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Special section on central bank financial independence and policy credibility: introduction.
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IMF Staff Papers
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July 1, 2005
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Copyright informationCOPYRIGHT 2005 International Monetary Fund. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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This special section of IMF Staff Papers provides a welcome opportunity to highlight an issue that has dwelled in relative obscurity until the past few years--the significance of central bank financial strength and its relevance in determining policy credibility. Central bank financial strength has recently attracted increased attention for various reasons. One of the most prominent is the high level of financial risk being taken by a number of contemporary central banks in the context of an overall decline in nominal interest rates; that is, in the context of declining central bank profitability. The introduction of more refined accounting standards and risk management tools ...
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