Changing Face of Central
Banking
Evolutionary Trends since
World War II
Central banks have emerged as
the key players in national and international policy making. This book explores their
evolution since World War II in 20 industrial countries. The study considers the mix of
economic, political, and institutional forces that have affected central bank behavior and
its relationship with government. The analysis reconciles vastly different views about the
role of central banks in the making of economic policies. One finding is that monetary
policy is an evolutionary process. The emphasis on clarity of objectives, transparency of
the decision-making process, and a clear understanding of the accountability of the
central bank cannot be understood in isolation from the previous 50 years of policy
making. The changing face of central banking, born out of the turbulence of the first half
of the last century, nurtured by evolution in policies, defines the history of central
banking in the second half of the twentieth century.
Contents
1. The institutional make-up
and evolution of central bank-government relations: an introduction;
2. Legislation alone does not
a central bank make: political structure, corporate governance and contracts for central
bankers;
3. Central bank personalities
and monetary policy performance;
4. Econometric analysis of
central bank behavior: an evolutionary approach;
5. Contrasting quantitative
and qualitative assessments of central bank behavior and the evolution of monetary
policies;
6. Accountability,
disclosure, and conflict resolution;
7. Inflation targeting versus
other inflation control measures: two sides of the same coin?;
8. The changing face of
central banking; Epilogue.
342 pages