Roles and objectives of modern central banks

Roles and objectives of modern central banks Issues in the Governance of central banks 17 2 Chapter 2: Roles and objectives of modern central banks3 1. Introduction The variation in circumstances surrounding the origins of central banks means that their Roles and functions have not all evolved in the same way (Box 1). Some started life as special purpose government banks constructed to bring some order to the issuance of banknotes. Some were established to act as funding conduits for the government. Some were large commercial banks , whose dominance was subsequently boosted by the granting of monopoly rights to issue banknotes. The majority were, however, created in the 20th century (Box 1, Figure 1) specifically as central banks public policy agencies for central banking functions.

function should be guided. Thus, the Saudi Arabian Monetary Agency has a function whose purpose is ―to regulate commercial banks and dealers‖, and the Central Bank of Chile has functions whose purpose is ―to look after the normal functioning of the internal and external payment systems‖.

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  Saudi, Arabian, Monetary, Saudi arabian monetary

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