0 a bank that provides services to a national government, puts the official financial plans of that government into operation, and controls the amount of money in the economy --
1 the official bank of a country, whose responsibilities typically include making money available and controlling interest rates: --
The significance of these factors demonstrates that central bank independence, or lack thereof, is not solely derived from formal rules; non-statutory variables are equally important.
There were no descriptions or discussions of what was done by the central bank.
Credibility problems do not allow the central bank to carry out an autonomous monetary policy.
By charging a positive interest rate on discount window loans, a central bank can open a discount window without generating indeterminacy of equilibrium.
Financial cooperation is typically channelled through the host country's central bank, which then distributes loans to local banks for financing concretely identified projects.
This implies that the per-depositor borrowing from the central bank decreases with the reserve/deposit ratio.
Central bank co-operation remained the best means to deal with these problems and to avoid political demands for unwise policies.
They did not share equally, however, in the development of central bank cooperation.
