The former British Prime Minister, Winston Churchill, once said that ‘Democracy is the worst form of government except all the others that have been tried.’1 Similarly, the failure of the centrally-planned economic model in the 20th century was proof-positive that perhaps ‘Capitalism is the worst form of economic governance except all the others that have been tried’. Today, the drive for strong institutions, a market-based economic model (characterised by individual initiative, property rights and the profit motive), and adherence to the rule of law are key aspirations of less-developed economies migrating towards a better future. In this pursuit, few institutions are as pivotal to long-term economic success as the central bank.
KeywordsForeign Direct Investment Monetary Policy Central Bank Exchange Rate Regime Profit Motive
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