In finance and economics, a monetary authority is the entity that manages a country’s currency and money supply, often with the objective of controlling inflation, interest rates, real GDP or unemployment rate. With its monetary tools, a monetary authority is able to effectively influence the development of short-term interest rates, but can also influence other parameters which control the cost and availability of money.[1]
Generally, a monetary authority is a central bank or currency board. Most central banks have a certain degree of independence from the government and its political targets and decisions. But depending on the political set-up, governments can have as much as a de facto control over monetary policy if they are allowed to influence or control their central bank. A currency board may restrict the supply of currency to the amount of another currency. In some cases there may be free banking where a broad range of entities (such as banks) can issue notes or coin.
Commonly, there is one monetary authority for one country with its currency. However, there are also other arrangements in place, such as in the case of the eurozone where the so-called Eurosystem, consisting of the European Central Bank and the 19 European Union member states that have adopted the euro as their sole official currency, is the sole monetary authority. Some countries do not have a central bank or other monetary authority, such as Panama.
Issues like central bank independence, effects or efficacy of central bank policies and rhetoric in central bank governors discourse or the premises of macroeconomic policies[2] (monetary and fiscal policy) of the state are a focus of contention and criticism among policymakers,[3] researchers[4] and specialized business, economics and finance media.[5][6]
^Jahan, Sarwat. "Inflation Targeting: Holding the Line". International Monetary Funds, Finance & Development. Retrieved 28 December 2014.
^Scholvinck, Johan. . UN Division for Social Policy and Development. Archived from the original on 18 November 2007.
^Inskeep, Steve (June 24, 2022). "The Fed's latest interest rate hike has some congressional lawmakers worried". NPR. Retrieved March 11, 2023.{{cite web}}: CS1 maint: url-status (link)
^"Fed's rate hikes likely to cause a recession, research says". AP NEWS. 2023-02-24. Retrieved 2023-03-11.
^Koop, Christel; Scotto di Vettimo, Michele (2022-09-20). "How do the media scrutinise central banking? Evidence from the Bank of England". European Journal of Political Economy: 102296. doi:10.1016/j.ejpoleco.2022.102296. ISSN 0176-2680. S2CID 252426183.
Hayo, Bernd; Hefeker, Carsten (March 2001). "Do We Really Need Central Bank Independence? A Critical Re-examination". WWZ-Discussion Paper 01/03. from the original on 30 June 2015. Retrieved 27 June 2015.
Mangano, Gabriel (1 July 1998). "Measuring Central Bank Independence: A Tale of Subjectivity and of Its Consequences" (PDF). Oxford Economic Papers. 50 (3): 468–492. doi:10.1093/oxfordjournals.oep.a028657. (PDF) from the original on 16 August 2021. Retrieved 18 September 2020.
Heinemann, Friedrich; Ullrich, Katrin (3 November 2005). "Does it Pay to Watch Central Bankers' Lips? The Information Content of ECB Wording" (PDF). ZEW – Centre for European Economic Research Discussion Paper No. 05-070. doi:10.2139/ssrn.832905. S2CID 219366102. (PDF) from the original on 17 August 2017. Retrieved 27 October 2017.
Cecchetti, Stephen G. (1998). "Policy Rules and Targets: Framing the Central Banker's Problem" (PDF). FRBNY Economic Policy Review. 4 (2): 1–14. (PDF) from the original on 8 August 2017. Retrieved 24 March 2018.
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This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Monetary authority news newspapers books scholar JSTOR December 2014 Learn how and when to remove this template message In finance and economics a monetary authority is the entity that manages a country s currency and money supply often with the objective of controlling inflation interest rates real GDP or unemployment rate With its monetary tools a monetary authority is able to effectively influence the development of short term interest rates but can also influence other parameters which control the cost and availability of money 1 Generally a monetary authority is a central bank or currency board Most central banks have a certain degree of independence from the government and its political targets and decisions But depending on the political set up governments can have as much as a de facto control over monetary policy if they are allowed to influence or control their central bank A currency board may restrict the supply of currency to the amount of another currency In some cases there may be free banking where a broad range of entities such as banks can issue notes or coin Commonly there is one monetary authority for one country with its currency However there are also other arrangements in place such as in the case of the eurozone where the so called Eurosystem consisting of the European Central Bank and the 19 European Union member states that have adopted the euro as their sole official currency is the sole monetary authority Some countries do not have a central bank or other monetary authority such as Panama Contents 1 Dissent 2 Americas 3 Asia 4 Europe 5 Oceania 6 See also 7 ReferencesDissent EditIssues like central bank independence effects or efficacy of central bank policies and rhetoric in central bank governors discourse or the premises of macroeconomic policies 2 monetary and fiscal policy of the state are a focus of contention and criticism among policymakers 3 researchers 4 and specialized business economics and finance media 5 6 Americas EditBank of Canada Bermuda Monetary Authority Cayman Islands Monetary Authority Central Bank of Barbados Eastern Caribbean Central Bank Federal Reserve System United States Asia EditCentral Bank of Sri Lanka Hong Kong Monetary Authority Maldives Monetary Authority Monetary Authority of Brunei Darussalam Monetary Authority of Singapore Royal Monetary Authority of Bhutan Palestine Monetary Authority Monetary Authority of Macao Nepal Rastra Bank Reserve Bank of India State Bank of PakistanEurope EditBank of England European Central Bank Hungarian National Bank Bank of LatviaOceania EditReserve Bank of Australia Reserve Bank of Fiji Reserve Bank of New ZealandSee also Edit Money portalCentral bank List Deflation Fiat money Gold standard Hyperinflation Inflation Mint Monetarism SeigniorageReferences Edit Jahan Sarwat Inflation Targeting Holding the Line International Monetary Funds Finance amp Development Retrieved 28 December 2014 Scholvinck Johan Making the Case for the Integration of Social and Economic Policy UN Division for Social Policy and Development Archived from the original on 18 November 2007 Inskeep Steve June 24 2022 The Fed s latest interest rate hike has some congressional lawmakers worried NPR Retrieved March 11 2023 a href Template Cite web html title Template Cite web cite web a CS1 maint url status link Fed s rate hikes likely to cause a recession research says AP NEWS 2023 02 24 Retrieved 2023 03 11 Koop Christel Scotto di Vettimo Michele 2022 09 20 How do the media scrutinise central banking Evidence from the Bank of England European Journal of Political Economy 102296 doi 10 1016 j ejpoleco 2022 102296 ISSN 0176 2680 S2CID 252426183 Hayo Bernd Hefeker Carsten March 2001 Do We Really Need Central Bank Independence A Critical Re examination WWZ Discussion Paper 01 03 Archived from the original on 30 June 2015 Retrieved 27 June 2015 Mangano Gabriel 1 July 1998 Measuring Central Bank Independence A Tale of Subjectivity and of Its Consequences PDF Oxford Economic Papers 50 3 468 492 doi 10 1093 oxfordjournals oep a028657 Archived PDF from the original on 16 August 2021 Retrieved 18 September 2020 Heinemann Friedrich Ullrich Katrin 3 November 2005 Does it Pay to Watch Central Bankers Lips The Information Content of ECB Wording PDF ZEW Centre for European Economic Research Discussion Paper No 05 070 doi 10 2139 ssrn 832905 S2CID 219366102 Archived PDF from the original on 17 August 2017 Retrieved 27 October 2017 Cecchetti Stephen G 1998 Policy Rules and Targets Framing the Central Banker s Problem PDF FRBNY Economic Policy Review 4 2 1 14 Archived PDF from the original on 8 August 2017 Retrieved 24 March 2018 This money or currency related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w 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