Central Banking, Monetary Policy and Financial In/Stability
Published on 25. April 2025
Book
Hardback
338 pages
978-1-0353-0214-7 (ISBN)
Description
This timely book answers the question of whether central banks should specifically target the stability of financial systems and if so, what kind of policies should be adopted to prevent or mitigate financial instability.
Providing a critical perspective on both central banking and monetary policy, this book examines policies that are used and should be used to prevent instability in the future. Using examples from global financial markets, chapters investigate real-world events that have triggered instability including pandemics and how they have led to a crisis for inflation. Adapting both Minsky's analysis and the viewpoints of post-Keynesians, the book concludes that central banks should assess their existing approach to targeting inflation as a way of stabilising financial markets.
With a particular focus on financial regulations and supervision, this book will be an essential read for academics in the fields of political economy and post-Keynesian economics as well as central bank policy makers.
Providing a critical perspective on both central banking and monetary policy, this book examines policies that are used and should be used to prevent instability in the future. Using examples from global financial markets, chapters investigate real-world events that have triggered instability including pandemics and how they have led to a crisis for inflation. Adapting both Minsky's analysis and the viewpoints of post-Keynesians, the book concludes that central banks should assess their existing approach to targeting inflation as a way of stabilising financial markets.
With a particular focus on financial regulations and supervision, this book will be an essential read for academics in the fields of political economy and post-Keynesian economics as well as central bank policy makers.
Reviews / Votes
'This book is an outstanding collection of contributions of key experts in the area of monetary policy, central banking, and financial instability. It is a must-read for anybody keen to understand the relation between central banking and financial (in)stability in and beyond the industrial core.' -- Annina Kaltenbrunner, University of Leeds, UK 'Crafted in a compelling Keynesian argumentative style, this collection of essays delves into the role of the central bank and monetary policy, ultimately highlighting the true protagonist of the saga in parentheses. As readers journey through a portrayal of the current global financial environment, they can grasp the conceptual and practical challenges of perceiving modern economic systems as fundamentally unstable. Understanding the necessity of a central banker's existence, while also realizing that this moderating role is more than ever a political and non-neutral one, raises questions that global financialization exacerbates, highlighting planetary inequalities. This stimulating book is an essential resource for scholars who wish to tackle the complex and captivating challenge of managing financial instability in an era that, despite its rhetoric, remains far from achieving sustainability in practice.' -- Anna Maria Variato, University of Bergamo, ItalyMore details
Series
Language
English
Place of publication
Cheltenham
United Kingdom
Target group
Professional and scholarly
Dimensions
Height: 234 mm
Width: 156 mm
ISBN-13
978-1-0353-0214-7 (9781035302147)
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 Classification
Persons
Edited by Louis-Philippe Rochon, Full Professor, Laurentian University, Canada, Editor-in-Chief, Review of Political Economy, Founding Editor Emeritus, Review of Keynesian Economics and Director, Monetary Policy Institute, Sylvio Kappes, Assistant Professor, Federal University of Alagoas, Brazil, Co-Editor, Review of Political Economy and Co-Director, Monetary Policy Institute and Guillaume Vallet, Full Professor, Universite Grenoble Alpes and Research Fellow, Centre de Recherche en Economie de Grenoble (CREG), France
Content
Contents
Financial instability and the role of central banks and monetary policy 1
L?o?u?i?s?-?P?h?i?l?i?p?p?e? ?R?o?c?h?o?n?,? ?S?y?l?v?i?o? ?A?n?t?o?n?i?o? ?K?a?p?p?e?s? ?a?n?d? ?G?u?i?l?l?a?u?m?e? ?V?a?l?l?e?t?
1 A monetary-structural reform to guarantee financial stability 5
S?e?r?g?i?o? ?R?o?s?s?i?
2 Why are repos so huge in Brazil?: An analysis from 2002 to 2020 18
F?l?av?i?a? ?F?e?l?i?x? ?B?a?r?b?o?s?a? ?a?n?d? ?F?a?b?i?o? ?T?e?r?r?a?
3 Financial instability and the operations of central banks 35
M?a?l?c?o?l?m? ?S?a?w?y?e?r?
4 Inflation, financial crises and a new Cold War: The next era of financial stability 51
G?i?u?s?e?p?p?e? ?M?a?s?t?r?o?m?a?t?t?e?o? ?a?n?d? ?L?o?r?e?n?z?o? ?E?s?p?o?s?i?t?o?
5 The conduct of monetary policy in a floor system and under an Ample Reserve Regime: The case of the United States in the last decade 81
D?o?m?e?n?i?c?a? ?T?r?o?p?e?a?n?o?
6 Central banks as political institutions: Towards a more democratic monetary policy for the 21st century 99
S?i?m?o?n?e? ?D?e?o?s? ?a?n?d? ?F?e?r?n?a?n?d?a? ?U?l?t?r?e?m?a?r?e?
7 The role of central banks in the financial instability hypothesis 117
B?a?r?k?i?n? ?C?i?h?a?n?l?i?
8 A tale of two crises: Monetary policy and financial (in)stability implications of climate change and pandemics 137
L?i?l?i?t? ?P?o?p?o?y?a?n? ?a?n?d? ?P?a?o?l?a? ?D?'O?r?a?z?i?o?
9 Monetary policy and illiquidity 163
Jan Toporowski
10 Stabilizing an unstable financial system: A Minskyian approach to market dysfunctions and the Covid-19 experience in the US 177
Norberto Montani Martins and Gabriel Porto
11 Monetary policy, market concentration and financial instability: The case of the USA 202
Ilhan Doegues
12 The art of central banking with global shadow banks 221
Elham Saeidinezhad
13 Monetary policy, financialization and functional income distribution in G7 countries 251
Giovanna Ciaffi, Stefano Di Bucchianico and Antonino Lofaro
14 Pension funds, bonds and gilt market stability 269
Jennifer Churchill and Bruno Bonizzi
15 Conceptualizing financialization of monetary policy 284
Marcos Centurion-Vicencio and Mateo Villalba
Financial instability and the role of central banks and monetary policy 1
L?o?u?i?s?-?P?h?i?l?i?p?p?e? ?R?o?c?h?o?n?,? ?S?y?l?v?i?o? ?A?n?t?o?n?i?o? ?K?a?p?p?e?s? ?a?n?d? ?G?u?i?l?l?a?u?m?e? ?V?a?l?l?e?t?
1 A monetary-structural reform to guarantee financial stability 5
S?e?r?g?i?o? ?R?o?s?s?i?
2 Why are repos so huge in Brazil?: An analysis from 2002 to 2020 18
F?l?av?i?a? ?F?e?l?i?x? ?B?a?r?b?o?s?a? ?a?n?d? ?F?a?b?i?o? ?T?e?r?r?a?
3 Financial instability and the operations of central banks 35
M?a?l?c?o?l?m? ?S?a?w?y?e?r?
4 Inflation, financial crises and a new Cold War: The next era of financial stability 51
G?i?u?s?e?p?p?e? ?M?a?s?t?r?o?m?a?t?t?e?o? ?a?n?d? ?L?o?r?e?n?z?o? ?E?s?p?o?s?i?t?o?
5 The conduct of monetary policy in a floor system and under an Ample Reserve Regime: The case of the United States in the last decade 81
D?o?m?e?n?i?c?a? ?T?r?o?p?e?a?n?o?
6 Central banks as political institutions: Towards a more democratic monetary policy for the 21st century 99
S?i?m?o?n?e? ?D?e?o?s? ?a?n?d? ?F?e?r?n?a?n?d?a? ?U?l?t?r?e?m?a?r?e?
7 The role of central banks in the financial instability hypothesis 117
B?a?r?k?i?n? ?C?i?h?a?n?l?i?
8 A tale of two crises: Monetary policy and financial (in)stability implications of climate change and pandemics 137
L?i?l?i?t? ?P?o?p?o?y?a?n? ?a?n?d? ?P?a?o?l?a? ?D?'O?r?a?z?i?o?
9 Monetary policy and illiquidity 163
Jan Toporowski
10 Stabilizing an unstable financial system: A Minskyian approach to market dysfunctions and the Covid-19 experience in the US 177
Norberto Montani Martins and Gabriel Porto
11 Monetary policy, market concentration and financial instability: The case of the USA 202
Ilhan Doegues
12 The art of central banking with global shadow banks 221
Elham Saeidinezhad
13 Monetary policy, financialization and functional income distribution in G7 countries 251
Giovanna Ciaffi, Stefano Di Bucchianico and Antonino Lofaro
14 Pension funds, bonds and gilt market stability 269
Jennifer Churchill and Bruno Bonizzi
15 Conceptualizing financialization of monetary policy 284
Marcos Centurion-Vicencio and Mateo Villalba