogers (1969), for instance, used the concept in terms of both a cognitive and affective perspective. For Rogers, self-direction was mainly about taking responsibility for the internal cognitive and motivational aspects of learning. The focus was on cognitive freedom and the ultimate goal was to get how to learn.
The phrase ¡°self-directed learning¡± invokes both social and cognitive issues-that is, issues of ¡°self-direction¡± and ¡°learning,¡± respectively. In adult education, however, most of the focus has been on self-direction (i.e., self-management of learning tasks). As such, the construct has been largely defined in terms of external control and facilitation, rather than internal cognitive processing and learning. Long¡¯s position was that, without the psychological or cognitive dimension, the focus is on teaching not learning. He argued that ¡°Pedagogical procedures whether imposed by a teacher or freely chosen by the learner remain pedagogical or ¡®teaching¡¯ activities. Hence we have other-teaching or perhaps self-teaching but not self-learning¡±. This distinction between external control and internal cognitive responsibility is the basis for the self-directed learning framework and model presented here.
More recently, Brockett and Hiemstra (1991) have proposed an interesting framework by expanding the self-directed learning construct to include a personality disposition. Their framework is based on the ¡°distinction between the process of self-directed learning and the notion of self-direction as a personality construct¡±. The two dimensions in the framework correspond to transactional or instructional methods and learner personality characteristics.
The self-directed learning model described here includes three overlapping dimensions: self-management (task control), self-monitoring (congnitive responsibility), and motivation (entering and task). While each dimensior is described separately, in practice, they are intimately related. task management and external control, we begin with the more familiar concept of self-management, that is, the transactional (collaborative) control of external tasks and activities. This dimension encompasses the sociological and pedagogical issues that Long (1989) earlier identified.
Garrison more formally captured this multidimensional view of self0directed learning. He suggested a comprehensive model of self-directed learning based on three core components: 1) self-management (control), 2) motivation (entering and task), and 3) self-monitoring (responsibility). According to Garrison, AE has traditionally focused on the first component, the control of learning, and paid less attention to the learning processes. He suggests that equal attention should be focused on motivation issues, including the motivation to engage in self-directed learning and to complete self-directed learning tasks. His third component, self-monitoring, is the cognitive learning processes as well as metacognitive skills a person needs to engage in self-directed learning. Adult learning professionals need to pay attention to all three components(Swanson 1998, p137).
As a practical matter, the contingency model of self-directedness seems most appropriate for facilitators of adult learning because it more closely matches the reality of most learning situations. There are many factors that individuals weigh in choosing whether to behave in a self-directed way at a particular point. These may include:
Learning style
Previous experience with the subject matter
Social orientation
Efficiency
Previous learning socialization
Locus of control
A. Self – Management
Self-management is affected with task control issues. It emphasizes on the social and behavioral implementation of learning intentions, that is, the external activities associated with the learning process.
Self-management contains shaping the contextual conditions in the performance of goal-directed actions. In an educational context, self-management does not inferior students are independent and isolated learners. Facilitates provide the support, direction and standards necessary for a fortunate educational outcome. Self-management of learning in an educational context is properly a collaborative experience.
Educational self-management concerns the use of learning materials withi a context where there is an chance for sustained communication. Self-management of learning in an educational context must tale account of the opportunity to test and make sure of understanding collaboratively. This is an important aspect of know edge development.
B. Self – Monitoring
Self-monitoring refers to cognitive and metacognitive processes: monitoring the repertoire of learning strategies as well as an awareness of and an ability to concern about our thinking. Self-monitoring is the process whereby the learner takes responsibility for the construction of personal meaning.
Self-monitoring is similar to responsibility to construct meaning. This may mean adding to and enriching existing knowledge structures or modifying and developing new knowledge.
Internally, cognitive and metacognitive processes are involved with self-monitoring the construction of meaning. Cognitive ability is a core variable in self-directed learning. Bandura (1986) suggests that there are three self-regulated learning processes: self-observation, self-judgement, and self-reaction.
Metacognitive proficiency is very much associated with the ability to be reflective and think critically. Models of critical thinking not only help describe the metacognitive processes associated with self-directed learning, but can be of great assistance in helping students become metacognitively responsible for their learning (Garrison, 1992).
To be aware of this internal and external input, and to use it to construct meaning and shape strategies is to self-monitor learning cognitively and metacognitively.
Self-monitoring is intimately linked to the external management of learning tasks and activities. An interesting and important issue arises with regard to responsibility(self-monitoring) and control(self-management).
C. Motivation
Motivation plays a very significant role in the initiation and maintenance of effort toward learning and the achievement of cognitive goals. To begin to understand the pervasive influence of motivational factors, we need to distinguish between the process of deciding to participate (entering motivation) and the effort required to stay on task and persistence (task motivation). Entering motivation establishes commitment to a particular goal and the intent to act. Task motivation is the tendency to focus on and persist in learning activities and goals.
It is hypothesized that entering motivation is largely determined by valence and expectancy. Students will have a higher entering motivational state if they understand that learning goals will meet their needs and are achievable. In a learning context, valence reverberate the attraction to particular learning goals. The factors that determine valences are personal needs (values) and affective states (preferences). Personal need reflects the importance or worth of particular learning goals. Needs and values reflect the reasons for persisting in a learning task. Closely associated with needs are affective states. This set of consists of attitudes toward self (e.g., self-esteem), task (e.g., anxiety), and goal preference.
Expectancy in a learning context refers to the belief that a desired outcome can be achieved. This factor made up of personal and contextual characteristics that influence goal achievement. Personal characteristics (competency) reveberate the perceived skills, ability and knowledge of the individual while assessing goals. Perceptions of ability or self-efficacy influence the decision to participate as well as the choice of goals and learning environments. Contextual characteristics (contingency) reflect perceived institutional resources or barriers as well as ideological and socioeconomic constraints. Together, competency and contingency assessments represent the mediating construct of ¡°anticipated control.¡± Anticipated control is an essential perception when assessing expectancy of success and making decisions regarding goal-directed behavior.
Entwistle (1981) states that ¡°interest and intrinsic motivation are likely to foster a deep approach, and an active search for personal meaning¡±. Intrinsic motivation leads to responsible and continuous learning. If these are the worthy aims of education, it is necessary that we create conditions where students become increasing motivated by authentic interest and desire to construct personal meaning and shared understanding. Understanding these conditions is, in essence, what the exploration of self-directed learning is about. Authentic self-directed learning becomes self-reinforcing and intrinsically motivation.
Motivation and responsibility are reciprocally connected and both are facilitated by collaborative control of the educational transaction. Issues of motivation responsibility and control are central to comprehensive concept of self-directed learning.
Self-regulated learning emerged from research on self-efficacy (perceived proficiency) and motivation. The current emphasis of self-regulated learning on cognitive and motivation strategies (Winne, 1995) makes it a potential resource for the development of the psychological dimensions of self-directed learning. Furthermore, it has been argued that self-regulation has a beneficial effect on academic outcomes (Winne, 1995;Zimmerman & Bandura, 1994).
In conclusion, self-direction is seen as a necessary process for achieving worthwhile and meaningful educational outcomes. Self-direction is seen as essential if students are to achieve Dewey¡¯s (1916) ultimate educational goal of becoming continuous learners and possessing the capacity for further educational growth.
Motivation
(Entering / Task)
Self-Monitoring
(Responsibility)
Self-Management
(Control)
Self-directed Learning
Figure 1: Dimensions of Self – Directed Learning
3. SELF – DIRECTED LEARNING AS A PERSONAL ATTRIBUTE
There has been less focus in the research literature on self-direction in learning as a personal characteristic of the learner. The assumption underlying much of this work is that learning in adulthood means becoming more self-directed and autonomous (Knowles, 1980; Chene, 1983). Kasworm (1983b), for example, proposes that self-directed learning ¡°represents a qualitative evolvement of a person¡¯s sense of cognitive definition and developmental readiness for ambiguous and nondefined actions¡±. And Chene (1983) offers three elements that characterize an autonomous or self-directed learner: independence, the ability to make choices, and the capacity to articulate the norms and the limits of a learning activity.
Research into the nature of the self-directed learner asking who and what questions: Are these learners introverts or extroverts? What is their cognitive style? What personality characteristics do they have in common? What level of education have they achieved? Are they more autonomous than other learners? Basically researchers are trying to gain an understanding of the typical learner¡¯s characteristics and style. Specifically they have tried to link a number of different variables with being more or less self-directed in one¡¯s learning.
The notion of readiness and the concept of autonomy have been studied and discussed most often in the professional literature on self-directedness as a personal attribute. The notion of readiness implies an internal state of psychological readiness to undertake self-directed learning activities. Guglielmino (1977) has provided the most widely used operational definition of this idea. She states that people must possess eight factors to be considered ready to pursue self-directed learning: openness to learning, self-concept as an effective learner, initiative and independence in learning, informed acceptance of responsibility, love of learning, creativity, future orientation, and the ability to use basic study and problem-solving skills. These factors undergird her Self-Directed Learning Readiness Scale (SDLRS), designed to ascertain adult readiness for self-directed learning.
The relationship of autonomy and self-directedness in learning has been discussed primarily at the conceptual level. Chene (1983), for example, defines the autonomy of the learner as independence and the will to learn. However, she also notes that the learner must have an awareness of the learning process, an understanding of what is conceived as competence in a specific area of study, and the ability to make critical judgments: ¡°[Autonomy] is a structure which makes possible the appropriation of learning by the learner¡±
Autonomy, however, is not necessarily context-free; there is a relationship between the personal and situational variables that must come into play for a person to be autonomous in certain learning situations. As Candy (1987b) observes: ¡°One does not ¡®become¡¯ autonomous in any final or absolute sense.¡± Confidence and commitment enter into each learning situation. Pratt (1988), in agreement with Candy, contends that self-direction is a situational attribute of learners, not a general trait of adulthood. Therefore, adults vary considerably in their desire, capacity, and readiness to exert control over instructional functions and tasks.
To understand self-directedness in learning as a personal attribute, more in-depth study is required. We need to isolate the variables that appear to assist a person to be more self-directed in his or her learning-from seemingly simple demographic variables such as age, socioeconomic status, and occupation to more complex concepts like autonomy, life satisfaction, cognitive style, and motivation.
3). SELF – EFFICACY
Understanding how people adapt and adjust to life¡¯s infinite challenges is, perhaps, the most important problem for scientific psychology. Not surprisingly, most of the important models of human learning, cognition, emotion, personality, and social interaction have tried to account for the individual¡¯s capacity for adaptively responding to environmental changes, often referred to as competence (e.g., Sternberg & Kolligan, 1990; White, 1959).
Self-efficacy theory is one of the more recent in a long tradition of personal competence or efficacy theories and has generated more research in clinical, social, and personality psychology in the past decade and a half than other such models and theories (Bandura, 1977,1982b,1986). The crux of self-efficacy theory is that the initiation of and persistence at behaviors, and courses of action are determined primarily by judgments and expectations concerning behavioral skills and capabilities and the likelihood of being able to successfully cope with environmental demands and challenges.
1. SOCIAL COGNITIVE THEORY
Social cognitive theory is an approach to understanding human cognition, action, motivation, and emotion that assumes that people are capable of self-regulation and that they are active shapers of their environments rather than simply passive reactors to them. There are essential ideas in social cognitive theory, which makes the belowing specific assumptions.
(Brandura 1996 describes)
1. People have powerful symbolizing capabilities that allow for creation of internal models of experience, the development of innovative courses of action, the hypothetical testing of such courses of action through the prediction of outcomes, and the communication of complex ideas and experiences to others.
2. Most behaviors are purposive or goal-directed and is guided by fore-thought (anticipating, predicting, etc.). This capacity for intentional behavior is dependent on the capacity for symbolizing.
3. People are self-reflective and capable of analyzing and evaluating their own thoughts and experiences. These metacognitive, self-reflective, activities set the stage for self-control of thought and behavior.
4. People are capable of self-regulation by influencing direct control over their own behavior and by selecting or altering environmental conditions that, in turn, influence their behavior.
5. People learn vicariously by observing other people¡¯s behavior and its consequences.
6. The previously mentioned capacities for symbolization, self-reflection, self-regulation, and vicarious learning are the result of the evolution of complex neurophysiological mechanisms and structures.
7. Environmental events, inner personal factors (cognition, emotion, and biological events), and behavior are mutually interaction influences. Their own behavior, which then influences not only the environment but also cognitive, affective and biological states. This principle of triadic reciprocal causation or triadic reciprocality is, perhaps, the most important assumption of social cognitive theory. A complete understanding of human behavior in any situation requires an understanding of all three sources of influence-cognition, behavior, and environmental events.
Social cognitive theory views the three major alternative approaches to explaining personality and behavior-psychodynamic theories, trait theories, and radical behaviorism-as unable to account satisfactorily of the complexity and plasticity of human behavior. Psychodynamic theories are difficult to test empirically, cannot account adequately for the tremendous situational variation in individual behavior, are deficient in predicting future behavior, and have not led to the development of efficient and effective methods for changing psychosocial functioning. Trait theories do not have good predictive utility and do not sufficiently consider the documented impact of situational influences. Radical behaviorism makes assumptions about behavior that have been disputed by empirical findings. For example, Research has demonstrated that environmental events (antecedents and consequences) do not control behavior automatically, that anticipated consequences predict behavior better than actual consequences, that complex patterns of behavior can be learned through observation alone in the absence of reinforcement, and that operant explanations alone cannot account for the complexity of human learning and behavior. Because social cognitive theory assumes that people process and use information in symbolic form, evaluate their own thoughts and behaviors, predict and anticipate events and consequences, set goals and strive toward them, and regulate their own behavior. It surpasses the previously mentioned approaches in its ability to account for situational influences and differences, to explain the effects of belief and expectancies, to predict behavior accurately, and to provide models and strategies for effective behavior change.
2. SELF – EFFICACY THEORY
Self-efficacy theory maintains that all processes of psychological and behavioral change operate through the alteration of the individual¡¯s sense of personal mastery or self-efficacy. Self-efficacy was originally defined as a rather
specific type of expectancy concerned with one¡¯s beliefs in one¡¯s ability to perform a specific behavior or set of behaviors required to produce an outcome (Bandura, 1977). The definition of self-efficacy has been expanded, however, to refer to ¡°people¡¯s beliefs about their capabilities to exercise control over events that affect their lives¡± (Bandura, 1989) and their ¡°beliefs in their capabilities to mobilize the motivation, cognitive resources, and courses of action needed to exercise control over task demands.¡± (Bandura, 1990 P316).
A. GENERALITY AND SPECIFICITY OF SELF – EFFICACY BELIEFS
Self-efficacy is conceptualized and measured not as a personality trait, but, instead, is defined and measured in the context of relatively specific behaviors in specific situations or contexts. However, the level of specificity at which self-efficacy is measured will be determined by the nature of the task and situation at hand, and by the nature of the task and situation to which one wishes to generalize, or in which one wishes to predict (Bandura, 1992).
Although self-efficacy sometimes is used to refer to one¡¯s general sense of competence and effectiveness (e.g., Smith, 1989), the term is most useful when defined, operationalized, and measured specific to a behavior or set of behaviors in a specific context (e.g., Kaplan, Atkins, & Reinsch, 1984; Manning & Wright, 1983). General self-efficacy scales have been developed (Sherer et al., 1982; Tipton & Worthington, 1984), but these scales have not resulted in much useful research on specific types of behavior change. In addition, measuring self-efficacy expectancies for quitting smoking will be more successful if we measure the smoker¡¯s expectations for being able to refrain from smoking under specific situations (e.g., while at a party, after eating, when around other smokers; DiClemente, 1986). If one¡¯s sense of competence is high for an ability one values, then this will contribute to high self-esteem (or low self-esteem if perceived competence for the valued skill is low). Judgments of inefficacy in unvalued areas of competence are unlikely to influence significantly self-concept and self-esteem.
B. DIMENSIONS OF SELF – EFFICACY
Performance Experiences
Performance experiences, in particular, clear success or failure, are the most powerful sources of self-efficacy information (Bandura, 1977). Success at a task, behavior, or skill strengthens self-efficacy expectancies for that task, behavior, or skill, whereas perceptions of failure diminish self-efficacy expectancy.
Vicarious Experiences
Vicarious experiences (observational learning, modeling, imitation) influence self-efficacy expectancy when people observe the behavior of others, see what they are able to do, note the consequences of their behavior, and then use this information to form expectancies about their own behavior and its consequences. Vicarious experiences generally have weaker effects on self-efficacy expectancy than do direct personal experiences (e.g., Bandura, Adams, & Beyer, 1977).
Imaginal Experiences
Social cognitive theory posits that people have tremendous capacity for symbolic cognitive activity. People can generate beliefs about personal efficacy or inefficacy by imagining themselves or others behaving effectively or ineffectively in future situations (Cervone, 1989)
Verbal Persuasion
Verbal persuasion (or social persuasion) is a less potent source of enduring change in self-efficacy expectancy than performance experiences and vicarious experiences. The potency of verbal persuasion as a source of self-efficacy expectancies should be influenced by such factors as the expertness, trustworthiness, and attractiveness of the source, as suggested by decades of research on verbal persuasion and attitude change (e.g., Petty & Cacioppo, 1981).
Physiological States
Physiological states influence self-efficacy when people associate aversive physiological arousal with poor behavioral performance, perceived incompetence, and perceived failure. Thus, when persons become aware of unpleasant physiological arousal, they are more likely to doubt their behavioral competence than if the physio