Governance Structures and Decision-Making Roles in Inflation-Targeting Central Banks

September 1, 2005

Preview Citation

Format: Chicago

Anita Tuladhar. Governance Structures and Decision-Making Roles in Inflation-Targeting Central Banks, (USA: International Monetary Fund, 2005) accessed December 22, 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 surveys decision-making roles of governing bodies of central banks that have formally adopted inflation targeting as a monetary framework. Governance practices seek to balance institutional independence needed for monetary policy credibility with accountability required to protect democratic values. Central bank laws usually have price stability as the primary monetary policy objective but seldom require an explicit numerical inflation target. Governments are frequently involved in setting targets, but to ensure operational autonomy, legal provisions explicitly limit government influence in internal policy decision-making processes. Internal governance practices differ considerably with regard to the roles and inter-relationships between the policy, supervisory, and management boards of a central bank.

Subject: Banking, Consumer price indexes, Environment, Inflation, Inflation targeting, Monetary policy, Price stabilization, Prices, Renewable resources

Keywords: Africa, Board of governors, Central bank, Central bank independence, Committee, Consumer price indexes, Country, Decision-making authority, Emerging market country, Governance, Government, Government directive, Government index, Government involvement, Government override, Government representation, Government staff, Inflation, Inflation targeting, Member state, Monetary policy, Override authority, Price stability, Price stabilization, Renewable resources, State secretary, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2005/183
Stock No:

WPIEA2005183
ISBN:

9781451862027
ISSN:

1018-5941

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