An endangered species

Article Abstract:

Central banks have seen an increase in their influence, but this may have peaked. Some economists argue that central banks should not set interest rates in an age of global financial liberalization. A number of economists have argued that central banks should be abolished. Central banks can perform better than markets in keeping interest rates stable and providing standard units of account, and they can also function as lenders of the last resort. Electronic payment systems may mean that risks are reduced so there is less need for central banks.

Analysis, Economic policy

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In a fog

Article Abstract:

Central banks face a problem of uncertainty when deciding on monetary policy. There is uncertainty as to how long it takes for interest rate changes to affect the economy, and rate changes should be made in the context of other variables, with adjustments in rates if the variables change. Innovation and financial liberalization have led to an increase in uncertainty. Developments in one country affect economies elsewhere. The US economy was stimulated by inflows of capital from Asia following the Asian financial crisis.

Monetary policy

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Intervention: divine or comic?

Article Abstract:

The role of central banks in foreign exchange markets is examined, including the holding of reserves, although central banks may prefer not to use them.

Foreign exchange reserves

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