Central Bank Financial Strength Transparency And Policy Credibility

Author : Peter Stella
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 48 pages
Book Rating : 4.29/5 ( download)

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Download or read book Central Bank Financial Strength, Transparency, and Policy Credibility written by Peter Stella and published by International Monetary Fund. This book was released on 2002-08 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: A central bank is financially strong if it possesses resources sufficient to attain its fundamental policy objective(s). Once endowed with those resources, relations between government and central bank should be designed so that significant changes in central bank financial strength do not occur unless necessitated by changes in policy objectives. The level of strength required depends on the array of policy objectives (for example, the exchange rate regime) as well as the constraints and risks presented by the operational environment. Attaining credibility is facilitated if the public can easily determine the financial strength of the bank, yet for a variety of reasons this is often difficult. Transparency requires institutional arrangements that ensure the central bank generates profit in most states of the world, is subject to strict ex post independent audit, and transfers regularly all profits, after provisions, to the treasury.

Author : Peter Stella
Publisher : International Monetary Fund
ISBN 13 :
Total Pages : 32 pages
Book Rating : 4.66/5 ( download)

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Download or read book Central Bank Financial Strength, Policy Constraints and Inflation written by Peter Stella and published by International Monetary Fund. This book was released on 2008-02 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Central bank financial strength is positively associated with good policy performance. Financially weak central banks generate losses which undermine macroeconomic stability and call into question the credibility of their policies. In assessing central bank financial strength a careful examination of the policy regime and the volatility of the economic environment is necessary. Conventional measures of private enterprise financial strength- profitability and capital-can be very misleading when applied to central banks. The way in which a central bank balance sheet is strengthened matters. Providing the central bank with marketable government debt that can be used to develop a money market that in turn may become the locus of central bank monetary operations serves both to directly strengthen the institution and improve the quality of the environment in which it operates, thereby facilitating the attainment of its ultimate performance objectives.

Author : Peter Stella
Publisher :
ISBN 13 :
Total Pages : 42 pages
Book Rating : 4.15/5 ( download)

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Download or read book Central Bank Financial Strenght, Transparency, and Policy Credibility written by Peter Stella and published by . This book was released on 2002 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Author : Mr.Charles Enoch
Publisher : International Monetary Fund
ISBN 13 : 1451930119
Total Pages : 29 pages
Book Rating : 4.15/5 ( download)

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Download or read book Transparency and Ambiguity in Central Bank Safety Net Operations written by Mr.Charles Enoch and published by International Monetary Fund. This book was released on 1997-10-01 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: To mitigate the risks of contagion from problems arising in the banking sector, many countries operate some form of banking sector safety net. Such safety nets generally involve a judicious mixture of transparency and ambiguity. This ambiguity may be important to counter moral hazard effects but may lead to excessive forbearance in the face of banking problems. While the scope for ambiguity has been declining, some ambiguity in the handling of individual institutions remains. In any case, ex post transparency is essential for reviewing the propriety of any assistance and preserving the authorities’ future reputation and policy credibility.

Author : Ravi Kumar Jain
Publisher : SBS Publishers
ISBN 13 : 9788131427095
Total Pages : 226 pages
Book Rating : 4.99/5 ( download)

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Download or read book Central Banking Governance written by Ravi Kumar Jain and published by SBS Publishers. This book was released on 2012-01-01 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt: CONTENTS: Central Banking Governance -- Insights; Central Bank Independence & Governance: Definitions & Modelling; Central Bank Independence & Policy Results: Theory & Evidence; Communicating a Policy Path: The Next Frontier in Central Bank Transparency?; Governance Structures & Decision -- Making Roles in Inflation Targeting Central Banks; Central Bank Governance: Maintaining Arm's Length from those in Power; Risk Based Supervision: Legal & Supervisory Implications; Central Bank Financial Strength, Transparency, & Policy Credibility; Payment System Governance; Transparency & Communication Policy in Japan; Rising New Governance Regime in Monetary Policy: A Review of ECB & Fed.

Author : Mr.Timo Valila
Publisher : International Monetary Fund
ISBN 13 : 1451841744
Total Pages : 17 pages
Book Rating : 4.49/5 ( download)

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Download or read book Credibility of Central Bank Independence Revisited written by Mr.Timo Valila and published by International Monetary Fund. This book was released on 1999-01-01 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: The specific role of central bank independence in determining the overall credibility of monetary policy is addressed in this paper. It is argued that the credibility of delegating monetary policy to an independent central bank is endogenous to the credibility of the inflation target because a “conservative” inflation target may not be compatible with the fiscal policy stance. Also, lack of transparency in designing the institutional set-up is shown to be welfare-reducing.

Author : Sue Milton
Publisher : Routledge
ISBN 13 : 1136895892
Total Pages : 345 pages
Book Rating : 4.90/5 ( download)

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Download or read book The Capital Needs of Central Banks written by Sue Milton and published by Routledge. This book was released on 2010-10-12 with total page 345 pages. Available in PDF, EPUB and Kindle. Book excerpt: Central banks have evolved over many years, and sometimes centuries, as policy-making, not profit-making, institutions, and yet they are structured legally and financially like ‘for-profit’ companies of the twenty-first century. The question is what is an appropriate level of equity, or capital, for a central bank to have so that it can function for policy effectiveness over profit-maximisation, without hindrance to the achievement and maintenance of policy goals? This collection takes the reader through historical, theoretical and factual discussions on why central banks exist and the role – actual and intended – they have in assisting their home nation in achieving monetary and financial stability. The contributions analyse the different ways central banks are funded and how funding arrangements may impact on their independence. The objective is to explore these themes first from the academic and practitioner’s views – those of the economist, accountant and lawyer’s – and then to introduce practical experiences from a range of different central banks, in terms of their economic and socio-political environments. It will be the first time that the theorist and practitioner, the accountant, the economist and the lawyer come together in one volume. The reader will be able to access the full breadth of views on this important subject. The main observations are that there is no single, quantifiable formula that central banks can use to calculate capital levels. Factors to consider are the historical context of central banks and whether capital was ever appropriate to needs at their foundation; the cultural, social and political contexts; and, in terms of the presentation of financial statements, profit and loss sharing arrangements and what accounting conventions are being used. If these are considered alongside the, often idiosyncratic, mandates individual central banks have, a qualitative understanding of what is an appropriate level of capital is achieved. This collection will be of interest to postgraduates and researchers focusing on the role of central banks in monetary economics; as well as a professional audience of central bankers, the BIS, the IMF, World Bank, EBRD and government departments.

Author : Mr.Charles Enoch
Publisher : International Monetary Fund
ISBN 13 : 1451974434
Total Pages : 24 pages
Book Rating : 4.30/5 ( download)

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Download or read book Transparency in Central Bank Operations in the Foreign Exchange Market written by Mr.Charles Enoch and published by International Monetary Fund. This book was released on 1998-03-01 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: Transparency in the economic sphere involves making public sector action visible and understandable to the private sector. Transparency in central bank operations can be seen a complement to the greater transparency being established in policy formulation. Among the most important areas in this regard and the central bank’s operations in the foreign exchange market. This paper looks at the respective roles of overt and covert foreign exchange market operations, and considers that each may be appropriate under particular conditions. Reconciling covert operations with transparency requires rules for full disclosure with as short a lag as possible.

Author : Ulrich H. Klueh
Publisher : INTERNATIONAL MONETARY FUND
ISBN 13 : 9781451870343
Total Pages : 45 pages
Book Rating : 4.45/5 ( download)

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Download or read book Central Bank Financial Strength and Policy Performance: An Econometric Evaluation written by Ulrich H. Klueh and published by INTERNATIONAL MONETARY FUND. This book was released on 2008-07-01 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial health of central banks and its relation to policy outcomes has recently been recognized as an important policy issue. While case study evidence clearly indicates that weak central bank finances can hamper effective policy implementation, the question of whether central bank financial strength influences policy performance remains controversial. This is due, in part, to a lack of econometric evidence. The paper presents a first step toward filling this gap, by providing a quantitative evaluation of the relationship between measures of central bank financial strength and policy performance, in particular inflation. The paper's major finding is that there indeed is a negative relationship between central bank financial strength and inflation outcomes. This relationship appears to be robust to the choice of alternative country samples, control variables, estimation strategies, and conceptualizations of central bank financial strength.

Author : Perry Warjiyo
Publisher : Emerald Group Publishing
ISBN 13 : 1789737532
Total Pages : 487 pages
Book Rating : 4.30/5 ( download)

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Download or read book Central Bank Policy written by Perry Warjiyo and published by Emerald Group Publishing. This book was released on 2019-07-25 with total page 487 pages. Available in PDF, EPUB and Kindle. Book excerpt: Central Bank Policy: Theory and Practice analyses various policies, theories and practices adopted by central banks, as well as the institutional arrangements underlying the principles of good governance in policy-making. It is the first book to comprehensively discuss the latest theories and practices of central bank policy.