External Audit Arrangements at Central Banks

On Performance Audit Methods in Commercial Banks

Lying at the elementary stage of relevant research, China is still lacking in modern performance audit methods fit for commercial banks. This paper aims at applying data enveloping analysis in the linear programming theory as well as benchmarking management to commercial banks to effectively improve the efficiency and quality of their performance audit. In addition, the application of this meth...

Counting External Facets of Simple Hyperplane Arrangements

The number of external facets of a simple arrangement depends on its combinatorial type. A computation framework for counting the number of external facets is introduced and improved by exploiting the combinatorial structure of the set of sign vectors of the cells of the arrangement. 1 Background and introduction n hyperplanes in dimension d form a hyperplane arrangement. An hyperplane arrangem...

What Should Central Banks Do?

I the last twenty years, there has been substantial rethinking about how central banks should do their job. This rethinking has led to major changes in how central banks operate, and we are now in an era in which central banks in many countries throughout the world have had notable success—keeping inflation low, while their economies experience rapid economic growth. In this lecture, I outline ...

How Central Banks End Crises

To end a financial crisis, the central bank is to lend freely, against good collateral, at a high rate, according to Bagehot’s Rule. We argue that in theory and in practice there is a missing ingredient to Bagehot’s Rule: secrecy. Re-creating confidence requires that the central bank lend in secret, hiding the identities of the borrowers, to prevent information about individual collateral from ...

New Economy , Old Central Banks ?