Title: Research Note: Financial Market and Roles of Central Bank
Abstract: It has often been said that e-finance and other developments in the financial market have implications for the central banks. One implication is that central banks would no longer be able to determine the volume of money supply and hence inflation. The opposite position argues that the central banks, with the backing of their government, can resort of other means to regulate the money supply and thereby still continue to play their roles in monetary policy and inflation control. This paper outlines the main points of the two positions. Given that the debate is about the future, it is difficult for either side to have the last word. However, the whole discussion and debate somehow do not consider one significant point. It is the economic fundamentals which make it possible for central banks to exert influence.
Publication Year: 2006
Publication Date: 2006-01-01
Language: en
Type: article
Indexed In: ['crossref']
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