Central Banks in Developing Countries Have Far Less Independence Than

question 114

Essay

Central banks in developing countries have far less independence than do central banks in developed countries.Explain why this is a problem in developing countries.

---

Definitions:

Conscious Awareness

The state or quality of being aware of an external object or something within oneself, marked by perception and recognition of one's thoughts, feelings, and environment.

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, that help in making decisions, forming judgments, and solving problems.

Mental Shortcuts

Heuristic methods or simple strategies used by individuals to make decisions or judgments quickly without having to consider all possible variables, often resulting in cognitive biases.

Consolidating Memories

The process by which memories become stable in the brain; a phase where short-term memories are transformed into long-term memories.