Central Bank or Monetary Authority? Three Views on Money and Monetary Reform. (18th October 2017)

• Record Type: Journal Article
• Authors: Decker, Frank
• Is Part Of: Economic affairs. Volume 37:Number 3(2017)
• Page Start: 343
• Page End: 356
• Publication Date: 2017-10-18
• Subjects: 100% money -- central banking -- central bank insolvency -- commodity money -- free banking -- gold dollar -- gold standard -- monetary policy -- money -- property‐based money -- state money; Great Britain -- Economic policy -- 1945-1964 -- Periodicals; Great Britain -- Economic conditions -- 1945-1964 -- Periodicals; Economics -- Periodicals; 330.9
• DOI: 10.1111/ecaf.12258
• Languages: English
• ISSNs: 0265-0665

Abstract

Abstract: The global financial crisis triggered profound changes in the conduct of monetary policy, with ultra‐low interest rates and asset purchases becoming the main policy tools. This represents a major shift towards interventionism that even ten years after the global financial crisis has not been reversed. In this article, I assess three views on money and monetary reform. I argue that a central bank regime with a narrow focus on refinancing property at market interest rates remains an attractive alternative to the current regime and provides an essential benchmark to assess the progress of monetary normalisation.