Ensuring long-term price stability and the health of financial systems are important tasks. A view from the IMF
In recent years, efforts have been underway in a number of countries to strengthen the hand of their central banks. This reflects a growing recognition in many countries of the important contribution an effective central bank can make to economic performance. In light of this development, this article sketches out several features that characterize a strong and effective central bank:
a clear sense of its primary role and responsibility;
a medium-term perspective;
a solid professional base; and
In the final section, the issue of central bank independence is briefly addressed.