Free Essays on Central Bank to Get Inspired & Learn by Example

Central banking system is a major part of any economy. Central banking systems in the economy have important roles that they play in driving a country’s economy. They regulate money supply; they are responsible for controlling the interest rates as well as looking after the banking system within the country. Today, central banks are acting as agencies of monetary policy. Central banks play important roles in creating financial stability functions in a country. In United States, the central banking system is called Federal Reserve Bank (Fed). The importance of central banking in U.S. is emphasized in the roles Continue reading...

Introduction

The recession is a decline in production, characterized by zero growth in gross national product (GNP) or falling for more than six months. The recession is one of the phases of the economic cycle, following after the boom, and is replaced by depression.
In general, the recession means a slowdown in economic growth and decline of production processes, resulting in a zero growth or uncritical, a moderate decline in gross national product (GNP) and gross domestic product (GDP) - the main indicators of the overall economic condition of the country. The recession may be caused by a number of Continue reading...

One of the key economic principles states that money tend to depreciate in value over time. On the one hand this principle is based on the fact that resources eventually rise in prices due to their scarcity and speculation-oriented market relations. On the other hand, the banking sector encourages money multiplication through borrowing operations. The faster money lose value the more unstable becomes the economy. Therefore mainstream economic theory suggests that inflation should be controlled. Many developed countries abuse monetary instruments through means of central banks to achieve the reasonable rate of inflation. This process is also called inflation Continue reading...

This essay will shed some light on the monetary policies of Central Banks of USA to fight against economic instability and compare their approach with Bank of Canada.

Greenspan Put

Greenspan Put was a popular monetary policy implemented by Alan Greenspan, the former Chairman of the USA Federal Reserve Board and other members of FED from 1987 till 2006 . This monetary policy refers to the strategy of supporting the securities markets by reducing the interest rates and hence, directing the money flows into the markets. This term was introduced in 1998 when FED reduced interest rates after the failure of Long-Term Continue reading...

Abstract

This paper is aimed at answering five major questions as provided by the instructor. The questions are related to the Federal Reserve and its role in affecting the economy of the country. The first question is related to evaluating the role as well as the effectiveness of the Federal Reserve in stabilizing the current economy. The second question pertains to determining the economic indicators the Federal Reserve should analyze in order to better stabilize this particular economy. The third question is about describing which monetary policies the Federal Reserve might use to influence the money supply. In the answer Continue reading...

1.0 The money market and its transactions
The money market is the center of credit exchange in the United States and around the world. It is where businesses (local and global), governments (local and global), and individuals (local and global) borrow or lend short-term credit instruments usually for a term of 1 to 120 days (Kidwell & Peterson, 1987). Instruments include the U.S. Treasury securities (e.g. Treasury bills), negotiable certificates of deposit (time deposit), commercial paper (short-term unsecured promissory notes), banker’s acceptances (time drafts), and repurchase agreements (sale of short-term security or collateral). However, the U.S. Treasury bills are Continue reading...

Many nations across the globe strive to have their economies stable and able to meet all the requirements and basic needs of the government and the people. However, this goal is not achieved without adequate planning and controlling of the monetary policy of the state in question. In most cases, therefore, the central bank is tasked with the responsibility of ensuring that the economy is stable. There are other stakeholders who also must chip in to ensure that the required rates and returns are maintained at all times.
In a bid to stabilize the economy, the central bank is Continue reading...

Government is the strongest agent among all the agents in an economy with its fiscal and regulation power. In the capitalist economies, the government intervention is not appreciated because the intervention to the economy might cause inefficiency. However, the capitalist market mechanism might create inefficiency that might require intervention. Thus, the government intervention to the markets is not desired but sometimes necessary.
The economy management consists of two parts in almost every economy: monetary policy and fiscal policies. Central banks are responsible for developing monetary policies to respond the changes in the money markets while governments can develop fiscal Continue reading...

Introduction:

It is inherent for everybody to know the history of their own society. Reading books as well as analyzing some past political topics are very essential on that context. As for this report, the referred country is the United States. The United States has been growing its power ever since it was established as a nation. Evidently, a nation is either ruled by a President or a Prime Minister depending on the form of state they have. Regardless of which position they have come from, a president must cater to the needs of its fellowmen. He is obliged to Continue reading...

Article Summaries

There was panic on 15th January when the Swiss National Bank made it clear that it was not going to hold the Swiss Franc any longer at an exchange rate in relation to the euro. This led to the appreciation of the franc such that the exchange rate of Euro to Swiss franc was 1.2. In 2011, the financial markets around the world were not doing well, and this was when the exchange –rate peg was introduced into the market by SNB. The American government bonds and the Swiss franc are very popular with investors since they believe that Continue reading...