StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Central bankers rush to calm jittery markets - Case Study Example

Comments (0) Cite this document
Summary
Central Bankers Rush To Calm Jittery Markets Considering the past financial crisis and economic meltdown, it is indeed important for all the financial institutions led by the central banks’ management to try to curb the repeat of the same…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
Central bankers rush to calm jittery markets
Read TextPreview

Extract of sample "Central bankers rush to calm jittery markets"

Central Bankers Rush To Calm Jittery Markets Considering the past financial crisis and economic meltdown, it is indeed important for all the financial institutions led by the central banks’ management to try to curb the repeat of the same. The management of these institutions has come out to calm the current rough terrain experienced in the markets. According to Brian Milner of The Globe and Mail in his article “Central bankers’ rush to calm jittery markets”, he asserts that the Central bankers are really trying hard to bring comfort to the markets. The bond yields have really gone up and this has exposed the global recovery at risk according to Milner. The bond yield is said to have been caused by the U.S Federal Reserve who have opted for a move to turn off the easy money taps and for sure, this has not gone well with most investors who have lost a lot (Milner, 2013). Most of the countries with huge debts are really affected because of the rising cost of financing thus making it difficult for the nations to adequately recover from the economic recession. It is therefore clear that most nations are experiencing difficulties unless the central banks tighten their move to curb the suffering. The Chinese government is amongst the countries that have tried to curtail the market qualms by stopping the irresponsible lending. This move is indeed very useful because it’s effects really hit the world when it began in U.S. It is important to rate the creditors and ascertain their ability to repay loans before granting them the money to a void recklessly lending. Although this move resulted into an abrupt credit crunch, the People’s bank of China did not take necessary action as soon as possible. The banks of England, China and Fed have vowed to fight the crisis which they feel that has been caused by misunderstanding and perhaps overreaction. There is a feeling that the financial markets should come up with rules and regulations to bring the interest rates to normalcy (Milner, 2013). The financial market players should ensure that there are great prospects that would aid in the recovery process. The move by some of the central banks is very critical in stabilizing the money market particularly the interest rates. It is further argued that when some of the cyclical issues and emotional are removed, then the interest rates instability and the skintight liquidity circumstances may progressively reduce. Milner posits that the high borrowing cost was catapulted by strident upsurge in lending and perhaps the high cash demand for holidays. The high cost of borrowing was further believed to have been contributed by the fluctuations in foreign exchange markets. Banks like in China issued guarantee that the liquidity risk is now orderly. China’s central bank promised to maintain a strong communication with the financial market organizations, ensure stable prospects and controlling market interest at the required range. Central banks must be very careful at some of the communication they carry out especially to the public because they may have some adverse effects to the economy. Any communication concerning the financial institutions must not have very serious effects on the minds of investors but should be a calming one (Milner, 2013). Interest rates are very important in the economy as they may either fuel inflation or curb it and eventually affect the economy. The issue of lending made some of the banks to run out of money and indeed this sent very bad signal to the investors. This article has clearly shown the move of the banks particularly in China to curb the interest rates. The signal issued by the banks concerning the interest rates and lending generally was not appropriate. Looking at the weight of the lending issue and the recent economic recession, banks should be more careful in their operations. There should be rules and regulations governing the financial institutions and markets to avoid a repeat of the incidences that happened in 2008 globally. I believe that this was just a hiccup caused by financial institutions’ mismanagement and perhaps refusal by the institutions to listen to the central banks. I believe the reason behind aggressive lending by the financial institutions was because of their capacity to lend but not because of the high demand for money. However, at one point, one can say that the demand for investments must have outweighed the capability of the lending institutions’ equity. But then there must be control for this. If this is the case then the equity capacity can be raised to a certain optimum level. Reference Milner, Brian. (2013, June 25). Central bankers rush to calm jittery markets. The Globe and Mail, pp. 1A, 2A. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Central bankers rush to calm jittery markets Case Study”, n.d.)
Central bankers rush to calm jittery markets Case Study. Retrieved from https://studentshare.org/macro-microeconomics/1482317-central-bankers-rush-to-calm-jittery-markets
(Central Bankers Rush to Calm Jittery Markets Case Study)
Central Bankers Rush to Calm Jittery Markets Case Study. https://studentshare.org/macro-microeconomics/1482317-central-bankers-rush-to-calm-jittery-markets.
“Central Bankers Rush to Calm Jittery Markets Case Study”, n.d. https://studentshare.org/macro-microeconomics/1482317-central-bankers-rush-to-calm-jittery-markets.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Central bankers rush to calm jittery markets

Central Banks Propel Asia Markets

... Task Central Banks Propel Asia Markets Summary The article, “Central Banks Propel Asia Markets” by Turner describes the injection of liquidity into Asian economies in a bid to reduce dollar costs and ease monetary conditions. The result of the injection of liquidity into several Asian economies was the rise in stock values in both the Asian countries and their counterparts in Europe and the United States. This initiative was accomplished through an agreement by the US Federal Reserve, UK central banks, the Euro zone, Canada and other countries to ease the cost of financing. This was done by softening the existing swap arrangements, a deal, which saw the increase in the dollar in Asian stock markets. The loosening of the policy concerning...
6 Pages(1500 words)Essay

The Klondike Gold Rush

... The Klondike Gold Rush Introduction The Klondike gold rush also known as Yukon gold rush or Alaska gold rush was process of commuting to the Klondike region to search for gold. The activity took place between 1897 and 1899 and involved approximately 100,000 people from all over the world but most specifically traders from Seattle and San Francisco.1 The journey involved travelling very long distance and carrying very heavy load. Commuting to Alaska involved use of ships for rich people and walking for the common people. The Klondike gold rush enriched many traders and most specifically the first four thousand traders who went there and acquired the areas with rich deposits of gold. The Klondike gold rush ended in 1899 after the discovery...
8 Pages(2000 words)Research Paper

The films Rush Hour and Rush Hour 2

...?Rush Hour and Rush Hour 2 – Analysis of Scenes Introduction The films Rush Hour and Rush Hour 2 were buddy comedies starring Chris Tucker and JackieChan, and directed by Brett Ratner. These two films are also considered to be action comedies. As such, the shots in these movies tend to be quick shots, and the pacing between the shots is often very rapid. The editing uses some jump cuts, although they were used sparingly in the scenes that will be analyzed. In this essay, the scenes that will be explicated will be the scene in Rush Hour when Carter and Lee meet for the first time. In Rush Hour 2, the scene will be the scene in the massage parlor, right before Carter and Lee get into a fight with the Chinese men in the parlor. Rush Hour...
10 Pages(2500 words)Essay

The Gold Rush

... Critical Analysis of “The Gold Rush (1925)” by Charlie Chaplin In the 1925-film “The Gold Rush” which starred some of the prominent actors of the silent era namely – Charlie Chaplin, Mack Swain, and Tom Murray, acting tools and cinematic elements were designed to convey what seemed as a sequence of tragicomedy-bearing scenes about life in the cold state. Through the direction of Chaplin who is himself the protagonist in the film being the Lone Prospector, the motion picture, as a whole, was made to depict the economic struggle taking place during the early 1900s as well as the manner in which ordinary men go an extra mile to break norms for the sake of surviving the extreme conditions of cold weather, starvation, and especially each...
3 Pages(750 words)Essay

The Differences between Markets and Central Planning

...Managerial economics: Discuss the differences between markets and central planning. Does this issue have anything to do with the demise of the Soviet Union Explain. Central planned economies are also referred to as command economies, in this type of economy the government controls production, the distribution and pricing of goods and services in the economy, the government also owns enterprises in almost all sectors of the economy, as a result the government sets prices, determines what is to be produced and in what quantities. This is in contrast with market economies, market economies are characterized by minimum control of prices and production by the government, prices are determined by the demand and supply in the market. Many...
4 Pages(1000 words)Literature review

The California Gold Rush

... six pages of articles about how easy it was to find and collect California gold. (p. 16) The news then spread like wildfire and thousands flocked to California from the West in that same year alone. Polk and the Gold Mountain While people came to California in droves, their bulk came only from the neighboring states such as Tennessee. It was after the farewell speech of the then President James Polk that finally launched the California Gold Rush. In a calm explanation of the situation in California, Polk validated the future of those who already came and those multitudes who will go to find the riches in California. His exact words were: The accounts of the abundance of gold in that territory are of such an extraordinary character...
7 Pages(1750 words)Case Study

The Gold Rush

...The California Gold Rush When people today think about the California Gold Rush of 1849, they usuallyhave vague impressions of an old white man, bent, wrinkled and dirty from working in his dusty mines, leading an equally old and stubborn mule loaded down with pick-axes, shovels, boxes and other strange devices. They think of men bent over streams, panning for gold and men digging into mountainsides hoping to hit the ‘mother lode.’ Most people, though, don’t think about the people who were in place before gold was found or the effects the gold rush might have had on the development into today’s society. The gold rush seemed to spell the beginning of the end for the people who lived in California when gold was found, it was also...
2 Pages(500 words)Essay

California Gold Rush

... California Gold Rush Introduction The California Gold Rush would begin in 1848 by the discovery of gold at Sutter’sMill in Coloma, California. The news would spark a massive rush of around thirty thousand people coming to California from the rest of the Unites States and abroad. The early good seekers traveled to California by sailing ship and covered wagons. They faced many hardships on the trip. Many of the newly arrived people came from the United States, Europe, Asia, Australia and Latin America. Simple and sophisticated techniques like panning were adopted by the people. Gold was recovered which was worth billions of today’s dollars. Many people became wealthy but many returned home with very little money. The Gold Rush transformed...
11 Pages(2750 words)Assignment

Bankers Ethics

... problems were due to bad ethics in the banking sector. Bankers have been criticized for issuing risky loans but according to (Lewis 2010), he argues that it is too crude to blame the financial crisis on ethics of bankers. According to Graafland and van deVen (2011) the three areas where of U.S. government has failed include encouraging the credit extension in the real estate market, failure by the government to keep a strong financial policy, and finally failure to regulate and monitor the markets. According to Graafland and van deVen there should be an improved sense of professionalism and duty to the public is needed. When an organization or industry loses its authenticity, the benefit of doubt is also lost. This is according to Kopeck...
2 Pages(500 words)Research Paper

The Gold Rush Era

...The Gold Rush Era Table of Contents Introduction 2 Thesis Statement 2 Discussion 2 Conclusion 7 Bibliography 8 Introduction The Gold Rush of California began in the year 1848 and continued until 1855. The Gold Rush started from January 24, 1848 after James W. Marshall found Gold in Columbia. After Gold was found in California, many people got attracted towards it within United States and abroad. Due to discovery of Gold in California population grew from 200 to 36,000 in a few years and it became a highly populated state in United States. With the Gold Rush California got developed in many ways. The means of transport also increased because the government was forced to introduce railways and upgrade roadways for such a high populated...
6 Pages(1500 words)Research Paper

Financial Markets and Economics

As of the staff of the Indonesian mine, a thorough evaluation of the existing resources should be conducted regarding all levels of the working area (from the management team to the worker).
b. The acquisition should create a competitive advantage for TCC mainly for the following reasons: 1. This mine should be the first offshore production base for TCC, a fact that could help towards the reduction of the company’s dependence on domestic mines, 2. The transport of the material from the specific mine is easier due to the absence of issues like the rail or port bottleneck, 3. Currently, the mine has a positive performance with a tendency for more growth (an export authorization for 20% more tonnage was granted this year)...
12 Pages(3000 words)Assignment

Financial Markets and the SEC

The regulation of the American financial markets is the responsibility of the government. Since the governmental system in America is democratic, it can be said that the finance market laws represent the wishes of the people in a very significant way. Previous governments have recognized the need to establish independent bodies for monitoring, evaluation and regulatory purposes for a variety of industries. The Federal Communications Commission (FCC) regulates the telecom industry; the Environmental Protection Agency checks the controls on pollution and so on (Wikipedia, 2006).

Historically, the financial markets in America were first brought into defined regulatory control with the passing of the Federal Trade Commissio...
6 Pages(1500 words)Case Study

Provisions for Gas, Electricity, and Water Markets

.... They were replaced by an undue discrimination condition which by then was a standard condition in the licences of gas suppliers. The Electricity Market By the time electricity was privatised, under the Electricity Act 1989, it was possible to learn from some of the problems that had emerged in the gas market after privatisation and which made liberalisation so difficult. The electricity regulator was given a primary duty to promote competition in generation and supply and there was some restructuring of the industry, with generation being separated from transmission and the Central Electricity Generating Board (CEGB) being broken up into two fossil fuel generators and two nuclear generatorsThe National Grid Company (NGC) became...
9 Pages(2250 words)Report

Money & Capital Markets

The subprime lending crisis rocked the U.S. economy in late 2006 and early 2007. Subprime lending refers to the loans which are provided to the borrowers having less than ideal credit histories. In other words, subprime lending is provided to persons who do not qualify for conventional credits or loans.

The subprime loans gave rise to inflated credit facilities, increased availability of infrastructure and more circulation of more currency in the economy. But this system also gave rise to unprecedented meltdown, liquidation of funds and resultant heavy losses of financial institutions due to non-payment of loans by the borrowers.

The main reasons for the crisis are more than one. They are the failure of the b...
10 Pages(2500 words)Assignment

Central Themes of The Lottery by Shirley Jackson

The events of the story unfold in the context of a deeply-entrenched tradition, which the townspeople respect and abide by, even without the knowledge of why they do so. By detailing the horrific elements of this village’s practice, Jackson provides a stunning critique of the common American ritual. Using these elements in this way, “The Lottery” touches on themes of hypocrisy, tradition, class and society, and the family, all of which play a vital element in the unfolding of the plot. Having masterly crafted the story to emphasize such themes throughout her short story, Jackson underscores them all by constructing an ominous mood that follows the characters, and their actions, to the conclusion of the narrative....
8 Pages(2000 words)Book Report/Review

Emergency Economic Stabilization Act of 2008 and How It Has Impacted the Financial Markets

Though there were objections from various quarters about the huge amounts of tax payer’s money being used in the bailout of huge corporates, the Act has been successful in moving the downturn towards a flat point and now has started slowly moving towards a recovery stage. The various programs under the EESA 2008 have played a significant role in the financial sector, housing mortgage, and banking institutions to save the institutions from complete disaster.

The Emergency Economic Stabilization Act is a huge taxpayer bailout designed to rescue the financial sector. The amount of money to be used is around $700 billion or $2000 per American citizen (Public mark up). Emergency Economic Stabilization Act of 2008 is al...
10 Pages(2500 words)Research Paper

Indigenous Community Health in Central Queensland-Australia

Though present in many regions of Australia, New South Wales, and Queensland make up for the largest concentrations of the indigenous population. A larger percentage of this population inhabit rural and remote areas. The median age of this indigenous population is 21 years, which is much lower than the non-indigenous population at 37 years. High fertility rates and low life spans in the indigenous community are believed to be the cause of this disparity in median age. Unemployment and low earnings are characteristic differences in the indigenous population and the non-indigenous population. The unemployment rate of the indigenous population is threefold that of the non-indigenous population. The average weekly income of the indige...
6 Pages(1500 words)Coursework

How Are Fashion and Appearance Central to the Construction of Social Identities

...How are fashion and appearance central to the construction of social identities? As individuals, we search for our identities, we try to find our place in society, and we want to make statements about ourselves. As history has evolved, social roles have encountered a transition from a predictable and calm order to a certain tumultuous heterogeneity. Nowadays, our place in society is not necessarily predefined by our place of birth, family and social status. On the contrary, we have to search for it, earn it, and demonstrate it to the world. In other words, we have to construct a social identity- the image we give to the world about our own personality and the way others perceive us. Fashion plays a very important role in this process...
8 Pages(2000 words)Term Paper

Developing of the Central African Republic

CAR is known to be one of the poorest nations in the African continent, apart from its frequent dependence on international donations in terms of food, clothing and medicinal supplies, CAR has also been a war zone for decades. The essay will relay more information on the various plights that children born in the Central African Republic go through while growing up.
Apart from most of the children being orphaned at a tender age due to maternal related problems or diseases such as HIV/AIDS, which is rampant in the nation, most of these children are victims of child trafficking, which is big business in the CAR (Lindborg). Lots of children from as little as 4 years normally go missing without a trace and the fact that the govern...
7 Pages(1750 words)Term Paper

Japans Subculture and How Youth Creates Its Own Alternative Markets

The paradox that scholars have since raised is what distinctive feature has Otaku to make it spread so fast? How did it begin in the first place? What makes Otaku qualify as a subculture distinctive from other similar groups and groupings? An interesting and yet distinctive feature about Otaku as a subculture is the purchasing behavior of adolescents of this particular culture that marks it out of the many subcultures on the global scale ((Kitabayashi 12). The present paper seeks to trace back to the roots of Otaku and attempt to understand the various traits of this subculture. Again it highlights how Otaku influences contemporary marketing trends and consumer behavior from a global perspective. Finally this paper points on how t...
14 Pages(3500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Central bankers rush to calm jittery markets for FREE!

Contact Us