Contemporary Issues in Central Banking
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 72 rapid-fire Q&A cards.
Until what event did most central banks remain private institutions independent of Government?
Until the outbreak of World War II.
Which central banks were made subordinate to their Governments during and after WWII?
Those of Germany, France, England, Japan, Italy and Sweden.
When did the European Central Bank become operational?
On 1 June 1998.
When did the Bank of England gain operational independence?
In May/June 1998 via the Bank of England Act, with the MPC mechanism.
When did the Bank of Japan get operational (but not legal) independence?
In April 1998.
When did the Reserve Bank of New Zealand get its mandate to fight inflation and what was the result?
In 1988; inflation fell from double-digit to under 2%.
What are the three pillars of central bank independence?
Personnel independence, financial independence and policy independence.
How is policy independence sub-divided?
Into goal independence (choosing the objective) and instrument independence (choosing the tools).
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