Central Banking in the Modern World

Central Banking in the Modern World

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'The book provides a good variety of articles capable of satisfying different readers regarding central banking.' - Eric Tymoigne, Journal of Economic Issues According to the New Consensus in monetary economics, monetarism is dead and central bankers target low inflation rates by acting upon short-term real rates of interest. Yet, this synthesis hinges on variants of the long-run vertical Phillips curve originally proposed by Milton Friedman, the father of old-line monetarism. Contributors to this volume question this New Consensus. While they agree that the money supply should be conceived as endogenous, they carefully examine the procedures pursued by central banks, the monetary policy transmission mechanisms suggested by central bankers themselves, and the assumptions imbedded in the New Consensus. They propose alternative analyses that clearly demonstrate the limits of modern central banking and point to the possible instability of monetary economies.Interest. Rate. Policy. at. the. Bank. of. Canada: Setting. the. Agenda. Marc-Andre. Pigeon. 1. INTRODUCTION On 15 April 2003, the Bank of Canada issued a terse news release announcing its intention to raise interest rates.1 The first paragraph read as follows: The ... belt that translates a change in the short-term, overnight lending rate onto the spectrum of interest rates with varying degrees of influence.

Title:Central Banking in the Modern World
Author:Marc Lavoie, Mario Seccareccia
Publisher:Edward Elgar Publishing - 2004-01-01


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