StudentShare solutions
Triangle menu
  • Home
  • Subjects
  • Finance & Accounting
  • Discuss by collecting and analyzing historical data and by giving up-to-date real life example(s) from the American, UK or Europ

Discuss by collecting and analyzing historical data and by giving up-to-date real life example(s) from the American, UK or Europ - Essay Example

Not dowloaded yet

Extract of sample
Discuss by collecting and analyzing historical data and by giving up-to-date real life example(s) from the American, UK or Europ

The large scale of these interferences has brought intense public inspection of the Federal Reserve's institutional and power structure. Particularly, many have questioned why the Fed has the liberty to engage in such proceedings without the explicit approval from president or the Congress. This political interruption of independence is generally referred to as the independence of central bank. This essay focuses on assessing why Congress made the Fed’s independent when it created it in 1913. The important point to remember is that giving the central bank independence is the greatest way for governments to tie their own hands and put an end to them from misusing economic policies for temporary political causes. In the year of 1913, Congress purposefully formed the Federal Reserve as an independent and self-governing central bank, which formed a fundamental tension: how to guarantee that the Fed remains answerable to the voters without losing its independence. Over the years, there have been various changes in the structure of Fed to improve its credibility, independence, answerability, and transparency. These changes have guided to a healthier institutional design that ultimately renders policy believable and based on sound financial reasoning, as against politics. In times of economic and financial crisis, there is a comprehensible tendency to reexamine the structure and formation of the Federal Reserve System. A central bank's independence, on the other hand, is the key tool to guarantee a government not misusing monetary strategy for short-term political reasons. In a currently well-known article that was published in the year of 1993, Summers and Alesina found that developed (advanced) nations with high levels of central bank independence also practiced lower average levels of inflation rate from the period of 1955-1988 (Farlex 2013: 1). Figure 1 reprints the chart from their essay, which clearly demonstrates this negative relation. Central Bank Independence and Inflation: “ Figure 1 Central Bank Independence versus Average Inflation. (Louis 2009: 1) More recently, as the top diagram in Figure 2 demonstrates, global inflation has slowed highly since the mid-1990s. On the other hand, as the bottom two diagrams point out, the rapid fall in global inflation was primarily due to growths in emerging marketplace and developing countries. In the advanced nations, the slowing happened much earlier, in the early 1980s. There were numerous causes for the global decline in inflation since the late 1980s, and this included stronger commitments to stability of the price (superior monetary policies), high rates of growth of productivity and the forces of globalization that increased rivalry and enhanced the elasticity of product and labor markets. As recommended by Summers and Alesina, increased independence of central bank appears to be another key motive for the decline in worldwide inflation (Farlex 2013: 1). As publicized in the table below, there was a noticeable increase in central bank independence among the period 1980-89 and 2003. Though this trend was apparent and noticeable among advanced countries, it was particularly visible among developing countries and emerging market. Indeed, majority of the reforms that enhanced independence of the central bank occurred for the period of the 1990s and were in response to high levels of inflatio ...Show more

Summary

Analysis of American and European Central Banks Introduction: To answer this issue properly there is a requirement for a country-specific measure as well as data to be obtained from the central bank. Many economists have developed measures of CBI from various legal indicators, some of which are conferred in this essay…
Author : rhiannonwiegand
Discuss by collecting and analyzing historical data and by giving up-to-date real life example(s) from the American, UK or Europ essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Discuss by collecting and analyzing historical data and by giving up-to-date real life example(s) from the American, UK or Europ"
with a personal 20% discount.
Grab the best paper

Related Essays

Applying Psychology to Giving Up Smoking
Some of main effects which can occur on the health of a person due to smoking including heart diseases, mental stroke, altered brain chemistry, graves disease, gum disease, wrinkles, and cancer of the esophagus. “Non-smoking spouses and children are exposed to second-hand smoke, may adopt the same negative behaviors, and often have poor nutrition and diets” (Stritof, n.d.).
5 pages (1250 words) Essay
Discuss by collecting and analyzing historical data and by giving up-to-date real life example(s) from the American, UK or Europ
Governments have minimized this bias by giving their central banks a legal independence. The flat money system adoption has resulted to the present rise in the inflation rate of many countries. The rise in inflation tends to differ from one nation to the other.
10 pages (2500 words) Essay
Collecting Data
The ethnographic method starts with selection of a culture, review of the literature pertaining to the culture, and identification of variables of interest -- typically variables perceived as significant by members of the culture. The ethnographer then goes about gaining entrance, which in turn sets the stage for cultural immersion of the ethnographer in the culture.
8 pages (2000 words) Essay
The History of The American Theater to Date
The focus in this paper is on the history of American Theatre which begins in the post-Civil War period, weaving its way through the development of American theater through 1945 and well into the twenty-first century. However, it is mentioned that between 1870 to 1920 the theater experienced its most dramatic change in the United States.
5 pages (1250 words) Essay
Discuss lock-and-key theory of enzyme-substrate interaction giving specific example to illustrate theory. Include the effects of substrate concentration, pH cha
This they do by lowering the activation energy and once the reaction starts going, it runs on its own.  This is facilitated by the formation of enzyme-substrate complex. The main theory for the formation of enzyme-substrate-complex is called lock and
4 pages (1000 words) Essay
APPLIED BEHAVIORAL OBJECTIVES COLLECTING/ANALYZING DATA
then planned to investigate and evaluate the effects of similar and dissimilar interspersed task in relation to children with autism or developmental delays learning object labels. The authors then conducted a set of analyses using a reinforcer. The reinforcer was given for
2 pages (500 words) Essay
Real Data
The software then uses audit capability to store, retrieve and analyze data. As real data consists of formats that can be used for statistical analysis, it is increasingly being preferred over nominal data. A very good example of
3 pages (750 words) Essay
Chinese-born painter Z. S. Liang creates historical scenes of American Indian life by Norman Kolpas
In fact, Liang wanted to become an engineer as his childhood fantasies were full of military artillery that ranged from weapons, ships, submarines, airplanes. Nonetheless, the purge by Mao led Liang to artwork that mainly consisted of Mao and Chinese workers.
1 pages (250 words) Essay
Write an essay comparing and contrasting the insights afforded by 2 different approaches(decision making theory and domestic sources of foreign policy) to understanding the foreign policies of contemporary states giving example from real life
This is majorly as a result of the rate at which businesses are going global currently. Because these policies are always national, different countries usually have different foreign policies. This can be because of
16 pages (4000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation