Would It Have Been Better If Central Banks Had Remained Only Issuing And Discount Banks?
: Centra banks have started their activities by currency issue and discount operations and have become liquidity providers for the financial and banking system and indiedly for the state.The massive govemamental deficits have increased the dependence of central banks on the states and led to currency issues with no real coverage which have worsened the crisis. However it has been proved that the intervention of central banks as issuing banks is a necessity for achieving financial solvency and ewnomic stabdity and to stop monetary abuses. We balieve that it was better that over lime central banks did not limit the! activity to currency issue but have developed their operations substantially due to the needs imposed by the eœnonic dev&opment By using their own revenues and expenditures, central banks have intervened where it was needed and have tried to offer solutions to ensure the stablity of the econonic systems. Concerning ther monetary policy, it has been proved that a prudent monetary policy is more appropiate than an active policy. The fad that central banks have not always got the expected results is a consequence of the attempt to find optimal solutions by making more accurate predictions of future economic developments. But these have become iieasingIy volatle and uncertain due to lack of an objective value.
Volume (Year): 4 (2011)
Issue (Month): 39 (May)
|Contact details of provider:|| Postal: |
Phone: 004 0251 411317
Fax: 004 0251 411317
Web page: http://feaa.ucv.ro/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:aio:aucsse:v:1:y:2011:i:8:p:124-131. 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: (Anca Bandoi)
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.