Abstract
Many reasons have been put forward why governments establish a central bank. Vera Smith, writing in 1936, argues in her study of the UK and Europe, that in every case central banks were imposed by revenue-or power-hungry governments. Others defend the establishment of a central bank on the basis of the need to exercise discretionary monetary management. As Richard Sayers (1957) wrote:
The essence of central banking is discretionary control of the monetary system… A central bank is necessary only when the community decides that a discretionary element is desirable. The central banker is the man who exercises this discretion.1
‘The Dominion Central Banks themselves are symbols at once of a decline of financial colonialism and of the arrival of financial Dominion status.’ (Plumptre, 1940, p. 13)
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© 1995 Kate Phylaktis
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Phylaktis, K. (1995). The Central Bank of Cyprus. In: The Banking System of Cyprus. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-12868-6_4
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