Empress elizabeth Essay Example | Topics and Well Written Essays - 1000 words

Empress elizabeth - Essay Example At her tender age, German had a significant influence on Russian economic and political development, which she did not welcome. As such, in 1941, she organized a coup that led to the collapse of the emperor of the time, and capture of the emperor family members, which was a major boost to the Russian economic development transition. By then, Russia was independent from its neighbouring countries based on its treaties. According to Madariaga, â€Å"the  conditions  laid  down  by  treaty  when  the  Baltic  provinces  were  first  annexed  by  Russia  in  1712,  Livonia  and  Estonia  were  allowed  to  maintain  their  own  form  of  administration,  social  structure,  religion  and  language† (8). Since her approach to governance was very different from that of the previous governance, many changes were necessary. As such, when she got to power, she obliterated the cabinet system of governance and replaced it with the senate system. To her, the senate system effectively addressed the needs of a majority of the population and thus was more appealing. Moreover, the previous system of governance had failed to realize good results. ... This is because it empowers the citizens with knowledge to make sound decision on various aspects of life, they encounter. In her part, Elizabeth played a major role in improving the literacy level in Russia. Due to her interest in education, she led to the establishment of the first Russian university. This ensured that people who held various positions had a chance to sharpen their skills and thus improve their efficiency in management. In addition, Elizabeth saw the establishment of the academy of art, which was an investment to the Russian economy, and was facilitated by her extensive interaction with foreign policy. The foreign policy was reinforced by Catherine, her successor. According to Madariaga, â€Å"The  basic  orientation  of  her  foreign  policy  was  laid  down  in  the  treaty  of  alliance  with  Austria  in  1726,  while  friendly  relations  were  maintained  with  Britain  and  Denmark† (11). The acade my of art enhanced art skills and thus provided an avenue for the creation of revenue, for both the citizens and government. This saw Russian became a power hub in the European region and thus gained recognition from other well-established nations of the time. According to Madariaga, â€Å"As  a  result  of  the  union  between  the  Empress  Elizabeth  of  Russia  and  the  Empress   Maria  Theresia  of  Austria  in  1746,  Russia  became  one  of  the  leading  powers  in  the  so ­called  diplomatic  revolution  of  1756,  the  change ­over  from  the  traditional  hostility  between  France  and  Austria  to  an  alliance  between  the  two  countries,  supported  by  Russia,  with  the  aim  of  defeating  and  partitioning  Prussia† (12) Significant economic and political success was realized during the

Economic Essay Example | Topics and Well Written Essays - 1000 words - 3

Economic - Essay Example China adopted this very strategy and hence, climbed up the peak of growth post globalization, although other economies around the world have to compensate for the same. Hence China received pleas for a currency appreciation from nations around the world; nevertheless, it seldom gave such an action a serious thought as it threatened to slow down its economic growth though in the short run. But, China’s central bank recently exhibited compliance to these external requests when it hiked the minimum cash reserve ratio to be maintained by Chinese commercial banks, by 0.5%. This step however, was a well-thought one as it indirectly also favored the country’s economic growth. Hike in Cash Reserve Ratio Banks normally hold a certain amount of reserves which is a part of the deposits which it receives from its customers. These reserves are held as a shield against any unprecedented crisis befalling the economy. In fact, the amounts that these banks should mandatorily hold back a re decided by the apex central monetary body on the basis of a number of factors including the risks of being submerged under a crisis. The central bank normally declares a required reserve ratio which the underlying commercial banks must comply to and maintain as a part of the total deposits which they receive. Out of this reserve requirement that they retain, a certain amount needs to be maintained with the concerned central bank of the country as cash reserve ratio. Purpose of CRR is to act as a shield or protection against any crisis. For instance, in case that any bank needs more money than it has with itself at any point of time; in such situations, the bank might turn towards the concerned central bank which forwards this amount eventually. The Chinese Central Bank announced an additional cash reserve ratio of 0.5% over what the domestic commercial banks had been maintaining initially with the former. This step was believed as a development owing to requests for currency appr eciation coming from nations all around the world. Such a measure increased the liabilities of the Chinese Central Bank as more and more cash started flowing in from commercial banks. The commercial banks however, experienced an increase in their assets as a result given that a hike in CRR implied an increase in the reserves of these banks. Impact upon the economy of China Central Bank of China’s policy of increasing the CRR by an additional 0.5%, implied a reduction in the amount that the commercial banks affiliated with it, could advance to potential borrowers. Hence, the primary implication had been a reduction in the amount of money being circulated through the nation. On a secondary basis, to check the amount of loan demands, the commercial banks were instigated to raise the market rate of interest which negatively affected the volume of investments in the economy. Thus, GDP is likely to fall. Moreover, when GDP falls, so does the amount of consumption and investment whi le, the demand for imports increase. Hence, during the second phase, the economy is characterized by an increased reduction in GDP owing to reductions in consumption, investment and net exports. Impact on Money Multiplier Money multiplier, represented is the rate at which an economy can create credit given the economy’s monetary base; it is represented as, MM = (1 + c/d)/ (r/d + c/d); where, c/d ? Currency-Deposit