Imagine you are advising the leadership of a new, independent country for the design of their central bank. In 1-2 pages, do the following:

1. Describe one benefit and one drawback for each type of central bank design listed below:
   • Design 1 – Central bank policy decisions that are irreversible or central bank policy decisions that can be overturned by the democratically elected government.
   • Design 2 – The central bank has to submit a proposal for funding to the government each year or the central bank finances itself from the earnings on its assets and turns the balance over to the government.
   • Design 3 – The central bank policymakers are appointed for periods of four years to coincide with the electoral cycle for the government or the central bank policymakers are appointed for 14-year terms.
2. In 1-2 paragraphs, identify the design you would recommend for this country and why.
3. Be sure to describe any necessary characteristics and assumptions about this country to support your recommendation.

View RubricWeek 4 Homework Activity – Central Bank DesignWeek 4 Homework Activity – Central Bank DesignCriteriaRatingsPtsDescribe one benefit and one drawback for Central Bank Design 1.12 to >10.8 ptsExemplaryThoroughly described one benefit and one drawback for Central Bank Design 1.10.8 to >9.6 ptsCompetentCompetently described one benefit and one drawback for Central Bank Design 1.9.6 to >8.4 ptsSatisfactorySatisfactorily described one benefit and one drawback for Central Bank Design 1.8.4 to >7.2 ptsNeeds ImprovementInsufficiently described one benefit and one drawback for Central Bank Design 1.7.2 to >0 ptsUnacceptableDid not submit or did not describe one benefit and one drawback for Central Bank Design 1./ 12 ptsDescribe one benefit and one drawback for Central Bank Design 2.12 to >10.8 ptsExemplaryThoroughly described one benefit and one drawback for each type of Central Bank Design #2.10.8 to >9.6 ptsCompetentCompetently described one benefit and one drawback for each type of Central Bank Design #2.9.6 to >8.4 ptsSatisfactorySatisfactorily described one benefit and one drawback for each type of Central Bank Design #2.8.4 to >7.2 ptsNeeds ImprovementInsufficiently described one benefit and one drawback for each type of Central Bank Design #2.7.2 to >0 ptsUnacceptableDid not submit or did not describe one benefit and one drawback for each type of Central Bank Design #2./ 12 ptsDescribe one benefit and one drawback for Central Bank Design 3.12 to >10.8 ptsExemplaryThoroughly described one benefit and one drawback for Central Bank Design 3.10.8 to >9.6 ptsCompetentCompetently described one benefit and one drawback for Central Bank Design 3.9.6 to >8.4 ptsSatisfactorySatisfactorily described one benefit and one drawback for Central Bank Design 3.8.4 to >7.2 ptsNeeds ImprovementInsufficiently described one benefit and one drawback for Central Bank Design 3.7.2 to >0 ptsUnacceptableDid not submit or did not describe one benefit and one drawback for Central Bank Design 3./ 12 ptsIdentify the central bank design you would recommend for this country and why.18 to >16.2 ptsExemplaryThoroughly identified the central bank design you would recommend for this country and why.16.2 to >14.4 ptsCompetentCompetently identified the central bank design you would recommend for this country and why.14.4 to >12.6 ptsSatisfactorySatisfactorily identified the central bank design you would recommend for this country and why.12.6 to >10.8 ptsNeeds ImprovementInsufficiently identified the central bank design you would recommend for this country and why.10.8 to >0 ptsUnacceptableDid not submit or did not identify the central bank design you would recommend for this country and why./ 18 ptsDescribe any necessary characteristics or assumptions about this country to support your recommendation.6 to >5.4 ptsExemplaryThoroughly described any necessary characteristics or assumptions about this country to support your recommendation.5.4 to >4.8 ptsCompetentCompetently described any necessary characteristics or assumptions about this country to support your recommendation.4.8 to >4.2 ptsSatisfactorySatisfactorily described any necessary characteristics or assumptions about this country to support your recommendation.4.2 to >3.6 ptsNeeds ImprovementInsufficiently described any necessary characteristics or assumptions about this country to support your recommendation.3.6 to >0 ptsUnacceptableDid not submit or did not describe any necessary characteristics or assumptions about this country to support your recommendation.