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

Discuss the key roles of the central bank in an economy. Should central banks be independent - Essay Example

Comments (0) Cite this document
Summary
The economies of different countries are driven by policies, rules and regulation that determine the type of financial standards and playing field given to different economic sectors in the country. The nature of an economy is such that checks and balances at play should be…
Download full paperFile format: .doc, available for editing
Polish This Essay96.8% of users find it useful
Discuss the key roles of the central bank in an economy. Should central banks be independent
Read TextPreview

Extract of sample
"Discuss the key roles of the central bank in an economy. Should central banks be independent"

Download file to see previous pages The institution, which is the chief regulator, is called the central bank.
The 17th century money was dominated by gold and silver, with verbal and written promises also being a form of payment. Paper money and attempts to control money flow were first used in China. European form of central banks came in existence in form of Knights Templar’s promises of payment. The modern precursor of central bank was the bank of Sweden, the Sveriges Riksbank, which acted as the source of funding for government operations and was answerable to the political leadership. Modern central banks operate on the model created by Charles Montagu, which operated in the Bank of England. Montagu’s model operated on the subscription of people to the government’s loan, which would guarantee the subscribers incorporation as attracted certain privileges like banking notes. Central banks evolved with increasing public outlook and monetary functions to be what they are today. Central banks operate on the cumulative process that creates quantity theory. This theory was developed by Henry Thornton, to explain the England’s monetary crisis of 1797, with reference to the bank withholding withdrawal of notes from the bank (Rosaveare 34).
The Bank Charter of 1844 gave the Bank of England the monopoly over issuance of banknotes and the reserves which any financial institution should have in the bank before issuing a certain value of banknotes (“The Bank” n.pag).19th century witnessed the spread and growth of central banks spread in many European countries. The Banque de France was established in 1800, the U.S. Federal Reserve in 1923, Australia, Mexico, Chile and Colombia established in 1920, 1925 and 1923 respectively. Prior to the Great Depression, only a few countries like New Zealand, China and Brazil had not established central banks. All central banks are government owned entities. The central banks ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Discuss the key roles of the central bank in an economy. Should Essay”, n.d.)
Discuss the key roles of the central bank in an economy. Should Essay. Retrieved from https://studentshare.org/marketing/1635573-discuss-the-key-roles-of-the-central-bank-in-an-economy-should-central-banks-be-independent
(Discuss the Key Roles of the Central Bank in an Economy. Should Essay)
Discuss the Key Roles of the Central Bank in an Economy. Should Essay. https://studentshare.org/marketing/1635573-discuss-the-key-roles-of-the-central-bank-in-an-economy-should-central-banks-be-independent.
“Discuss the Key Roles of the Central Bank in an Economy. Should Essay”, n.d. https://studentshare.org/marketing/1635573-discuss-the-key-roles-of-the-central-bank-in-an-economy-should-central-banks-be-independent.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
GCC central bank
The primary focus will be on selected macroeconomic, as well as established issues and key policy choices that could most likely arise in the GCC’s central bank’s processing of monetary integration. However, this does not assess the potential cost and benefits of a GCC monetary union, taking into account that political influence has been considered in the introduction of a single currency, and no analytical options for monetary, as well as the exchange rate policies within the GCC after a single currency implementation have been launched.
3 Pages(750 words)Essay
Analysis of the economic arguments of an independent central bank
It is shown, that the level of central bank`s independence directly indicates the level of responsibility of the state for the value of legal tender. Maintaining internal and external value of money is a function of inflation targeting and appreciation/depreciation of currency. Both government and central bank are responsible for the success of monetary policy.
8 Pages(2000 words)Essay
Central Bank of Japan
The paper also discusses the topic of deflation as a whole and finally the impact of the financial measures of the Central Bank of Japan on in the Japanese economy. The author approaches the paper with a clear statement of objective in his introduction. He opens out after that with a rather long description about deflation both in the introduction and then again in the second paragraph exclusively devoted to explaining the same (A serious error though is evident in the second page, line four, stating " Two main causes for deflation are stocks to aggregate supply and stocks to aggregate demand".
6 Pages(1500 words)Essay
The European Central Bank
It has its headquarters in Frankfurt, Germany. (ECB, n.d.) ECB's main objective is to maintain euro's price stability to keep inflation rate below 2% per year. According to the ECB website, its tasks include: defining and maintaining monetary policy of the euro area; ensuring that the foreign exchange operations remain consistent with the aims of the central bank's monetary policy; promoting smooth operation of payment systems; and holding and managing foreign reserves.
5 Pages(1250 words)Essay
European Central Bank
The bank is located in Frankfurt, Germany and was established in 1998. It was set up by the European Union and it effectively replaced the European Monetary Institute. But the design and importance of the central bank can be seen as accruing directly from the Germany Bundesbank.
9 Pages(2250 words)Essay
Role of Central Banks
As in most other developed countries, monetary policy operates in the UK mainly through influencing the price of money, that is, the interest rate. In May 1997 the Government gave the Bank independence to set monetary policy by deciding the level of interest rates to meet the Government's inflation target.
11 Pages(2750 words)Essay
Analyse the economic arguments of an independent central bank
The most important matter that arises in reference to letting the Central Bank have this legal right to create and circulate legal tender money is, if it should be under the control of State executive. If yes, then to what degrees and if no, then again to
8 Pages(2000 words)Essay
Should central banks be independent
They are largely dependent on the independent authority and level of responsibility. Picker (64) contends that there are varied circumstances surrounding the development and initiations of
4 Pages(1000 words)Essay
Central bank for GCC
The difference between the two central banks is that the GCB has other decision making bodies which the ECB lacks including the operations committee and the national central banks. Those who argue in support of the GCB
8 Pages(2000 words)Essay
Central banks
The central bank also supervises the banking system of commercial banks that do function in its economy so as to monitor the money supply in the economy. Unlike commercial banks, the
6 Pages(1500 words)Essay
Let us find you another Essay on topic Discuss the key roles of the central bank in an economy. Should central banks be independent 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