Central banks and the challenge of development Bank for International Settlements Basel Switzerland May 2006 Contents The original papers in this volume were prepared for a meeting of 4 Acknowledgments senior officials from central banks held at the Bank for International Settlements in March 2006. The views expressed are those of the 5 Foreword authors and do not necessarily reflect the views of the BIS or the Malcolm D Knight institutions represented at the meeting. Individual papers may be reproduced or translated with the authorisation of the authors 7 About the Bank for International Settlements concerned. 11 Central banks and the challenge of development: Requests for copies of publications, or for additions/ an overview of a roundtable debate changes to the mailing list, should be sent to: Malcolm D Knight Bank for International Settlements Press & Communications 19 The challenges of development CH-4002 Basel, Switzerland Amartya Sen E-mail:
[email protected] 27 The global economy and Africa: Fax: +41 61 280 9100 and +41 61 280 8100 the challenges of increased financial inflows © Bank for International Settlements 2006. All rights reserved. M S Mohanty and Philip Turner Limited extracts may be reproduced or translated provided the source is stated. 45 The relationship between the central bank and the government ISBN 92-9131-713-6 (print) ISBN 92-9197-713-6 (online) Paul Moser-Boehm 65 Financial access and financial stability Penelope Hawkins 81 The implementation of Basel II Jaime Caruana 89 Anchors for monetary policy Paul Masson 105 The choice and design of exchange rate regimes Már Gudmundsson 123 Central banks and the challenge of development List of participants 127 The BIS and central banks in the developing world Acknowledgments Foreword Clare Batts, who was responsible for the logistics and organisation of The Bank for International Settlements has been a centre for this meeting, did a first rate job in coordinating the preparation of these discussion and debate among governors and other senior central papers for publication.