WOULD IT HAVE BEEN BETTER IF CENTRAL BANKS HAD REMAINED ONLY ISSUING AND DISCOUNT BANKS?
WOULD IT HAVE BEEN BETTER IF CENTRAL BANKS HAD REMAINED ONLY ISSUING AND DISCOUNT BANKS?

Summary/Abstract: Central banks have started their activities by currency issue and discount operations and have liquidity providers for the financial and banking system and indirectly for the state. The masive dovernamental deficits have increased the dependence of central banks on the states and led to currency issues with no real coverage which have worsened the crisis. However it has been proved that the intervention of central banks as isssuing banks is a necessity for achieving financial solvency issue but have developed their operations substantially due to the needs imposed by the economic development. By using their own revenues and expenditures, central banks have intervened where it was needed and have tried to offer solutions to ensure the stability proved that a prudent monetary policy is more appropiate than an active policy. The fact that central banks have not always got the expected results is a consequence of the attempt to find optimal solutions by making more accurate predictions of future economic developments. But these have become increasingly volatile and uncertain due to lack of an objective value.

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