The Fiscal Abuse of Central Banks

July 1, 1993

Preview Citation

Format: Chicago

Maxwell J. Fry The Fiscal Abuse of Central Banks, (USA: International Monetary Fund, 1993) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews the fiscal activities that governments in a sample of 26 developing countries have obliged their central banks to undertake. In the main, these activities fall under five categories: (1) collecting seigniorage; (2) imposing financial restriction; (3) implementing selective credit policies; (4) undertaking foreign exchange operations at nonmarket-clearing prices; and (5) providing implicit or explicit deposit insurance at subsidized rates and recapitalizing insolvent financial institutions. Not all central banks engage in all these activities, but some central banks perform additional fiscal activities such as collecting taxes and running food procurement programs.

Subject: Banking, Currencies, Foreign exchange, Government debt management, Inflation, Monetary base, Money, Prices, Public financial management (PFM)

Keywords: Accounting convention, Central bank profit, Currencies, Foreign currency, Government debt management, Inflation, Inflation rate, Monetary base, Reserve money monopoly, WP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1993/058
Stock No:

WPIEA0581993
ISBN:

9781451966565
ISSN:

1018-5941

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