The British Government, the Bank of England, and the British Economy Essay

The British Government, the Bank of England, and the British Economy - Essay Example Presently, it is the bank in charge of the financial activities of the U.K government (Capie 2010). The bank has its headquarters at London, and has been the case since 1734. As from 1946, the bank was nationalised, and it has since monopolized the provision of banknotes in England and the Wales. The Bank’s roles of managing the country’s monetary policy are overseen by the Monetary Policy Committee (Goodwin, 2013). During times of public interest issues and economic adversity, the committee is authorised by the parliament and the treasury to employ the strategies it deems fit towards correcting the issue or situation in question. The major roles of the bank include supporting the country’s price and economic stability. Monetary stability is pursued through employing strategies to ensure that price increment does not go beyond the inflation projections of the government. Financial stability is pursued, by the bank, through the well-timed neutralization of the thr eats facing the country’s financial system. Financial and monetary stability are attained through the stimulation of the economic system and the manipulation of policy instruments. These strategies entail the bank’s cooperation with the treasury and the FSA (Financial Services Authority) (Capie 2010). The British Economy 2011 was a difficult year for the global economy with the UK not spared. In effect, this forced many forecasters to revise their yearly forecasts throughout the year. An example is the case of the OBR (Office for Budget Responsibility), which cut its GDP projections for the period between FY 2011 and 2013; it cut the projections from 2.4 percent, for the previous year, to 1.2 percent for a financial year, during November 2011. Furthermore, the events that followed continue to raise questions as to whether the revised figures will be realised following the worsening of the situation by the crisis in the Euro zone (Goodwin 2013). This outlook demonstrate s that the financial and the monetary strategies that are altered by the bank of England, which works under the directives of the British government particularly the parliament and the treasury, which determine the stabilization strategies adopted. The poor outlook of the economy shows that the two actors have not been effective, in manipulating financial and monetary instruments to the favour of stabilizing the British economy (Gordon, Scanlon, Travers and Whitehead 2009). The Double Dip of 2012 The UK economy entered year 2012 from a weak point. The preliminary projections of GDP growth from the fourth quarter of 2011 showed that the output of the economy had contracted by 0.2 percent at the end of year 2011. The monthly output projections from official reports demonstrated that manufacturing capacity had reduced throughout the summer time. The reports showed that the service sector had demonstrated higher resilience during the same period. However, the worsening of the Euro zone crisis, starting July of 2011, triggered a sharp price decline and an increase in the volatility of equity pricing that consequently affected the outlook of both consumers and businesses. These changes demonstrate that the British Government and the Bank of England had failed in controlling price levels, and employing the strategies of containing price volatility. Partly, the situation could have been triggered by the Euro zone crisis, but it demonstrated a lack of competitiveness and skilfulness, among the two economic controllers, in manipulating financial and monetary policy to favour the resultant economic outlook (Goodwin 2013). The adverse effects of the non-controlled economic outlook were evident from the downturn evident among many businesses,

Using Ownership Incentives in China Case Study Example | Topics and Well Written Essays - 2500 words

Using Ownership Incentives in China - Case Study Example On the other hand, the method has also been seen to reduce employee turnovers in the organizations where it is practiced. The outcome of the study are of great significance to Ben Freed and his partners in their quest to export this management culture to China with the aim of expanding their business and market globally. Analysis of the various aspects that would impact on the company’s incentive ownership culture would significantly inform the choice of practice to be adopted by the company, hence acting proactively to avert potential risks on the same. On the other hand, the findings of the study are of significant importance to employees, especially the experts based in the US, who are expected to move into a different country to introduce the new management system. The knowledge gained is important in preparing them on what to expect from the new geographical and cultural setup. The local culture of ownership as practiced in the Silicon Valley could be exported to China in various ways. For instance, the mode of payment for the China-based employees, together with all other employee motivational practices done in the US, could be introduced for the Chinese employees. This would thus mean that the payment for these employees be inclusive of their normal salaries together with the stock ownership percentages as determined by their respective positions in the company (Dong, Bowles and Ho 826). With the use of employee ownership approach, the CEO is well placed in motivating the workers to be responsible and work hard considering that their own success is determined by the company’s success. Additionally, the use of this approach is important in demonstrating to the employees that the company values all stakeholders in it equally, and gives similar treatment to all its employees. As observed in the historical practices in China, however, there could be n umerous challenges in