Nepal Rastra Bank’s misguided focus

There is a need to balance the environment and development, but it's not the central bank's job.

The Swedish Riksbank, established in 1668 with a charter to lend the government funds and act as a clearing house for commerce, is recognised as the world's first central bank. In 1694, the Bank of England was founded. Besides funding the government’s debt, these pioneer central banks engaged in banking activities themselves. Because they held the deposits of other banks, they became the lender of last resort in times of crises. In 1913, the United States Federal Reserve was created with a mandate to provide a uniform and elastic currency and to serve as a lender of last resort. As they were bound by their adherence to the gold standard, price stability was their primary commitment, but not the stability of the economy.