Effectiveness of the Transmission of Monetary Policies and Lessons Essay

Effectiveness of the Transmission of Monetary Policies and Lessons Learned in 2007 and 2008 Global Financial Crisis - Essay Example It has also resulted in a number of debates as regards the effectiveness of the transmission mechanism of monetary policies. In the past, monetary policy has been associated with a financial stability of an economy. The problem that a majority of countries face is concerned with the effectual transmission mechanism of an effective monetary-policy. A number of lessons can be learned regarding the effectiveness of the transmission mechanism of monetary policy by central banks in the year 2007 and 2008. The lessons would be based on interest rate, inflation, exchange rates, balance sheet, expectations, as well as moral hazards that characterized the market prior, during and after the 2008 global economic-crisis. A Brief State of the 2007 Financial Crisis and Failure of the Monetary Policy Transmission Mechanism Although financial crisis is not a unique occurrence, the financial crisis of 2007 was more global than other economic crises experienced in the past (Mankoff, 2010). It is also regarded as the most impactful relative to other proceeding financial crises. Due to its high level of degree in terms of impact and globalization, a large number of monetary policymakers were compelled to utilize both conventional and unconventional financial policies. A majority of economic analysts as well as financial institutions in the world were surprised by the fast pace at which the subprime crisis in the US led to a world financial crisis (Cecchetti, 2009, p. 53). The global financial crisis led speedily to a world economic crisis. This fast pace left a considerable number of individuals in the business and financial circles with unanswered questions regarding the effectiveness of the transmission mechanism of monetary policy. In particular, the 2007 and 2008 financial crisis questioned the effectiveness of various institutional frameworks (Mankoff, 2010). It also questioned the national and internal monetary instruments in ensuring financial stability at the global level. In relation to Shiller’s (2008) argument, attention has been paid to the role and operation of financial markets, as well as financial institutions. Specifically, questions regarding the effectiveness of financial institutions and markets to price and administer risk have been raised. Analysts observe that there have been inability of private sector to manage risk effectively, and failure of public sector’s supervision of the financial markets (Mankoff, 2010). Interest rate While the financial world changed in the year 2007, the monetary instruments were not updated to handle the change (Swagel, 2009, p.43). The instruments were not transmitted effectively to realize positive impact. Initially, interest rates were traditionally treated as the main financial instrument that would protect an economy against financial difficulties, as well as enhance economic growth. A large number of emerging economies, including India, lowered their interest rates in an anticipation th at both prices and output would respond effectively. However, both output and prices did not respond in respect to the anticipation. An interest rate is majorly used in managing the supply of money in an economy. Interest rate has been observed by many individuals as a key monetary instrument in controlling lending and borrowing between financial institutions and consumers. The borrowing and lending is also executed amongst financial institutions. In the event that there is a high supply of money in an economy, a central bank would opt to raise the level of an interest rate. In this regard, credit availability is likely

Police Roles Essay Example | Topics and Well Written Essays - 1250 words

Police Roles - Essay Example In the story of how the inmate overpowered the corrections officer, the inmate pleaded that he had to use the restroom. Preying on the corrections officer's compassion and empathy, the inmate was allowed to break free. The efficiency of teamwork and manpower was phenomenal in this story. "The 24/7 operational demands of a police officer's job can have serious consequences. A significant body of scientific and operational literature clearly establishes that around the clock operations can degrade safety, performance, health, mood, and alertness" (Amendola, Hamilton, Wyckoff, 2006, p. 3) In Findlay, Ohio; the police force knows all too well that the hours can be long and the job can be stressful. But in the same sense, the officers know that community involvement is key in order to keep in touch with the public. The County has started a program named NEAT (Neighborhood Enhancement & Abatement Team). The program was established in 2004, and helps deal with nuisance problems and neighborhood cleanups. In Modesto, California two police officer while on duty working on a holiday (labor day), assisted a woman in giving birth to a baby boy in a parked car, not very far from the nearest medical center. The role of social servant rings true in this story, where the call of duty was performed in an over exceeded amount of time. When officers are placed in position, like in this story, they have to keep the "victim" calm and focused, using amateur psychology tactics. In crime shows on television, such as Law & Order, SVU, The Shield, or COPS; they show a sort of distorted view of how officers have to handle situations with quick reflex's and snap decisions. What normally would take hours to handle in real life, in television the situation is under wraps in a matter of minutes. In fact, the real scenario in life takes a major amount of time in order to achieve a positive outcome. The Fine, Fading Art of Directing Traffic Albeit, it takes a certain amount of talent, the art of flowing ease, and knowing your fellow humans in order to direct traffic. It's about multi-tasking and by not bringing the spotlight on yourself as an entertainer with your orange vest and white gloves, but keeping the driver focused on the road. The role of order maintainer in this story is depicted in such a way that it seems almost glamorized. The job in itself can be dangerous, but for the most part, directing traffic is a basic act of maintaining order where there is chaos. Simple as that. In the Findlay County Police Station, they too have had to direct traffic several times. Not one officer is in charge of this, instead one is assigned from the list of officers that are on duty. Several times even while on their "beat", officers have had to come to a site and direct traffic without getting prepared until medical crews or backup has arrived. They take this