TITLE:
Monumental Behaviorism and Courageousness in Industrialized Economies Central Banks for Developing Economies Lessons
AUTHORS:
Seum Chhay, Nai-Wen Li, Lei Wang
KEYWORDS:
Interest Rate, Exchange Rate Regime, Economic Growth
JOURNAL NAME:
Journal of Financial Risk Management,
Vol.5 No.2,
June
23,
2016
ABSTRACT: This paper looks for the monumental behaviorism and courageousness in the industrialized economies central banks’ monetary tools policy including interest rate policy and exchange rate regime is necessary to promote and boost the economic systems. The goal of paper is in a favor of the developing economies central banks to hail the comparative advantage from industrialized economies central banks functions and responsibilities, definitely in a usefulness to produce economic growth, high-employment, low-inflation targeting, price stability, and to mitigate credit defaults, financial risks, and volatility of assets price. This is of great importance for the effects of the central bank obligations on the positive outcomes such as economic growth, sustained macroeconomic parameters and constant financial sectors.