MGT604 GDB 1 Solution and Discussion
Total Marks 5
Starting Date Friday, November 15, 2019
Closing Date Thursday, November 21, 2019
Question Title Central Banking
Management of Financial Institutions (MGT604)
Graded Discussion Board
Topic: Central Banking and the Conduct of Monetary Policy
Objective: Students will be able to learn and compare monetary policies of different central banks.
Central banks play a crucial role in stabilizing the economy of the country by designing the monetary policy. Monetary policy affects the money supply, interest rates and amount of credit that directly impacts the aggregate output and inflation. By analyzing the conduct of monetary policy of State Bank of Pakistan and of other countries’ central banks we can evaluate the conduct of monetary policy in the past and can guess the future moves.
You are required to go to the website of State Bank of Pakistan at http://www.sbp.org.pk/ and of European Central Bank at http://www.ecb.europa.eu/home/html/index.en.html to determine their strategies regarding monetary policy and then explain briefly how the application of monetary policy of European Central Bank differs from State Bank of Pakistan.
Your solution should be comprised of two parts; 1st determine the strategies for monetary policy of the both central banks and explain the distinct points. Your solution should be in your own words and write concisely. Complete your comments within 300 words.
Solution must be provided in the recommended format Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course. Obnoxious or ignoble answer should be strictly avoided. Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over. Your discussion must remain specified to the context of the case.