Tonny Lybek
International Monetary Fund, European Department, Department Member
Research Interests:
Research Interests:
This paper analyzes empirically differences in the size of central bank boards (or monetary policy committees) across countries. We discuss the possible determinants of a board’s size. The empirical relevance of these factors is examined... more
This paper analyzes empirically differences in the size of central bank boards (or monetary policy committees) across countries. We discuss the possible determinants of a board’s size. The empirical relevance of these factors is examined using a new dataset that covers the de jure membership size of 84 central bank boards at the end of 2003. We find that larger and more heterogeneous countries, countries with stronger democratic institutions, countries with floating exchange rate regimes, and independent central banks with more staff tend to have larger boards
Research Interests:
Research Interests:
Research Interests:
This paper analyzes empirically differences in the size of central bank boards (or monetary poliy committees) across countries. We discuss the possible determinants of a board’s size. The empirical relevance of these factors is examined... more
This paper analyzes empirically differences in the size of central bank boards (or monetary poliy committees) across countries. We discuss the possible determinants of a board’s size. The empirical relevance of these factors is examined using a new dataset that covers the de jure membership size of 84 central bank boards at the end of 2003. We find that larger and more heterogeneous countries, countries with stronger democratic institutions, countries with floating exchange rate regimes, and independent central banks with more staff tend to have larger boards.
Research Interests:
This paper argues that better governance practices can reduce the costs, risks and uncertainty of financial intermediation. Our sample covers high-, middleand low-income countries before and after the global financial crisis (GFC). We... more
This paper argues that better governance practices can reduce the costs, risks and uncertainty of financial intermediation. Our sample covers high-, middleand low-income countries before and after the global financial crisis (GFC). We find that net interest margins of banks are lower if various governance indicators are better. More cross-border lending also appears conducive to lower intermediation costs, while the level of capital market development is not significant. The GFC seems not to have had a strong impact except via credit risk. Finally, we estimate the size of potential gains from improved governance. JEL Classification Numbers: A13, G21, G38, K42
The International Monetary Fund (IMF) supports central bank autonomy and accountability, since it facilitates price and financial sector stability, which are conducive to sustainable economic growth. In the literature, autonomy is... more
The International Monetary Fund (IMF) supports central bank autonomy and accountability, since it facilitates price and financial sector stability, which are conducive to sustainable economic growth. In the literature, autonomy is sometimes preferred to the frequently used term independence, as autonomy entails operational freedom, while independence indicates a lack of institutional constraints. A central bank must have clearly defined and prioritized objectives, sufficient authority to achieve these objectives and be autonomous to remain credible. At the same time, it must be accountable for the authority delegated to it to ensure checks and balances. Reforming the legislative framework for a central bank—often after a crisis—can help boost the credibility of monetary policy. This reduces the perceived inflation bias and thus the real interest rate, which advances sustainable economic growth. However, a consistent reform of the legislative framework must be supported by commitment...
Abstract This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers... more
Abstract This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments,and to further debate.
Research Interests:
... development of parallel markets, which led to the hoarding of foreign currencies. ... economic policy management and performance were undermined, thereby adversely affecting real incomes ... These reforms were designed to replace... more
... development of parallel markets, which led to the hoarding of foreign currencies. ... economic policy management and performance were undermined, thereby adversely affecting real incomes ... These reforms were designed to replace direct instruments with indirect instruments of ...
Research Interests:
Macroprudential policy in Europe aligns with the objective of limiting systemic risk, namely the risk of widespread disruption to the provision of financial services that is caused by an impairment of all or parts of the financial system... more
Macroprudential policy in Europe aligns with the objective of limiting systemic risk, namely the risk of widespread disruption to the provision of financial services that is caused by an impairment of all or parts of the financial system and that can cause serious negative consequences for the real economy.
Research Interests:
Research Interests:
... development of parallel markets, which led to the hoarding of foreign currencies. ... economic policy management and performance were undermined, thereby adversely affecting real incomes ... These reforms were designed to replace... more
... development of parallel markets, which led to the hoarding of foreign currencies. ... economic policy management and performance were undermined, thereby adversely affecting real incomes ... These reforms were designed to replace direct instruments with indirect instruments of ...