Measuring Legal Central Bank Independence Essay
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 as political system and the degree of economic development. New Zealand is a member of the OECD while Vietnam is still a developing country. There is one thing that both countries have in common is a market-oriented economy. Basing on this point, and targeting to reduce the influence of other unwanted factors, from the academic view, the research just focuses on three main factors of the central bank: objectives, structure, and monetary tools. The results from the Chapter3 and Chapter 4 can bring considerable academic values to the study of central banking.
The fundamental objective of the central banks is to pursue a policy of price stability. This objective is legislated, and the central bank is the only authority to implement it.…