Sunday, February 16, 2020

Economic Freedom Essay Example | Topics and Well Written Essays - 500 words

Economic Freedom - Essay Example hey please when it comes to issues of trade or should there be a governing body present to ensure that the playing field is leveled allowing every organization an equal chance to conduct business without the fear of being bullied or losing out to the larger companies that may be present in the area. In order to attain a clear view of economic freedom and the potential repercussions, it entails one has to study both sides of the argument to determine which makes a more valid point (Proudhon, 2005). The first group advocates for economic freedom without the limitations that may be set upon them by governing bodies in order to achieve a more liberal market that allows for business transactions without the bother of external influences that may step in from time to time whether the parties involved consent to it or not. The main basis of this argument is that businesses established by individuals or organizations were done so in order to profit from their transactions and the fact that external forces are able to influence these profits should not be allowed as long as the transactions that are carried out are perfectly legal and are not achieved through means such as force or fraud (Lawson, 2006). This side argues that as long as these external forces (mainly policies set by the governments) are able to interfere, true economic freedom cannot be achieved and by extent one is not able to benefit from the sweat of their hard work (Hayek, 2007). This group advocates that those entering into contract agreements are of sound mind and do so for a particular reason thus they should be allowed to function as they please as long as their activities are not hurting other. On the other side, the group that supports the involvement of governments in business activities allows for a more level playing field for everyone involved in the business world. This group argues that should the economic freedom that their opponents are seeking be allowed, the smaller businesses existing

Sunday, February 2, 2020

Independent Commission on Banking reforms and Basel III Essay

Independent Commission on Banking reforms and Basel III - Essay Example Basel III contain set of reforms that were developed by the Basel Committee created for banking supervision so as to strengthen supervision, regulation, and management of risk in the banking sector (Angelini, 2011). Basel 3 aims to discover the ability of the banking sector to absorb shock that is experienced from economic and financial stress and improve governance and risk management. In addition, the reform measures aim to strengthen the bank's disclosures and transparency. These reforms targeted the micro-prudential or rather bank level regulation that is entrusted with raising the resilience of personal banking institutions to stress periods. In addition, Basel 3 targets the micro-prudential institution risk that can be experienced across the banking sector and amplification of those risks over time. Basel 3 analyzes it objectives into three essential parts that include capital reform, liquidity reform and other elements that are related to the financial system. The capital refo rms include quantity and quality of capital, leverage ratio, the introduction of buffers for a capital observation, complete risk coverage and a counter-cyclical capital buffer. The liquidity reforms include the long (Net Stable Funding ratio) and short-term (Liquidity Coverage ratio) ratios.   The independent Commission on Banking, on the other hand, came out with a final report that contained their recommendation on the reforms to promote competition and stability in the banking sector in the United Kingdom.