The Changing Fortunes of Central Banking

Contains 22 essays by leading luminaries in policy making and research, illustrating the changing role of central banks and the policies they pursue in seeking monetary and financial stabilisation.

Philipp Hartmann (Edited by), Haizhou Huang (Edited by), Dirk Schoenmaker (Edited by)

9781108423847, Cambridge University Press

Hardback, published 29 March 2018

422 pages, 36 b/w illus. 19 tables
23.5 x 15.6 x 2.3 cm, 0.79 kg

'The essays in honour of Charles Goodhart offer a splendid demonstration of how seminal were and are the many contributions of this great professor and central banker. Issues related to central banking and its changing fortunes are analysed luminously, both from the academic and the policy maker standpoint. A remarkable and useful book inspired by a great mind.' Jean-Claude Trichet, President of JCT Conseil, Paris, Honorary Governor of Banque de France, and previously President, European Central Bank

Understanding the changing role of central banks and their recent novel policies is essential for analysing many economic and financial issues, ranging from financial regulation and crisis, to exchange rate dynamics and regime changes, and QE and prolonged low interest rates. This book features contributions by the world's leading experts on central banking, providing in accessible essays a fascinating review of today's key issues for central banks. Luminaries including Stephen Cecchetti, Takatoshi Ito, Anil Kashyap, Mervyn King, Donald Kohn, Otmar Issing and Hyun Shin are joined by Charles Goodhart of the London School of Economics and Political Science, whose many achievements in the field of central banking are honoured as the inspiration for this book. The Changing Fortunes of Central Banking discusses the developing role of central banks in seeking monetary and financial stabilisation, while also giving suggestions for model strategies. This comprehensive review will appeal to central bankers, financial supervisors and academics.

1. Introduction and overview Philipp Hartmann, Haizhou Huang and Dirk Schoenmaker
Part I. Monetary Economics and Policy: 2. Money: how could economists do without it? Mervyn King
3. Monetary control in the UK: the impossible dream? Forrest Capie and Geoffrey Wood
4. Pristine and parsimonious policy: can central banks ever get back to it and why they should try Paul Tucker
5. Central bank talk about future monetary policy: lessons from the crisis and beyond Donald Kohn
6. Bank capital and monetary policy transmission Hyun Song Shin
7. When are central banks more likely to target asset prices? Haizhou Huang
Part II. Financial Stability and Regulatory Policy: 8. The macroprudential toolkit Richard Berner
9. Three cooks or three wise men? The interplay between monetary, macroprudential and microprudential policies in supporting financial stability José Viñals, Tommaso Mancini-Griffoli and Erlend Nier
10. Liquidity, default and the interaction of financial stability and monetary policy Dimitrios Tsomocos, Udara Peiris and Alexandros Vardoulakis
11. Systemic risk quantification for macroprudential stress testing Miguel Segoviano and Raphael Espinoza
12. What binds? Interactions between bank capital and liquidity regulations Anil Kashyap and Stephen Cecchetti
13. Is burden sharing needed for financial stability? Dirk Schoenmaker
Part III. Foreign Exchanges and International Architecture: 14. The case for (and requirements of) monetary unions Charles Wyplosz
15. Machines versus humans: will human forex dealers become extinct? Takatoshi Ito
16. The case for flexible exchange rates revisited Robert Aliber
17. Cross-border banking and monetary independence: difficult partners Marcus Miller
18. International liquidity Philipp Hartmann
Part IV. The Millennium Challenges of Central Banks: 19. Overburdened central banks – can independence survive? Ottmar Issing
20. Central banks, national balance sheets and global balance Andrew Sheng
21. Recognising the economy as a complex, adaptive system: implications for central banks William White
22. The changing fortunes of central banking Charles Goodhart.

Subject Areas: Banking [KFFK], Finance [KFF], Macroeconomics [KCB], Economic theory & philosophy [KCA]