Monetary authority
Encyclopedia
Monetary authority is a generic term in finance
and economics
for the entity which controls the money supply
of a given currency
, and has the right to set interest rates, and other parameters which control the cost and availability of money. Generally a monetary authority is a central bank
, though often the executive branch of a government has de facto control over monetary policy by controlling the central bank. There are other arrangements, for example democratic governance of monetary policy, a central bank for several nations, a currency board
which restricts currency issuance to the amount of another currency, free banking
where a broad range of entities can issue notes or coin.
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
and economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
for the entity which controls the money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
of a given currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
, and has the right to set interest rates, and other parameters which control the cost and availability of money. Generally a monetary authority is a central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
, though often the executive branch of a government has de facto control over monetary policy by controlling the central bank. There are other arrangements, for example democratic governance of monetary policy, a central bank for several nations, a currency board
Currency board
A currency board is a monetary authority which is required to maintain a fixed exchange rate with a foreign currency. This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target....
which restricts currency issuance to the amount of another currency, free banking
Free banking
Free banking refers to a monetary arrangement in which banks are subject to no special regulations beyond those applicable to most enterprises, and in which they also are free to issue their own paper currency...
where a broad range of entities can issue notes or coin.
Asia
- Hong Kong Monetary AuthorityHong Kong Monetary AuthorityThe Hong Kong Monetary Authority or HKMA is Hong Kong's central banking institution . It is a government authority founded on 1 April 1993 via the consolidation of "Office of the Exchange Fund" and the "Office of the Commissioner of Banking"...
- Maldives Monetary AuthorityMaldives Monetary AuthorityMaldives Monetary Authority or MMA acts as the central bank of the republic of Maldives and was established on July 1, 1981, under the mandate provided by the "MMA Act" of 1981...
- Monetary Authority of SingaporeMonetary Authority of SingaporeThe Monetary Authority of Singapore is Singapore's central bank and financial regulatory authority...
- Royal Monetary Authority of BhutanRoyal Monetary Authority of BhutanThe Royal Monetary Authority of Bhutan is the central bank of Bhutan and is a member of the Asian Clearing Union. It is also the minting authority for the Bhutanese ngultrum. The Royal Monetary Authority of Bhutan was established under the Royal Monetary Authority of Bhutan Act of 1982...
- Reserve Bank of IndiaReserve Bank of IndiaThe Reserve Bank of India is the central banking institution of India and controls the monetary policy of the rupee as well as US$300.21 billion of currency reserves. The institution was established on 1 April 1935 during the British Raj in accordance with the provisions of the Reserve Bank of...
- State Bank of PakistanState Bank of PakistanThe State Bank of Pakistan is the central bank of Pakistan. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until January 1, 1974, when the bank was nationalized, the scope of its functions was considerably enlarged...
See also
- Central bankCentral bankA central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
- deflation
- fiat moneyFiat moneyFiat money is money that has value only because of government regulation or law. The term derives from the Latin fiat, meaning "let it be done", as such money is established by government decree. Where fiat money is used as currency, the term fiat currency is used.Fiat money originated in 11th...
- gold standardGold standardThe gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
- hyper-inflation
- inflationInflationIn economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
- monetarismMonetarismMonetarism is a tendency in economic thought that emphasizes the role of governments in controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over...
- seignorage