The Central Bank and the Financial SystemAs economic advisor to the Bank of England for many years, C. A. E. Goodhart is uniquely positioned to assess the role of the central bank in the modern financial system. This book brings together twenty-one of his previously published articles dealing with the changing functions of central banks over time, recent efforts to maintain price stability, and debates over specific financial regulation proposals in the UK. Although the current day-to-day operations of central banks are subject to continuous comment and frequent criticism, their structural role within the economic system as a whole has generally been accepted without much question, despite several attempts by economists in recent decades to challenge the value of the institution. C. A. E. Goodhart brings his knowledge of both the theoretical arguments and the actual working of central banks to bear in these essays. Part I looks at the general purposes and functions of central banks within the financial system and their evolution over time. Part II concentrates on the current objectives and operations of central banks, and the maintenance of price stability in particular. Part III analyzes the broader issues of financial regulation. |
Contents
Why do Banks Need a Central Bank? 1987 | 3 |
Can We Improve the Structure of Financial Systems? 1993 | 19 |
The Implications of Shifting Frontiers in Financial Markets for Monetary Control 1986 | 40 |
Central Bank Independence 1994 | 60 |
Alternative Monetary Standards 1992 | 72 |
The Conduct of Monetary Policy 1989 | 93 |
Banks and the Control of Corporations 1993 | 142 |
The Political Economy of Monetary Union 1995 | 156 |
Price Stability and Financial Fragility 1995 | 263 |
A European Central Bank 1992 | 303 |
FINANCIAL REGULATION | 331 |
Institutional Separation Between Supervisory and Monetary Agencies 1993 with Dirk Schoenmaker | 333 |
A Proposal 1993 | 414 |
The Regulatory Debate in London 1988 | 430 |
The Costs of Regulation 1988 | 440 |
Investor Protection and Unprincipled Intervention? 1987 | 453 |
CENTRAL BANKING | 203 |
What do Central Banks Do? 1989 | 205 |
The Objectives for and Conduct of Monetary Policy in the 1990s 1992 | 216 |
Advising the Bank of England 1992 | 236 |
The Operational Role of the Bank of England 1985 | 240 |
Base or Interest Rates 1995 | 249 |
A Review of Three Books 1987 | 458 |
| 467 | |
| 507 | |
| 515 | |