Central banking in developing countries

the long version

Analyzes central banking as a policy process, central banks as organizations and central bankers as human capital, in developing countries including interest-free Islamic and transition economies. Addresses a wide range of issues: the primacy of price and financial stability objectives; implementation of market-related monetary policy; integration of monetary policy with exchange and supervisory functions; policies concerning liberalization and informal finance; and causes and implications of operating losses. Evaluates critically the currency board option, the case for central bank independence, and ceilings on government credit. Proposes far-reaching organizational reforms, including divestiture of quasi-fiscal activities and partial privatization of central banks.