Cover IMF Working Papers
Governance Structures and Decision-Making Roles in Inflation-Targeting Central Banks
Author: Ms. Anita Tuladhar
Series:
IMF Working Papers
Volume/Issue:
Volume 2005: Issue 183
Language:
English
Publication Date:
01 Sep 2005
DOI:
https://doi.org/10.5089/9781451862027.001
ISBN:
9781451862027
ISSN:
1018-5941
Pages:
27
Keywords:
WP; government; country; central bank; committee; government index; monetary policy; Inflation targeting; governance; central bank independence; price stability; government override; board of governors; member state; government involvement; decision-making authority; state secretary; government representation; override authority; government directive; emerging market country; government staff; Price stabilization; Inflation; Consumer price indexes; Renewable resources; Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund