INDEPENDENCE OF CENTRAL BANK AND INFLATION.docVIP

Coursework Header Sheet 210928-75  Course ECON1082: Monetary Economics Course School/Level BU/UG Coursework Essay 1 Assessment Weight 0.00% Tutor M Feridun Submission Deadline 05/12/2013 Coursework is receipted on the understanding that it is the students own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the Universitys Regulations regarding Cheating and Plagiarism. 000793187 Ke Ding Tutors comments                    Grade Awarded___________ For Office Use Only__________ Final Grade_________ Moderation required: yes/no Tutor______________________ Date _______________ INDEPENDENCE OF CENTRAL BANK AND INFLATION Introduction Since the first central bank The Bank of England was founded in 1694, the traditional central bank is one of the department of government which was leading and supervised by the policymakers. It was also responsible for the political benefit of government. However, with the development of structure of economic and the demand of financial sector, the contradiction between political benefit and the stable of the economic growth has intensified. In 20th century, most of the government of developed countries split their right of making monetary policy out and authorized it to the central bank. The independence of central bank has become a necessary and inevitable trend which is widely recognized by the whole world. My topic of this assay is independence of central bank and inflation. The inflation is one of the most important factors which can serious impediment the economic growth healthy and smooth. Moreover, it is one of the major objective which independent central banks efforts to reach. In this assay I use the example of three different central bank, European central bank Bank of England and Federal Reserve System perspectively, to