 Is There an Ideal Set Up for a Central Bank?Noël K. Tshiani Chapter 1 in Building Credible Central Banks, 2008, pp 1-9 from Palgrave Macmillan Abstract: Abstract The primary goal of a central bank is to develop and maintain an efficient monetary system whose primary goal is price stability, but it remains an open question as to what an ideal central bank should look like. The answer to this question is important, but it would be a bad mistake to believe that there is only one best way to organize a central bank in an emerging democracy. Most high-income countries, and many low-and middle-income countries, have achieved success in maintaining low inflation and price stability, even though there are substantial differences in the organization, structure and functioning of their central banks. We need to think out of the box about the design of the central bank and recognize that there are different ways to achieve the same end. Success in achieving low and stable inflation – price stability – is relatively recent in a number of countries. We may well discover that some institutional arrangements are more robust over time than others, as we observe how various arrangements stand up to stresses not yet observed. Keywords: Monetary Policy; Central Bank; Price Stability; Inflation Target; Real Gross Domestic Product (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:pmschp:978-0-230-59425-8_1 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.