Chapter 21: Central bank policy and gender
Restricted access

The dominant policy position of most central banks is to maintain very low rates of inflation, without much consideration for how these restrictive policies impact the real economy – outcomes such as employment, investment, and economic growth. Although there is scant evidence that maintaining very low rates of inflation raises economic growth (see Epstein, 2003), such policies remain a key feature of mainstream or orthodox approaches to monetary policy. The ever-increasing financialization of the global economy contributes to this stance, as central banks feel pressure to maintain an attractive investment environment (one characterized by very low inflation and high interest rates) lest they run into balance-of-payments problems. This is particularly the case among developing and emerging market countries, where a central bank commitment to a (low) inflation target – to the exclusion of other targets such as employment – is perceived as an increasingly essential component of macroeconomic management. The result has been what many term the ‘deflationary bias’ of the global economy, where orthodox economic theory, combined with the policies deemed necessary to mollify highly mobile financial capital, result in sluggish economic growth and high unemployment.

You are not authenticated to view the full text of this chapter or article.

Access options

Get access to the full article by using one of the access options below.

Other access options

Redeem Token

Institutional Login

Log in with Open Athens, Shibboleth, or your institutional credentials

Login via Institutional Access

Personal login

Log in with your Elgar Online account

Login with you Elgar account