Government's bank role of the central bank? Do you agree with the statement, "If the central bank becomes fully independent, the Government's bank role vanishes out"? Question 5) How interest-rate and exchange-rate stability contributes to the economy? Should the central bank worry about the consequences of fluctuating exchange and interest rates? Question 6) Write down the principles of central bank design? Explain the importance of those principles considering their implications.

Government's bank role of the central bank? Do you agree with the statement, "If the central bank becomes fully independent, the Government's bank role vanishes out"? Question 5) How interest-rate and exchange-rate stability contributes to the economy? Should the central bank worry about the consequences of fluctuating exchange and interest rates? Question 6) Write down the principles of central bank design? Explain the importance of those principles considering their implications.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 4) Discuss the Banker's Bank and
Government's bank role of the central bank? Do you
agree with the statement, "If the central bank becomes
fully independent, the Government's bank role vanishes
out"?
Question 5) How interest-rate and exchange-rate stability
contributes to the economy? Should the central bank
worry about the consequences of fluctuating exchange
and interest rates?
Question 6) Write down the principles of central bank
design? Explain the importance of those principles
considering their implications.

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