Abstract
This book traces the progress of central banks over more than three centuries from humble beginnings to some of the most powerful players in the world economy. The central theme is the independence of central banks from government interference and freedom to make monetary policy decisions. Over time central banks adjusted from being protectors of the gold standard to operating under floating exchange rates, fighting runaway inflation and preventing a total collapse of the global financial system in 2009. Subsequently, in order to avoid deflation they introduced unconventional policies. Central banks are often perceived as too powerful and unwilling to give in to political pressure. In a final chapter, other future challenges that central banks are likely to encounter are discussed. These range from how to revamp monetary policy, dealing with renewed financial crises, reform of the international monetary system, incursions by Big Tech in payments systems and the role of central banks in dealing with climate change. Developments in monetary theory over time are briefly described in separate boxes.
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de Beaufort Wijnholds, O. (2020). Introduction. In: The Money Masters. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-40041-5_1
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DOI: https://doi.org/10.1007/978-3-030-40041-5_1
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-40040-8
Online ISBN: 978-3-030-40041-5
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