IDEAS home Printed from https://ideas.repec.org/p/esb/casprv/2014-101.html
   My bibliography  Save this paper

Real Central Bank Independence In The Post-Crisis Period Or Myth

Author

Listed:
  • Dragan Momirović, Rajmund Mirdala

    (University "Union" Belgrade, Faculty of Industrial Management, Business, Serbia; Technical University of Kosice, Faculty of Economics, Department of Economics, Slovak Republic)

Abstract

The realization of the goal of price stability, the central bank, according to the accepted consensus before the crisis, should have complete independence in decision-making. The possibility of full independence of the central bank has raised many controversies. The main argument of complete independence was to establish a central bank authorities according to law. This allows them to impose duties, responsibilities and define the mandate and thus directly or discreetly affect its operation. The latest crisis has shown that the central bank from political pressures have taken a number of non-standard measures in alleviating and limiting the crisis. Sovereign debt crisis in the EU has more impact on the independence of the central bank. Therefore, central banks have to immediately normalize its business back into the legally defined boundaries and achieving its main objectives. Long-term monetary "hospitalization” may undermine the credibility and independence of the central bank. Therefore, they should be independent from the legislative and executive branches.

Suggested Citation

  • Dragan Momirović, Rajmund Mirdala, 2014. "Real Central Bank Independence In The Post-Crisis Period Or Myth," Ekonomika, Journal for Economic Theory and Practice and Social Issues 2014-01, „Ekonomika“ Society of Economists, Niš (Serbia).
    • Handle: RePEc:esb:casprv:2014-101
    as

    Download full text from publisher

    File URL: http://www.ekonomika.org.rs/en/arhiva/PDF/arhiva-clanaka/1/1.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Athanasios Orphanides, 2011. "New Paradigms in Central Banking?," Working Papers 2011-6, Central Bank of Cyprus.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anisoara Niculina APETRI & Camelia Catalina MIHALCIUC & Oana Iuliana MIHAI, 2016. "Challenges of the Central Banks in the Post Crisis Period when Needed to Ensure the Financial Stability," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 5-9.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Issing, Otmar, 2012. "Central banks: Paradise lost," CFS Working Paper Series 2012/06, Center for Financial Studies (CFS).
    2. Otmar Issing, 2012. "The Mayekawa Lecture: Central Banks-Paradise Lost," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 30, pages 55-74, November.
    3. Otmar Issing, 2012. "Central Banks - Paradise Lost," IMES Discussion Paper Series 12-E-10, Institute for Monetary and Economic Studies, Bank of Japan.
    4. Otmar Issing, 2012. "Central Banks - Paradise Lost," IMES Discussion Paper Series 12-E-10, Institute for Monetary and Economic Studies, Bank of Japan.

    More about this item

    Keywords

    independence; price stability; non-standard measures; monetary hospitalization normalization;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G01 - Financial Economics - - General - - - Financial Crises
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:esb:casprv:2014-101. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Predrag Jovanović (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.