Analyse the economic arguments of an independent central bank Essay

Analyse the economic arguments of an independent central bank - Essay Example It must be remembered that while affecting this right to any amount of degree the State is also assuming responsibility for the value of legal tender to an equivalent extent. Maintaining internal and external value of legal tender money is a function of inflation targeting and appreciation/depreciation of currency. Whether such critical monetary policy outcomes be left independent in the hands of Central Bank professionals or be merrily dictated by elected politicians who are often not trained in such trade. We discuss this and concomitant issues in paragraphs below. The most preferred and often cited argument favoring an independent central bank is that the power to expend money should be separated or delinked substantially from the power to create money. In case these two capabilities converge we have spendthrift governments indulging in fiscal profligacy while the Central Bank simply acts as a 24/7 mint or currency printing house. State control over the ability to create money has resulted in several episodes of economic mess. Even in the days of the ancient Roman Empire the tax collection by state officers in the form of silver coins ended up being melted and corrupted with inferior metals. This gave Caesar substantial money to divert to his luxuries and such spending was a multiple time of what came in as collected tax. The result was a spiraling inflation as now more coins vied for smaller stock of market wares. In todays monetary systems running on paper, plastic and electronic money the Roman story has been repeated quite often. The Latin American inflations are fable material with inflation rates sky rocketing often to 200% or more. In some extreme cases what was affordable at twilight became unaffordable by daylight. With complex and fine lending and borrowing of money as investible funds, interest rates have turned indicators that are pliable in the hands policy makers or dictators as the case may be.Government, myopic with political

Leader in business Essay Example | Topics and Well Written Essays - 3250 words

Leader in business - Essay Example The couple decided to send him to the New York Military Academy at the age of thirteen. The plan was to channel the teenage boy's unlimited energy into an avenue to achieve positive results. Before we get started with describing Donald Trump's personality, lets explore a major facet when identifying the various personalities of individuals. I believe that Donald's birthday has a lot to due with the shape and formation of his personality. There is an evidence of truth in the 12 astrological signs when it comes to the personalities and auras of people. Mr. Trump's birthday is June 14, 1964. According to the astrological calendar this means that he is born under Mythology, the planet Mercury rules Gemini. As you may know, Mercury, the messenger of the gods and always moved swiftly to and fro throughout the heavens and on earth delivering messages. It is this fact, along with this sign's desire to explore new things that keep people like this always on the move looking for new and interesting things. Also according to Athena Starwoman, the writer describing signs' traits and characteristics, people born under this sign also have, "The secret desire to be ahead." For now, lets take a look at the positive effects that sending him to the military academy had on developing his personality in the most influential years of his life. According to www.biography.com "Trump did well at the academy, both socially and academically, rising to be a star athlete and student leader by the time he graduated in 1964." Donald later went on to enter Fordham University. Eventually he finished his bachelor's degree in economics at the Wharton School of Finance, located in the University of Pennsylvania in 1968. His mentors, which were mentioned in the book entitled The Art of the Deal (Theodore Dobias and Major General John Brugmann) were obviously strong influences in the development of his personality and drive to win. It was his mother, in my opinion who gave the one single piece of advice, which was forever etched on the tablet of his heart. Written on an unnumbered page in the beginning of his book entitled How to Get Rich: Big deals from the star of The Apprentice, are the words of his dear mother. He terms it, 'The mother of All Advice.' These words are, "Trust in God, and be true to yourself." Underneath the quote, Donald reflects on his thoughts about the quote. In so many words he said that when he looked back on these words, it was some great advice, possibly some of the best advice in his life. He said at first, he really didn't get it but stuck to it because it sounded good. He concludes that, "It is good advice no matter what your business or lifestyle." Goodlow 3 These eight words are so powerful. One of the traits of successful people is that they always have a belief in a higher power that is at work in the universe operating through them. Take a look at people throughout various eras of history, from the most evil of men to the most benevolent of souls. Men as dark and sinister as Adolf Hitler and Ayatollah