The financial crisis destroyed the consensus – at least among central bankers in the West – about how best to do central banking.
The Future of Central Banking, a new book from Central Banking Publications, draws on leading industry experts to describe and analyse the new world facing central bankers.
A world of dysfunctional markets, contagious crises, sovereign risk and increased policy intervention.
The Future of Central Banking, edited by central banking experts Robert Pringle and Claire Jones, offers insights into how the profession can best handle the challenges this much-changed world will present.
Written from the policymakers perspective, in-depth chapters draw policy lessons for those facing new demands from macroprudential supervision, global imbalances, increased supervisory responsibility and changed relations with governments and stakeholders.
This book is no blueprint for a new model central bank. It is too early for that. Where the political and intellectual mood will settle remains too difficult to gauge. Yet few would disagree with the claim of Olivier Blanchard, the chief economist of the International Monetary Fund (IMF), that events point to a greater role for the state in shaping the economic course. Factors specific to political structures, financial markets and economic circumstances have proven to matter more than we might have thought. And a world in which there is a neat segmentation between the monetary, fiscal and supervisory policy strands between central banks, treasuries and regulators no longer seems possible.
So, while there is no framework for a new way to do central banking within these pages, the chapters that follow can – and do – offer much in the way of insight into how the profession can best handle the challenges this much-changed world will present.
