Central Bank Policy-Making in Israel

The functions of a modern central bank are manifold, but fall into a few general categories — technical, advisory, and control. Technical activities do not demand a separate central banking institution; they could be performed equally well by alternative arrangements. These functions are of a clerical nature and do not require continuous decision-making. For example, central banks typically handle the government's financial accounts, making its payments and collecting its receipts, paying interest on debt as well as the principal when the debt matures, and marketing the securities when issued. In effect, the central bank acts as an agency of the Finance Ministry, the latter making the decisions, the former implementing them. Similarly, central banks typically monopolize currency issue, but in so far as this is an automatic procedure — issuing currency to whomever wishes to acquire it — no decision-making is involved. Indeed, these two functions have often been performed by the Treasury itself, and even today occasionally still lie in the domain of some treasuries

Agency (philosophy · Bailout · Business · Currency · Debt · Economics · Financial crisis · Financial system · Issuing bank · Macroeconomics · Monetary economics · Payment · Political science · Principal (computer security · Treasury · Finance · Islamic Finance and Banking Studies · Law

• Comparative Survey of Central Bank Law

  Joseph Dach, Hans Aufricht et al.•The American Journal of…•1965

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