Yes, the states have the autonomy to carry out fiscal and monetary policy but the regional leaders have turned it into a way to embezzle money from state covers despite being regulated by centrally. In Nigeria, State government are given autonomy but state government deny local government the right.

In Bangladesh we have 64 Districts. We have allotted budget for the development each districts in every year.

Not in Bosnia

no

In my country, we are decentralized but the central has more power over resources.

In India a mixed structure is in place. The fiscal policy at the broad level is centralized whereas the states do have their own state budgets. The resources are contributed singly by states, or singly by the centre or by the joint contribution. The monetary policy is in the hands of the central bank i.e. the Reserve Bank of India.

All provinces are linked to a central monetary policy, and I think this is the case in most third world countries.

Dear Colleagues and Friends from RG,

Based on the above considerations and conclusions from the discussion on the interesting discussed issues of the role of central banking in maintaining the security of the financial system, the following thesis that the recent global financial crisis of 2008 confirmed the important role of central banking in maintaining the security of the financial system, in particular the banking system .

Monetary and fiscal policy are conducted by other institutions in the state and they perform other functions. On the other hand, however, they should be coordinated as part of a specific long-term strategy for the socio-economic development of the country.

The issue of central bank independence from the budgetary and fiscal policy of the government is important. In individual countries differing systemically, institutionally, in the scope of state intervention in economic and market processes, etc., the issue of independence is not always the same.

Sometimes, in a situation of financial and economic crises, the coordination of monetary and budgetary policies is high and subordinated to the objectives of anti-crisis, Keynesian socio-economic policy and the activation of economic growth. In some countries, the central bank may purchase short-term Treasury bonds as an important safety valve of a kind in the future of future global financial, monetary, economic, debt, etc. crises.

Milton Fredman, a classic of economic liberalism, a Nobel laureate, in 1969 developed a hypothetical situation of activation of consumption based on the idea of ??the concept called helicopter money.

Some central banks modified this concept and used as anti-crisis solutions in, inter alia, the following two options:

1. Intervention, anti-crisis purchase of short-term government bonds to improve financial liquidity in the state's public finance system.

2. Intervention, anti-crisis purchase of debt securities with the highest level of credit risk, lost, unregulated assets of commercial banks under quantitative easing programs.

Central banks in some countries have used these opportunities since 2008 to quickly restore liquidity in the financial system when the global financial crisis appeared, including to maintain lending of commercial banks, to maintain customer confidence in the banking system and to prevent total liquidity collapse. financial systems and to exclude the possibility of a decline in the importance of the banking sector in modern economies.

The discussions on the Research Gate portal show that there is dominance of agreement regarding the incomplete independence of the central bank from the government. My question arises from the large extent of central bank intervention in economic processes in the matter of saving many banks and corporations from bankruptcy when the largest global financial crisis to date occurred in autumn 2008.

Best wishes.

Dariusz Prokopowicz

To my comment above, I would like to add the following thesis that in 2020 due to the development of the SARS-CoV-2 coronavirus pandemic causing Covid-19 disease in many countries, the importance and scale of the use of active anti-crisis economic policy, including primarily interventionist policy, will increase fiscal (e.g. tax breaks for companies, wage subsidies for employees from the state finance system, income guaranteed for citizens) and anti-crisis monetary policy (e.g. reduction of interest rates, loans for commercial banks granted on preferential terms by the central bank, purchase of treasury bonds secondary market countries by the central bank, purchase of bad loans from commercial banks, etc.). Some of these instruments of active, anti-crisis economic policy have been used analogously since autumn 2008, when the global financial crisis appeared. However, the current economic crisis is starting to differ significantly from what appeared in autumn 2008.

Regards

Dariusz Prokopowicz

In Egypt, it is the central bank that sets the monetary policy and its stance, while ministry of finance is the one entitled for fiscal policy design and implementation. So, basically it is centralized.

There is no complete independence of fiscal and monetary policy in most advanced and developing economies alike