Overview
- Combines discussions on inflation targeting, negative real interest rates, demographic dynamics, and monetary theory
- Provides policy recommendations for a new target variable and monetary policy more generally
- Envisages monetary policy in relation to the wider economy, financial markets, politicians, and citizens
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Table of contents (6 chapters)
Keywords
- History of Monetary Policy
- The Gold Standard
- The Institutions of Monetary Policy
- Stabilizing the Long-Term Interest Rate
- The Fixed-Rate System
- Fixed-Rate Rule and Business Cycles
- New Instruments for Monetary Policy
- Deflation, Demography, and Neocracy
- Capital Destruction
- Inflation Targets
- Real Interest Rates
- Modern Monetary Theory
About this book
This book critically explores past and present principles of central banking, and outlines a new framework for future stabilization policy. Through compact and concise chapters, it demonstrates why a constant long-term interest rate would be the most beneficial target for monetary policy to follow. A novel set of policy tools and institutional arrangements suitable to reliably meet this target are developed.
It is argued that the proposed framework would be clearly superior to conventional policies in preventing financial market crises, maintaining high employment, and keeping the economy at or near potential. The merits and shortcomings of alternative theories such as Modern Monetary Theory are also discussed.
This book will be relevant to researchers and policymakers as well as professional investors, analysts, and commentators of financial markets and the economy at large.
Authors and Affiliations
About the author
Bibliographic Information
Book Title: Towards the Next Revolution in Central Banking
Book Subtitle: A Radical Framework for Monetary Policy
Authors: Burkhard Wehner
DOI: https://doi.org/10.1007/978-3-030-85766-0
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021
Hardcover ISBN: 978-3-030-85765-3Published: 29 October 2021
eBook ISBN: 978-3-030-85766-0Published: 28 October 2021
Edition Number: 1
Number of Pages: X, 75
Number of Illustrations: 2 b/w illustrations
Topics: Economic Policy, Public Finance, Social Choice/Welfare Economics/Public Choice/Political Economy