What does central bank independence mean

Assignment Help Business Economics

Reference no: EM13801667

What does central bank independence mean? Which dimensions are included?

Politically independent monetary bank is an important prerequisite for currency stability

The dimensions of independence are:

1. Personnel independence

2. Instrumental independence

3. Financial independence

4. Functional independence

Reference no: EM13801667

Questions Cloud

Background of the european monetary system : Please discuss the idea and the background of the European Monetary System (EMS). Why is it so difficult to manage a parity grid?

Global marshall plan : What lessons can be learned from the Marshall Plan for a new “Global Marshall Plan” to support the developing countries?

The eu is the biggest common market worldwide : The EU is the biggest common market worldwide. Please name the most important facts that describe the size and importance of this market.

Patent harms the benefits of consumers : Tamiflu, produced by Roche, has so far been the most effective medicine to tackle bird flu. Roche was granted a patent on the drug which enables the pharmaceutical firm to charge higher prices and earn higher profits. Monopoly is inefficient as it ch..

What does central bank independence mean : What does central bank independence mean? Which dimensions are included? Politically independent monetary bank is an important prerequisite for currency stability

Are the banks fully utilizing their lending capacity : Total reserves $80 billion, Transaction deposits $800 billion, Cash held by public is $100 billion, Reserve requirement .10. Are the banks fully utilizing their lending capacity? What would happen to the money supply initially if the public deposited..

Describe the condition of a banking system : Assume that the following data describe the condition of a banking system. Total reserves $200 billion, Transaction deposits $800 billion, Cash held by public is $400 billion, Reserve requirement .20.

Raise prices when facing an elastic demand curve : Why is it that a profit-maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? Explain and justify your answers in detail

Possible way for a price-fixing scheme : Which of the following is NOT a possible way for a price-fixing scheme on potatoes to fall apart?

User Account

All Pages