FINANCIAL MARKETS AND MONETARY POLICY Essay Example | Topics and Well Written Essays - 1750 words - 1

FINANCIAL MARKETS AND MONETARY POLICY - Essay Example Since then it has been varying over the years where the present name ‘official bank rate’ was initiated in 2006 replacing the former ‘Repo Rate’ that existed till 1997. The rate of interest is levied by the nation’s central bank or the Federal bank on lending or advances to regulate the supply of money in the banking sector and overall economy. This is essentially conducted on a quarterly term to regulate the inflation rate and strengthen the nation’s rates of exchange. Any deviation in the bank rates stimulates a ripple-impact as it affects every sector of the economy. For example, the stock prices in the exchange market seem to respond to the changes in the interest rates. A variation in the bank rates has an impact on the customers as it affects the prime rates of interests for individual loans. The Bank rate is the rate at which the Bank of England gives to the commercial bank for the extra reserves being kept in safe custody of the Central Bank (Ciro, 2012, p. 122). Conventionally, the treasury determines the rates of interests. But upon the reforms that occurred in 1992, the policy makers organized several meetings and minutes were published, yet they were not autonomous of the state which resulted into a perception that political forces were overshadowing what was stipulated to be fiscal decisions on the monetary policy. In 1997 there was operational accountability to determine the interest rates which was granted to the autonomous Bank of England by Gordon Brown-the Chancellor of Exchequer. Several principles were set for the establishment of the Monetary Policy Committee (MPC) that was enacted in the Bank of England Act 1998 (OECD, 2009, p. 31). The Act also spelled out the accountability of the MPC: this include; meeting on monthly basis, the membership consists of the governor, two deputy governors, two executive directors of the bank

The Ring of Gyges Assignment Example | Topics and Well Written Essays - 1000 words

The Ring of Gyges - Assignment Example His argument presents a counter-attack to Glaucon’s philosophy purporting that if two identical rings are presented to a just and unjust man, they would both act unjustly. Therefore, proceeds to argue that those who incline their actions to just only do so under compulsion. He also says that one may decline using the ring to perform misdeeds. Meaning that although such a person would receive praises on her face but on the other side she would be regarded a great fool who is unable to utilize the power in her possession. Socrates states that one does not derive justice from the social construct. That’s why his argument tallies that the man who abused the power contained in the ring enslaved himself to his selfish appetites. But hold that the man who chooses not to use the ring remains rationally in total control of himself and thus he is very happy. Therefore, Socrates suggests that the man who uses the ring is always in a constant war with himself ( Copp, 2007).   Socrates is in a strong belief that the soul consists of three parts. These parts include; rational, appetitive and Spirited. He continues to argue that an appetite for something exists like hunger and thirst. He says that we always have some knowledge concerning the demands that are driving us to satisfy the appetite. Therefore, he poses to think, supposing something holds the thirsty person from drinking, what could it be termed to be? This analogy is used to describe the three parts of the soul. The rational part is that which is concerned with the calculation thus goes ahead to examine the existing appetites in relation to the expected consequences. He suggests that the part linked to hunger, lusts, thirsts and which is tickled by all forms of appetites is the irrational appetitive part.