Day: April 15, 2018

Subsidy Dogfight

Subsidy Dogfight

Farzyn Hakimyser Subsidy dogfight – Boeing versus Airbus In this case some status of the Boeing is described. Air bus is one of the biggest manufacturers of the Aircrafts in the world, and applies for getting aid for A350, direct competitor to 787 and Dispute now before WTO as to the legality of the various subsidies. A long history of development subsided in the commercial aerospace industry, in 1992 agreement between Boeing and Airbus limited the state aid either company can get from their respective governments.

A problem underlies here; that this mentioned company cannot use subsidies for their new project. Here a solution is introduced; Boeing can take several partners to help design and build the 787. There are trios of three Japanese companies that have asked the Japanese government for help with the 787 projects. Questions: Question number 1 ————————————————- Using Boeing’s 767, 777 and 787 as examples, argue that the incentives for Boeing’s commercial outsourcing to Japan are to access the market, spread risk, gain access to capital and lower U. S. spending on R&D.

These contracts have allowed the Japanese to develop new capabilities in terms of production capacity, tooling, design and final assembly. Ultimately, these capabilities imply that Japan will eventually enter the market as a fully-fledged producer of commercial aircraft. Question number 2 This is apparent gaining a higher market share will result in higher benefit and as a result more earning. And company will go stronger. Of course subsidies go less as a company gets stronger. And if they are earning more market share, then they are getting stronger. So, their subsidies will be lessening.

And these subsidies could eventually become nothing. But, they gained market shares. And the government thought that it would be good for the economy and for efficiency of fuel, money. ————————————————- Even on new plans or to develop new technologies, the company could not receive a subsidy. so they have to take loans from banks and indirectly or directly banks would become their partners. Question number 3 ————————————————- Of course, NASA would pay them they can earn on those researches; NASA often pays a fortune for innovative ideas.

They would order some idea to the air company and pay all of the funds that are needed. So all of the companies would benefit because they may have not enough resources to do that research so they outsource the some part of research to other organizations. Question number 4 They could expand their competitive product and do the same action with WTO, also Air bus could do so, but we should consider that time’s position and statues, may be talk could solve the problem. As an example: In late 2004, the EU and U. S. government entered into negotiations to try to resolve the dispute, but talks ended in march 2005 with no agreement.

And EU countries give repayable loans to Airbus for ‘specific’ development programs, but not ‘all’ programs. In fact, only three of the last eight new aircraft models took advantage of that system. ————————————————- ( International Business, Charles W. L Hill) Question number 5 Developing new products , or new technology that outcomes the other one the even subsidy could not help the other one. Also if they could not continue without their subsidies they are better to leave the competition.

Personal Crimes Analysis

Personal Crimes Analysis

A personal crime is a crime that is committed against a person, which affects the victim in a personal way. There are various types of personal crimes which affect an individual, but I will be covering homicide, assault, battery, mayhem, rape and statutory rape. Homicide is defined as a person who kills another person or the killing of one human being by another. First degree murder means the criminal act had been premeditated and intentional. First degree murder is usually punishable by death or life imprisonment.

Second degree murders are committed during the perpetration or attempted perpetration of an enumerated felony, such as arson, rape, robbery, or burglary. The difference between first and second degree is second degree murders is not premeditated. For example, they happen when a mugger “sticks up” an individual and in the process ends up killing the victim. Some states have third degree murder as well, which includes all other types of murders. (Criminal Law, Fourth Edition). Assault is a personal crime that usually involves contact, or a confrontation between people.

An assault involves an intentional, unlawful threat or “offer” to cause bodily injury to another by force; under circumstances which create in the other person a well-founded fear of imminent peril; where there exists the apparent present ability to carry out the act if not prevented. An assault can occur even without physical contact. A battery is the willful or intentional touching of a person against that person’s will by another person, or by an object or substance put in motion by that other person. Offensive touching can also be considered battery.

Mayhem is an offense against the person in which the offender violently deprives his victim of a member of his body, thus making him less able to defend himself. The disabling of an arm, hand, finger, leg, foot, or eye are examples of mayhem. In a number of jurisdictions, mere disfigurement or maiming is considered mayhem. To be guilty of the criminal offense, one must intend to dismember the victim or must assault him so recklessly as to create the danger of dismemberment even though not intending to cripple.

One of the most infamous cases of mayhem happened back on June 28, 1997, at the MGM Grand Garden Arena, in Las Vegas. On this night “Iron” Mike Tyson bit off Evander Holyfield ear off during the closing minute of the third round. Now when it comes to assault, battery and mayhem, there are various determining factors when it comes to punishment; was it a misdemeanor or a felony. Misdemeanor is defined as minor crime (as opposed to a felony). A crime – less serious than a felony – which is punishable by fine or imprisonment in a city or county jail rather than in a penitentiary.

Some examples of misdemeanors are petty theft, public intoxication, simple assault which excludes assaults on police officers, elected officials and social workers, trespassing and indecent exposure. Every case is different and unique so punishment on charges of assault, battery and mayhem vary from case to case. Rape is forced, unwanted sexual intercourse. Rape, sometimes also called sexual assault, can happen to both men and women of any age. In most of cases when referring to rape it is a female who is the victim.

On rare occasions a man will be the one who will be the victim of rape. Rape is about control and a crime of great personal violence. Some states have expanded the definition of rape to include spousal rape and rape that was not forced but without consent. Lack of consent is a necessary element in all rape cases. Most states refer to rape as a sexual assault and there are four degrees of sexual assault. The laws known as shield laws were enacted in the 1970’s to protect the victim in a rape trial from her past being brought into the trial.

This was important because it does not matter what type of past the victim has if she was violated and raped to the legal standard of rape then she was violated. Statutory rape is defined as sexual intercourse by an adult with a person below a statutorily designated age. The criminal offense of statutory rape is committed when an adult sexually penetrates a person who, under the law, is incapable of consenting to sex. Minors and physically and mentally incapacitated persons are deemed incapable of consenting to sex under rape statutes in all states.

These persons are considered deserving of special protection because they are especially vulnerable due to their youth or condition. Most legislatures include statutory rape provisions in statutes that punish a number of different types of sexual assault. Statutory rape is different from other types of rape in that force and lack of consent are not necessary for conviction. A defendant may be convicted of statutory rape even if the complainant explicitly consented to the sexual contact and no force was used by the actor.

By contrast, other rape generally occurs when a person overcomes another person by force and without the person’s consent. The actor’s age is an important factor in statutory rape where the offense is based on the victim’s age. Furthermore, a defendant may not argue that he was mistaken as to the minor’s age or incapacity. Most rape statutes specify that a rape occurs when the complainant is under a certain age and the perpetrator is over a certain age. Rapes, especially statutory rape are the most personal of all.

When a victim suffers rape, the emotional toll on their psyche is so severe that in many cases a victim might resort to suicide or sever depression. In cases were a female victim suffers rape and results pregnant, are the worst of all. On cases like this the woman must chose whether to keep the child and in essences the product of the crime rape or abort; which is also damaging to a person. In statutory rape cases, if the aggressor was an adult they usually get an automatic minimum of seven years, but could receive even more if they are a second time offender or it lead to death or mutilation of an individual.

Horror of War

Horror of War

Explore the ways in which Sherriff’s Journey’s End present the horrors of war. Compare and contrast your finding with Sebastian Faulks’ treatment of the same theme in Birdsong, ensuring that your response is informed by interpretations of other readers. Both Sherriff and Faulks depict the horrors of war through the various dramatic and linguistic techniques used. Some of these horrors can be perceived as the separation from loved ones, the responsibilities and expectations men faced in the trenches and the deaths of innocent men despite class, status and beliefs.

Faulks however, portrays the horrors of war in a different way, focusing on the graphic imagery, experiences of the characters and landscapes to convey the horrors. Early on in the first Act of Journey’s End, the horrors of war are revealed to the audience through the stage directions, “yellow candle-flames light the other corner”. The meaning could be ambiguous as it holds both a literal and metaphorical connotations; Sherriff symbolises how the unnatural conditions the characters exist in-the trench lit by artificial light-represents how the world men survived in, is one that is unnatural and one mankind should not be compelled to live in.

Towards the end of the play, Sherriff uses vivid depictions in the stage directions to recreate, in a detailed way, the setting in which the soldiers are in. This makes the audience feel like they are there as the “Flying fragments of shell whistle and hiss and moan overhead”. The alliteration and personification in the first two words create a harsh and graphic representation of the horrors as the sibilance builds up a vivid nightmarish atmosphere. This represents to the audience a realistic depiction of the true horrors.

Similarly, Faulks uses linguistics to create a vivid portrayal of the landscape, deaths and injury; “The trench you started from is just a mass of bodies. ” This suggests that the degree of lost individuality and lives was astronomic, as Faulks not only shows the dehumanisation of the war but also how the masses of bodies left uncared for was normality during the war. The vivid imagery is needed to recreate what happened, in order to make it possible for the reader to picture in their mind the horrors of the described scene.

Faulks’ novel enables the reader to have a visual insight and can reveal the direful truth of how soldiers are left lying in foreign land alongside men’s corpses, with their identity unrecognisable. Birdsong is a fiction novel which uses imagery to express the graphic horrors of war in comparison to Journey’s End-restricted in terms of duration-uses auditory imagery to enable the horrors of war to be accentuated. On top of this, Journey’s End has a lack of characters that enables the audiences to relate to them portraying the horrors of war to the audience as they see what the characters experiences.

Throughout the play, Sherriff not only looks at how British soldiers were affected by the war but also the humanity that German soldiers had. This enlightens the audience about how men on both sides are compassionate despite their conditions; “the German officer fired some lights for them to see by”… “Next day we blew each other’s trenches to blazes. ” The striking difference between Osborne’s reminiscences implies the seemingly absurd nature of the warfare. It tests what men believed in, exposing to the audience how futile the war was as neither side wanted to be on unfamiliar land where killing is required of them to stay alive.

Both Sherriff and Faulks show how men’s fear of their surroundings can reduce a soldier to despair. Sherriff portrays this through Hibbert, and the terror he faces in the trenches, “I’ve tried damned hard; but I must go down”. Sherriff‘s dramatic techniques accentuate Hibbert’s fear as he acts “hysterically. ” Hibbert’s manner stresses to the audience the psychological effects that can occur as he “bursts into a high pitched laugh” and “breaks down and cries. It can be seen that the extremity of the horrors Hibbert faces were not just the physical injuries suffered but also the psychological effects that petrify and irrevocably alter men. On the other hand, Faulks shows the extent of the horror faced through landscape when “the hillside was seething with the movement of the wounded” and “it was like a resurrection in a cemetery twelve miles long. ” The size of the horror is reflected in the sound that the men produce, “It was a low, continuous moaning…it sounded…as if the earth itself was groaning. Faulks emphasises the horrors of war through the figure of speech such as the personification of the landscape as he implies the land has been causes extreme disturbance by the wounded men and the use of simile to reinforce it was not just the men altered but also the landscape. On top of this, it could be seen that Faulks’s choice of words holds religious connotation of the resurrection of the dead, portraying God’s dominance over life and death yet also reminding those who believe, that they are alive, which predictably leads to the breakdown of Weir who cries out, “Oh God oh God – what have we done”.

In the same way as Journey’s End, it can be seen by the reader how the extremity of the horrors seen, were not just physical but psychological too. It is apparent that Stanhope has a lot of pressures placed upon him as he is in charge of his company, has to seem ‘normal’ in front of Raleigh and his comrades and he has to be able to cope with the pressure of war. Sherriff portrays this through Stanhope as he is forced to grow up too soon; “Despite his stars of rank he is no more than a boy. The stage directions reveal that Stanhope was only just an adult when he joined up, resulting in him having to mature early on as power was delegated to him. This therefore meant that Stanhope had to look after the lives of men at the age of twenty one and the childlike qualities he once possessed not long ago have been stripped away. To deal with the pressures, he turns to alcohol- “Drinking like a fish as usual? ”-suggesting to the audience it is a coping mechanism in order to escape the world in which he was bound to.

This portrays how men cope with the innocence they once felt that is no longer present portrayed through Raleigh who knew Stanhope from before the war where he was a ‘skipper’ at rugby, showing how the alteration of life meant that men needed a way to survive with the pressures and horrors of the war and in Stanhope’s case, abusing alcohol. Sherriff and Faulks look at how the death of soldiers devastatingly affects the men through the key protagonists.

The death of Osborne very violently affects Stanhope: “To forget you fool-to forget! D’you understand? To forget! You think there’s no limit to what a man can bear? ” Stanhope has lost his closest friend and to try to forget, he turns to abusing alcohol in order to escape from the world of bereavement, damage and destruction he now faces. However Faulks shows how Stephen faces a range of emotions to cope with the death of Weir, from trying to cry, to wanting revenge as “Now he would kill with a light heart. This implies to the reader that Weir was the only person in whom Stephen could confide and that although, at times, Stephen would appear to have had no compassion for Weir, the reality is that Weir was the only person Stephen could get close to, which led him to want to kill for revenge. The juxtaposed words expose the reality of war, as the killing of the enemy was what made men feel the lives taken were just. This may well suggest how the views of society changed within a short space of time; the death of a soldier had become ordinary.

Both the play and novel suggest that men in the trenches have a close bond that has been built up, as they are united in the appalling conditions. The war took masses of lives and the psychological effects, had a huge impact upon the well-being on men, revealing the horrific realities of the war. Sherriff explores the patriotism of young men who have not had any experience of trench life, represented through Raleigh. Whilst still at school, Raleigh witnessed the return of his hero, Stanhope, who is a serving soldier and believed him to have “looked splendid”.

Raleigh arrives at the trenches with a sense of optimism, being “frightfully keen” to join the man he admires. Sherriff enables the audience to see that Raleigh is clearly unprepared and naive of life at the front, which makes the horrors of war come to life for the audience as Raleigh is extremely youthful and his death symbolising not only the majority of the younger generations, who were more than keen to enlist to fight for their country, yet knew little of what they would witness but also how regardless of background, death can happen to anyone.

It can be seen, therefore, that the audience and the reader of both texts would find it difficult to imagine the horrors of serving and living in a trench without the writer’s use of dramatic and linguistic techniques.

Both Sherriff and Faulks create a compelling image in both the play and the novel: Journey’s End explores the relationships that formed, the views upon war and the claustrophobic conditions men live in whereas Birdsong focuses on using graphic imagery to expose death, loss, injuries, and the alteration of men’s lives. Both Sherriff and Faulks convey to the audience and the reader a glimpse of the horrors faced by men during the war and how these affected and irrevocably altered their lives.

Arizona Immigration Law 7

Arizona Immigration Law 7

THE ARIZONA IMMIGRATION LAW The Arizona State Senate voted 17-11 to pass what some people would call the country’s strictest and most controversial immigration bill. It requires police to question people about their status if there’s reason to suspect they’re in the country illegally. The bill would also allow individual lawsuits to be brought against government agencies that hinder enforcement of immigration laws and make it illegal for employers to hire or knowingly transport illegal immigrants for daily labor.

Proponents of the bill say it will aid the police in cracking down on violent offenders who cross the border illegally. The U. S. Constitution clearly assigns the federal government the responsibility to protect the states against invasion. If that duty were faithfully being carried out, there would be no need for the recently passed law in Arizona. The Constitution didn’t say military invasion, just invasion. And the millions who have broken our laws and inundated our country constitute an invasion.

A large percentage of Arizona’s crime, welfare, medical costs, and narcotics problem is traceable to the illegal border crossers. How else are we to deal with the situation when practically no help comes from those assigned to cope with this problem? Oklahoma enacted tough laws against hiring illegal immigrants, and as the federal government enacted these laws, many of the illegal immigrants fled the state. If Arizona would be strict about employing these illegal immigrants then we would have less of them trying so hard to get across the border.

Of course, there are a lot of drug cartels in Arizona and they do not come here to seek employment, there are also a lot of illegal immigrants who come here to work and send money back home. If they were not able to come here and work then they would have no reason to cross the border. This alone would make a huge difference in the number of illegal immigrants trying to cross the border. Those opposing the bill, including the Mexican embassy, say it will lead to racial profiling. Other legal challenges may rest on the bill putting a federal responsibility of immigration into the hands of local and state law enforcement.

Some people such as visitors, citizens, immigrants and foreign workers who may be there legally may be inconvenienced if they are asked to identify themselves or show there immigration papers. If the law treats undocumented immigrants like they are criminals then those who don’t have any papers will stay as far away from police as possible. The current law in Arizona, and most other states, doesn’t require police to ask about the immigration status of those they encounter, and some police officials say allowing such questions would deter immigrants from cooperating in other investigations leading to more, not less crime.

It will also be difficult for police to investigate the crimes and track down the fugitives because of the potential witness’ not having papers and afraid of being deported. Those federal statutes say the violator must be over 14 years old, that he or she has 30 days to register as an alien, and is in violation if willfully failing to carry registration documents. That specificity creates potential state prosecution problems. Most illegal immigrants are prosecuted under a federal statute against illegal entry into the country, not failure to provide documents.

Under the law, officers can only attempt to determine a person’s immigration status during lawful contact, which is defined as a lawful stop, detention or arrest. Any reasonable suspicion can be derived only through the investigation of another violation or crime. The police are going to ask questions and request to see papers in a variety of circumstances, whether they have reasonable suspicion or not. From a legal, constitutional, and practical perspective, here is the key issue. What are the consequences, if any, for the person who stands his ground and declines to answer questions or declines to produce identification papers?

If a person declines, will the police back off and say, that is your right, sir, you may go, or will the police escalate the situation by ordering the person to answer questions, ordering the production of identification, detaining the person, or threaten the person with arrest on bogus charges? The police are trained to blur the line between voluntary interactions with people which is perfectly lawful and involuntary interactions with people where police power is limited by the Constitution. For example, if a police agent says, let’s see what you have in the backpack!

It is unclear whether the officer just made a request that is lawful or issued an order for the purposes here is unlawful. The onus here is on the person to speak up if he does not wish to voluntarily consent to a search. Officer, I don’t consent to any searches. Upon hearing that, the officer will retreat, clarify that he was ordering and not asking, or press the person some more to consent. A dishonest officer can just lie and deny what you said, and if that matter goes to court the outcome will depend on who the judge believes.

That’s a severe practical disadvantage for the people. Those concerned about the Constitution should remain on guard when they hear the claim that “Arizona is only doing what the federal government is already doing. ”  Further, it is doubtful that the Obama administration intends to roll back or reform the powers of the federal police. Instead, it is trying to retain federal police powers while trying to find a way to challenge Arizona’s methods on racial and ethnic grounds. The Arizona law is quite misguided, but so is the president’s legal challenge.

By passing the Arizona Immigration Law, the state will save hundreds of millions of dollars in education, medical, social services, and criminal justice that are all associated with illegal immigrants. Arizona will be protected from trespass and violent crime by cracking down on the illegals in their state. The Arizona Immigration Law will be very difficult to enforce and will take a long time to work out all the mistakes but in the long run it will be great for our country. This is just a new law to enforce the laws that were already in effect, they were just not being enforced.

Monetary Policy in Nigeria 1980- 2008

Monetary Policy in Nigeria 1980- 2008

A PAPER ON MONETARY POLICY IN NIGERIA BY NDUKAUBA CHIAMAKA INTRODUCTION Over the years, the objectives of monetary policy have remained the attainment of internal and external balance of payments. However, emphasis on techniques/instruments to achieve those objectives have changed over the years. There have been two major phases in the pursuit of monetary policy, namely, before and after 1986. The first phase placed emphasis on direct monetary controls, while the second relies on market mechanisms.

Overall, the socio-economic and political milieu, including the legal framework under which the Central Bank of Nigeria has operated, was found to be the critical factor that influenced the outcome of monetary policy. Specifically, the existence of fiscal dominance, a persistent liquidity overhang, an oligopolistic banking system and dualistic financial markets are major systemic factors that have undermined the efficacy of monetary policy in Nigeria. Generally, both fiscal and monetary policies seek at achieving relative macroeconomic stability.

Over the year, two issues have been subjects of debate in this regard. First is the superiority of each of these policies in the achievement of macroeconomic stability. While the Keynesians argued that fiscal policy is more potent than monetary policy, the monetarists led by Milton Friedman on the other hand believed the other way round. MONETARY POLICY Monetary policy is the process by which the central bank or monetary authority of a country controls the supply of money, often targeting a rate of interest.

Monetary policy is usually used to attain a set of objectives oriented towards the growth and stability of the economy. These goals usually include stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. Monetary policy is referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy rapidly, and a contractionary policy decreases the total money supply or increases it only slowly. Expansionary policy is traditionally sed to combat unemployment in a recession by lowering interest rates, while contractionary policy involves raising interest rates to combat inflation. Monetary policy is contrasted with fiscal policy, which refers to government borrowing, spending and taxation. Monetary policy rests on the relationship between the rates of interest in an economy, that is the price at which money can be borrowed, and the total supply of money. Monetary policy uses a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other currencies and unemployment.

Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authority has the ability to alter the money supply and thus influence the interest rate (to achieve policy goals). The beginning of monetary policy as such comes from the late 19th century, where it was used to maintain the gold standard. MONETARY POLICY IN NIGERIA [ 1980- 2008] Monetary Policy before 1986

The economic environment that guided monetary policy before 1986 was characterized by the dominance of the oil sector, the expanding role of the public sector in the economy and over-dependence on the external sector. In order to maintain price stability and a healthy balance of payments position, monetary management depended on the use of direct monetary instruments such as credit ceilings, selective credit controls, administered interest and exchange rates, as well as the prescription of cash reserve requirements and special deposits.

The use of market-based instruments was not feasible at that point because of the underdeveloped nature of the financial markets and the deliberate restraint on interest rates. The most popular instrument of monetary policy was the issuance of credit rationing guidelines, which primarily set the rates of change for the components and aggregate commercial bank loans and advances to the private sector. The sectoral allocation of bank credit in CBN guidelines was to stimulate the productive sectors and thereby stem inflationary pressures.

The fixing of interest rates at relatively low levels was done mainly to promote investment and growth. Occasionally, special deposits were imposed to reduce the amount of free reserves and credit-creating capacity of the banks. Minimum cash ratios were stipulated for the banks in the mid-1970s on the basis of their total deposit liabilities, but since such cash ratios were usually lower than those voluntarily maintained by the banks, they proved less effective as a restraint on their credit operations. From the mid-1970s, it became increasingly difficult to achieve the aims of monetary policy.

Generally, monetary aggregates, government fiscal deficit, GDP growth rate, inflation rate and the balance of payments position moved in undesirable directions. Compliance by banks with credit guidelines was less than satisfactory. The major source of problems in monetary management were the nature of the monetary control framework, the interest rate regime and the non-harmonization of fiscal and monetary policies. The monetary control framework, which relied heavily on credit ceilings and selective credit controls, increasingly failed to achieve the set monetary targets as their implementation became less effective with time.

The rigidly controlled interest rate regime, especially the low levels of the various rates, encouraged monetary expansion without promoting the rapid growth of the money and capital markets. The low interest rates on government debt instruments did not sufficiently attract private sector savers and since the CBN was required by law to absorb the unsubscribed portion of government debt instruments, large amounts of high-powered money were usually injected into the economy.

In the oil boom era, the rapid monetization of foreign exchange earnings resulted in large increases in government expenditure which substantially contributed to monetary instability. In the early 1980s, oil receipts were not adequate to meet increasing levels of demands and since expenditures were not rationalised, government resorted to borrowing from the Central Bank to finance huge deficits. This had adverse implications for monetary management. Monetary Policy Decisions – 1986

Analysis of the institutional growth and structure indicates that the financial system grew rapidly in the mid 1980s to 1990s. The number of commercial banks rose from 29 in 1986 to 64 in 1995 and declined to 51 in 1998, while the number of merchant banks rose from only 12 in 1986 to 54 in 1991 and subsequently declined to 38 in 1998. In terms of branch network, the combined commercial and merchant bank branches rose from 1,323 in 1985 to 2,549 in 1996. There was also substantial growth in the number of non-bank financial institutions, especially insurance companies.

Monetary Policy Since 1986 The Structural Adjustment Programme (SAP) was adopted in July, 1986 following the crash in the international oil market and the resultant deteriorating economic conditions in the country. It was designed to achieve fiscal balance and balance of payments viability by altering and restructuring the production and consumption patterns of the economy. These would be achieved by eliminating price distortions, reducing heavy dependence on crude oil exports and consumer goods imports, enhancing the non-oil export base and achieving sustainable growth.

Other aims were to rationalise the role of the public sector and accelerate the growth potentials of the private sector. The main strategies of the programme were the deregulation of external trade and payments arrangements, the adoption of a market-determined exchange rate for the Naira, substantial reduction in complex price and administrative controls and more reliance on market forces as a major determinant of economic activity. The objectives of monetary policy since 1986 remained the same as in the earlier period, namely: the stimulation of output and employment, and the promotion of domestic and external stability.

In line with the general philosophy of economic management under SAP, monetary policy was aimed at inducing the emergence of a market-oriented financial system for effective mobilization of financial savings and efficient resource allocation. The main instrument of the market-based framework is the open market operations. This is complemented by reserve requirements and discount window operations. The adoption of a market-based framework such as OMO in an economy that had been under direct control for long, required substantial improvement in the macroeconomic, legal and regulatory environment.

In order to improve macroeconomic stability, efforts were directed at the management of excess liquidity; thus a number of measures were introduced to reduce liquity in the system. These included the reduction in the maximum ceiling on credit growth allowed for banks; the recall of the special deposits requirements against outstanding external payment arrears to CBN from banks, abolition of the use of foreign guarantees/currency deposits as collaterals for Naira loans and the withdrawal of public sector deposits from banks to the CBN.

Also effective August, 1990, the use of stabilization securities for purposes of reducing the bulging size of excess liquidity in banks was re-introduced. Commercial banks’ cash reserve requirements were increased in 1989, 1990, 1992, 1996 and 1999. The rising level of fiscal deficits was identified as a major source of macroeconomic instability. Consequently, government agreed not only to reduce the size of its deficits but also to synchronize fiscal and monetary policies.

By way of inducing efficiency and encouraging a good measure of flexibility in banks’ credit operations, the regulatory environment has improved. Consequently, the sector-specific credit allocation targets were compressed into four sectors in 1986, and to only two in 1987. From October, 1996, all mandatory credit allocation mechanisms were abolished. The commercial and merchant banks were subjected to equal treatment since their operations were found to produce similar effects on the monetary process.

Areas of perceived disadvantages to merchant banks were harmonized in line with the need to create a conducive environment for their operations. The liquidity effect of large deficits financed mainly by the Bank led to an acceleration of monetary and credit aggregate in 1998, relative to stipulated targets and the performance in the preceding year. Outflow of funds through the CBN weekly foreign exchange transaction at the Autonomous Foreign Exchange Market (AFEM) and, to a lesser extent, at Open Market Operation (OMO) exerted some moderating effect.

The reintroduction of the Dutch Auction system (DAS) of foreign exchange management in July, 2002 engendered relative stability, and stemmed further depletion of reserves during the second half of 2002. However, the financial system was typically marked by rapid expansion in monetary aggregates, particularly during the second half of 2000, influenced by the monetization of enhanced oil receipts. Consequently, monetary growth accelerated significantly, exceeding policy targets by substantial margins.

Savings rate and the inter-bank call rates fell generally due to the liquidity surfeit in the banking system though the spread between deposit and lending rates remained wide. Monetary Policy Decisions [2003] MPC Meeting of August, 2003 1. Reduction of Minimum Rediscount Rate (MRR) by 150 basis points to 15. 0 per cent with effect from August 17, 2003; 2. Changed the frequency of MPC Meetings from fortnightly to monthly; MPC Meeting of June, 2003 1. While a change in the stance of monetary policy was not considered as desirable, the need for greater fiscal prudence was emphasized.

MPC Meeting of April, 2003 1. No additional policy action was introduced during the month. MPC Meeting of March, 2003 No new monetary policy action was introduced during the month. Monetary Policy Decisions [2004] MPC Meeting of December, 2004 1. There was no new monetary policy action introduced at the meeting. MPC Meeting of June, 2004 1. Withdrawal of public sector deposits amounting to N74. 5 billion (75. 6 per cent of such deposits) from the deposit money banks to the CBN with effect from July 21, 2004; 2. Phased recall of public sector funds with the deposit money banks to be sustained.

MPC Meeting of February, 2004 1. Approval of a selective withdrawal of public sector funds from the banking system, targeting a total of N40 billion; Monetary Policy Decisions [2005] MPC Meeting of November 1, 2005 1. The MPC mandated the review of the rules and procedures guiding the forex market with a view to simplifying and improving upon them; 2. Observed that the fiscal authorities must make adequate provisions in the 2006 budget for Treasury Instruments for appropriate liquidity management in 2006; 3.

Reiterated the commitment of the CBN to meet its target growth of money supply for 2005 (that is, 15 per cent). Consequently, the MPC resolved to take the following additional measures to bring money supply in line with the target: * Complete the sale of N60 billion of CBN instrument, and sell more if need be; * Sale of Treasury Bills which will be sterilized for liquidity management; * Sale of additional foreign exchange to mop up liquidity; * Move all NNPC deposits with commercial banks to the CBN and sterilize much of it with effect from October 31, 2005.

All banks that collect revenues on behalf of the NNPC are expected to remit all such funds to the CBN within 48 hours of the collection. Failure to remit such funds will attract a penal interest charge of MRR plus 5. Any MD of a bank who misreports NNPC deposits with it or falsifies any returns to the CBN will be suspended for three months in the first instance; * To ensure effective monitoring and implementation of liquidity management programme, the MPC set up a Monetary Policy Implementation Committee which shall meet every two days to review developments and take necessary actions.

MPC Meeting of June 15, 2005 1. The withdrawal of N60 billion public sector deposit from the banks to the CBN, which should be concluded within a period of 2 months; 2. The maintenance of the prevailing minimum rediscount rate (MRR) of 13 per cent. This action would help sustain the prevailing policy measure in encouraging credit to the growth sectors of the economy; 3. The upward revision of the cash reserve requirement (CRR) by 50 basis points from 9. 5 to 10 per cent in order to further mop up excess liquidity in the system.

The Committee further agreed that, henceforth, the debiting of banks accounts with CBN to meet the stipulated CRR should be effected immediately after the monthly FAAC meetings. This is based on the observation by the Committee that the FAAC related liquidity, is the major source of excess liquidity in the economy. 4. The revision of the definition of Liquid Assets to include 3-year bonds; 5. That, until the Pension Funds Administrators are appointed, funds realised from the Pension Fund should not be invested in the Nigerian Treasury Bills instead they should be invested in long-term securities or sterilized; 6.

The sustenance of the exchange rate band of ± 3 per cent. MPC Meeting of January 24 & 25th, 2005 1. Reduction of the MRR by 200 basis points, in order to reduce the cost of private sector borrowing for productive investment; 2. Adoption of two weeks maintenance period for the CRR; and 3. Adoption of an exchange rate band of plus/minus 3. 0 per cent, to sustain exchange rate stability, anchor expectations and minimize transaction costs. Monetary Policy Performance in 2006 In 2006, the New Monetary Policy Framework for monetary policy implementation was introduced.

The ultimate goal of the new framework was to achieve a stable value of the domestic currency through stability in short- term interest rates around an Operating Target the CBN Monetary Policy Rate (MPR). The MPR serves as an indicative rate for transactions in the inter-bank money market as well as other interest rates in the money market transactions. The MPR which replaced the MRR was set at 10 per cent with spread of 600 basis points around the rate, i. e. 300 basis points above and 300 basis points below.

This translates into an upper limit of 13 per cent and a lower limit of 7 per cent. The Whole Sale Dutch Auction System (WDAS) replaced the Dutch Auction System (DAS) in the first quarter of the year under review. In pursuant of further liberalization of the foreign exchange market the bureaux de change was admitted into the WDAS window during the second quarter of 2006 . The admittance of the BDC’s to the WDAS window led to the unification of the exchange rate between official and parallel market.

The objective of monetary policy in 2006 was sustaining price stability and non inflationary growth, as enunciated in the National Economic Empowerment and Development Strategy (NEEDS). The target for single digit inflation was, however, achieved as at December 2006 the inflation stood at 8. 5 per cent. The GDP growth rate for 2006 declined to 5. 63 per cent compared with what obtained in 2005 when it stood at 6. 51 per cent, but the external reserves rose rapidly from US$28. 3 billion to US$41. 9 billion, representing an increase of US$ 13. billion. At the end of 2006, the overall performance indicated that the broad money supply (M2) target was overshot as it grew by 30. 6 per cent compared with the target of 27. 8 per cent. The Reserve money target for December 2006 was missed. The actual Reserve money (RM) at end December stood at N974. 9 billion, compared with the target of N 820 Billion. The non attainment of RM target at end December was largely due to the rapid growth in currency in circulation. Monetary Policy Decisions 195th MPC Meeting of 28th November, 2006 1.

Adoption of a new monetary policy framework to be effective from Monday December 11 th 2006 2. The new monetary policy framework would be launched on Monday December 4,2006 3. The new Monetary policy framework would introduce a new Monetary Policy Rate ( MPR ) to replace the Minimum Rediscount Rate ( MRR ) 4. The MPR would be the main instrument of the new monetary policy framework and will determine the lower and upper band of the CBN standing facility and is expected to have the capability of acting as the nominal anchor for other rates 5.

Discontinue outright rediscounting of bills in the CBN to encourage trading among the market operators 6. Ensure the full deployment of Information Technology (IT) infrastructure (RTGS, T24, and eFASS) for the effective implementation of the new monetary policy framework; and 7. Convene meeting of the MPC every other month to review developments in the economy. Reasons * Challenges arising from the new policy framework Gave consideration to the policy setting rules such as the monetary policy response function, the frequency of changes in the MPR , significance of inflation considerations in determining the MPR , the problem of price, credit and operational risks, sensitization of operators and other stakeholders, training, etc MPC Meeting of August 9, 2006 1. Maintained the MRR at 14% with a proviso to review the MRR should the threat to monetary policy continue; 2. Approved a new framework for monetary policy implementation. The IT and other logistics requirements are to be sorted out between now and October, 2006.

Pilot implementation is expected to commence on or before November 1st, 2006 3. Sustained the CBN’s zero tolerance to lending to government; 4. Reaffirmed that there is no control on interest rate or pegging of lending rate to the MRR; 5. Approved operational guidelines on the CBN Discount Window; 6. Approved guidelines for discount window operations in FGN bonds; 7. Sustained the on-going liberalization of the forex market. MPC Meeting of June 8, 2006 * Raised the MRR from 13% to 14%, to take effect from 12th June, 2006; * Maintained the CRR at 5%; Resolved to sustain the on-going liberalization of the forex market as well as effectively monitor the market to maintain stability of the naira; * The Monetary Policy Implementation Committee (MPIC) would continue to keep daily surveillance on monetary operations; * With the deployment of the electronic Financial Analysis Surveillance System (eFASS), the Bank will leverage on that to ensure the proactive implementation of monetary policy; * The OMO shall continue to be the major instrument of monetary policy; * The Committee, further assured that it would respond to changes in economic prospects as needed to support the attainment of its objectives. MPC Meeting of February 14, 2006 * Resolved to work towards maintaining single digit (core) inflation; * The Bank will work towards zero ways and means. However, where it becomes absolutely necessary, ways and means will not be more than 5% of last year’s revenue; and such lending will attract the prevailing MRR + 1 per cent rate of interest. CBN will continue with regular OMO operations and issuance of new bills, both TBs and CBN bills; * MRR will be maintained at 13% in line with the anti-inflation stance of the MPC; * As a measure of tight monetary stance, M2 will be kept within the range of 15 to 17% target; * CRR is to be maintained at 5%, while the liquidity ratio will be retained at 40%; * Wholesale-DAS will commence on 20th February, 2006 to foster exchange rate convergence between the DAS and the inter-bank market rates. Monetary Policy Performance in 2007 The framework for monetary policy management in 2007 remained that of monetary targeting. The Central Bank of Nigeria (CBN) adopted various policy measures aimed at containing the growth of monetary aggregates in order to achieve monetary and price stability.

Open Market Operations (OMO) remained the major tool of liquidity management. Other policy measures included increased issuance of treasury securities in the primary market to mop-up excess liquidity; use of deposit and lending facility to encourage inter-bank transactions as well as special sales of foreign exchange, including swap arrangements. NTBs of various tenors (91-, 182- and 364-day were auctioned during the period. The liquidity management efforts of the CBN yielded the expected results as the single-digit inflation rate was sustained during the year. In addition, the exit reserve money target under the Policy Support Instrument (PSI) was achieved in June 2007.

Over the end-December 2006 level, provisional data indicate that broad money supply (M2) grew by 11. 03 per cent in June 2007 and further by 21. 3 and 25. 31 per cent in September and October, 2007 respectively. When annualized, the M2 grew by 28. 44 and 30. 25 per cent, in September and October, 2007 respectively, compared with 33. 3 and 39. 6 per cent in the corresponding months of 2006. The growth of M2 was driven by the increase in foreign assets (net) of the banking system as well as the rapid rise in credit to the private sector since the end of the second quarter. With the CBN’s drive to contain excess liquidity in the banking system, both M2 and reserve money may be within targets by the end of 2007.

At the end of the second quarter, aggregate domestic credit (net) to the economy declined by 56. 11 per cent, but increased by 98. 99 per cent in October 2007. Also, credit to government (net) declined by 51. 9 per cent in September compared to a decline of 56 per cent at the end of the second quarter. But credit to the private sector, which had maintained an upward trend in most of 2007, rose to 34. 37 and 62. 0 per cent in June and September, respectively. As at November 2007, the economy has achieved a commendable level of external reserves of about US$50. 0 billion that is capable of supporting approximately 23 months of current foreign exchange disbursements.

This represented an increase of 18. 06 per cent when compared with the level of US$42. 42 billion recorded in the corresponding period of 2006. With the implementation of the new Monetary Policy Rate (MPR) and the adoption of the CBN standing facilities, volatility in inter-bank rates remained subdued with rates hovering within the MPR. The MPR was reviewed thrice during the year. The first was in June 2007 when it was reviewed downward by 200 basis points, from 10. 0 per cent to 8. 0 per cent, with the width of the interest rate corridor reduced from +/- 300 to +/- 250 basis points. The second was in October 2007 when the MPR was raised by 100 basis points, from 8. 0 to 9. per cent, with the interest rate corridor removed, in response to anticipated changes in economic and financial conditions. The MPR was then made to serve as the overnight (repo) rate. The last was in December 2007 when the MPR was increased by 50 basis points, from 9. 0 to 9. 5 per cent. Monetary Policy Decisions 200th MPC Meeting of Tuesday, 4th December, 2007 1. The MPC decided to raise the MPR by 50 basis points (i. e. from 9. 0 per cent to 9. 5 per cent) to signal a tightening of policy stance 2. Issue new primary instruments to mop up a significant portion of the anticipated excess liquidity in the system 3. Continue with the regular open market operations (OMO) Reasons The MPC anticipated imminent fiscal surge and continuing increased capital inflows * Desire to drive down core inflation to single digit level * Sustain inflation along its present path 199th MPC Meeting of Wednesday, 3rd October, 2007 Background to MPC Decisions As at September 17, 2007 , reserve money was N919. 7 billion compared with the target of N880. 0 billion for end-September, 2007. The major driver of the growth in reserve money in the third quarter was currency in circulation, which increased from N719. 2 billion at end -August, 2007 to N735. 4 billion on September, 17, 2007 1. The MPC decided to raise the MPR by 100 basis points (i. e. from 8. 0 per cent to 9. 0 per cent).

The new MPR rate would also double as the repo rate-the rate at which the CBN would lend to banks 2. Continue the sale of foreign exchange for purposes of liquidity management 3. Embark on active open market operations 4. DMB deposits with the CBN would seize to earn interest . Reasons The MPC explained that its actions were designed to amongst others, deepen inter-bank trading and encourage banks to free resources to enlarge the credit market 198th MPC Meeting of Wednesday, 1st August, 2007 1. The MPC decided to leave the MPR unchanged at 8. 0 per cent 2. Approve increased sale of financial securities to mitigate the impact of increased liquidity arising from anticipated fiscal injections Reasons MPC anticipated continuing rise in headline inflation in the third quarter of the year * Challenges arising from increased capital inflows and an appreciating naira exchange rate * Other important sources of pressure/risk to low inflation include: * virement of the capital vote to finance recurrent expenditure * distribution of part of the excess crude oil account * Forecast growth path of M2 was expected to be within anticipated limits to end year if monetary policy remained on course 197th MPC Meeting of Tuesday, 5th June, 2007 Background to MPC Decisions The Bank sustained its market driven approach to ensure that the reserve money targets under the Policy Support Instrument ( PSI ) program were achieved in the first half of 2007. Reserve money rose from N841. 5 billion in March, 2007, to N902. 40 billion in May 2007, showing an increase of N61. 15 billion and excess liquidity of N42. 40 billion. However, at end-June, 2007, reserve money was N858. 20 billion compared with the target of N860 billion. The attainment of the program target in the second quarter reflected the effect of the intensive liquidity mop-up operations through the use of both the money market and foreign exchange instruments. 1. The MPC decided to reduce the MPR by 200 basis points (i. e. from 10. 0 per cent to 8. 0 per cent) 2. Introduce tenured repo at MPR 3. Reduce the width of the interest rate corridor from +/-300 to +/- 250 basis points.

The combined implication of (1) and (2) is that the deposit facility now stands at 6. 5 per cent while the lending facility is 10. 5 per cent, both down from 7. 0 and 13. 0 per cent, respectively. 4. Both the lending and deposit facilities are expected to be used as a last resort. Consequently, the frequent usage of these facilities will attract a penalty. 5. Increase the issuance of primary market instruments to mop up about N100. 0 billion from the system 6. Authorise the inclusion of inter-bank placements as part of deposits in the computation of banks’ liquidity ratio; and 7. Approved the continuation of Open Market Operations (OMO) for purposes of liquidity management. Reasons Although inflation had moderated significantly, the downside risks remained * Challenges in achieving the exist PSI reserve money target by June, 2007 * Rising autonomous foreign exchange inflows * Risk of over appreciation of the naira/dollar exchange rate * Strong upside risks such as continued stability of the exchange rate and external reserves * Robust economic outlook in the medium term 196th MPC Meeting of Wednesday, 7th February, 2007 1. The MPC decided to leave the MPR unchanged at 10 per cent 2. Release the 8 per cent special Cash Reserve Requirement ( CRR ) invested on behalf of the banks by the CBN to the Deposit Money Banks (DMBs) on maturity to enable the DMBs utilize the amount of reserve money released for regular operations 3. Keep the CRR unchanged at 3 per Central Bank of Nigeria 4.

Maintain the liquidity ratio at 40 per Central Bank of Nigeria Allow the collaterized placements among deposit money banks to count as liquid assets, for purposes of liquidity ratio computations; and 5. Exclusion of domiciliary deposit accounts from the definition of broad money (M2) and the computation of banks’ CRR . Reasons * High downside risks to low inflation during fiscal 2007 * Rising autonomous private inflows which is expected to lead to persistent excess liquidity in the system * Anticipated high election spending * Falling prices of crude oil * Impact of these adverse developments were expected to unwind after the elections * Robust economic outlook expected in the medium term

Monetary Policy Decisions [2008] 206th MPC Meeting of 11th December, 2008 The Monetary Policy Committee of the Central Bank of Nigeria met on December 11, 2008. The Committee reviewed the major domestic and international macroeconomic developments since the beginning of the year 2008. It noted that despite the stability in the economy during the period, there were challenges in respect of developments in the international oil market involving slack demand from advanced economies and declining oil prices that could weaken Nigeria’s fiscal and external payments positions in 2009. The Committee, thus, decided to: 1. Leave the MPR unchanged at 9. 5 percent; 2. Reduce banks’ foreign exchange net open position from 20. 0 to 10. 0 percent of shareholders funds with effect from Monday December 15, 2008; and 3. CBN to participate actively in the daily inter-bank foreign exchange market by buying and selling through the 2-way quotes. 205th MPC Meeting of 18th September, 2008 The Monetary Policy Committee of the Central Bank of Nigeria met on September 18, 2008. The Committee reviewed the major domestic and international macroeconomic developments in the first eight months of the year. It noted that Nigeria’s economic fundamentals remained strong despite the global financial turmoil.

In order to ensure the smooth functioning of the financial markets and the economy in general, the Committee decided to lubricate the system. The Committee, thus, decided to: 1. reduce the MPR from 10. 25 per cent to 9. 75 per cent; 2. reduce CRR from 4 per cent to 2 per cent with immediate effect; 3. reduce the liquidity ratio from 40 per cent to 30 per cent; 4. allow repo transactions against eligible securities for 90 days, 180 days and 360 days; and 5. the CBN will now buy and sell securities through the two-way quotes. 204th MPC Meeting of 5th August, 2008 The Monetary Policy Committee of the Central Bank of Nigeria met on August 5, 2008. The Committee reviewed the major domestic and international macroeconomic developments in the first seven months of 2008.

It observed that despite the stability in the exchange rate of the naira, the macroeconomic outcomes were mixed as the key interest rates and inflation maintained an upward trend. The Committee decided as follows: 1. The MPR will remain unchanged at 10. 25 per cent since the core inflation is expected to remain at a relatively moderate level. 2. After reviewing developments in the financial market and the misplaced perceptions that the interest rate trends are linked to the requirement of a common year-end, the MPC decided that the common year-end for banks would no longer be a requirement and therefore left to the decision to the discretion of the banks. 3.

In order to ensure a transparent pricing regime in the money market and thereby foster healthier competition, banks are required to fully disclose to the public their deposit rates as well as their base lending rates and other charges for all the sectors of the economy. These should be published on their respective websites and updated daily. The banks are required to report these rates to the CBN to enable the Bank to publish a summary of the rates for each deposit money bank every month. 203rd MPC Meeting of 2nd June, 2008 The Monetary Policy Committee of the Central Bank of Nigeria met on June 2, 2008. The Committee reviewed the major domestic and international macroeconomic developments in the first five months of the year.

It noted that despite the stability in the economy during the period, there were many uncertainties that could threaten the Central Bank’s objective of low and single digit inflation. The Committee decided as follows: 1. strengthen the use of instruments such as open market operations and special sale of foreign exchange; 2. raise the MPR by 25 basis points from 10. 0 per cent to 10. 25 per cent; 3. increase the CRR by 100 basis points from 3. 0 per cent to 4. 0 per cent with effect from June 09, 2008; and 4. set up a technical committee to work out other intervention securities to further strengthen the effectiveness of liquidity management.

The reasons for the decisions included the upward oil and food price movements, the fiscal expansion, and the international financial market conditions. 202nd MPC Meeting of 1st April, 2008 The Monetary Policy Committee of the Central Bank of Nigeria met on April 1, 2008. The Committee reviewed the major domestic and international macroeconomic developments in the first quarter of the year. It noted that despite the stability in the economy during the quarter, there were many uncertainties that could threaten the single digit inflation objectives of the Bank. The Committee decided as follows to: 1. raise the MPR by 50 basis points from 9. 5 per cent to 10 per cent; 2. issue treasury bills for liquidity management; and 3. increase the sale foreign exchange as the need arises.

The reasons for the decisions included the current rate of inflation; the impact of that growth of monetary aggregates in 2007 on the first quarter of 2008; the impact of the continued inflow of foreign private capital into the economy and the actual and potential effect of the recent sharing of the naira equivalent of the excess crude oil revenue as well as the scheduled distribution of the second round in June, 2008. The proposed budget also contained significant increases in expenditure which would lead to fiscal deficits in the next two quarters. 201st MPC Meeting of February 2008 The Monetary Policy Committee of the Central Bank of Nigeria met on 5th February 2008 to review the major domestic and international macroeconomic developments and observed that the outlook for 2008 while being positive has many elements of uncertainty. The Committee, therefore, decided: 1. To leave the Monetary Policy Rate (MPR) unchanged at 9. 5 per cent 2.

To continue the use of open market operations (OMO) for liquidity management and appropriate exchange rate policies CONCLUSION. Since its establishment in 1959 the Central Bank of Nigeria (CBN) has continued to play the traditional role expected of a central bank, which is the regulation of the stock of money in such a way as to promote the social welfare (Ajayi, 1999). This role is anchored on the use of monetary policy that is usually targeted towards the achievement of full-employment equilibrium, rapid economic growth, price stability, and external balance. Over the years, the major goals of monetary policy have often been the two later objectives.

Thus, inflation targeting and exchange rate policy have dominated CBN’s monetary policy focus based on assumption that these are essential tools of achieving macroeconomic stability. Monetary policy in Nigeria has been carried out through the portfolio behaviour of the CBN in terms of the control of its credit and management of reserves. Credit control is being used to check movement in domestic price level, while the exchange rate policy serves as measure for determining the competitiveness and current account performance as well foreign reserves REFERENCES * Monetary Policy and Macroeconomic Instability in Nigeria : A Rational Expectation Approach [Abiodun Oluwole Folawewo and Tokunbo Simbowale Osinubi] * MONETARY POLICY FRAMEWORK IN AFRICA: THE NIGERIAN EXPERIENCE [DR O. J. Nnanna] * “B. M.

Friedman, “Monetary Policy,” Abstract. “. International Encyclopaedia of the Social & Behavioural Sciences. 2001. pp. 9976–9984. * Rogoff, Kenneth, 1985. “The Optimal Commitment to an Intermediate Monetary Target”, Quarterly Journal of Economics 100, pp. 1169–1189 * Forder, James (December 2004). “”Credibility” in Context: Do Central Bankers and Economists Interpret the Term Differently? ” (pdf). Econ Journals Watch. http://www. econjournalwatch. org/pdf/ForderComment1December2004. pdf. * “Bank of England founded 1694”. BBC. March 31, 2006. http://www. bbc. co. uk/history/timelines/britain/stu_eng_bank. shtml. * www. cenbank. org/monetarypolicy