Capitalizing Central Banks : A Net Worth Approach /

This paper provides a simple, quantitative, net worth-based, approach to assessing the need for central bank capital. It derives a concept of "core capital" (a function of the central bank's operating expenditures and the carrying cost of its international reserves) as the minimum cap...

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Manylion Llyfryddiaeth
Prif Awdur: Ize, Alain
Fformat: Cylchgrawn
Iaith:English
Cyhoeddwyd: Washington, D.C. : International Monetary Fund, 2005.
Cyfres:IMF Working Papers; Working Paper ; No. 2005/015
Mynediad Ar-lein:Full text available on IMF
Disgrifiad
Crynodeb:This paper provides a simple, quantitative, net worth-based, approach to assessing the need for central bank capital. It derives a concept of "core capital" (a function of the central bank's operating expenditures and the carrying cost of its international reserves) as the minimum capital needed by a central bank to ensure the credibility of its inflation target. The approach is illustrated with the published accounts of three loss-making central banks and selected accounting entries for a broader sample of central banks. Policy implications are explored. In particular, the paper argues that central bank capitalizations cannot be automatic and require instead a broad policy debate.
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Disgrifiad Corfforoll:1 online resource (25 pages)
Fformat:Mode of access: Internet
ISSN:1018-5941
Mynediad:Electronic access restricted to authorized BRAC University faculty, staff and students