Money and Banking
Formative assignment
The essay must be on one of the five topics.
Topic 1.Bitcoin was designed and implemented in 2009 by a Japanese programmer, reputedly Satoshi Nakamoto (‘reputedly' because the real name of the inventor is uncertain). The bit coin scheme is based on a peer-to-peer network over the Internet, similar to Bit Torrent. Many people label Bit coin the most successful - and most controversial - virtual currency scheme to date. Others ask whether Bitcoinis actually a currency? Who is right?
Topic 2.The dramatic worsening of the global financial crisis in the fall of 2008 forcedmany central banks in industrial economies to act quickly, lowering the policy rate on overnight repurchasing agreements, and easing credit for liquidity-hungry banks.
As interest rates reached near zero levels, central banks proceeded to use unconventional monetary tools. On March 5, 2009, the Bank of England reduced its policy rate to 0.5 percent and announced that it would"undertake a programmed of asset purchases of £75 billion financed by the issuance of central bank reserves." The Bank of England referred to this policy as "quantitative easing" (QE), noting that it shifted the instrument of monetary policy from the policy rate to the quantity of money provided.
However, there are open questions about this shift from conventional to unconventional policy? Using the case of Japan's economy between 2001-2006, is there any evidence that the use of conventional policy tools can be successful?
Topic 3.In the 1990s and 2000s, currency crises occurred in different places, e.g. in Mexico, East Asia, Russia, Brazil, Ecuador and Argentina, to mention just some of the important ones. What are the main factors that may trigger such events? How does globalization and deregulation of financial markets influence the emergence of a currency crisis? What forms of crises exist?
Topic 4.After the financial crisis in 2008, one tends to hear a lot about shadow banking. So what is Shadow Credit Intermediation? And why does Shadow Credit Intermediation need to be regulated?
Topic 5.In January 2015, the Swiss National Bank decided to remove the cap from the Swiss franc, a move that had significant effect on global financial markets. Explain why the Swiss National Bank (SNB) scrapped the Swiss franc peg.
Academic requirements:
Your topic should have address each criteria given below:
• Your work must be submitted as pages 6-7 of including
- Abstract
- Introduction
- Discussion
- Conclusion
• Student declaration must be completed.
• Your work should be submitted in the formats outlined in the assignment
• The entire assignment brief and completed .
• All work must be referenced using the Harvard /APA method.
• Provide a reference list
The topic choosen for the solution of the assignment is Bitcoin Paradox: A quasi currency.