Herger Understanding Central Banks

1. Auflage 2019
ISBN: 978-3-030-05162-4
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 206 Seiten, eBook

Issues related to central banks feature regularly in economic news coverage, and in times of economic or financial crisis, especially when a commercial bank is bailed out, they become the focus of the policy debate. But what role do central banks play in a modern economy? How do central banks wield influence over the financial system and the broad economy? Through which channels does monetary policy impact macroeconomic fundamentals such as inflation or unemployment? For example, how does a central bank alter the money supply? What are the benefits of central bank independence, and what are the up- and downsides of having a common currency? This book provides easily accessible answers to these and other questions associated with central banking.

Dr. Nils Herger is a lecturer at the Study Center Gerzensee - the research and training center of the Swiss National Bank. His main responsibility is to organize a course program for central bankers, which is attended by participants from all over the world and enjoys an excellent international reputation. Nils Herger also teaches monetary policy and macroeconomic topics at the University of Bern. He holds a Ph.D. in economics from the University of Exeter.

Zielgruppe

Popular/general

Autoren/Hrsg.

Herger, Nils

Inhaltsverzeichnis

1;Preface;6
2;Contents;8
3;1 Introduction;11
3.1;1.1 What Is a Central Bank?;11
3.2;1.2 The Central Bank, the Economy, and the Outline of This Book;14
3.3;Further Reading;18
4;2 A Brief History of Central Banks;19
4.1;2.1 Origins of Central Banks;19
4.2;2.2 The Two-Tiered Banking System Emerges;22
4.3;2.3 Era of the Classical Gold Standard;27
4.4;2.4 World War I and the Great Depression;35
4.5;2.5 The Bretton Woods System;40
4.6;2.6 Floating Exchange Rates and Autonomous Monetary Policy;43
4.7;2.7 European Monetary Integration;47
4.8;2.8 Global Financial Crisis;49
4.9;2.9 Conclusion;50
4.10;Further Reading;51
5;3 Money: Lubricant of the Economy;53
5.1;3.1 What Is Money?;53
5.2;3.2 From Commodity Money to Fiat Money;58
5.3;3.3 How Much Money Circulates Through the Economy?;64
5.4;3.4 Private Money Creation Inside Commercial Banks;68
5.5;3.5 An Overview of the Money Market;73
5.6;Further Reading;74
6;4 Monetary-Policy Instruments;75
6.1;4.1 The Central Bank's Balance Sheet;75
6.2;4.2 Refinancing Operations, Discount Policy, and the Base Interest Rate;80
6.3;4.3 Reserve Requirements;84
6.4;4.4 Open-Market Operations;86
6.5;4.5 Foreign-Exchange Interventions;88
6.6;4.6 Overview of Monetary-Policy Instruments;90
6.7;Further Reading;92
7;5 Money, Credit, and Banking;93
7.1;5.1 The Financial System and Financial Stability;93
7.2;5.2 The Role of Commercial Banks;96
7.3;5.3 The Anatomy of Banking Crises;98
7.4;5.4 Bank Reserves and Full-Reserve Banking;104
7.5;5.5 The Lender of Last Resort;106
7.6;5.6 Banking Supervision and Capital Requirements;111
7.7;5.7 Overseeing the Payment System and Financial-Market Infrastructure;115
7.8;5.8 What Are the Limitations of Financial Regulation?;117
7.9;Further Reading;120
8;6 The Initial and Final Effects of Monetary Policy on Inflation, Output, and (Un)employment;122
8.1;6.1 Monetary Macroeconomics;122
8.2;6.2 Money and Inflation: The Neutrality of Money;123
8.3;6.3 Employment, Interest, and Money: The Transition Mechanisms of Monetary Policy;131
8.4;6.4 Bridging the Short and Long-Term;139
8.5;Further Reading;142
9;7 Central-Bank Independence;144
9.1;7.1 Why Should the Central Bank Be Independent?;144
9.2;7.2 Independence Separates Monetary from Fiscal-Policy Considerations...;147
9.3;7.3 ... and Fosters the Credibility of the Central Bank to Maintain Stable Monetary Conditions;151
9.4;7.4 What Are the Limitations of Monetary Policy?;158
9.5;Further Reading;159
10;8 International Monetary Policy;161
10.1;8.1 The International Financial System;161
10.2;8.2 You Cannot Have It All: The Trilemma of International Finance;163
10.3;8.3 Fixed and Floating Exchange-Rate Regimes;166
10.4;8.4 The Role of International Reserves;171
10.5;8.5 From International Reserves to International-Reserve Currencies;176
10.6;8.6 Causes and Consequences of Currency Crises;179
10.7;8.7 Common Currency and Monetary Union;183
10.8;Further Reading;188
11;9 Final Chapter: The Past, Present, and Future of Central Banking;190
12;Glossary;194
13;Index;203

Introduction.- A Brief History of Central Banks.- Money: Lubricant of the Economy.- Monetary-policy Instruments.- Money, Credit, and Banking.- The Initial and Final Effects of Monetary Policy on Inflation, Output, and (Un)employment.- Central-bank Independence.- International Monetary Policy.- Final chapter: The Past, Present, and Future of Central Banking.

Über Autor(innen)

Dr. Nils Herger is a lecturer at the Study Center Gerzensee - the research and training center of the Swiss National Bank. His main responsibility is to organize a course program for central bankers, which is attended by participants from all over the world and enjoys an excellent international reputation. Nils Herger also teaches monetary policy and macroeconomic topics at the University of Bern. He holds a Ph.D. in economics from the University of Exeter.