This chapter discusses the findings and calculations from Chapter 3 and Chapter 4. These results help to answer research questions 1), 2), 3), and 4). In addition, the results of measuring legal central bank independence indexes from previous studies are used to contrast with ones from this research. Lessons from comparing the RBNZ’s model are generated, and they are to answer research question 5). The chapter is organised as follows: summary of key results, conclusion, and recommendations.
6.1. Discussion
6.1.1. Central banks’ objectives, structure, and monetary tools.
There was a significant doubt, at the first thought, of conducting this research because Vietnam and New Zealand are two completely different countries in many features such …show more content…
This objective is legislated, and the central bank is the only authority to implement it. The importance of this viewpoint is showed in different ways; it is called “the national monetary policy” in Vietnam or a “primary function of the Bank” in New Zealand, but the ultimate goal is completely the same, price stability. Another equally important objective is to regulate, manage, and monitor the financial and banking system to make sure that it runs safely and effectively. To do so, the legal system is issued and updated by the country’s highest body - parliament, and this creates a firm legal framework for the central bank to perform its duties. For example, New Zealand had at least eight times to modify the RBNZ Act in the 1989-2015 periods and Vietnam had the similarity in changing its State Bank Law three times at the same time. Together, this, one again, proves that the key responsibilities of central banks around the world, to some extent, are to maintain a stable inflation policy and to pursue a safe and sound financial and banking system with the purpose of supporting a stable and sustainable development …show more content…
One of the biggest differences between two central banks’ charts is the training and educational section. In New Zealand, Ministry of Education and the school system have their responsibilities to train the human resource for financial and banking industry while, in Vietnam, those duties are belong to the Ministry of Education and Training, school system, and the SBV itself. The SBV owns a series of training schools and universities as a consequence of old management scheme. It is time for the SBV its self and the Ministry of Education and Training to change this reality. According to the General Statistic Office of Vietnam, as of 2015, Vietnam had 445 universities and colleges across the country . These universities and colleges prove that Vietnam educational system has its capacity to produce and supply a good financial and banking human resource for the workforce market, and the SBV should transfer its schools to real owners who are acting under the control of the Ministry of Education and Training administratively and the labour market competitively. The SBV should concentrate its efforts on their main functions as a central bank of a country rather than allocate its resources to non-professional fields such as
6.1. Discussion
6.1.1. Central banks’ objectives, structure, and monetary tools.
There was a significant doubt, at the first thought, of conducting this research because Vietnam and New Zealand are two completely different countries in many features such …show more content…
This objective is legislated, and the central bank is the only authority to implement it. The importance of this viewpoint is showed in different ways; it is called “the national monetary policy” in Vietnam or a “primary function of the Bank” in New Zealand, but the ultimate goal is completely the same, price stability. Another equally important objective is to regulate, manage, and monitor the financial and banking system to make sure that it runs safely and effectively. To do so, the legal system is issued and updated by the country’s highest body - parliament, and this creates a firm legal framework for the central bank to perform its duties. For example, New Zealand had at least eight times to modify the RBNZ Act in the 1989-2015 periods and Vietnam had the similarity in changing its State Bank Law three times at the same time. Together, this, one again, proves that the key responsibilities of central banks around the world, to some extent, are to maintain a stable inflation policy and to pursue a safe and sound financial and banking system with the purpose of supporting a stable and sustainable development …show more content…
One of the biggest differences between two central banks’ charts is the training and educational section. In New Zealand, Ministry of Education and the school system have their responsibilities to train the human resource for financial and banking industry while, in Vietnam, those duties are belong to the Ministry of Education and Training, school system, and the SBV itself. The SBV owns a series of training schools and universities as a consequence of old management scheme. It is time for the SBV its self and the Ministry of Education and Training to change this reality. According to the General Statistic Office of Vietnam, as of 2015, Vietnam had 445 universities and colleges across the country . These universities and colleges prove that Vietnam educational system has its capacity to produce and supply a good financial and banking human resource for the workforce market, and the SBV should transfer its schools to real owners who are acting under the control of the Ministry of Education and Training administratively and the labour market competitively. The SBV should concentrate its efforts on their main functions as a central bank of a country rather than allocate its resources to non-professional fields such as