Central banks have become the go-to institution of modern economies. In the wake of the 2007 financial crisis, they injected trillions of dollars of liquidity – through a process known as quantitative easing – first to prevent financial meltdown and later to stimulate the economy. The untold story behind these measures, and behind the changing roles of central banks generally, is that they have come at a considerable cost. Central banks argue we had no choice. This book offers a powerfully original examination of why this claim is false. Using examples from Europe and the US, the authors present and analyse three specific concerns about the way central banks in developed economies operate today. Firstly, they show how unconventional monetary policies have created significant unintended negative consequences in terms of inequalities in income and wealth. They go on to argue that central banks may have become independent of governments, but have instead become worryingly dependent on financial markets. They then proceed to analyse how central bankers, despite being the undisputed experts on monetary policy, can still err and suffer from multiple forms of bias. This book is a sobering and urgent wake-up call for policy-makers and anyone interested in how our monetary and financial system really works.
This book is a sobering and urgent wake-up call for policy-makers and anyone interested in how our monetary and financial system really works.
Milton Friedman, of all people, had it right. In a 1962 essay he wrote that “Politically independent Central Banks give undue influence to the interests of commercial bankers” (Friedman, 1962, p. 238). Part of the reason for this is ...
Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and ...
Tucker presents guiding principles for ensuring that central bankers and other unelected policymakers remain stewards of the common good.
CASE STUDY: Macro Stress Testing Macro stress tests have been getting more and more attention since the middle of the ... the financial sector could potentially dampen the success of macro stress tests in predicting an oncoming crisis, ...
In their useful review of the development of central banking from the late eighteenth century to the present day, Capie et al.3 identify 1873 as “the beginning of the period when the gold standard formally became established as the main ...
Based on detailed research and consultation with experts, including the Bank of England, this book reviews theoretical and historical debates on the nature of money and banking and explains the role of the central bank, the Government and ...
This book is a call to action for all of us—experts and publics alike—to address this legitimacy crisis head on, for our economies and our democracies.
Tarkka , J. and D. Mayes ( 1999 ) “ The Value of Publishing Official Central Bank Forecasts ' , Bank of Finland Discussion Paper No. 22/99 . Taylor , J. ( 1993 ) ' Discretion versus Policy Rules in Practice ' , Carnegie - Rochester ...
What are the benefits of central bank independence, and what are the up- and downsides of having a common currency? This book provides easily accessible answers to these and other questions associated with central banking.