Monetary Policy and Central Banking Independence
The recent global financial crisis coupled with the post Arab spring instability effects have called for a rethinking of monetary policies and the role of central banking in the Mediterranean region. This chapter assesses the challenges of the conduct of monetary policies and central banks’ independence. It also explores new elements towards the rethinking of the central banking role and evolving rules in the aftermath of the recent crisis and changing macroeconomic environment in Mediterranean countries. It outlines important lessons for monetary policies and central banking, in particular with respect to inflation targeting. The contribution makes a case in favour of central banks’ independence from budgetary authorities and the importance of this independence to achieve inclusive growth.
KeywordsInterest Rate Monetary Policy Central Bank Banking System Inflation Rate
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