External Review of Central Bank Decisions
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Description
Central banks around the world are vested with enormous powers, for good or evil, over the lives of the countries in which they function. All central banks enjoy authority over monetary policy. Most supervise and monitor banks and the banking system. While a country with an effectively functioning central bank may not necessarily be happy, one with a dysfunctional central bank is decidedly glum. Central banking is a high-stakes game, and it is important that the actions a central bank takes be wise, fair, and grounded in reality. Many features of institutional design can be understood as intended to further this goal. One of the more important such features is the possibility that the central bank’s actions will be reviewed, and potentially vetoed, by some other agency—usually a court, but potentially another entity, such as a finance ministry. This paper discusses the process of “external review” of central bank and bank regulatory decisions, with particular reference to the law of the United States.
Source Publication
Current Developments in Monetary and Financial Law
Source Editors/Authors
International Monetary Fund, Legal Department
Publication Date
1999
Volume Number
1
Recommended Citation
Miller, Geoffrey P., "External Review of Central Bank Decisions" (1999). Faculty Chapters. 2031.
https://gretchen.law.nyu.edu/fac-chapt/2031
