Central Banking, Monetary Theory and Practice

Central Banking, Monetary Theory and Practice

Essays in Honour of Charles Goodhart, Volume One

Edited by Paul Mizen

Celebrating the contribution that Charles Goodhart has made to monetary economics and policy, this unique compendium of original papers draws together a highly respected group of international academics, central bankers and financial market regulators covering a broad range of issues in modern monetary economics. Topics discussed include: central bank independence; credibility and transparency; the inflation forecast and the loss function; monetary policy experiences in the US and the UK; the implications of Goodhart’s Law; the benefits of single versus multiple currencies; and money, near monies and credit.

Introduction

Edited by Paul Mizen

Subjects: economics and finance, money and banking

Extract

He accumulated a vast and various collection of learning and knowledge, which was so arranged in his mind as to be ever in readiness to be brought forth. But his superiority over other learned men consisted chiefly in what may be called the art of thinking, the art of using his mind – a certain continual power of seizing the useful substance of all that he knew, and exhibiting it in a clear and forcible manner; so that knowledge, which we often see to be no better than lumber in men of dull understanding, was in him true, evident and actual wisdom . . . His maxims carry conviction; for they are founded on the basis of common sense, and a very attentive and minute survey of real life . . . (James Boswell’s Life of Samuel Johnson, p. 511) Ben Friedman refers in this volume to Charles Goodhart as the Samuel Johnson of Monetary Policy – and how true a statement that is. The extract quoted above was written by James Boswell of Johnson at the end of his life in 1784 but could equally have been written of Charles’s academic career in 2002. Like Johnson, Charles Goodhart has written extensively in many styles and has become synonymous with his subjects of monetary economics and central banking. Although I am not aware that Charles has ever produced a dictionary, he has made substantial contributions to the literature in his field and has on many occasions been the influence that has altered its direction at crucial...