Essays on Central Bank

Over the last several years, Qatar has experienced significant continuous growth in the high real GDP. This has been characterized by an expansion of about 4.30% in the last quarter of 2013. These growth rates of GDP in Qatar occur through the reports made by the Qatar Statistics Authority. Since 2004, the GDP growth rate in Qatar has stagnated at 4.0% but in 2008, the rates went to a height of 14.4%. However, towards the end of the same year, the rates declined of -23.2%. These aspects have largely contributed to the growth of Qatari’s into one of Continue reading...

International Financial Management

Answer-5)
All the money supply in the country is controlled by the Central Bank and it has a number of options to control it. The best of them is Open Market Operations (OMO). It will be used in this particular analysis. Let’s assume that Thailand’s central bank is looking for the ways to prevent the withdrawal of the funds from the country.
It is fully controlled by the government and the country. The country may issue government based T-Bills and securities of different maturities like 1 year, 6-Months, 2 years and others. This would help investors to Continue reading...

Reply to Classmate 3:

Sharing an insight to my classmate’s reference that the nation faced failing foreign currency loans post the 1981 period, important to note, during 1980 and 1981, the nation was receiving good amount of net foreign loans that amounted to 6.2% and 3.1% of GNP, respectively during the years. However, beginning with 1982, the net new lending declined significantly and turned negative. As a result, net resource transfer that accounted for 3.1% as a percentage of GNP during 1981, plummeted to -3.4% in 1982 and -6.9% in 1983, thus infusing the early stages of hyperinflation in the country.
In Continue reading...

Literature Review: SME’s facing difficulties in Europe

Definition of SMEs varies depending on individual nation and their financial institutions. (Beck ,2013) notes the differentiation relating to various aspects as number of employees, capital, sales and turnover. SMEs take a significant role in the economic development of the nation as it has a critical role in shaping the economy of any nation through job creation, social stability, foster economic growth, generate low income for people, and development of firms. Therefore, financial services are significant in creating vibrant environment for SMEs. Nonetheless, access to the financial services has always been a hindrance for SME’s and this report Continue reading...

The European System of Central Bank (ESCB) is governed by European Central Bank (ECB) and the National Central Banks (NCB) of European Union Member States. European Central Bank is the Central Bank of Europe Zone. ESCB is governed by the governing council and other decision making bodies of ECB. The governing Council is responsible for making monetary decisions and the Executive Board is empowered to implement monetary policy as per the framework of decisions laid by the Governing Council. Just like any other Central Bank, the core function of ECB includes maintain price stability of the local currency in Continue reading...

U.S. Banking System 1791-1836
The First Bank of the United States was created in February 1791. The U.S. Congress chartered this bank for a period of twenty years to serve as a fiscal agent for the U.S. Treasury. The semi-private, semi-public national bank was a significant factor in the building of the U.S. economy in this period. This bank performed the first central bank functions for the U.S. government and ran from 1791 to 1811, when the U.S. Congress failed to renew its charter. This bank was important because the U.S. government had accumulated a debt to finance the Continue reading...

Question1

The first currency to be issued in U.S was called continentals and was in period from1775-1791. Therefore, this was the country’s first paper money and was printed by Continental Congress to finance American Revolution. However, this currency led to inflation that eventually accelerated as war progressed (Meltzer 19). People lost their faith in these fiat money notes hence the slogan “Not worth a continental” meaning changed to “utterly worthless”

Question 2

Fiat money is actually the money, which derives its value from law or government regulation. Thus, this is a term that is used when this money is used as Continue reading...

Question 1

Keynesian argument
The Keynesian ideas were developed in 1930s at the time of Great Depression when orthodox economists had failed to explain the rising effects of unemployment and downturn of the economy. Earlier economists had argued that economy should be left to operate on itself without any external interventions from the government. Keynesian advocates for government interventions. In the case of unemployment, he suggests that the government should intervene by increasing its spending and decreasing level of taxation, which are fiscal policy tools. Through these interventions, there will be increase in aggregate demand and output which, in the long Continue reading...

Unlike most countries, that use the central Bank system the U.S has a federal Banking system which is also known as the fed. The headquarters of the federal Bank is in the capital Washington D.C and also has other twelve district banks in different locations. Decisions made by the Federal Reserve Bank are critical because they ensure that the country has a safe and sound financial system. Federal Reserve Act established the fed in 1913 and was formed to solve problems of money in the country. Therefore, the Federal Reserve Bank is mandated to formulate the best fiscal and Continue reading...

Higher Educational Establishment

Introduction
Aggregate demand and interest rates, along with the actual economic growth and the prospects are the benchmarks of any Federal government. In order to control the economy, government uses monetary policies to analyze essential measures.

Open Market Operation

Open Market Operations involve purchase and selling of governmental securities which helps to stabilize inflation. The Federal funds rate is equal to the interest and lending rates, according to which financial institutions charge for the loans. The Domestic Open Market Operations are guided by the Federal Open Market Committee and continuing with the aid of strengthening the efforts to support economy recovery path Continue reading...

Introduction:

Monetary policy refers to the strategy undertaken by a country’s monetary authority to control money supply usually by targeting the interest rate to facilitate economic growth and stability. The Australian government charges the Reserve Bank of Australia with the responsibility of maintaining sustainable economic growth, high employment rate and steady prices. In other words, the RBA strives to achieve the goals of full employment and non-inflationary level of total output. To accomplish these objectives, the RBA closely monitors the economy and puts in places policies to either increase or decrease the amount of money circulating in the economy. Continue reading...

Introduction

In order to ventilate on whether poor countries around the globe get richer, the author explores the possibility that poverty trips exist, and they ensure that even if the economic performance of poor countries is at par or even better than that of rich countries over a similar period, poor countries remain poor over time. I argue that the possibility of poor countries getting richer is impeded by protracted periods of negative economic growth and stagnation in the national incomes.

Discussion

The economic growth of a country is influenced by many factors, among them, per-capita income. Per capita income is Continue reading...

ABSTRACT

Federal Reserve Bank, commonly known as FED, has been established with the aim of stabilizing the overall financial system within the US economy. FED has been using different tools and methods like open market operations, moral suasion, discount rate, and the reserve requirements in order to achieve the overall economic goals. These economic goals include; reducing unemployment and inflation, and accelerating the process of economic growth. In order to overcome the today’s economic challenges, the chairman of Fed should work on controlling the monetary measures and pulling strategies which benefit the global economic growth.

INTRODUCTION

Money market is a Continue reading...

Introduction

The actions taken by the Reserve Bank of Australia to influence the cost and supply of money in the economy are referred to as the monetary policy. The main tools through which the monetary policy influences the market operations is the interest rate that is paid on the loans from the money market. Manipulating the interest rate is the main tool of RBA to influence its monetary policy. RBA is the central bank of Australia; and it is the role of the central bank to ensure price stability by controlling the supply of money. So, a stabilizing role is Continue reading...

Introduction

Situated between the North Atlantic and Arctic Ocean, Iceland is one of the Nordic countries falling into the European continent. The population of the country is 321,000 and the total area of the country is 40,000 sq. mile. Iceland is the least densely populated country in Europe. The capital city of Iceland is Reykjavik which is also the north most capital city in the world. In 2008 when a global financial meltdown started in US after the bankruptcy of Lehman Brothers, Icelandic economy was hurt badly by the crisis. This resulted in the whole banking sector of Continue reading...

ABSTRACT 3

INTRODUCTION
Background 4
Information Sources 4
Limitations 4
ANALYSIS
Quantitative Easing 5
Third Round of Quantitative Easing 7
Fiscal Cliff 8
European Debt Crisis 9
CONCLUSION 12

REFERENCES 13

Abstract
In is an analysis of the government’s role in the economy is presented. The articles from Economist.com namely, The Federal Reserve launches QE3 and The ECBs Bond-Buying Plan were analyzed in light of the theories and principles in Economics.
The themes of the two articles focused on the two Central Banks’ (the Federal Reserve and the European Central Bank) attempts to stimulate their respective economies through the use of ‘unconventional’ Continue reading...

OPEN- ECONOMICY MACROECONOMICS

Fixed versus Flexible Exchange Regime, Determination of Exchange Rate in Free Markets:
Fixed currency exchange rate, or in other terms pegged exchange rate denotes the fixation of a currency value against any other currency or to a whole lot of other currencies. This is usually done for stabilization of the currency pegged to the other currencies. Floating Exchange Rate is the exchange rate of the currency value which is fixed by the free market. The exchange rate of a currency is variable depending upon the amount kept in foreign reserve and fluctuating demand and supply of the particular currency.
Continue reading...

Chapter One: Introduction

- Introduction
Technology has become an essential part of human operations; numerous fields of work today, use technology-based applications while carrying out daily activities. This is because the use of technology aids the execution of duties by saving time and costs. The advancements in technology have made work easier; a comparison between the ancient days and the present shows that operations in the present time are efficient and save resources, because of technology use.
The banking and finance industry in Australia is one of the industries that have embraced the use of technology applications in their operations (Cornish, 2010). Continue reading...

Table of Contents

Monetary Authorities..

Central Bank of Sweden (Riksbank).

UC AB, the Swedish Business and Credit Agency...

Association of Commercial Banks of Sweden.

Direct and Indirect Exchange Rates between Swedish krona and other countries..

Stockholm Stock Exchange...

References.

Currency of Sweden
Sweden was the second country after Germany to join the EU in 1995, but it did not become a member of the euro area due to limitations in its political regime. The national Swedish currency is krona. One krona consists of 100 öre. ISO 4217 code of the currency is SEK, symbol - kr. To find out more about Continue reading...

Introduction

The BRIC nations, made up of Brazil, Russia, India and China have been projected to be the world emerging economic powers. These countries account for close to half the world’s population. In recent times, the BRIC nations have contributed to most of the world’s GDP growth. These nations have been regarded as powers to watch as regards to world economic growth. These countries have not only been observed to be emerging economic powers but have also shown signs of gaining control of the world economy. These emerging nations have an advantage over other nations of the world Continue reading...

Indian Rupee value against U.S. Dollar is hitting all time low. For past few months a significant down fall has been noticed in the value of Indian rupee. In the month of August value of rupee against USD reached to 68.8 by touching all time low. Reserve Bank of India took several steps to control the down fall of rupee in order to protect economic balance. This paper intends to discuss causes and effects of Indian rupee depreciation. The paper will further elaborate benefits of depreciation to Indian economy, internal and external factors, and necessary measures, to be taken Continue reading...

BUSINESS REPORT: THE AUSTRALIAN ECONOMY

China is currently the second largest economy in the world which has witnessed massive economic growth in the last decade, however, the rate f economic growth in the country has gone down in the last two years and this has had direct effect on other countries such as Australia. This paper aims to show how the economic slowdown of China has affected Australia. The paper also aims to show how ten Reserve Bank of Australia uses interest rates to stimulate economic growth and finally, the paper aims to explore some of the policies that the new Australian Labor government Continue reading...

DUTIES OF CENTRAL BANK

The main duties of any central bank is to formulate and implement monetary policies on behalf of the government, act as a banker to the government and produce currency notes and coins for the country(Capie and Wood,2003). However duties and goals of central bank of specific country may differ depending on the laws and economic conditions of that country.

DUTIES OF UNITED ARAB EMIRATES CENTRAL BANK

Some of the duties of the central bank of United Arab Emirates are the following:
- Exercise the privilege of issuing currency on behalf of the government

DUTIES OF UK CENTRAL BANK

- Ensures price stability so as to maintain public confidence and Continue reading...

INTRODUCTION

The Federal Reserve System also known as the Federal Reserve was formed on December 23rd 1913 after the approval of Federal Reserve act (Beckhart, 2). The enactment of the act was accelerated by a series of financial panics, mainly by a severe panic in 1907(Bechart,2).It’s main objective was; to provide economic stability by formulating and implementing monetary policies that will ensure price stability, to facilitate discounting of commercial papers and lastly to regulate the activities of commercial banks (Prochnow,3).
However the goal of the Federal Reserve has changed overtime and broadened to accommodate other Continue reading...

Economics of Global Money Markets

When money became a commodity, money market became part of the financial markets for the reasons that assets that are involved in short-term buying, borrowing, selling and lending with the original maturities of about one year or less. The trade in money markets is carried out over the counter and as such it is wholesale. There are various instruments that exist and they include deposits, treasury bills, bankers’ acceptances, certificates of deposit, bills of exchange, commercial paper, federal funds, repurchase agreements and asset backed securities. This provides a funding that is liquid for the global financial system. Capital markets Continue reading...

Introduction:

One of the oldest banking institutions, Bank for International Settlement was established in the year 1930. Bank for International settlement is having it’s headquarter in Basel, Switzerland and two regional offices, one in Hong-Kong to serve Asia and Pacific and another office in Mexico for America. Bank for International settlement provides its services to central banks and operates as per the guidelines of international law. The role and journey of Bank for International settlement has been very evolving. The institution always had been very responsive to the changing economic environment and needs of customers. At the time of Continue reading...

Problem 1

In a fixed exchange rate regime (also known as pegged exchange rate), official exchange rate is tied to the exchange rate of another country. In some cases, it can be tied to the prices of gold. Free floating exchange rate changes freely and is determined by the demand and supply of that particular currency relative to other currencies. In the managed floating system, central bank at some frequency often intervenes not to allow the exchange rate getting away to some unexpected level.
The fixed exchange rate system keeps currency value within a narrow range, whereas currency value can be Continue reading...

Introduction. 3

Expansionary monetary policy.3
Contractionary monetary policy3
Australian monetary policy3
Objectives of Australian monetary policy.4
Australian Monetary policy framework4
The decision process in monetary policy...5

Monetary policy implementation in Australia5

Transmission of Monetary policy to Australian economy.6
Conclusion .7
Introduction
The monetary policy is a policy that is used by the monetary authority of a given country to control the money supply in the economy. This policy frequently targets a certain interest rate with an objective of promoting economic stability and growth in an economy. The official goals normally include relatively low unemployment and stable prices. This policy can either be expansionary or contractionary.

Expansionary monetary policy

An Continue reading...

Abstract

This Research paper critically analyzes various suitable appointments for an electrical engineer while narrowing down to a particular post of chief engineer at Federal Reserve Bank of Richmond. This paper further elaborates the requirements for this post. It also discusses expected salary for this post while considering the technical skills that are required for this job. Furthermore this research paper discusses certificates required for this job and testifies if some of these certifications are offered by ECPI College and what could be challenges in successfully in complete these certifications. At last this research paper put light on the possible Continue reading...

Financial crisis 2008

The U.S financial institutions provided services to the citizens whereby the mortgage loans were given out without securities and rate of interest. This was extended to the point that the period repayment and its terms were not logical as the borrowers could not meet the terms (Savona, Kirton, & Oldani, 2011). It led to the entire market interest rate to abruptly rise hence interrupting to all the plans that the financial institution had in their plans. The mortgage lenders gave out the money in the form of loans without putting in place the appropriate measures. The financial institution never saw Continue reading...

Introduction

Monetary policy refers to those policy measures targeted at achieving desired economic outcomes through money market operations. Authorities in charge of money market control use different policy instruments to control the money supply in order to achieve suitable market prices as well as stability in the national economy. The key instruments at disposal for those authorities include open market operations, minimum reserve ratio as well as bank rate. However, the policy instruments application does not have a direct impact on market prices and demand but follows a transition mechanism from the authorities’ actions to the desired economic results. In Continue reading...

World economy is a complex unity of all local economies represented in the world. Due to the continuous processes of globalization and integration, whatever changes take place in one country, they are easily shifted into another area along with all related effects. That could be even compared to “the domino effect”. And it would be a very positive aspect if not for all the bugs and issues which evolve each day on every market, either local or global, influencing the overall situation in one country or the world economy as a whole.
Quite many economic “viruses” can be recalled Continue reading...

Article Review: Japan’s Growth Strategy is All Wrong

Abstract
The article Japan’s growth strategy is all wrong is about the policies implemented by the Japan government led by Prime Minister Shinzo Abe that is viewed to jeopardise the country’s low interest rate environment that is conducive for spending and investment. The purpose of the student in writing this paper is to present the economic problem faced by Japan as an implication of the policies executed by the government, applying the concepts and principles that I have learned in my Economics.
The article entitled Japan’s growth strategy is all wrong is about the policies implemented Continue reading...

Liquidity is the ease of buying or selling an asset or a security without significant effects on the market prices (Baum, 2006). In the financial market, liquidity refers to the availability of credit or the ease of borrowing. Unlike a house, securities such as treasury securities, Eurodollar future contracts and the Standard & Poor’s 500 Index are all liquid since they can be easily converted into cash. In this case, liquidity refers to the ability of the central bank to provide money to the economy (Baum, 2006). This is reflected in the multiplier effects of the financial system. The Continue reading...

Introduction

The Foreign Sovereign Immunity Act is a law that has been codified in the United States that was specifically made to establish the grounds and limitations as to whether a foreign entity, or a foreign sovereign nation at that, can be charged and be subject to trial in a U.S. federal or state court . Apart from being a common legal ground for various legal cases that mostly involve multi-national entities or those that have different international origins, the Foreign Sovereign Immunity Act (FISA) may also be used as a strong basis—in fact, in many legal cases, it the Continue reading...

Monetary system in India

Abstract
Banks and central banks have a great role to play in the development of a country’s economy. In essence, banks provide and create money through credit, a scenario that provide a country with the much needed where withal to implement major policies. Banks have emerged as the new fore front of development across the world with institutions and government agencies turning to banks for support and growth. Yet, the banking sector remains prone to external shocks such as business cycles and political turmoil. Furthermore, banks require a secure and flexible legal structure to offer services to people. Continue reading...

Introduction

Nigeria is one of the fastest growing economies in the world. It is growing at a rate more than 8% for the last decade. But Nigeria also has one of the highest percentages of poor people in the world and the percentage of poor population is continuously increasing. The growth curve of Nigeria is unable to improve the lives of the poor and destitute. As it happens in many developing countries, the mainstream financial institutes in Nigeria completely exclude the poor population from having any access to the financial system. This makes their daily living a perpetual struggle with Continue reading...

Introduction

The need for government and central bank intervention in the market has historically received support from a number of scholars. For instance, the economic idea of government intervention (demand-side management) in the market is largely attributed to the Keynesian economics, which is highlighted in the book, “General Theory of Employment, Interest, and Money” by John Maynard Keynes published in 1936. According to the Keynesian economics, automatic market forces (alone) may not trigger a condition of economic equilibrium, particularly during a financial crisis. This is primarily due to the presence of economic inefficiency brought about by market externalities. Closely linked Continue reading...

Inflation targeting and Interest rate targeting are two primary and most popular monetary policies across the globe today. Inflation targeting can be defined as a central bank policy that revolves around meeting and adhering to preset and publicly displayed targets for the annual rate of inflation (investopedia 2013). The benchmark used for inflation targeting varies from country to country but is some form of price index of a variety of consumer goods. Most commonly this benchmark is Consumer Price Index (CPI). While Interest rate targeting as a monetary policy regulates and checks the interest rate charged by one depository Continue reading...

The themes of the two articles focused on the two Central Banks’ (the Federal Reserve and the European Central Bank) attempts to stimulate their respective economies through the use of ‘unconventional’ monetary tool (i.e., open-ended bond purchases to drive down the interest rates also known as quantitative easing). Though the Fed and the ECB have used the same monetary tool to affect economic activity, the goals were different: the Fed aims to boost the economy’s output while the ECB aims to save the euro.
I am interested in exploring how monetary policy affects the economic activity of a Continue reading...