The Age of Central Banks

According to Curzio Giannini s neo-institutionalist methodological approach, social institutions are, in fact, essential in the coordination of individual decisions as they minimize transaction costs, overcome information asymmetries and ...

The Age of Central Banks

Author: Curzio Giannini

Publisher: Edward Elgar Publishing

ISBN: 0857932144

Page: 298

View: 118

Curzio had one of the most fertile and original minds ever to be deployed on questions relating, first, to the interactions between Central Banks, private sector financial intermediaries and the government, and second to the working of the international monetary system in general, and to the role of the IMF specifically within that. His approach has been to apply a theory of history , which provides a beautifully written and illuminating book, much easier and nicer to read and more rounded than the limited mathematical models that have so monopolised academia in recent decades. From the foreword by Charles A.E. Goodhart Curzio Giannini s history of the evolution of central banks illustrates how the most relevant institutional developments have taken place at times of widespread confidence crises and in response to deflationary pressures. The eminent and highly-renowned author provides an analytical perspective to study the evolution of central banking as an endogenous response to crisis and to the ever increasing needs of economic growth. The key argument of the analysis is that crucial innovations in the payment technology (from the invention of coinage to the development of electronic money) could not have taken place without an institution i.e. the central bank - that could preserve confidence in the instruments used as money. According to Curzio Giannini s neo-institutionalist methodological approach, social institutions are, in fact, essential in the coordination of individual decisions as they minimize transaction costs, overcome information asymmetries and deal with incomplete contracts. This enlightening and revealing historical theory perspective on central banking will prove a thought-provoking read for academic and institutional economists, economic historians, and economic policymakers involved in the task of crafting a new institutional arrangement for central banking in the globalized economy.

Central Banks in the Age of the Euro

This text examines the effects of the euro as the new European single currency on the central banks of the member states of the European Union.

Central Banks in the Age of the Euro

Author: Kenneth Dyson

Publisher: Oxford University Press

ISBN: 0199218234

Page: 451

View: 547

The age of the euro has cast central banks in a newly prominent role in European integration and in macro-economic policy making in Europe. This text examines the effects of the euro as the new European single currency on the central banks of the member states of the European Union.

Central Banks and Gold

Bytheway and Metzler tell the story of how the first age of central-bank power and pride ended in the disaster of the Great Depression, when a rush for gold brought the system crashing down.

Central Banks and Gold

Author: Simon James Bytheway

Publisher: Cornell University Press

ISBN: 1501706500

Page: 260

View: 706

In recent decades, Tokyo, London, and New York have been the sites of credit bubbles of historically unprecedented magnitude. Central bankers have enjoyed almost unparalleled power and autonomy. They have cooperated to construct and preserve towering structures of debt, reshaping relations of power and ownership around the world. In Central Banks and Gold, Simon James Bytheway and Mark Metzler explore how this financialized form of globalism first took shape a century ago, when Tokyo first joined London and New York as a major financial center. As revealed here for the first time, close cooperation between central banks began along an unexpected axis, between London and Tokyo, around the year 1900, with the Bank of England’s secret use of large Bank of Japan funds to intervene in the London markets. Central-bank cooperation became multilateral during World War I—the moment when Japan first emerged as a creditor country. In 1919 and 1920, as Japan, Great Britain, and the United States adopted deflation policies, the results of cooperation were realized in the world’s first globally coordinated program of monetary policy. It was also in 1920 that Wall Street bankers moved to establish closer ties with Tokyo. Bytheway and Metzler tell the story of how the first age of central-bank power and pride ended in the disaster of the Great Depression, when a rush for gold brought the system crashing down. In all of this, we see also the quiet but surprisingly central place of Japan. We see it again today, in the way that Japan has unwillingly led the world into a new age of post-bubble economics.

The Evolution of Central Banking Theory and History

This book is the first complete survey of the evolution of monetary institutions and practices in Western countries from the Middle Ages to today.

The Evolution of Central Banking  Theory and History

Author: Stefano Ugolini

Publisher: Palgrave Macmillan

ISBN: 9781137485243

Page: 330

View: 204

This book is the first complete survey of the evolution of monetary institutions and practices in Western countries from the Middle Ages to today. It radically rethinks previous attempts at a history of monetary institutions by avoiding institutional approach and shifting the focus away from the Anglo-American experience. Previous histories have been hamstrung by the linear, teleological assessment of the evolution of central banks. Free from such assumptions, Ugolini’s work offers bankers and policymakers valuable and profound insights into their institutions. Using a functional approach, Ugolini charts an historical trajectory longer and broader than any other attempted on the subject. Moving away from the Anglo-American perspective, the book allows for a richer (and less biased) analysis of long-term trends. The book is ideal for researchers looking to better understand the evolution of the institutions that underlie the global economy.

The Green Swan

Climate change poses new challenges to central banks, regulators and supervisors. This book reviews ways of addressing these new risks within central banks' financial stability mandate.

The Green Swan

Author: Patrick Bolton

Publisher:

ISBN: 9789292593261

Page: 107

View: 132

Climate change poses new challenges to central banks, regulators and supervisors. This book reviews ways of addressing these new risks within central banks’ financial stability mandate. However, integrating climate-related risk analysis into financial stability monitoring is particularly challenging because of the radical uncertainty associated with a physical, social and economic phenomenon that is constantly changing and involves complex dynamics and chain reactions. Traditional backward-looking risk assessments and existing climate-economic models cannot anticipate accurately enough the form that climate-related risks will take. These include what we call “green swan” risks: potentially extremely financially disruptive events that could be behind the next systemic financial crisis. Central banks have a role to play in avoiding such an outcome, including by seeking to improve their understanding of climate- related risks through the development of forward-looking scenario-based analysis. But central banks alone cannot mitigate climate change. This complex collective action problem requires coordinating actions among many players including governments, the private sector, civil society and the international community. Central banks can therefore have an additional role to play in helping coordinate the measures to fight climate change. Those include climate mitigation policies such as carbon pricing, the integration of sustainability into financial practices and accounting frameworks, the search for appropriate policy mixes, and the development of new financial mechanisms at the international level. All these actions will be complex to coordinate and could have significant redistributive consequences that should be adequately handled, yet they are essential to preserve long-term financial (and price) stability in the age of climate change.

The Green Swan

Climate change poses new challenges to central banks, regulators and supervisors. This book reviews ways of addressing these new risks within central banks' financial stability mandate.

The Green Swan

Author: Patrick Bolton

Publisher:

ISBN: 9789292593254

Page: 107

View: 259

Climate change poses new challenges to central banks, regulators and supervisors. This book reviews ways of addressing these new risks within central banks’ financial stability mandate. However, integrating climate-related risk analysis into financial stability monitoring is particularly challenging because of the radical uncertainty associated with a physical, social and economic phenomenon that is constantly changing and involves complex dynamics and chain reactions. Traditional backward-looking risk assessments and existing climate-economic models cannot anticipate accurately enough the form that climate-related risks will take. These include what we call “green swan” risks: potentially extremely financially disruptive events that could be behind the next systemic financial crisis. Central banks have a role to play in avoiding such an outcome, including by seeking to improve their understanding of climate- related risks through the development of forward-looking scenario-based analysis. But central banks alone cannot mitigate climate change. This complex collective action problem requires coordinating actions among many players including governments, the private sector, civil society and the international community. Central banks can therefore have an additional role to play in helping coordinate the measures to fight climate change. Those include climate mitigation policies such as carbon pricing, the integration of sustainability into financial practices and accounting frameworks, the search for appropriate policy mixes, and the development of new financial mechanisms at the international level. All these actions will be complex to coordinate and could have significant redistributive consequences that should be adequately handled, yet they are essential to preserve long-term financial (and price) stability in the age of climate change.

The Evolution of Central Banking Theory and History

This point was made in the early 2000s by Curzio Giannini in his The Age of Central Banks.31 His work is the almost perfect “twin” of The Evolution of Central Banks: not only do the two books display a substantially complementary ...

The Evolution of Central Banking  Theory and History

Author: Stefano Ugolini

Publisher: Springer

ISBN: 1137485256

Page: 330

View: 187

This book is the first complete survey of the evolution of monetary institutions and practices in Western countries from the Middle Ages to today. It radically rethinks previous attempts at a history of monetary institutions by avoiding institutional approach and shifting the focus away from the Anglo-American experience. Previous histories have been hamstrung by the linear, teleological assessment of the evolution of central banks. Free from such assumptions, Ugolini’s work offers bankers and policymakers valuable and profound insights into their institutions. Using a functional approach, Ugolini charts an historical trajectory longer and broader than any other attempted on the subject. Moving away from the Anglo-American perspective, the book allows for a richer (and less biased) analysis of long-term trends. The book is ideal for researchers looking to better understand the evolution of the institutions that underlie the global economy.

The Age of Oversupply

The Age of Oversupply offers a bold, fresh approach to fixing the West’s economic woes through large-scale fiscal stimulus measures, investments in infrastructure, and an aggressive private debt reduction plan.

The Age of Oversupply

Author: Daniel Alpert

Publisher: Penguin

ISBN: 1101601639

Page: 304

View: 576

The invisible hand of capitalism is broken. Economic and political forces are preventing markets from correcting themselves, and we're now living in an unprecedented age of oversupply. Governments and central banks across the developed world have tried every policy tool imaginable, yet our economies remain sluggish or worse. How did we get here, and how can advanced nations compete and prosper once more? In this bold call to arms, economic policy expert Daniel Alpert argues that a global labor glut, excess productive capacity, and a rising ocean of cheap capital have kept the economies of the first world, and notably the United States, mired in underemployment and anemic growth. Distracted by a technology boom and a massive debt bubble in the 1990s and early 2000s, advanced nations failed to assess the ultimate impact of the torrent of labor and capital unleashed by formerly socialist economies. After the financial crisis of 2008, the United States and Europe joined an already sclerotic Japan in dire economic straits. Today, as the BRICs (Brazil, Russia, India, and China) and others poach jobs from Western Europe, the United States, and Japan, household incomes in the developed world continue to decline. Many policymakers believe in outdated supplyside economic remedies. They miss the connection between global oversupply and the lack of domestic investment and growth. But Alpert shows how they are intertwined: We cannot understand the housing bubble and the financial crisis without appreciating how the rise of the emerging nations distorted the economies of rich countries. And we can’t chart a path for growth in the developed world without recognizing that many of these distorting forces are still at work. The Age of Oversupply offers a bold, fresh approach to fixing the West’s economic woes through large-scale fiscal stimulus measures, investments in infrastructure, and an aggressive private debt reduction plan. It also delivers a vigorous challenge to proponents of austerity economics.

Central Banking at a Crossroads

The Age of Central Banks. Cheltenham: Edward Elgar. Goodhart, C. 2004. “Some New Directions for Financial Stability?” The Per Jacobsson Lecture, Per Jacobsson Foundation, Zürich, Switzerland, June 27. Goodhart, C. 2010 “The Changing ...

Central Banking at a Crossroads

Author: Charles Goodhart

Publisher: Anthem Press

ISBN: 1783083042

Page: 292

View: 633

This book reflects on the innovations that central banks have introduced since the 2008 collapse of Lehman Brothers to improve their modes of intervention, regulation and resolution of financial markets and financial institutions. Authors from both academia and policy circles explore these innovations through four approaches: ‘Bank Capital Regulation’ examines the Basel III agreement; ‘Bank Resolution’ focuses on effective regimes for regulating and resolving ailing banks; ‘Central Banking with Collateral-Based Finance’ develops thought on the challenges that market-based finance pose for the conduct of central banking; and ‘Where Next for Central Banking’ examines the trajectory of central banking and its new, central role in sustaining capitalism.

Evolution of Central Banking

The age of central banks. Cheltenham: Edward Elgar. Goodhart, C. A. E. (1988). The evolution of central banking. Cambridge: MIT Press. Grossman, R. S. (2010). Unsettled account. The evolution of banking in the industrialized world since ...

Evolution of Central Banking

Author: Roland Uittenbogaard

Publisher: Springer

ISBN: 3319106171

Page: 170

View: 443

The book analyses the establishment of De Nederlandsche Bank and its early development as a case study to test competing theories on the historical development of central banking. It is shown that the establishment of DNB can be explained by both the fiscal theory and the financial stability theory. Later development makes clear that the financial stability role of DNB prevailed. DNB ́s bank notes were not forced onto the public and competition was fierce. A prudent and independent stance was necessary to be able to play its intended role. This meant that DNB played a modest role in the Amsterdam money market until 1852. By 1852 it had established itself to become the central bank. By then its bank notes had become generally accepted and it could start to operate as a reserve bank. Also the market context had changed dramatically, its competitors had been driven out of the market and several credit institutions had become customers of DNB. "On the occasion of the Nederlandsche Bank's 200th Anniversary, it is good to have a new, and an extremely good, history of its founding and first fifty years of operation. The only previous account of this period of the DNB's history was legalistic and did not sufficiently place the Bank ́s development in its wider context. Uittenbogaard's book provides a much broader, and better, story of the personnel, economics, and finance of the DNB at this juncture." - Charles Goodhart, LSE.

Do Central Banks Serve the People

Jean-Philippe Touffut (Cheltenham: Edward Elgar Publishing, 2008), 391–406; Nicolas Jabko, 'Transparency and Accountability', in Central Banks in the Age of the Euro: Europeanization, Convergence and Power, ed.

Do Central Banks Serve the People

Author: Peter Dietsch

Publisher: John Wiley & Sons

ISBN: 1509525807

Page: 140

View: 316

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.

Bankers Bureaucrats and Central Bank Politics

Most studies of the political economy of money focus on the laws protecting central banks from government interference; this book turns to the overlooked people who actually make monetary policy decisions.

Bankers  Bureaucrats  and Central Bank Politics

Author: Christopher Adolph

Publisher: Cambridge University Press

ISBN: 9781107567092

Page: 390

View: 801

Most studies of the political economy of money focus on the laws protecting central banks from government interference; this book turns to the overlooked people who actually make monetary policy decisions. Using formal theory and statistical evidence from dozens of central banks across the developed and developing worlds, this book shows that monetary policy agents are not all the same. Molded by specific professional and sectoral backgrounds and driven by career concerns, central bankers with different career trajectories choose predictably different monetary policies. These differences undermine the widespread belief that central bank independence is a neutral solution for macroeconomic management. Instead, through careful selection and retention of central bankers, partisan governments can and do influence monetary policy - preserving a political trade-off between inflation and real economic performance even in an age of legally independent central banks.

Do Old Habits Die Hard Central Banks and the Bretton Woods Gold Puzzle

Besides macroeconomic and financial statistics, we also compile several indicators to measure past exposure of central bankers and central banks to the gold standard (to be used in section III), namely (i) the number of years spent by a ...

Do Old Habits Die Hard  Central Banks and the Bretton Woods Gold Puzzle

Author: Eric Monnet

Publisher: International Monetary Fund

ISBN: 1513508857

Page: 32

View: 258

Why did monetary authorities hold large gold reserves under Bretton Woods (1944–1971) when only the US had to? We argue that gold holdings were driven by institutional memory and persistent habits of central bankers. Countries continued to back currency in circulation with gold reserves, following rules of the pre-WWII gold standard. The longer an institution spent in the gold standard (and the older the policymakers), the stronger the correlation between gold reserves and currency. Since dollars and gold were not perfect substitutes, the Bretton Woods system never worked as expected. Even after radical institutional change, history still shapes the decisions of policymakers.

Meltdown

Presents a sobering account of the global financial collapse that has pushed the world economy toward a major recession, identifying what the author believes to be the sources of the collapse while making cautionary predictions about a ...

Meltdown

Author: Paul Mason

Publisher: Verso Books

ISBN:

Page: 198

View: 972

Presents a sobering account of the global financial collapse that has pushed the world economy toward a major recession, identifying what the author believes to be the sources of the collapse while making cautionary predictions about a potential rise of hyper-regulated capitalism.

Do Old Habits Die Hard Central Banks and the Bretton Woods Gold Puzzle

Why did monetary authorities hold large gold reserves under Bretton Woods (1944–1971) when only the US had to?

Do Old Habits Die Hard  Central Banks and the Bretton Woods Gold Puzzle

Author: Eric Monnet

Publisher: International Monetary Fund

ISBN: 1498326773

Page: 32

View: 475

Why did monetary authorities hold large gold reserves under Bretton Woods (1944–1971) when only the US had to? We argue that gold holdings were driven by institutional memory and persistent habits of central bankers. Countries continued to back currency in circulation with gold reserves, following rules of the pre-WWII gold standard. The longer an institution spent in the gold standard (and the older the policymakers), the stronger the correlation between gold reserves and currency. Since dollars and gold were not perfect substitutes, the Bretton Woods system never worked as expected. Even after radical institutional change, history still shapes the decisions of policymakers.

Central Bank Ratings

A backtesting exercise is included to validate the quality of the ratings obtained. The book concludes by offering insights into the comparison of central banks.

Central Bank Ratings

Author: Indranarain Ramlall

Publisher: Palgrave Macmillan

ISBN: 1137524022

Page: 242

View: 575

When the global financial crisis broke, central banks in both the US and the UK undertook massive asset purchase programmes which resulted in considerable increase in assets. Cross-border spillover effects were noted across global economies. Balance sheet adjustments may eventually gnaw at the profit-earning capacities of central banks, and in extreme cases, negative equity can manifest. This study investigates a benchmark for comparing central banks. The author employs a unique and large set of metrics to gauge the quality of central banks and presents an argument to reflect upon international best practices. The study uses different criteria including the accounting body, research, presence of stress-testing exercises, inflation-targeting frameworks, staff efficiency, and languages of communication with the public, amongst others. The book begins by providing an overview of central banking, before exploring some stylized facts about central banks in unique detail. It then presents a ratings methodology for worldwide central banks to analyse the results. A backtesting exercise is included to validate the quality of the ratings obtained. The book concludes by offering insights into the comparison of central banks.

The Emergence of Modern Central Banking from 1918 to the Present

The rapid rise in the share of public expenditure in GNP, both during the First World War and in the Great Depression, led to government paper inevitably playing an increasing role in central banks« portfolios. 3.

The Emergence of Modern Central Banking from 1918 to the Present

Author: Carl-L. Holtfrerich

Publisher: Routledge

ISBN: 1351890778

Page: 408

View: 861

The twentieth century has seen the rise of modern central banking. At its close, it is also witnessing the first steps in the decline of the role of some of the most famous of these institutions. In this volume, some of the world’s best known specialists examine the process whereby central banks emerged and asserted themselves within the economic and political spheres of their respective countries. Although the theory and the political economy that presided over their creation did not show great divergence across borders, a considerable institutional variety was nevertheless the result. Among the many factors responsible for this diversity, attention is drawn here not only to the idiosyncrasies of domestic financial systems and to the occurrence of political shocks with major monetary repercussions, such as wars, but also to the peculiarities of each economy and of the political and social climate reigning at the time when central banks were created or formalized. The twelve essays cover European, Asian and American experiences and many of them use a comparative approach.

Central Banks at a Crossroads

The essence of central banking through the ages has been exercising discretion within constraints, to learn by doing, to observe and then adapt.3 This bounded flexibility has been essential for preserving trust, both in monetary and ...

Central Banks at a Crossroads

Author: Michael D. Bordo

Publisher: Cambridge University Press

ISBN: 1107149665

Page: 714

View: 199

This book discusses the role of central banks and draws lessons from examining their evolution over the past two centuries.

Monetary Policies in the Age of Uncertainty

policy and the power that central banks possess is one factor behind dissatisfaction in central banks. Also, central banks are essentially a presence that provides underpinning support for the markets. Central banks are “bankers' banks.

Monetary Policies in the Age of Uncertainty

Author: Yoichi Matsubayashi

Publisher: Springer Nature

ISBN: 9811641463

Page:

View: 301