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Banking Industry Analysis Analytical Essay

Introduction The central bank has emerged to be the greatest financial institution that controls the economy of any country. The Government does rely on the central bank to foresee the economy on its behalf.

Among the crucial roles the central bank plays are supervision of other financial institutions, acting as a banker of other banks, acting as a bank of the government, acting as a lender of last resort, liaising with other international bodies among other functions.

The way the central bank cooperates with other international bodies including IMF and World Bank enables it to execute its duties. The recent global financial crisis of 2008 had major implications throughout the world. It proved that the issue of economic crisis is no longer a national issue but a global issue and the whole world should work as a team towards providing a safe market for all countries (Samuelson, 2008).

Three bankers, heads of the three great Central Banks The subprime mortgage crisis was partly caused by poor policies. The Federal Reserve is responsible for ensuring stability of prices in the U.S. economy. A key question is why the U.S experienced a volatile market in which a stock market collapsed causing uncertainty in the economy and the world.

The collapse of the unshakable Lehman brothers and its subsequent effect on other companies compelled the U.S. government to bailout out bankrupt organizations using a package of $ 750 billion. This taught Americans a lesson after loss of jobs and shares.

The economic crisis could have been cushioned if the Federal Reserve had put sufficient measures and restrictions in place especially on interest rates. The chairperson of the Federal Reserve, Mr. Ben Bernanke could partly be held accountable for the decline of the economy global because he was in a position to regulate the financial industry (Samuelson, 2008).

The European Central Bank bears a great responsibility to the rest of the EU community and the world. The bank controls the European states that use the Euro because it ensures euro partners are protected from inflation hence ensuring stable prices. Interest rates are stabilized while inflation rates are put within permissible rates for the wellbeing of the associate members.

Get your 100% original paper on any topic done in as little as 3 hours Learn More The Bank of Japan significantly contributes to the operation of the world economy. Japan is considered to have one of the greatest world economies as it has the greatest technology in the manufacturing sector. Therefore, its central bank policies will have impact on the world economy. Mr. Masaaki Shirakawa would therefore be blamed globally if he comes up with policies that would have negative effects on other economies.

The heads of these banks are accountable for the performance of the world economy as they make decisions that have global impacts. For instance, the recent G20 meeting unanimously resolved that China should devalue its currency. China had made its goods a bit expensive through appreciation of its currency (Yuan) and since it was a global concern, a mutual understanding had to be made.

Generally, economic crisis of 1930s and the worst of 2008 have taught the world that discussions between central banks of great economies are of greater importance to the world economy. The impact that the three people have on the banking industry and the global economy therefore makes them powerful leaders compared to a country’s political leaders (Samuelson, 2008).

What made central banks to lower interest rates in 2008/09 recession The reduction of interests by several banks worldwide as recession took place in 2008-2009 was evident that the banks wanted to stimulate their economies through expansionary monetary policy. Low interest rates attract borrowing that ends up being invested in productive projects that create employment opportunities among other advantages. This has always been a strategy to cushion a country from the shrinking economy.

Policy on improving US monetary policy To improve the U.S monetary policy, the Federal Reserve should come up with transparent, complete and timely information for the financial market and public in general. This would ensure that the market is aware of objectives set by the Federal Reserve, implementation and its intended changes in the monetary policy that would have impact on the operation of financial markets in order to avoid such volatility in the financial market (Keleher, 1997).

References Keleher, R. (1997). Transparency and Federal Reserve Monetary Policy. Retrieved from:

Samuelson, R. (2008). Economic Triumvirate. Retrieved from:

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Life Lessons in Little Red Riding Hood, Little Red Cap, the Chinese Red Riding Hood, and Jack and the Beanstalk Essay (Article)

Nursing Assignment Help The fundamental moral lesson in “Little Red Riding Hood” cautions against naivety, and teaches against trusting complete strangers with private information. Readers (the young, and particularly girls) are advised against engaging strangers in talks even if their refusal may come across as rude to the stranger; the consequences may be far worse, if the death of Little Red Riding Hood and her grandmother is anything to go by.

Although in the Chinese Red Riding Hood the girls Felice, Mayline, and Jeanne are able to overcome the manoeuvres of the wolf that wanted to eat them, such a case might be the exception rather than the rule.

Therefore, young children and teenagers are cautioned to ensure that they completely avoid entertaining strangers and to be highly suspicious of people whose intentions they do not trust, as the girls in the Chinese Red Riding Hood were, and it saved their lives.

In the Grandmother (France), the element of caution is extended to the elderly (adults) too. The grandmother in this story is quick to open her door to the knocker, who unfortunately happens to be a werewolf. She is subsequently consumed by the werewolf, the lesson here being that even adults should avoid a carefree and incautious attitude insofar as their safety is concerned.

The grandmother is killed but the girl survives because she insists on being cautious even when she is dealing with a person who, as far as she knew, was her grandmother.

In The Little Red Riding Hood, the girl begins to doubt the identity of her ‘grandmother’ a tad too late. She questions what big arms/legs/ears her ‘grandmother’ has, finally baring her doubts with the last line “Grandmother, what big teeth you have got!” (Perrault Para.11), in a revealing question, that betrays her fears and doubts.

The wolf responds “All the better to eat you up with” (Perrault Para.11), and consumes her. In The Little Red Cap, the girl also finally asks “Oh grandmother, what a horribly big mouth you have!” pegging her doubts on the identity of her grandmother, with the wolf similarly responding that the mouth is for eating her, and proceeds to do so.

Get your 100% original paper on any topic done in as little as 3 hours Learn More These tales reflect on an incident in my life that occurred a while a go. A ‘salesman’ for some kitchen appliances would always come at our place and inquire about whether my parents were in and after confirming they were out, he would proceed to complement the beauty and outlook of our house and the front yard. I took to slowly appreciating his weekly visits, which he would make in the neighbourhood.

Sadly, I discovered later and regretfully that these ‘visits’ were nothing more than surveillance surveys he was conducting for his group of robbers, because in the summer of that year several houses in our neighbourhood were burgled, and this man was amongst the group of suspected burglars that were later arrested.

In the tale of Jack and the Beanstalk, Jack forgoes the gain of the immediate cash in lieu of potential and delayed riches. When Jack accepts the magical beans from the old man instead of taking the cow to the market and selling it for cash that he and his mother would use to buy food and other items of sustenance, he was taking a risk.

His mother reprimands him: “Have you been such a fool, such a dolt, such an idiot…” (Jacobs Para.16) and his mother even denies him supper, but his act pays off in the long term, because the beans open forth doors for them and they eventually become rich.

This incident resonates with measures that I have taken in my life; for instance, I have refused to participate in many activities like to concentrate in my studies. Eventually, like Jack in the story, I know my efforts will pay off in future, even though some friends reprimand me sometimes for being too ‘uptight’.

Works Cited Jacobs, Joseph. Jack and the Beanstalk, 2010. Web.

Perrault, Charles. Little Red Riding Hood, 2011. Web.

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