Central Banking in the Modern World: Alternative PerspectivesMarc Lavoie, Mario Seccareccia Monetarism is dead! Central bankers are all Wicksellians now! They target low inflation rates, with no regard to monetary aggregates whatsoever, by acting upon short-term real rates of interest. This is the New Consensus in monetary economics, or simply the New Keynesian Synthesis. Yet, this synthesis still hinges on variants of the long-run vertical Phillips curve originally proposed by Milton Friedman, the father of old-line monetarism. Contributors to the volume question this New Consensus. While they agree that the money supply should be conceived as endogenous, they carefully examine the procedures pursued by central banks, the monetary policy transmission mechanisms suggested by central bankers themselves, and the assumptions imbedded in the New Consensus. They propose alternative analyses that clearly demonstrate the limits of modern central banking and point to the possible instability of monetary economies. Heterodox and orthodox monetary macroeconomists alike will find this illuminating book of great interest. |
Contents
Interest Rate Operating Procedures and Income Distribution | 57 |
Going Beyond | 70 |
Setting the Agenda | 112 |
Copyright | |
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Central Banking in the Modern World: Alternative Perspectives Marc Lavoie,Mario Seccareccia Limited preview - 2004 |
Common terms and phrases
aggregate demand analysis Arestis argued assumptions Bank B2 Bank of Canada bank's behaviour Cambridge Canadian capital central bank money changes chapter consensus model debt determined domestic economists Edward Elgar empirical endogenous money equation equities exogenous expectations Federal Reserve fiat money financial markets Friedman growth rate households impact income increase inflation rate inflation target interbank investment IROP James Tobin Journal of Economics Keynes Lavoie loans long-run long-term bonds long-term rates macroeconomics Meltzer Minsky monetary policy monetary theory money market money supply NAIRU natural rate NC model neoclassical nominal interest rates open economy overnight rate payment Phillips curve PK model post-Keynesian price level profits rate of growth rate of inflation rate of interest rate of return real interest rate real rate result role Seccareccia Second Bank sector Setterfield settlement balances shock short-term Smithin stability Tobin transmission mechanism Treasury bills variables wages Wicksellian zero
References to this book
Handbook of Research on Writing: History, Society, School, Individual, Text Charles Bazerman No preview available - 2008 |