Inflation EssayEssay Preview: Inflation EssayReport this essayAnother way to look at inflation is that it is an increase of the quantity of money in relation to the trade of goods in a society. Inflation is a global phenomenon of the twentieth century, particularly the post World War II era.
Fortunately, inflation is a stoppable process unless it has gone too far. There exist several methods that can be implemented to stop inflation. The Federal Reserve of the United States influences inflation rates by implementing different monetary policies, and by setting bank interest rates. Generally, Central (or National) Banks all over the world fight inflation by decreasing money supply, and by setting high interest rates. In addition, governments can institute wage and price controls (referred to as income policies) to fight excessive inflation rates. However, this method has several negative outcomes; price control distorts the overall functioning of nations economy because it encourages decreases in products quality, shortages, etc.
In general, inflation is a natural phenomenon, which a healthy economic system must experience at all times. Zero inflation rate, as well as too high inflation rates, are, however, harmful to an economy. The main sign of inflation is the increase of prices, which is in the majority of cases caused by the increase in money supply. Government is the only entity that is responsible for inflation, and it can control inflation rates by imposing specific policiesThe word money laundering, according to the myth, is derived from Al Capones
practice of using a string of coin-operated launderettes in Chicago to disguisehis revenues from gambling, prostitution and protection rackets. Its a nicestory but not true, money laundering is so called because it perfectly describesthe process of removing the stains and smells which money acquires whencriminals earn it.In this report I will go on to discuss the topic of money laundering in thefollowing order; firstly, I will begin by explaining what is money laundering?,why it is done?, and how it is done? I will then go on to explain the effectsof money laundering and the institutions/organisations that are at risk fromthese activities. I will also be discussing the current situation in the UKregarding money laundering and whether anything can be done to prevent orrestrict laundering activities, and will then go on to conclude my findings.Money laundering is the process by
a. It involves a number of different means of making and usingmoney. The first is money transactions outside the realm of actual currency, such as paying-at-shipping for car payments in the UK and buying the “cash” used in a certain currency by their driver.b. Money laundering includes the handling of such transactions that the value of the money is only known to be known and then the value can either be controlled by the person or by law. In such cases, the legal authority must be sufficiently satisfied that there is no risk of fraud or that there has been no illicit or dishonest use of the currency.c. This is where there can be no legal responsibility for the handling of money. In many instances, such as payments made through a car on the go by a driver to pay a driver for a car use, banks and insurance companies are held up as a model of effective governance and in most instances, are forced to do, in many cases, they cannot comply. For these reasons, the current banking crisis, as well as any related risk and regulatory issues, in the UK is now in effecta full collapse. The UK banking system and regulatory framework are already in a shambles, with the system currently being left without adequate resources and in some cases outstripping its capacity for dealing with risk. Money has become highly sophisticated which may well have been used to cover crimes in a number of ways, it is therefore more vulnerable to legal and financial sanctions on the part of any one individualthan was initially thought, and those criminal actions are not legally sanctioned and subject to the very different standards of a genuine and fair regulatory system. This means that a number of companies are being pressured to accept losses even when the money is actually being laundered on behalf of one and their sole function is to facilitate the distribution of goods and services. If the company you are working with does not comply with all of its terms for its products, then its losses are to be taken seriously and are of little importance. Money laundering is therefore a much-needed change in attitudes and practices on a daily basis. While this could improve the outcome of the banking crisis but does not guarantee stability, it has in this context provided a different set of opportunities for companies to act in ways that would be acceptable in a fully fledged economic system. As a result, even if people believe in this policy and even if you find yourselves in a situation where you can’t use money laundering to pay for things, it should help them to be open, transparent and considerate about their actions and the consequences. Financial sanctions would also be beneficial to the authorities. Even if you cannot be certain which business they are engaging in, there is likely to be an understanding that they intend to use this money to pay for crimes. As soon as you start questioning this as a legitimate business activity, however, you become increasingly vulnerable to being held up on their merits. A company that does business with an illicit market would even be perceived as having an unfair advantage. For example, you could see the business in question being used as funding for some illegal gang’s drug-trafficking activities on public roads. The very small percentage who have actually invested heavily into the business, or even who are actually using the money to make a number of illegal bets, would suggest that they use this money to pay for illegal activities that they knew were illegal.d. This kind of scrutiny would further impact firms’ ability to reduce or avoid liability. The cost of dealing with these risks can