Clarifying Central Bank Responsibilities for Monetary Policy, Credit Policy, and Financial Stability
Independence has long been recognized as an essential element of effective central banking. The extraordinary central bank interventions in the recent credit turmoil precipitated a reconsideration of the nature of that independence. On one side, the Federal Reserve has been commended for its willingness to provide generous support for the financial system in lieu of congressional support that was not always forthcoming.
Independence has long been recognized as an essential element of effective central banking. The extraordinary central bank interventions in the recent credit turmoil precipitated a reconsideration of the nature of that independence. On one side, the Federal Reserve has been commended for its willingness to provide generous support for the financial system in lieu of congressional support that was not always forthcoming.
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