University Economics Term paper




Every government is meant to have the comfort of its citizens as the paramount objective for the running of activities through the establishment and enforcement of coherent policies. These policies ought to be geared toward the overall economic development of the country notwithstanding the influence of politics or international impression and recognition. The establishment of policies capable of enhancing the economic development of any government must be done free of political influence both within and outside the country and the credibility of these policies depend on its effects on the citizens of the government. The gap between the rich and the poor becomes more glaring on a daily basis and thus, the need for implementing policies that favor both the rich and the poor cannot be seen as overemphasized.


In recent times, variables like political influence and international sycophancy has led to the establishment of monetary policies that are not to the advantage of the entire citizens but are rather, to the advantage of the influencers of these policies.


For the monetary policies of a country to be free of these influencers and positively affect the citizenry of the country – both the rich and the poor – their establishment, maintenance and management must be run by a body that is not and cannot be controlled by the influencers. This paper seeks to present the advantages of delegating the responsibility of the establishment and maintenance of monetary policies to an independent conservative central bank. It is important to discuss the need to provide policies that are free of influence in order to create public awareness concerning some of the causes of the wide gap between the rich and the poor.


The paper will be divided into two parts: the first part describes the terms that must be understood in the process of addressing this matter and the second part explains the advantages of delegating the running of anti-inflationary policies to an independent conservative central bank.




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