The Three Pillars of Central Bank Governance - Towards a Model Central Bank Law or a Code of Good Governance?
Erasmus University Rotterdam - Erasmus School of Law; European Center for Financial Integration Studies (ECFIS)
International Monetary Fund, Vol. 4, pp. 101-132, 2005
Taking a normative approach this paper identifies and develops basic principles for the good governance of central banks, namely independence, democratic accountability and transparency. In doing so the paper focuses on the arrangements surrounding the primary task of a central bank, i.e. the conduct of monetary policy. What is highlighted throughout the paper is that these principles cannot be considered in isolation, as they are intertwined and in some instances positively or negatively correlated.
The paper also examines whether and to what extent principles can form the basis for establishment of a model central bank statute or law that could be promoted throughout the world.
Number of Pages in PDF File: 33
Keywords: Central bank, monetary policy, central bank independence, central bank accountability, central bank transparency, model law, central bank legal basis, principles, norms, democratic accountability, independence, transparency, law
JEL Classification: A10, E40, E42, E60, E61, F15, G20, H10, K10, K20Accepted Paper Series
Date posted: May 28, 2008 ; Last revised: November 10, 2009
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