ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2010
  • © Brno University of Technology, 2002-2010
  • © University of Latvia, 2002-2010
Institutional Framework in Central Bank Operations
Marian Noga

ABSTRACT. This paper presents the evolution of views on operation of central banks on the market. At present, despite being a formal or ‘soft’ institution, the central bank pursues its objectives through informal (‘soft’) institutions, namely: independence, transparency and accountability. This institutional framework of central bank operation shapes the NCB’s reliability and reputation on the market.

Central bank defines and implements its monetary policy of low inflation rate, anchoring the inflation rate at a low, acceptable level with the aim of stimulating the long-term economic growth.

By fulfilling this objective, the central bank may be viewed as an institution of market order, understood here as the equilibrium of all markets and national economy as a whole.

KEYWORDS: central bank, institutional framework, institution, monetary policy, market order.

JEL classification: E58.

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Scholarly papers Transformations in Business & Economics
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