Advanced Search
MyIDEAS: Login

The function of the central bank

Contents:

Author Info

  • Walter Stanners

    (Over, Cambridge)

Abstract

The general view of the media, bankers, business and politicians, not noticeably contradicted by academics, is that one of the main functions, or the main function, of the central bank is to analyse the progress of the economy, and then to steer it with skilful judgement towards health and growth, by making decisions to change their base interest rate, with carefully chosen timing, amount and direction. The data presented here show that it is impossible to sustain this notion of skilful time- critical steering, or even that the central bank does in fact lead or determine the short term interest rates available to savers or business. The contrary proposition, that commercial short-term interest rates are in fact observed and followed by the central bank, is perhaps not mathematically provable, but seems generally to be in accordance with the observed facts.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://128.118.178.162/eps/mac/papers/0201/0201006.pdf
Download Restriction: no

File URL: http://128.118.178.162/eps/mac/papers/0201/0201006.ps.gz
Download Restriction: no

File URL: http://128.118.178.162/eps/mac/papers/0201/0201006.doc.gz
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Macroeconomics with number 0201006.

as in new window
Length: 19 pages
Date of creation: 28 Jan 2002
Date of revision:
Handle: RePEc:wpa:wuwpma:0201006

Note: Type of Document - Word doc with 9 bitmap figures ; prepared on IBM PC ; to print on Lexmark; pages: 19 ; figures: 9 bitmap figures. none
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords: central bank; interest rate; discount rate; repo rate; base rate; growth; inflation; exchange rate;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:0201006. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.