 Developmental RoleAnand Chandavarkar Chapter 6 in Central Banking in Developing Countries, 1996, pp 95-127 from Palgrave Macmillan Abstract: Abstract A major issue in both the historical and contemporary debate on the objectives and functions of central banks in developing countries is whether they should also undertake promotional and developmental activities. Accordingly, this chapter addresses the following main interlinked issues in order to assess ‘the contribution that central banking may make towards the healthy and speedy development of the economy’ (Sayers, 1961, p. 33): (a) Should the central bank in a developing economy … confine itself to the negative function of ensuring that no monetary sickness impedes the progress of industrial and commercial development? (b) Or should it strive itself to make some positive contribution, stimulating enterprise in particularly important directions? (c) And what should be the scope, in terms of institutions, of its activities? In the early days of a central bank the accent has necessarily to be on the development of a banking system to control because this is not only a logical order but also the typical historical sequence in underdeveloped countries. Keywords: Monetary Policy; Central Bank; Commercial Bank; Money Supply; Large Bank (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-37150-7_6 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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