This paper talks about the economic activities of central banks in achieving goal of sustainable economic development of a country It is argued, that independence of the central bank of a county is important for exercising control over the commercial banks through monetary policies. …
For instance under the floating exchange rate regime, protecting the value of the domestic currency against US Dollar and other international currencies calls for vigilance and continuous monitoring of the world economy through various economic indices. Regulating money supply and interest rates are governed by several domestic and international factors as well. Therefore, independence of the central bank is necessary to deal with these problems effectively without any interference in the regulatory process. However, the level of independence varies from country to country based on the political and economic system prevailing in the countries. Long ago in 1929 Montagu Norman, Governor of the Bank of England wrote: “I look upon the Bank as having the unique right to offer advice and to press such advice even to the point of nagging: but always, of course, subject to the supreme authority of the government” (Toniolo, G. 1988 p. 47). This statement underlines the need for independence as well as its limitation. The role of central bank Central bank’s monetary policies have different impact on different economic variables of the economy. Increase in money supply with or without decrease in interest rates could trigger inflation in the economy. Therefore, careful analysis of the economic indicators is important in taking appropriate action by the central bank. For instance, inflation in this case could affect consumption thereby demand for the products. At the same time, this could increase capital investment and results in employment generation. Stability in exchange rate is another important factor which could affect inflation in the country and foreign direct investments in the country which will have...
This paper offers a comprehensive analysis of the role of central bank in terms of economic performance of the nation. Influence of the political independence of central bank operations in context of achieving its objectives is under review.
In order to achieve economic growth in a country, formation of capital is essential for fresh investments in the economy. Increase in aggregate demand in the country is an important factor in this regard for attracting investment of capital in new projects. Liquidity in the system as well as interest rates should be monitored and regulated on a continuous basis by the central bank to provide good environment for capital investment and consumption which in turn will generate demand for the products. However, the central bank should also ensure that it does not result in overheating of the economy.
Regulating interests and money supply in the economic system is very complicated in the backdrop of technological developments taking place in the world and globalisation of economies.
The independence of the central bank of the county is very important for exercising control over the commercial banks in the country through its monetary policies. The monetary policies need to be complementary to the fiscal policies of the government to achieve its economic objectives. A country with high central bank interference need to introduce reforms to make the institution more independent within the timeframe set for this purpose to improve stability in liquidity and prices. ...
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They are managed differently and have different functions. One of the functions of RBA is banking supervision and so the organization works closely with Banks including Westpac. RBA reports to Parliament while Westpac reports to its shareholders. In terms of corporate governance Westpac separates the post of Chairman from that of CEO while in the case of RBA the Governor is the CEO and Chairman of the Bank.
Generally it looks after the policy formulation process and how it concentrates on the growth strategies which will drive the GCC countries on the path of progress. Introduction Gulf of Cooperation Council (GCC) countries have many things in common. All of the GCC countries are major oil exporters and they have fixed exchange rate regimes which exposes them to the risk of international oil prices.
This paper analyses the structure of the proposed central bank for GCC, its objectives and functions as well as why the implementation has been retarded. Introduction Economic structures of countries in the GCC region are similar as most of them have their GDP majorly influenced by natural minerals and more so hydrocarbon sectors.
Unlike any straight forward banking system, this has to integrate all most of the characteristics of all its affiliates to promote efficiency and effectiveness in banking within the region. The structure would therefore be quite different from those of single country central banking systems.
The formation of the Central Bank includes a study of the probable form or structure of the Central Bank in GCC. The operations of the Central Bank in GCC have been compared to the operations of the European Central bank based in Frankfurt, Germany. The arguments in favour and opposing the formation of the Central Bank have been provided in this piece of work.
The two will see the formulation of financial policies in the region that will help deal with the issue of inflation and interest rates. This is bound to give the oil rich region more control over their economy and balance trade within
cts including its structure, similarities or differences from the European Central Bank and arguments along with counter-arguments against GCC Central Bank will be duly considered for discussion in this assignment.
In relation to the above context, it can be apparently observed
Hunger issues have been bedeviling Americans since the year 2008 when the recession kicked in. Eight years later the issue is still to be addressed thou statistics indicates that the number of people faced
4 Pages(1000 words)Assignment
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