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 central banks be independent - Essay Example 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 wa s 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 (â€Å"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

500 to 700 words Essay Example | Topics and Well Written Essays - 1000 words - 1

500 to 700 words - Essay Example The project being undertaken by BP Solar Australia is specifically focused on poverty reduction and improvement of the wellbeing of people through development of packaged solar systems in the communities which can be harnessed as the enabling technology that can be used to meet various needs of the local people. The project is mainly concerned with inculcating a sense of asset management as a way of promoting the sense of belonging which encourages development initiatives being undertaken in the local communities. The success of the project is mainly determined by the involvement of the members of the local communities. The main aim of the project is improvement the wellbeing of the local members of the Philippines communities that were underprivileged through provision of facilities that were lacking such as electricity. It is also aimed at developing and supporting a culture of asset management among the community members as a way of establishing a sense of belonging. This is an attempt to make them part of the ongoing project initiative. The scope of the analysis is to establish the assertion that project development in infrastructure in previously disadvantaged communities is one way of stimulating social and economic growth while at the same time alleviating poverty among the members of the affected areas. A stakeholder is an individual or group that is directly or indirectly affected by activities of a certain project or can be any entity with a conceivable interest or stake in a project. BP Solar Australia is the major stakeholder which coordinates the project. The Australian government is also a stakeholder as it is responsible for providing financial assistance through grants and loans. The Philippines government is a stakeholder responsible for authorising the project. The local community members are stakeholders who are both part of the project and are