Finance
... capital) of any given project or firm that involves capital is assessed by the cost of capital of the industry in which company operates, while the assessment by the major rating agencies like Moody's, or Standard's and Poor's is used to assess the cost of the company's or project's debt, that together with the cost of equity is the cost of capital that needs to be assessed for the DFCF method. The central bank occupies a unique position in government as the monetary authority of the state. This function requires a large degree of institutional independence from the executive or legislative branches. Otherwise the central bank cannot resist political pressures by either body for faster money growth to finance expensive government programs. On the other hand, too much independence is often seen to come at the direct expense of its public accountability and democratic control (Friedman 1986). Given the immense powers of a central bank and the often enormous impact of its policies, it is not surprising that this problem has often been the subject of heated debate among politicians as well as poli...