Explain the Legal Framework for the Bank of England's Monetary Policy Essay

Explain the juristic Framework for the Bank of Englands Monetary Policy - Essay Exampleexcept where clearly quoted and referenced. has been copied from material belonging to any separate person e.g. from a book. handout, another student. I am aware that it is a breach of UEL regulations to copy the work of another without clear acknowledgement and that attempting to do so renders me liable to disciplinary proceedings. SECTION B (to be completed by the tutor marking assignment) Assessment Criteria Weightings Criteria based Feedback Mark Achieved Logical Sequence and study 10% Evidence of Background Reading 20% Appropriate Depth of Analysis 30% Critical Evaluation of Issues/Results 25% Referencing Technique 5% manifestation including Language and Grammar 10% TOTAL MARKS 100% Good practice demonstrated Aspect to consider for improvement Tutors Name Date Received probationary MARK Explain the legal framework for the Bank of Englands Monetary Policy and discuss the effectiveness of c entral bank independence in measure of financial crises. Module CodeFE3011 Module Title Monetary Economics Student Number0843375 Table of contents 1. Introduction 3 2. Bank of England monetary constitution 3 2.1 Overview of Bank of Englands monetary policy 3 2.1.1 Monetary policy, elements and effects 3 2.1.2 Monetary policy of Bank of England 4 2.2 Legal framework for the Bank of Englands Monetary Policy 5 2.3 Effectiveness of central bank independence in times of financial crises 7 3. terminal 8 References 9 Appendix 10 1. Introduction In most countries, the standardization of the economy is considered as a challenging task, even when the level of matter resources, as combined with commercial activities, is characterized as quite satisfactory. The development of an effective monetary policy can help a country to secure its point in the international community at the same time, a successful monetary policy can help a country to keep the restrain on its industries and resour ces, ensuring the availability of capital required for the completion of local governments plans. This paper focuses on the examination of the legal framework for the Bank of Englands monetary policy furthermore, the effectiveness of the Banks independence in times of financial crises is discussed referring to the literature and the empirical evidence developed in the circumstantial field. It is proved that, in the UK, the monetary policy is influenced by a series of factors for this reason, the legal framework for the Bank of Englands monetary policy is not standardized. In its current form, the legal framework for the Banks monetary policy is quite flexible, incorporating rules for regulating all aspects, as possible, of the national economy. In the future, particular tension should be given on the valuable role of Bank of England in securing payments across the country, regulating the monetary policy of the country and controlling the activities of bank institutions (HM exchequ er 2008, p.86). 2. Bank of England monetary policy 2.1 Overview of Bank of Englands monetary policy 2.1.1 Monetary policy, elements and effects In order to understand the characteristics and the effectiveness of Bank of Englands monetary policy, it would be necessary to refer primarily to the elements of monetary policy, as part of a countrys economic life. According to Ruddock (2008), the monetary policy of each country is set and monitored by the country