THE CHANGING NATURE OF CENTRAL BANKS ACCOUNTABILITY FOR FINANCIAL STABILITY
THE CHANGING NATURE OF CENTRAL BANKS ACCOUNTABILITY FOR FINANCIAL STABILITY

Author(s): Anna Matysek-Jędrych
Subject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: ASERS Publishing
Keywords: accountability; central banking; financial crisis; financial stability; monetary policy; transparency
Summary/Abstract: The principal objective of this chapter is to identify and assess practical tendencies in development of central banking accountability for financial stability. The accountability of central bank is treated - be it in theory or in practice - as one of the institutional conditions of effective central bank’s financial stability policy. In highly developed countries a regular process of formalization of the goal of financial stability is noted as one of the goals assumed by the central bank coupled by the heterogenic manner of defining the goal of financial stability. However, consolidation of objective accountability is not evenly accompanied by formal relationship arrangements between the central bank and the accountee. It can be also concluded that the one-size-fits￾all principle should not be employed when developing institutional arrangements concerning the accountability of the central bank related to financial stability. At the same time, it is important to draw on experiences of solutions concerning the goal of price stability (a ‘rational analogy’ approach seems to be effective here).

• Details
• Contents