Group items tagged

This article asks the question is the ATM a public good. Inside we will find the article making statements to why it is in fact a public good and why it should be considered as one

This article deals with the idea of assign authority to banks to provide security to the ATM. Is the ATM a good that benefits to the society? Since the ATM is a way to give freedom to the people I would say yes, but should then the ATM be controlled by guards? In my opinion, I think it would be a good idea. Even though one might argue that the idea would take away the freedom of ATM, I think the security will provide even more freedom to the people since they can deal with their money safely.

Agustin Carstens, governor of the Central Bank of Mexico warns about the spillover affects into the developing world from advanced economies' banks' monetary policies. Money has found its way into emerging markets leading to higher exchange rates and weakening exports according to Carstens. This is a dangerous bubble that could be liable to burst should growth pick up soon. Overall this article provides an interesting insight into how one countries policy choices can have global consequences and how international economics really is.

Fair enough, this is not the classic article we usually post here. Nonetheless, I found it to be an article that emphasises the role of central bank, a little bit like a mini notebook. It connects central bank to economic development well and explains what are possibilities of policies for the central bank.

This article concerns the banks in the area of the UK. Banks such as: citibank, HSBC, UBS, and Royal Bank of Scotland. These banks have been fined at total of 2.5 billion pounds for rigging exchange rates. In order to receive more income.

this is relevent to this weeks reading because it amother way of the government making changes, however here its not the government its the central bank. and acts of the central baks are more monetary poilicy as they predominantly affect AD

This is an article on how Russia's central bank will address the sharp oil price drop. This article relates to what we are doing because it talks about the strategy of the Russian central bank. the central bank is a key tool for the monetary policy, which we are covering right now. Also this article briefly mentioned balance of payments, and the negative consequences of the bank failing to address this issue. It was a very interesting read.

Regulators have imposed fines on six major banks for rigging foreign exchange markets. George Osborne argues that action have been taken in order to clean up corruption so there will be a financial system that works for everyone. 

This article explains how production costs in India could have been cut if Coal India had kept prices lower. The article also tells us that the company has a monopoly on the industry and is state-run which has lead some people to criticise the government. The company has been accused of protecting its own interests by raising prices to cache its bank balance. 

Please excuse if I am wrong because I am admittedly not completely sure if I am interpreting this right. I believe that this article tells us that Ireland's banks up to now were in no state of allocated efficiency because the equilibrium had to be manually shifted by the EU paying money to the irish banks. This however has changed now because they are leaving the bailout program which shows that they are trying to get onto their own feet again, and no longer need help from the EU. From this I can conclude that the Irish banks are at least moving towards a state of allocated efficiency again.

This article is not very long, however, we can see a lot of the concepts studied this week within the article. It is clear that Indonesia has an independent central bank. It is also clear that some actions are being taken in order to reduce inflation and they seem to be successful as inflation has actually fallen, however, this small amount of change could be good in the long run. 

From Al Jazeera I chose this article about the poor state of the economy in South Africa, 20 years after Nelson Mandela and the ANC came to power, ending the system of political, social and economic segregation, Apartheid. Despite reforms in the 90's the majority of wealth and power is still held by rich whites. With around 30% unemployment rate and young people struggling to find work many feel only anger and resentment to the current ANC government led by Jacob Zuma. Economically speaking South Africa's imports are up and exports down, reducing GDP as AS is shifted left. This is especially evident in industries like mining and banking which many are now calling for to be nationalised. 20 years on from Nelson Mandela's historic victory in the 1994 general election, South Africa, despite being free of the shackles of segregation is not in the boom many predict. The ANC must be careful in there actions, should they, following the death of Madiba lose contact with his legacy and what he stood for.

This article, from news agency Reuters, outlines Mario Draghi's, head of the European Central Bank (ECB), statement in Italy this week, regarding the Eurozone, a form of monetary integration. Draghi outlined the need for European countries to complete the monetary union and integrate policy to avert another crash. 

This article from Belarusian news agency BeITA explains the exchange rate policy of the Belarusian National Bank, as described by Deputy Chairman Sergei Kalechits. It explains policy regarding the managed float status of the Belarusian Ruble and how the government pursues a balanced policy surrounding the currency, aiming to reduce the interest rate whilst maintaining competitive advantage with domestic exports.

This article details the so called resurgence of the US dollar, in terms of currency value. The currency itself has risen by around 7% against other currencies but Guardian economist Mohamed El-Erian warns that without the appropriate accompanying central bank policies, the rise of the dollar could cause further market volatility and at worst a new crash. El-Erian calls for governments to enact policy to support balance the current currency realignment. 

The article is about the inflation rate in Israel. Now the inflation rate has its lowest level in the past seven years. The central bank of Israel is worried and suggests some actions that will help to return the inflation rate to the price stability.

This article is about the inflation rate in Israel and how it is approaching 0. This is critical and Israel has recognised the need to bring back inflation rates to the government's target rate.

As a number of officials wanted to give more information about how long the US Federal Reserve will wait before it starts to reduce the size of its balance sheet, the central bank starts to plan an exit from easy monetary policy. 

As early as next month, the European Central Bank is expected to act to counter persistently low inflation and to try to invigorate the eurozone's lethargic economy. Among the evidence the ECB will weigh: Thursday's report that the 18 countries that use the euro collectively grew just 0.2...

Three traders, who called themselves the "Three Musketeers", worked in big corporate banks and that met in a chat room to coordinate their buying and selling to shift currencies to their favor. Regulators have caught onto what these traders and banks have been doing and fined them with a fine over $4 billion.

This article presents how a report done by the Monetary Policy Committee of the UK has lead to the value of the pound falling slightly against the dollar. This shows how the direct action of a central bank (here refusing to increase the interest rate) can impact the exchange rate.