The Political Economy of Central Banking
Show Less

The Political Economy of Central Banking

Contested Control and the Power of Finance, Selected Essays of Gerald Epstein

Gerald Epstein

Central banks are among the most powerful government economic institutions in the world. This volume explores the economic and political contours of the struggle for influence over the policies of central banks such as the Federal Reserve, and the implications of this struggle for economic performance and the distribution of wealth and power in society.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 15: CHAPTER 6 CENTRAL BANKS AS AGENTS OF ECONOMIC DEVELOPMENT

Gerald Epstein

Abstract

In the last two decades, there has been a global sea change in the theory and practice of central banking. The 'best practice' commonly prescribed by the international financial institutions and by many prominent economists, is the 'neo-liberal' approach to central banking (Epstein 2003). Its main components are: (1) central bank independence (2) a focus on inflation fighting (including adopting formal 'inflation targeting') and (3) the use of indirect methods of monetary policy (i.e., short-term interest rates as opposed to direct methods such as credit ceilings) (Bernanke et al. 1999).

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.


Further information

or login to access all content.