The Key Roles of the Central Bank in an Economy Assignment

The Key Roles of the Central Bank in an Economy - Assignment ExampleThe supervision factor impelled the amplification of the official control and assessment of blasphemes (Masciandaro, 2005). Recently, the oversight function has been changed to other agencies from the primaeval bank. The following explains the roles of Central Bank of different countries. It is the defining characteristics of the central bank. The central banks adopt decision making and implementation of monetary policies. However, different nations have different extensive and the office assigned to the independent central bank (Schinasi, 2003). The central bank role of setting monetary policies is critically autonomous though not completely autonomous as it undertakes the implementation and decision-making stages of the monetary policy function (Al-Sabah, 1997). Therefore, the interior(a) government contributes in a certain process of monetary policy. In respect to monetary policy, the central bank is the onl y body that has the instrument autonomy. The Eurosystem, central banks governors from different nations participate in an ex officio ability in the monetary policy process. The countries central banks jointly make a decision regarding monetary policy, therefore, subject field central banks do not make independent decisions (Al-Sabah, 1997). As compared to the monetary policy the central bank has complete autonomy concerning the implementation of exchange prescribe policy (Al-Sabah, 1997). Criteria used in decision-making sometimes political direction. Since exchange controls were built principally as exchange rate devices, these instruments have been allocated to the central bank although it could be done by tax authorities. Responsibilities regarding financial stability are considered an essential role of the central bank. The central bank is considered to have a full responsibility for ensuring financial stability and acts as financial system oversight body (Johnson, 1997).