Country report on the monetary policy of a central bank in the UK - Case Study Example

Only on StudentShare

Extract of sample
Country report on the monetary policy of a central bank in the UK

Country report on the monetary policy of a central bank in the UK

Financial crisis harmed global financial market rapidly during the year 2007 to 2008. Crisis affected the developed countries rapidly. Financial crisis hit American financial market by Lehman Brother’s bankruptcy. Financial crisis is reducing the scope of housing market efficiency in the UK. Return of the investment of the housing markets are declining rapidly. Droop in housing demands harmed the economy of the UK. Institutional and individual investors are not able to recover proper return as housing estates are not able to earn profits in the time of financial crisis (Bankofengland.co.uk, 2015b).
Debt interest rates are depending on potential mortgage assets. During the years of 2007 and 2008, potential and already investors are having lower ability to invest money. Financial institutions are having low investment. People at that moment of time preferred to hold liquid cash rather than investing those. This policy of the people reduced the potentials of mortgage keeping. Securities of loan payment are facing hindrance of risk potentials. In the UK many small sized banks are losing out the rate of reserve which they are unable to provide credit. Housing industry of the UK faced certain risks regarding collection of investment from money and exchange industry. Money exchange market of the UK has lost the feasibility during 2007 and 2008 period. ...
Download paper

Summary

Financial crisis is one of the major curses for the globalised world. Economic recessions and inflation is one of the major imitating factors in the global economics. In the current study, the researcher is going to present a national report based on monetary policy of the Bank of England. …
Author : bernitaschmidt

Related Essays

UK monetary policy
United Kingdom has been working hard to recover from recession and support growth over the last few years. The policy mix has been of help in rebalancing the United Kingdom economy from recession toward external demand and investment. The government of United Kingdom has been implementing a strong fiscal consolidation with the aim of reducing budgetary risks. This paper focuses on the UK recession and the role played by the impact of the monetary policy in economic recovery. The United Kingdom has the chance to reduce the interest rates that have been set by the central bank now that the...
10 pages (2510 words) Essay
Bond Yield Under Various Assumptions
Nevertheless, the concept of the price of a zero coupon bond articulated in the PowerPoint slides and the concept of the present value are similar. One of the more important concepts in bond valuation is term to maturity. Term to maturity “specifies the date or number of years before a bond matures (or expires)” (Reilly and Brown, 2002, p. 697). Another important concept is the coupon of bond which “indicates the income that the bond investor will receive over the life (or holding period) of the issue” of a bond (Reilly and Brown, 2002, p. 697). Other than concepts term to maturity and...
8 pages (2008 words) Essay
Assignment
The AYP must also have its basis on assessments by the state, as well as one additional indicator of academic performance. The objectives also need to be set out with the aim of having all learners gaining at least a proficiency level in the next twelve years, i.e., by the 2013-2014 academic year (Olivert 43). The adequate yearly progress objective also need to be evaluated at the school level, with schools failing to meet the laid down objectives for two years in a row being marked for improvement. The AYP results for the mentioned special groups of children need to be reported as a separate...
4 pages (1004 words) Essay
see reqiurmence
Before embarking upon the discussion a brief look into the background would be helpful. The famous Silk Road paved the way for the Chinese goods that mainly consisted, silk, printed paper, gun powder and compass. Not only those are goods but ground breaking inventions that held the Chinese head high at the global arena (Whitfield, 2004). The communist government was established in China in 1949 and China entered a prolonged phase of social and economic restructuring till 1977 (MacKerras & Yorke, 1991, p.81). This phase is characterized by meager economic exchange. (Bell, Khor & Khochar, 1993)....
7 pages (1757 words) Essay
Hyperinflation in Zimbabwe
Two major events precipitated inflation in Zimbabwe and that is, involvement in Congo civil war in 1998 and the land expropriation of 2000. The Zimbabwe government entered into war on the side of Zaire’s dictator Laurent Kabila without having budgeted for the war, without any reserves for the war or any arrangements to raise the funds. The land expropriation program of 2000 saw the government forceful take 4,500 farms from white settlers and give it to war veterans and politicians (Coomer and Gstraunthaler 312). This led to reduction in foreign investment from 400 million US dollars in 1998...
5 pages (1255 words) Essay
Holding up general motors? Issues in the fisher body case study
Holding up general motors? Issues in the fisher body case study ...
7 pages (1757 words) Literature review
assignment
Fed can purchase government either securities or lowers current reserve rations. In doing so, interest rates will fall and hence bringing the economy back to full employment....
4 pages (1004 words) Assignment
Got a tricky question? Receive an answer from students like you! Try us!