Copyright and moral rights for the publications made accessible in the public portal are retained... more Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. -Users may download and print one copy of any publication from the public portal for the purpose of private study or research -You may not further distribute the material or use it for any profit-making activity or commercial gain -You may freely distribute the URL identifying the publication in the public portal If you believe that this document breaches copyright, please contact us providing details, and we will remove access to the work immediately and investigate your claim.
Central Bankers are currently facing big challenges in designing and implementing monetary policy... more Central Bankers are currently facing big challenges in designing and implementing monetary policy, as well as with safeguarding financial stability, with the world economy still in the process of digesting the legacy of the crisis. The crisis has changed central banking in many ways: by shifting the focus of monetary policy from fighting too high inflation towards fighting too low inflation; by prompting new ‘experimental’ non-conventional measures, which risk to cause large, long-lasting market distortions and imbalances and which also have more far-reaching distributional consequences than ‘normal, conventional’ monetary policy; and by broadening central banks’ responsibilities particularly in the direction of safeguarding banking stability and financial stability at large. This raises several questions for the future: How long will ultra-easy monetary policies last? What are post-crisis growth trajectories, and how will the natural rate of interest rates evolve? How could an exit...
The decline of sterling: managing the retreat of an international currency, 1945-1992 - By Catherine R. Schenk
The Economic History Review, 2011
This book by Professor Catherine Schenck is disappointing without in any sense being a bad book; ... more This book by Professor Catherine Schenck is disappointing without in any sense being a bad book; indeed, in parts it is a good book. It disappoints because the title arouses expectations that the book does not fulfil. The expectations are that there would be ...
European monetary arrangements: their functioning and future
The present European Monetary System has existed since March 13, 1979. In this paper the main ins... more The present European Monetary System has existed since March 13, 1979. In this paper the main institutional features of that system are first described. Some data which summarize the workings of the system to date are then set out. That provides the context for discussion of the future of the system. This discussion has two aspects. It first explores prospects for increased private use of the ECU. It then considers what can be meant by monetary integration, and whether that, in any of its senses, is desirable in Europe.
It has been widely accepted that constraints on the wholesale funding of bank balance sheets ampl... more It has been widely accepted that constraints on the wholesale funding of bank balance sheets amplify the transmission of monetary policy through what is called the 'bank lending channel'. We show that the effect of such bank balance sheet constraints on monetary transmission is in fact theoretically ambiguous, with the prior expectation, based on standard theoretical models of household and corporate portfolios, that the bank lending channel attenuates monetary policy transmission. We examine macroeconomic data for the G8 countries and find no evidence that banking sector deposits respond negatively and more than lending to tightening of monetary policy, as the accepted view of the bank lending channel requires. The overall picture is mixed, but these data generally suggest that deposits fluctuate procyclically and somewhat less over the business cycle than bank lending, and that total bank deposits, unlike bank lending, show little direct response to changes in interest rates. This suggests it is very unlikely that the bank lending channel amplifies monetary policy. Our paper has thus corrected a misunderstanding about the role of banks in monetary policy transmission that has persisted in the literature for some two decades.
Great crashes in history: have they lessons for today?
Oxford Review of Economic Policy, Sep 1, 1999
... To summarize so far, the view developed in the nineteenth century and restated in the twentie... more ... To summarize so far, the view developed in the nineteenth century and restated in the twentieth by Schwartz (1986) and others, is that ... wide geographical diversification and diversifi-cation by type of customer, were well advanced (see, for example, Capie and Rodrick-Bali, 1982 ...
Explorations in economic liberalism : the Wincott lectures
Macmillan , St. Martin's Press eBooks, 1996
Foreword Lord Harris of High Cross - Notes on the Contributors - Introduction G.E.Wood - The Coun... more Foreword Lord Harris of High Cross - Notes on the Contributors - Introduction G.E.Wood - The Counter-Revolution in Monetary Theory M.Friedman - Foreword Lord Robbins - Wages and Prices in a Mixed Economy J.E.Meade - Foreword Sir A.Cairncross - Economic Freedom and Representative Government F.A.Hayek - Foreword G.Hutton - Aspects of Post-War Economic Policy Lord Robbins - Foreword G.Hutton - The Credibility of Liberal Economics Sir A.Peacock - Foreword G.Hutton -Economists and the British Economy I.Walters - Preface A.Seldon - The Pleasures and Pains of Modern Capitalism G.J.Stigler - Foreword G.Hutton - The Limits of International Co-Operation D.Lal -Foreword J.B.Wood - Do Currency Boards have a Future? A.J.Schwarz - Foreword G.E.Wood - Free Trade, 'Fairness' and the New Protectionism J.Bhagwati - Foreword Lord Harris of High Cross - Index
Deficit finance, the new economics and the dissenters
E. Elgar eBooks, 1992
Volume I: Ricardo and the national debt McCulloch on Ricardo and the national debt. Volume II: th... more Volume I: Ricardo and the national debt McCulloch on Ricardo and the national debt. Volume II: the new orthodoxy the challenge to the new orthodoxy. Volume III: Ricardian equivalence - Robert Barro and his critics government debt, government spending and private sector behaviour - empirical investigations of Ricardian equivalence debt and deficits - neoclassical, Keynsian and Ricardian theoretical perspectives and policy conclusions.
‘Keynesian’ and ‘Monetarist’ Indicators of the U.K. Economy
There is a long-running dispute between ‘Keynesians’ and ‘monetarists’ as to what variable or set... more There is a long-running dispute between ‘Keynesians’ and ‘monetarists’ as to what variable or set of variables best indicates the stance of the government’s macroeconomic policy. ‘Keynesians’ differ among themselves but would agree that fiscal policy is of predominant importance, and that its stance can be measured by some weighted version of the public-sector borrowing requirement, while ‘monetarists’, although also differing among themselves, would lay paramount stress on monetary policy and use the behaviour of one (or more) of the monetary aggregates as an indicator of the stance of that policy. Behind these two positions lie both theoretical differences and differences over empirical magnitudes. It is not our intention to survey those here; surveys already exist and there is in any case no conclusive view of either position which can be used as the basis of a survey. A survey of this area is inevitably a contentious rather than a synthesising exercise. None the less, we do attempt a partial synthesis. We attempt to show that a fully worked-out ‘Keynesian’ interpretation and a similarly thorough ‘monetarist’ interpretation of the stance of macroeconomic policy in the United Kingdom would be close to each other in their conclusions. The argument may be summarised by saying that, because of the nature of the money supply process in the United Kingdom, the conclusions of the two types of analysis are inevitably closely linked, and further, we shall argue that, irrespective of one’s theoretical position, the stance of macroeconomic policy in the United Kingdom is at the moment best indicated by the behaviour of the monetary aggregates.
En este artículo se hace una breve revisión del programa monetario y cambiario del Banco de la Re... more En este artículo se hace una breve revisión del programa monetario y cambiario del Banco de la República para 1997, describe las metas y la forma en que utilizó los instrumentos a su disposición y repasa los aspectos más relevantes en la evolución de las variables de control y de las metas intermedias. Como conclusión de ese repaso, se concluye que la política monetaria y cambiaria anunciada por la Junta Directiva del Banco de la República desde finales de noviembre de 1996 se ha cumplido plenamente y que todo hace pensar que al final del año se alcanzará la meta de inflación prevista.
Copyright and moral rights for the publications made accessible in the public portal are retained... more Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. -Users may download and print one copy of any publication from the public portal for the purpose of private study or research -You may not further distribute the material or use it for any profit-making activity or commercial gain -You may freely distribute the URL identifying the publication in the public portal If you believe that this document breaches copyright, please contact us providing details, and we will remove access to the work immediately and investigate your claim.
Central Bankers are currently facing big challenges in designing and implementing monetary policy... more Central Bankers are currently facing big challenges in designing and implementing monetary policy, as well as with safeguarding financial stability, with the world economy still in the process of digesting the legacy of the crisis. The crisis has changed central banking in many ways: by shifting the focus of monetary policy from fighting too high inflation towards fighting too low inflation; by prompting new ‘experimental’ non-conventional measures, which risk to cause large, long-lasting market distortions and imbalances and which also have more far-reaching distributional consequences than ‘normal, conventional’ monetary policy; and by broadening central banks’ responsibilities particularly in the direction of safeguarding banking stability and financial stability at large. This raises several questions for the future: How long will ultra-easy monetary policies last? What are post-crisis growth trajectories, and how will the natural rate of interest rates evolve? How could an exit...
The decline of sterling: managing the retreat of an international currency, 1945-1992 - By Catherine R. Schenk
The Economic History Review, 2011
This book by Professor Catherine Schenck is disappointing without in any sense being a bad book; ... more This book by Professor Catherine Schenck is disappointing without in any sense being a bad book; indeed, in parts it is a good book. It disappoints because the title arouses expectations that the book does not fulfil. The expectations are that there would be ...
European monetary arrangements: their functioning and future
The present European Monetary System has existed since March 13, 1979. In this paper the main ins... more The present European Monetary System has existed since March 13, 1979. In this paper the main institutional features of that system are first described. Some data which summarize the workings of the system to date are then set out. That provides the context for discussion of the future of the system. This discussion has two aspects. It first explores prospects for increased private use of the ECU. It then considers what can be meant by monetary integration, and whether that, in any of its senses, is desirable in Europe.
It has been widely accepted that constraints on the wholesale funding of bank balance sheets ampl... more It has been widely accepted that constraints on the wholesale funding of bank balance sheets amplify the transmission of monetary policy through what is called the 'bank lending channel'. We show that the effect of such bank balance sheet constraints on monetary transmission is in fact theoretically ambiguous, with the prior expectation, based on standard theoretical models of household and corporate portfolios, that the bank lending channel attenuates monetary policy transmission. We examine macroeconomic data for the G8 countries and find no evidence that banking sector deposits respond negatively and more than lending to tightening of monetary policy, as the accepted view of the bank lending channel requires. The overall picture is mixed, but these data generally suggest that deposits fluctuate procyclically and somewhat less over the business cycle than bank lending, and that total bank deposits, unlike bank lending, show little direct response to changes in interest rates. This suggests it is very unlikely that the bank lending channel amplifies monetary policy. Our paper has thus corrected a misunderstanding about the role of banks in monetary policy transmission that has persisted in the literature for some two decades.
Great crashes in history: have they lessons for today?
Oxford Review of Economic Policy, Sep 1, 1999
... To summarize so far, the view developed in the nineteenth century and restated in the twentie... more ... To summarize so far, the view developed in the nineteenth century and restated in the twentieth by Schwartz (1986) and others, is that ... wide geographical diversification and diversifi-cation by type of customer, were well advanced (see, for example, Capie and Rodrick-Bali, 1982 ...
Explorations in economic liberalism : the Wincott lectures
Macmillan , St. Martin's Press eBooks, 1996
Foreword Lord Harris of High Cross - Notes on the Contributors - Introduction G.E.Wood - The Coun... more Foreword Lord Harris of High Cross - Notes on the Contributors - Introduction G.E.Wood - The Counter-Revolution in Monetary Theory M.Friedman - Foreword Lord Robbins - Wages and Prices in a Mixed Economy J.E.Meade - Foreword Sir A.Cairncross - Economic Freedom and Representative Government F.A.Hayek - Foreword G.Hutton - Aspects of Post-War Economic Policy Lord Robbins - Foreword G.Hutton - The Credibility of Liberal Economics Sir A.Peacock - Foreword G.Hutton -Economists and the British Economy I.Walters - Preface A.Seldon - The Pleasures and Pains of Modern Capitalism G.J.Stigler - Foreword G.Hutton - The Limits of International Co-Operation D.Lal -Foreword J.B.Wood - Do Currency Boards have a Future? A.J.Schwarz - Foreword G.E.Wood - Free Trade, 'Fairness' and the New Protectionism J.Bhagwati - Foreword Lord Harris of High Cross - Index
Deficit finance, the new economics and the dissenters
E. Elgar eBooks, 1992
Volume I: Ricardo and the national debt McCulloch on Ricardo and the national debt. Volume II: th... more Volume I: Ricardo and the national debt McCulloch on Ricardo and the national debt. Volume II: the new orthodoxy the challenge to the new orthodoxy. Volume III: Ricardian equivalence - Robert Barro and his critics government debt, government spending and private sector behaviour - empirical investigations of Ricardian equivalence debt and deficits - neoclassical, Keynsian and Ricardian theoretical perspectives and policy conclusions.
‘Keynesian’ and ‘Monetarist’ Indicators of the U.K. Economy
There is a long-running dispute between ‘Keynesians’ and ‘monetarists’ as to what variable or set... more There is a long-running dispute between ‘Keynesians’ and ‘monetarists’ as to what variable or set of variables best indicates the stance of the government’s macroeconomic policy. ‘Keynesians’ differ among themselves but would agree that fiscal policy is of predominant importance, and that its stance can be measured by some weighted version of the public-sector borrowing requirement, while ‘monetarists’, although also differing among themselves, would lay paramount stress on monetary policy and use the behaviour of one (or more) of the monetary aggregates as an indicator of the stance of that policy. Behind these two positions lie both theoretical differences and differences over empirical magnitudes. It is not our intention to survey those here; surveys already exist and there is in any case no conclusive view of either position which can be used as the basis of a survey. A survey of this area is inevitably a contentious rather than a synthesising exercise. None the less, we do attempt a partial synthesis. We attempt to show that a fully worked-out ‘Keynesian’ interpretation and a similarly thorough ‘monetarist’ interpretation of the stance of macroeconomic policy in the United Kingdom would be close to each other in their conclusions. The argument may be summarised by saying that, because of the nature of the money supply process in the United Kingdom, the conclusions of the two types of analysis are inevitably closely linked, and further, we shall argue that, irrespective of one’s theoretical position, the stance of macroeconomic policy in the United Kingdom is at the moment best indicated by the behaviour of the monetary aggregates.
En este artículo se hace una breve revisión del programa monetario y cambiario del Banco de la Re... more En este artículo se hace una breve revisión del programa monetario y cambiario del Banco de la República para 1997, describe las metas y la forma en que utilizó los instrumentos a su disposición y repasa los aspectos más relevantes en la evolución de las variables de control y de las metas intermedias. Como conclusión de ese repaso, se concluye que la política monetaria y cambiaria anunciada por la Junta Directiva del Banco de la República desde finales de noviembre de 1996 se ha cumplido plenamente y que todo hace pensar que al final del año se alcanzará la meta de inflación prevista.
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