Occasional Papers

Limiting Central Bank Credit to the Government: Theory and Practice

Author/Editor:

Carlo Cottarelli

Publication Date:

September 15, 1993

Summary:

This paper examines central bank independence with reference to the constraints on central bank credit to the government, focusing on how such credit should be regulated. It discusses why credit should be contsrained, and in which forms, and how to implement those constraints.

Series:

Occasional Paper No. 1993/008

Subject:

Balance of payments Bank deposits Banking Central bank autonomy Central bank credit Central banks Credit Current account Financial institutions Financial services Monetary base Monetary expansion Monetary policy Money Securities