Monetary Policy Framework in the UK Essay Example | Topics and Well Written Essays - 2250 words

Monetary Policy Framework in the UK - Essay Example This essay stresses that there are a number of guiding principles like price stability, exchange stability, full employment and maximum output and a high growth rate etc, in framing the Monetary Policy for an economy. This paper declares that the monetary policy of any country refers to the regulatory policy, whereby the monetary authority maintains its control over the supply of money for the realization of general economic objectives. This involves manipulating the supply of money, the level and structure of interest rates and other conditions affecting the availability of credit. However, in the context of developing economies monetary policy acquires a wider role and it has to be designed to meet the particular requirements of the economy. This involves not merely the restriction of credit expansion to curb inflation, but also the provision of adequate funds to meet the legitimate requirements of industry and trade and curbing the use of credit for unproductive and speculative purposes. The monetary policy of an economy operates through three important instruments, viz. the regulation of money supply, control over aggregate credit and the interest rate policy. Economic growth is dependent on m obilizing savings and directing them into productive channels. In this process, money supply can only play a limited role. However, the role establishes an important connection between money supply, output and price level (ICFAI Center for Management Research (ICMR)). These relationships cannot be ignored even if the primary concern of the government is mobilization of real factors that ultimately lead to economic growth. UK Monetary Policy regime A principal objective of any central bank is to safeguard the value of the currency in terms of what it will purchase. Rising prices - inflation - reduces the value of money. Monetary policy is directed to achieving this objective and providing a framework for non-inflationary economic growth. As in most other developed countries, monetary policy operates in the UK mainly through influencing the price of money - the interest rate. In May 1997 the Government gave the Bank independence to set monetary policy by deciding the level of interest rates to meet the Government's inflation target - currently 2% (Bank of England). The 1998 Bank of England Act made the Bank independent to set interest rates. The Bank is accountable to parliament and the wider public. The legislation provides that if, in extreme circumstances, the national interest demands it, and the Government has the power to give instructions to the Bank on interest rates for a limited period (Bank of England). In the period from the floating of the exchange rate in June 1972 to the granting of operational independence to the Bank of England in May 1997, UK monetary policy went through several regimes. These included the period in the 1970s when monetary policy was considered subordinate to incomes policy as the government's primary weapon against inflation; an emphasis on monetary targeting in the late 1970s and early 1980s; moves from 1987 toward greater management of the exchange rate, culminating in the UK's membership of the Exchange Rate Mechanism (ERM) from

Canadian Aboriginal Law Essay Example | Topics and Well Written Essays - 2000 words

Canadian Aboriginal Law - Essay Example This assists in managing and bonding the interaction between the government and the aboriginals. The aboriginal law was adopted from several sources of legislation since Section 91 (24) of the 1867 Constitution Act gives federal parliament the powers to legislate on matters affecting or relating to the Indians and their reserved land. Such mandate has led to enactment of various legislations including Indian Oil and Gas Act, Indian Act, and First Nations Land Management Act among others as discussed by Elkins (1999 p23). However, there had been a breakdown of the rule of law for Aboriginal people as this paper discusses. The study also describes how breaking the laws affect the Aboriginal people and the involved stakeholders such as the governmental agents. The study points out various aspects of the breakdown of the rule of law and government defiance in respect to aboriginals. The first aspect is the way the Aboriginal people are colonized internally in Canada through processes of cultural suppressions, breaching the trust and promises, legislative, dispossession, and public discriminations. The Aboriginals have no freedom of dispossessing their traditional resources and land in Canada. There had been forced relocations and taking of First Nations’ land and resources that increase the dispossession cases from indigenous people. There has also enforcement and enactment of other policies, laws, and practices perceived to weaken the Aboriginal societies and economies, forcing the people to be assimilated into Canadian mainstreams. The Aboriginal Law reinforces the approach of colonialism by ignoring the fundamental rights of the aboriginal people, especially the rights treaty (Hogg p.631). The Canadian Constitution ironically, recognizes such legislations. Moreover, the federal government of Canada continues to strengthen and maintain the domination of Indian Act by adopting legislations that affect the Aboriginals’ human rights of determining and governing their own political future. The federal government also breaks the law by refusing to fairly, promptly, and equal address several cases of private or governmental theft of Aboriginal’s reserved land and resources. This undermines the rule of law and hinders the aboriginal people from getting their justice. Another aspect is the dishonor of treaties between the government and the Aboriginal people. The treaties gives a fundamental framework for the First Nation people to govern themselves and their cultural diversities be respected by all stakeholders in the country. Unfortunately, the dishonor by the federal government of the treaties means the infringement of law and order. This gives the government an opportunity to oppress the aboriginals, especially discriminating them from better public service deliveries. This results to poor governmental services to the society such as health, water, poor infrastructures, and food safety among other services. Study reveals th at among the diseases such as Tuberculosis are commonly affecting the Aboriginal societies, as compared to un-Aboriginals in Canada. Other diseases such as diabetes were uncommon to the Aboriginal society, but it is currently affecting them at the highest rate as compared to the rest societies in the world (Coon, 2003). This is because the government discriminate them from the medical services such as insurance care system. The life expectancy of Aboriginal people is six years lower than the non-Aboriginal Canadians. This