The Age of Central Banks

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 ...

Author: Curzio Giannini

Publisher: Edward Elgar Publishing

ISBN: 9780857932143

Category: Business & Economics

Page: 298

View: 848

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.
Categories: Business & Economics

Central Banks and Gold

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.

Author: Simon James Bytheway

Publisher: Cornell University Press

ISBN: 9781501706509

Category: History

Page: 260

View: 921

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.
Categories: History

Central Banks in the Age of the Euro

Central Banks in the Age of the Euro

The chapters by Epstein and Johnson and by Greskovits explore
Europeanization in relation to Baltic and east central European central banks.
Their effects appear as variegated. In this case, as well as the 'semipermanent'
outsiders, the age ...

Author: Kenneth Dyson

Publisher: Oxford University Press

ISBN: 9780199218233

Category: Business & Economics

Page: 451

View: 323

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.
Categories: Business & Economics

The Political Economy of Central Banking

The Political Economy of Central Banking

This volume explores the economic and political contours of the struggle for influence over the policies of central banks such as the Federal Reserve, and the implications of this struggle for economic performance and the distribution of ...

Author: Gerald Epstein

Publisher: Edward Elgar Publishing

ISBN: 9781788978415

Category: Business & Economics

Page: 576

View: 460

Central banks are among the most powerful government economic institutions in the world. This volume explores the economic and political contours of the struggle for influence over the policies of central banks such as the Federal Reserve, and the implications of this struggle for economic performance and the distribution of wealth and power in society.
Categories: Business & Economics

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

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

average age of the governor with currency/GDP. We find a positive and
significant interaction, implying that central banks with an older governor had a
higher correlation between gold and currency in circulation.30 These results
show that ...

Author: Eric Monnet

Publisher: International Monetary Fund

ISBN: 9781513508870

Category: Business & Economics

Page: 32

View: 225

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.
Categories: Business & Economics

Central Bank Reserve Management

Central Bank Reserve Management

This book addresses the welfare gains and costs of accumulating foreign exchange reserves and the implications for the functioning of the global financial system.

Author: Age Bakker

Publisher: Edward Elgar Publishing

ISBN: 9781782541677

Category: Business & Economics

Page: 257

View: 990

This book addresses the welfare gains and costs of accumulating foreign exchange reserves and the implications for the functioning of the global financial system. The tremendous growth of central bank reserves has led to an increased focus on raising returns in addition to the traditional preference central banks have for maintaining liquid portfolios. Issues such as asset and currency diversification, the impact of new accounting rules and the profit distribution agreements with the government are analysed, adding new insights to the current debate on the optimal size of central bank reserves. This book brings together a wide range of experts from central banks, investment banks and the academic community.
Categories: Business & Economics

Bankers Bureaucrats and Central Bank Politics

Bankers  Bureaucrats  and Central Bank Politics

Adolph illustrates the policy differences between central banks run by former bankers relative to those run by bureaucrats.

Author: Christopher Adolph

Publisher: Cambridge University Press

ISBN: 9781107032613

Category: Business & Economics

Page: 357

View: 796

Adolph illustrates the policy differences between central banks run by former bankers relative to those run by bureaucrats.
Categories: Business & Economics

Public Banks in the Age of Financialization

Public Banks in the Age of Financialization

This book asks the important question of whether public banks are a better alternative to profit-seeking private banks. Do public banks provide finance for development? Do they serve as stability anchors in financial markets?

Author: Christoph Scherrer

Publisher: Edward Elgar Publishing

ISBN: 9781786430663

Category:

Page: 288

View: 879

This book asks the important question of whether public banks are a better alternative to profit-seeking private banks. Do public banks provide finance for development? Do they serve as stability anchors in financial markets? What kind of governance keeps public banks accountable to the public? Theoretically the book draws on the works of Minsky for the question on stability and on interpretative policy analysis for the issue of governance. It compares empirically three countries with significant public banks: Brazil, Germany, and India.
Categories:

Central Bank Ratings

Central Bank Ratings

The age composition of central banks shows wide disparities for the distinct
countries under consideration. The closing period pertains to December 2012.
The horizontal axis captures the age of the central bank. While the youngest
central ...

Author: Indranarain Ramlall

Publisher: Springer

ISBN: 9781137524010

Category: Business & Economics

Page: 230

View: 562

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.
Categories: Business & Economics

Should Unconventional Balance Sheet Policies Be Added to the Central Bank toolkit a Review of the Experience so Far

Should Unconventional Balance Sheet Policies Be Added to the Central Bank toolkit  a Review of the Experience so Far

The problems posed by fiscal mission creep and related high inflation led to a
narrowing and clarification of the policy role of central banks during the “golden
age” of central banking from around 1990 to 2008 (Gerlach and others, 2009). 2.

Author: Kotaro Ishi

Publisher: International Monetary Fund

ISBN: 9781455268474

Category: Business & Economics

Page: 70

View: 888

What is the case for adding the unconventional balance sheet policies used by major central banks since 2007 to the standard policy toolkit? The record so far suggests that the new liquidity providing policies in support of financial stability generally warrant inclusion. As the balance sheet policies aimed at macroeconomic stability were used only by a small number of highly credible central banks facing a lower bound constraint on conventional interest rate policy, they are not relevant for most central banks or states of the world. Best practices of these policies are documented in this paper.
Categories: Business & Economics

The Alchemists

The Alchemists

The book begins in, of all places, Stockholm, Sweden, in the seventeenth century, where central banking had its rocky birth, and then progresses through a brisk but dazzling tutorial on how the central banker came to exert such vast ...

Author: Neil Irwin

Publisher: Penguin

ISBN: 9781101605806

Category: Business & Economics

Page: 448

View: 933

When the first fissures became visible to the naked eye in August 2007, suddenly the most powerful men in the world were three men who were never elected to public office. They were the leaders of the world’s three most important central banks: Ben Bernanke of the U.S. Federal Reserve, Mervyn King of the Bank of England, and Jean-Claude Trichet of the European Central Bank. Over the next five years, they and their fellow central bankers deployed trillions of dollars, pounds and euros to contain the waves of panic that threatened to bring down the global financial system, moving on a scale and with a speed that had no precedent. Neil Irwin’s The Alchemists is a gripping account of the most intense exercise in economic crisis management we’ve ever seen, a poker game in which the stakes have run into the trillions of dollars. The book begins in, of all places, Stockholm, Sweden, in the seventeenth century, where central banking had its rocky birth, and then progresses through a brisk but dazzling tutorial on how the central banker came to exert such vast influence over our world, from its troubled beginnings to the Age of Greenspan, bringing the reader into the present with a marvelous handle on how these figures and institutions became what they are – the possessors of extraordinary power over our collective fate. What they chose to do with those powers is the heart of the story Irwin tells. Irwin covered the Fed and other central banks from the earliest days of the crisis for the Washington Post, enjoying privileged access to leading central bankers and people close to them. His account, based on reporting that took place in 27 cities in 11 countries, is the holistic, truly global story of the central bankers’ role in the world economy we have been missing. It is a landmark reckoning with central bankers and their power, with the great financial crisis of our time, and with the history of the relationship between capitalism and the state. Definitive, revelatory, and riveting, The Alchemists shows us where money comes from—and where it may well be going.
Categories: Business & Economics

Central Banking in the Twentieth Century

Central Banking in the Twentieth Century

Louis Rasminsky, Governor of the Bank of Canada, 1966 (Rasminsky 1987: 57)
The central banks of South and East Asia are ... an ... The age of decolonisation,
between 1945 and 1970, was also an era of central bank proliferation. Most were
 ...

Author: John Singleton

Publisher: Cambridge University Press

ISBN: 9781139495202

Category: Business & Economics

Page:

View: 365

Central banks are powerful but poorly understood organisations. In 1900 the Bank of Japan was the only central bank to exist outside Europe but over the past century central banking has proliferated. John Singleton here explains how central banks and the profession of central banking have evolved and spread across the globe during this period. He shows that the central banking world has experienced two revolutions in thinking and practice, the first after the depression of the early 1930s, and the second in response to the high inflation of the 1970s and 1980s. In addition, the central banking profession has changed radically. In 1900 the professional central banker was a specialised type of banker, whereas today he or she must also be a sophisticated economist and a public official. Understanding these changes is essential to explaining the role of central banks during the recent global financial crisis.
Categories: Business & Economics

The Age of Oversupply

The Age of Oversupply

So without getting too far into the plumbing, consider whatKeynes suggested:
The creation of an inter-central-bank “currency” unitthat all global
currenciescould bemarked against andthat transactions among centralbanks (i.e.
trade)would ...

Author: Daniel Alpert

Publisher: Penguin UK

ISBN: 9780241968833

Category: Business & Economics

Page: 288

View: 591

The Age of Oversupply looks at why Western capitalism is broken and how the US can recover its global economic leadership status The invisible hand of capitalism is broken. Economic and political forces are preventing markets from correcting themselves. Governments and central banks across the developed world have tried every tool imaginable, yet our economies remain sluggish. How did we get here, and how can advanced nations prosper once more? In this bold call to arms, economic policy expert Daniel Alpert argues that oceans of cheap global labour and capital have shackled the economies of the West. Distracted by a technology boom and debt bubble, they failed to respond to the challenges unleashed by the BRICs (Brazil, Russia, India and China) and beyond. Global oversupply and the lack of domestic growth are intertwined, Alpert shows. We cannot understand the housing bubble and the financial crisis without appreciating how the rise of emerging nations distorted the economies of rich countries. And we can't chart a path for growth without recognizing that many of these forces are still at work. The Age of Oversupply offers a bold, fresh approach to fixing the West's economic woes. It also delivers a vigorous challenge to proponents of austerity economics. 'An elegantly argued explanation of the anemic stagnation that has followed the recent financial crisis' -Nouriel Roubini, author of Crisis Economics Daniel Alpert is a founding managing partner of investment bank Westwood Capital, LLC. He is widely quoted in the business media and was featured in the Academy Award-winning documentary Inside Job. Alpert is also a fellow of the Century Foundation, the United States' oldest policy think tank. He lives in New York.
Categories: Business & Economics

Central Banking in Developing Countries

Central Banking in Developing Countries

But in October 1992its central bank, the Banco Central de la Republica Argentina
(BCRA), was given anewCharter, aspart of the country's sweepingcurrency and
financialreform process. Following this reform BCRA now assesses itself as ...

Author: Álvaro Almeida

Publisher: Routledge

ISBN: 9781134759743

Category: Business & Economics

Page: 208

View: 677

This book examines the current state of central banking in 44 developing countries. The authors analyse the banks' achievement in their primary objective of price stability and discuss the reasons behind the general lack of success. The book covers: * government financing * foreign exchange systems * domestic banking systems. Rich in data, the book contains original financial information from Africa, Asia, the Middle East, Europe, Latin America and the Caribbean. The lay-out is user-friendly and generously illustrated with tables, figures, boxed material and useful appendices. The book is published in association with the Bank of England and presents the definitive account of the role of central banks in developing countries.
Categories: Business & Economics

The Green Swan

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.

Author: Patrick Bolton

Publisher:

ISBN: 9292593250

Category: Banks and banking, Central

Page: 107

View: 447

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.
Categories: Banks and banking, Central

Econometric Models of the Euro area Central Banks

Econometric Models of the Euro area Central Banks

11. Central. Bank. and. Financial. Services. Authority. of. Ireland's. model. Kieran
McQuinn, Nuala O'Donnell and Mary Ryan 1 INTRODUCTION The Irish
component of the MCM (multi-country model) is estimated and maintained within
the ...

Author: Gabriel Fagan

Publisher: Edward Elgar Publishing

ISBN: 9781845428037

Category: Business & Economics

Page: 336

View: 407

This book provides a description of the main macroeconomic models used by the European Central Bank and the euro area national central banks (Eurosystem). These models are used to help prepare economic projections and scenario analysis for individual countries and the euro area as a whole. The volume takes stock of the current macroeconometric modelling infrastructure available within the Eurosystem, highlighting not only the structures and main features of the models used but also their purposes and underlying model-building philosophies. A bird s eye view of the key details of the design, structure and characteristics of the models is provided, along with information on the responses of these models to a series of standard economic and policy shocks. This is the first time that a comprehensive description and systematic comparison of the main macroeconomic models has been published. This book will be of great interest to Central Bank and government economists, as well as academics, economists and students with an interest in central banking, econometric modelling, forecasting and macroeconomic policy.
Categories: Business & Economics

The Capital Needs of Central Banks

The Capital Needs of Central Banks

11. How. ALM. techniques. can. help. central. banks. Age Bakker, Han van der
Hoorn and Leonard Zwikker1,2. 1. Introduction. Financial risk management in
central banks has recently received wide attention, from academics, policy
makers, ...

Author: Sue Milton

Publisher: Routledge

ISBN: 9781136895890

Category: Business & Economics

Page: 224

View: 177

Central banks have evolved over many years, and sometimes centuries, as policy-making, not profit-making, institutions, and yet they are structured legally and financially like ‘for-profit’ companies of the twenty-first century. The question is what is an appropriate level of equity, or capital, for a central bank to have so that it can function for policy effectiveness over profit-maximisation, without hindrance to the achievement and maintenance of policy goals? This collection takes the reader through historical, theoretical and factual discussions on why central banks exist and the role – actual and intended – they have in assisting their home nation in achieving monetary and financial stability. The contributions analyse the different ways central banks are funded and how funding arrangements may impact on their independence. The objective is to explore these themes first from the academic and practitioner’s views – those of the economist, accountant and lawyer’s – and then to introduce practical experiences from a range of different central banks, in terms of their economic and socio-political environments. It will be the first time that the theorist and practitioner, the accountant, the economist and the lawyer come together in one volume. The reader will be able to access the full breadth of views on this important subject. The main observations are that there is no single, quantifiable formula that central banks can use to calculate capital levels. Factors to consider are the historical context of central banks and whether capital was ever appropriate to needs at their foundation; the cultural, social and political contexts; and, in terms of the presentation of financial statements, profit and loss sharing arrangements and what accounting conventions are being used. If these are considered alongside the, often idiosyncratic, mandates individual central banks have, a qualitative understanding of what is an appropriate level of capital is achieved. This collection will be of interest to postgraduates and researchers focusing on the role of central banks in monetary economics; as well as a professional audience of central bankers, the BIS, the IMF, World Bank, EBRD and government departments.
Categories: Business & Economics

Capitalmarkets in the Age

Capitalmarkets in the Age

First, this is an area of interest also of central banks, as shown by the extensive
work done by the Bank for International Settlements (BIS) in the last decade and
by the joint CPSS–IOSCO Task Force. Settlement systems, in particular, have ...

Author: Ferrarini

Publisher: Kluwer Law International B.V.

ISBN: 9789041117373

Category: Law

Page: 607

View: 737

28 authors discuss the current and future issues affecting investment, conduct of business rules, stock exchanges, trading and company law. Includes conflict of law issues; on-line trading; clearing and settlement systems; takeovers; and relevant soft law.
Categories: Law

Central Bank Independence

Central Bank Independence

It is noteworthy that the ESCB - together with the Reserve Bank of New Zealand -
was the first central bank with the single ... The Bundesbank operated in the age
of central bank secrecy, while the ECB is clearly part of the more transparent ...

Author: Emmanuel Pamu Mulenga

Publisher:

ISBN: STANFORD:36105028504582

Category: Banks and banking, Central

Page: 74

View: 324

Categories: Banks and banking, Central

Banking

Banking

About the Book: This book is structured to cover entirely the syllabi of B.Com.

Author: N. T. Somashekar

Publisher: New Age International

ISBN: 9788122424614

Category: Banks and banking

Page: 376

View: 760

Categories: Banks and banking