Abstract
One of the important themes for the world economy discussed at the 2008 World Economic Forum in Davos, Switzerland, revolved around the fact that central banks have lost control of the economy by allowing commercial banks, investment banks and other financial institutions to do as they please. This attitude, which has been wrongly called neo-liberalism, has considerably diminished the central banks’ clout and therefore their effectiveness as:
-
Guardians of economic stability,
-
Promoters of orderly economic growth through regulation of money supply, and
-
Safeguards of value both of the money and of other assets.1
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Notes
Merrill Lynch, Investment Strategy Update, 22 January 2008.
D.N. Chorafas, Economic Capital Allocation with Basle II: Cost and Benefit Analysis. Butterworth-Heinemann. London and Boston, 2004.
European Central Bank, Financial Stability Review, December 2007.
Author information
Authors and Affiliations
Copyright information
© 2009 Dimitris N. Chorafas
About this chapter
Cite this chapter
Chorafas, D.N. (2009). The Fed Has Got It Wrong. In: Financial Boom and Gloom. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230235830_2
Download citation
DOI: https://doi.org/10.1057/9780230235830_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-36763-4
Online ISBN: 978-0-230-23583-0
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)