Understanding Central Banks (eBook)

Nils Herger (Autor)

eBook Download: PDF

2019
XI, 200 Seiten
Springer International Publishing (Verlag)
978-3-030-05162-4 (ISBN)

Infos

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.

Inhalt

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

Produkt-Details

• Erscheint lt. Verlag: 19.2.2019
• Zusatzinfo: XI, 200 p. 47 illus., 45 illus. in color.
• Verlagsort: Cham
• Sprache: englisch
• Original-Titel: Wie funktionieren Zentralbanken?
• Themenwelt: Sachbuch/Ratgeber ► Beruf / Finanzen / Recht / Wirtschaft
• Themenwelt: Sachbuch/Ratgeber ► Geschichte / Politik ► Politik / Gesellschaft
• Themenwelt: Sachbuch/Ratgeber ► Gesundheit / Leben / Psychologie ► Lebenshilfe / Lebensführung
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre
• Schlagworte: Central Banking • Currency • Exchange rates • Financial Crises • Inflation • monetary policy
• ISBN-10: 3-030-05162-5 / 3030051625
• ISBN-13: 978-3-030-05162-4 / 9783030051624