ECON podcast summary & class material. Mathematics & Economics Essay

Econ Podcast Summary & Class Material Name Institutional Affiliation Course Title Instructor Date Econ Podcast Summary & Class Material A modern central bank aims at a low and stable inflation, a high and stable growth, a stable financial system, stable rates of interests, and stable rates of exchanges. Basically, the role of central bank is to ensure that the general economic welfare is improved and the systematic risk is reduced. Central banks have to maintain price stability in the market. The central bank is the government’s bank and the bankers’ bank. High rates of inflation are bad for economic growth, and if inflation rates can be predicted, then it is possible to adjust but if a rise of inflation make the economy to be poor. Since prices are central to almost everything that goes on in the market-based economy, inflammation rates offer critical information to firms and individuals to ensure that their resources are allocated to their most productive areas. As a seller increases the price of a product or service, it is an indication that the demand for that service or product has gone high. Inflation is always bad for individuals because it affects what they can purchase with their earned income. This means that inflation causes a significant decline in what they can purchase and their overall living standards. The central bank does not control any securities market even though it may participate and monitor stocks and bond markets. In addition, the central bank has no mandate to control the national budget. For instance, in the United States, the budget is solely determin...