The various methods or instruments of credit control used by the central bank can be broadly classified into two categories: Methods of Credit Control: 1. Quantitative or general methods, and 2. Qualitative or selective methods. 1. Quantitative or General Methods: The methods used by the central bank to influence the total volume of credit in the banking system, without any [...]
A number of economists have investigated the relationship between macroeconomic performance and the degree to which central banks are insulated from partisan politics. They have examined the legal and institutional framework within which central banks in different countries operate, and constructed indexes of the extent to which their central banks are independent. Many researchers have constructed an index of central [...]
In this article we will discuss about the role of central bank in LDCs. Commercial banks are either not developed or are poorly developed in a less developed economy. In LDCs, money, capital and bill markets are also not fully developed. For rapid development of sound commercial banking system and organised bill, capital and money markets, the central bank has [...]