Chapter 10: Developments in central banking after the GFC: central banks, the state, globalisation and the GFC
There is general consensus that central banks are entering a new chapter in their history after the global financial crisis (GFC), and that they are in fact on the brink of a new era in central banking (see for example Goodhart, 2010, p. 15). The GFC highlighted the need for a broader responsibility for and oversight of financial stability, not only in domestic economies, but in the world as a whole (G-20, 2010). This responsibility may become the primary responsibility of central banks, as they may be the best institutions to oversee financial stability generally, or at least play an important or lead role in financial stability. The predominant focus of central banks currently is monetary policy. A change in the mandate of central banks to include or prioritise a responsibility for financial stability will result in a number of changes in central banking. In fact, central banking may never be the same again (Mishkin, 2010, p. 50). A changed responsibility may also affect the relationship between the central bank and the state (Goodhart, 2010, p. 15). This chapter focuses on how, after the GFC, the relationship between the central bank and the state may change, and how a greater responsibility for financial stability on the part of central banks may impact on central bank independence and the relationship between the central bank and the state.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.