What are the Criteria for an Autonomy of the Typical Central Bank?
1. Functionality of institution – the institution must be so organized and administer of such instruments to be able to perform their own tasks, and therefore have the aspects of:
– The internal organization of the institution,
– The status of links with external institutions (mainly the government), the instruments of monetary policy.
2. Financial independence – to what extent government expenses are implemented by the central bank. The direct influence of the government on the central bank imposes automaticity of financing government expenses.
3. Independence of the authorities – in what way, by whom, and for how long central bank authorities are selected. In addition, can members of the bank be removed?
The authorities o...Read More