With a foreword written by Kenneth Rogoff, this astute book examines central banking through the lens of his principle of the conservative central banker and emphasis on price stability over short-term political and economic pressures. Expert contributors explore how central banks have maintained low inflation while navigating global shocks, including the disinflation of the 1980s and the inflationary resurgence after 2021.
Highlighting the importance of independence for resisting political interference and maintaining credibility, the book questions the viability of strict conservatism and analyses emerging challenges such as gender biases, gold reserves and political influence on financial institutions. Chapters use historical and theoretical investigations, quantitative empirical research and case studies to assess how central banks communicate policies, manage inflation expectations and adapt to turbulent new realities. Ultimately the book argues that amid evolving global dynamics, the principles of conservatism and price stability remain fundamental to effective monetary policy.
Are Central Banks Still Conservative? is a fundamental resource for scholars and students of macroeconomics, economic history, economic regulation and governance, and finance. It is also an interesting read for policy- and law-makers analysing the legal bases for institutions.
Rezensionen / Stimmen
'Unlike so much of the modern macro literature, which treats central bank independence as a given and central bank inflation targets as inviolable, the papers here highlight the rich undercurrent of political economy issues that real-world central banks have to navigate, and that designers of central bank frameworks need to understand.' -- from the foreword by Kenneth Rogoff 'Central banks are perceived as omnipotent institutions. In the real world, however, they need to be independent to use their limited powers effectively. The book allows readers to see central banks up-close, showing how necessary their independence is to take the right and timely decisions.' -- Andrzej Slawinski, Warsaw School of Economics, Poland 'These chapters are a masterful endeavor showing how theoretical and empirical economic analyses are fundamental elements of public policy. They are also a reminder that the conduct of monetary policy needs to account for political-economy research since the central bankers' behaviour is always entangled with the career concerns of politicians.' -- Raphael Franck, University of Stuttgart, Germany 'This fascinating book explains why, how, and to what effect central bank independence, on the one side, and central banker conservativeness, on the other, are nowadays the two sides of the global monetary policy story. The book will not only be of great value to researchers, academics and professionals who are interested in understanding the evolution of monetary policy, but also to university students who are studying monetary economics.' -- Donato Masciandaro, Bocconi University, Italy
Sprache
Verlagsort
Zielgruppe
Maße
Höhe: 234 mm
Breite: 156 mm
ISBN-13
978-1-0353-3756-9 (9781035337569)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Klassifikation
Edited by Etienne Farvaque, Professor of Economics, Universite de Lille, France and Piotr Stanek, Associate Professor, Krakow University of Economics, Poland
Contents
Foreword x
Reflections on 40 years of conservativeness: an introduction to the book 1
Etienne Farvaque and Piotr Stanek
PART I GUARDIANS OF MONETARY STABILITY: CENTRAL BANK CONSERVATISM, POLITICAL CYCLES, AND INSTITUTIONAL INDEPENDENCE
1 Central banks and political cycles 11
Hugo Oriola
2 The quantity theory of money in central banking, 1870-2020 37
Alexander Jung
3 Trends in central bank independence: a de jure perspective 59
Davide Romelli
PART II TRUST BUILDERS: CENTRAL BANK CREDIBILITY, COMMUNICATION, AND STRATEGIC RESERVES
4 Can the conservative central banker be a woman? 93
Cristina Bodea and Andrew Kerner
5 Do Europeans like their central bank conservative? Evidence from the communication about the 2022 hikes 112
Maqsood Aslam, Etienne Farvaque, Kokouvi Kada-Sedode and Piotr Stanek
6 Gold renaissance among central banks: can gold reserves reduce sovereign credit risk? 128
Joanna Bogolebska, Ewa Feder-Sempach, Ewa Stawasz-Grabowska and Bojan Pejovic
PART III NAVIGATORS OF CHANGE: MANEUVERING BETWEEN POLITICAL INFLUENCE AND FISCAL DOMINANCE IN TRANSITION AND DEVELOPING COUNTRIES
7 Central bank independence, inflation, and growth in Africa 154
Christine O. Strong
8 Does central bank independence protect against fiscal dominance? 182
Marek A. Dabrowski
9 How to save central banks' independence from the unconservative governor: the alarming case of the National Bank of Poland 204
Andrzej Wojtyna
PART IV INNOVATIVE REFORMERS: REDEFINING MONETARY POLICY AND CHALLENGING CONVENTIONAL PARADIGMS
10 Unconventional monetary policies and the conservative central banker principle: two interpretations 227
Jakub Janus and Krystian Mucha
11 Paradigm shift after the inflation shock? 246
Jerome Creel, Francois Geerolf, Sandrine Levasseur, Xavier Ragot and Francesco Saraceno
12 Toward a progressive central banker 264
Louis-Philippe Rochon and Guillaume Vallet
