Premium
Central Bank or Monetary Authority? Three Views on Money and Monetary Reform
Author(s) -
Decker Frank
Publication year - 2017
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/ecaf.12258
Subject(s) - monetary policy , economics , monetary reform , forward guidance , monetary economics , quantitative easing , financial crisis , interest rate , monetary base , inflation targeting , open market operation , monetary hegemony , credit channel , central bank , macroeconomics
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.