Role of Central Bank

Different countries operate their own central bank that controls and monitors operations of commercial banks within their economy; central banks are the custodians of commercial bank. Other than being the sole printer of notes and coins currency of a nation, central banks provide their countries’¬†currencies¬†with price stability by controlling¬†inflation. To control and intervene in an […]

Open Economy: International Trade and Finance

An open economy involves carrying out of economic, businesses and trade across the border. It means the opposite of closed economy in which international trade and business cannot take place. Exporting is a term used in international trade to refer to the act of selling goods and services t across border, while importing involves buying […]

The Concept of Economic Crises through Economic History

Introduction Economic crisis refers to a situation whereby an economy of a particular country undergoes a sudden downturn arising from a financial crisis [1](p.14). During an economic crisis, most economies tend to experience a reduction in growth in their Gross Domestic Product. These economies also undergo a reduction in the liquidity level in addition to […]

Sweatshops and Third World Poverty

Introduction The economic, political, and social situation of countries varies with geographical locations and rate of development in an economy; with the differences, countries have been classified as developing and developed countries. Further division of countries according to their economic well being have resulted to three main classifications as first, second, and third world countries; […]

IMF Conditionality Policy Causes and Effects

Twenty-nine member countries including the United States, Canada, France and the United Kingdom ratified the initial agreements that gave birth to the International Monetary Fund, or the IMF, and the World Bank in 1944, largely as a response to the decimated state of European finances and infrastructure as a result of the Second World War […]