Central Banking and Economic Development

M.J. Fry

Working Papers from University of Birmingham - International Financial Group

Abstract: In most countries, central banks are responsible for monetary policy, financial stability and the national or wholesale payment systems. If price stability accelerates economic growth, as much recent empirical work suggests, then a central bank can promote economic development by delivering price stability. However, two prerequisites must be satisfied to enable the central bank to conduct effective monetary policy: (a) a safe and efficient payment system and (b) financial stability. In this way, good monetary policy, financial stability and efficient payment systems all contribute to economic development.

Keywords: MONETARY POLICY; ECONOMIC DEVELOPMENT; CENTRAL BANKS (search for similar items in EconPapers)
JEL-codes: E52 O23 P34 (search for similar items in EconPapers)
Pages: 49 pages
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:fth:birmif:98-05

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