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.
Nobody downloaded yet

Political independence of FED - Essay Example

Comments (0)
Summary
It is apparent that financial sector plays a critical role in regulating financial matters in a country, particularly the Central Bank. However, political interference has been blamed for continued interference with how the financial regulators operate. …
Download full paper
GRAB THE BEST PAPER
Political independence of FED
Read TextPreview

Extract of sample
Political independence of FED

Download file to see previous pages... This has been contributed by the fact that politicians like manipulating and controlling these institutions for their own gains. In his lectures, Bernanke (2012) argued that central bank should be allowed to make independent decisions without political interference in order to have sound decisions. Studies have documented that political interference in the financial sector not only hinder how these institutions operate, but also interfere with how regulators enforce regulations. Financial regulators are, therefore, unable to take actions on banks that do not follow the laid down rules and regulations. When political interference is evident in the financial regulatory bodies, recognition of severity of crisis is delayed, intervention needed is also slowed and consequently raise the cost of the crisis to tax payers. Shielding financial sector from political interference helps to improve the quality of regulation and supervision. This helps in preventing financial crisis. Financial regulators have two main purposes. First, they are mandated to protect the consumer. Second, they are also mandated to maintaining financial stability of financial institutions. When political interferences come in, these two roles of the regulator are abandoned. For instance, in 1997, political interference in the regulatory bodies of East Asia led to postponement of recognition of severity of crisis, which led to increased crisis. ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Kosovo Independence
Running head: KOSOVO INDEPENDENCE Kosovo Independence Insert Name Insert Grade Course Insert Tutor’s Name October 29, 2011 Kosovo Independence Introduction Edmund Burke conceived society as being made up of complex web-work of institutions that undergo continuous growth (Raeder 1).
5 Pages(1250 words)Essay
TERRORISM AND POLITICAL VIOLENC
The meaning of the word terror is clear when applied to the real act and those who perform it however, the applying to the real world is confusing. Through terrorism, the weaker side always carries the day by using tactics. Given that terrorist have a very small and secretive organization; it leaves the opponents with no choice to defend against them.
11 Pages(2750 words)Essay
Auditors independence
However the fact of this auditor to be independent is clearly the most important factor here, and independence is defined as being the "ability to withstand pressure from management influence when conducting an audit or providing audit-related services, so that one's professional integrity is not compromised." (Gay & Simnett, 2003, p.745).
10 Pages(2500 words)Essay
The Role of Afro-Cubans in the 1898 War of Independence
The kingdom of Spain, mislaid its previous two belongings in the Americas long behind the beginning of its colonial turn down and approximately a century past the erosion of the majority of its kingdom in South and Central America. 1 As the proceedings of the revolution discloses, race conquered the political and socioeconomic relations in Cuba ensuing in Afro-Cuban's marginalization.
9 Pages(2250 words)Essay
Independence Day
There were increased efforts to declare the 13 states independence from British rule and this led to the formation of a committee by congress to draft the declaration, among those selected by congress included former United States president Thomas Jefferson and John Adams who are considered to have played a major role in the achievement of independence.
5 Pages(1250 words)Essay
Auditor Independence
It can be clearly seen that if audit is to be carried out in free and objective manner the auditors must be independent in fact (actual independence) and if their opinions are to be accepted auditors must also appear to be independent. Corporate world has time and again been rocked by scandals and sudden failures, of these, Enron & World Tel are considered water shed cases due to the sheer size of their failure.
4 Pages(1000 words)Essay
Promoting Independence
Human Rights are rights that belong to an human being or group of individuals as a result of being human. They refer to a broad range of values or capabilities thought to improve human agency and affirmed to be universal in character, in a number of sense evenly claimed for all human beings (Previts, G.
4 Pages(1000 words)Essay
Fed Chairman Game
r to be exposed to the type of decisions the Fed has to make on daily basis the website of the Fed has a game called “Fed Chairman Game.” The objective of the game is to be reelected chairman of the Fed. To win the game you must ensure that unemployment is below 4% and
2 Pages(500 words)Essay
For Now, Fed Succeeding by Doing Nothing
According to Central Bank, inflation rate is still very high in the country. The key question that Schoen is addressing in the article is whether the rising inflation is leading the country into stagflation. Stagflation occurs when
1 Pages(250 words)Essay
Fed Ex Case Study
One of the greatest decisions by FedEx management was to introduce its people-service-profit (PSP) philosophy in 1973. This resulted in much more employee input into the success and growth of the company. In fact, over the years FedEx has introduced
1 Pages(250 words)Case Study
Let us find you another Essay on topic Political independence of FED for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us