Details

Technical Note

Educator Copy

The Role of The Central Bank & The Issue of Autonomy

Maureen Forsythe, Bashir A Khan


INDUSTRY : Banking

AREA : Finance

ORGANIZATION : Central Bank

LENGTH : 24

LUMS No : 02-262-94-2

PUBLICATION YEAR : 1994

DESCRIPTION

KEYWORDS:

Central Bank,Role,Autonomy Issue,Finance,Banking,Inter-bank Relations,State Bank of Pakistan


DESCRIPTION:

This note examines the role of central banks and the various types of relationships between central banks and central governments. The legal framework for central banking in Pakistan is examined and the performance of the State Bank of Pakistan with respect to its monetary, regulatory and developmental roles is considered.


LEARNING OBJECTIVES:

1) Central banks' conduct of monetary policy has the greatest influence on the economy of a nation. 2) The two extremes of central bank - government relations are examined with reference to The Bank of England and the Deutsche Bundesbank. 3) The case for central bank independence rests primarily on the desirability of insulating monetary policy from short-term political pressures and abuses. 4) The distinction between legal autonomy must be recognized. Reference is made to the situation in Japan and US.


SUBJECTS COVERED:

Finance