Analysis Of Central Bank Independence

Central Bank is the legal institution which regards public interests as supreme interests, and regards stabilizing the value of money as primary goal, so as to ensure the public organ of power with steady finance through exercising the function in accordance with the law. The economic development and financial stability of various countries need the support of a independent and highly authoritative Central Bank. The importance of the independence of China's Central Bank is requested by the financial globalization and the quickening pace of the financial reform.Generally, the Central Bank independence means that the Central Bank, relatively independently, has the power to make and carry out the monetary policy, fulfil the legal duty, and realize the goal of monetary policy. The meaning of the Central Bank independence should contain four parts, such as independent organization, independent goal,independent function and independent financial rule . The full play of the Central Bank independence can adjust and correct the nearsightedness of government's economic policy, rationally restrict the government's irrational economic behaviours.This paper, proceeding from the intension of the Central Bank independence, has analysed the necessities of the Central Bank independence. Theoretical analysis of the Central Bank independence indicates that the enhancement of the Central Bank independence is very important to a country's economic development and financial stability. After conducting the empirical analysis of the relationship between the western central bank and the macroeconomic operation performance, the paper emphsizes to analyze U.S.A.,European Union and New Zealand Central Bank modes, points out the forms of their central bank independence .Through the analysis of the status quo of China's Central Bank, the paper points out several shortcomings which China's Central Bank has at present. As to these shortcomings, the paper puts forward the proposal of applying the New Zealand Central Bank mode to China, gives...