European Parliament Library

Capitalizing Central Banks :, A Net Worth Approach, Alain Ize

Creator
Abstract
This paper provides a simple, quantitative, net worth-based, approach to assessing the need for central bank capital. It derives a concept of "core capital" (a function of the central bank's operating expenditures and the carrying cost of its international reserves) as the minimum capital needed by a central bank to ensure the credibility of its inflation target. The approach is illustrated with the published accounts of three loss-making central banks and selected accounting entries for a broader sample of central banks. Policy implications are explored. In particular, the paper argues that central bank capitalizations cannot be automatic and require instead a broad policy debate
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. THE FRAMEWORK""; ""III. SOME ILLUSTRATIONS""; ""IV. POLICY AND REPORTING IMPLICATIONS""; ""V. CONCLUSIONS""; ""REFERENCES""
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (26 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613797223

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