Central Bank or Monetary Authority? Three Views on Money and Monetary Reform

In: Economic affairs: journal of the Institute of Economic Affairs, Band 37, Heft 3, S. 343-356

Abstract

AbstractThe global financial crisis triggered profound changes in the conduct of monetary policy, with ultra‐low interest rates and asset purchases becoming the main policy tools. This represents a major shift towards interventionism that even ten years after the global financial crisis has not been reversed. In this article, I assess three views on money and monetary reform. I argue that a central bank regime with a narrow focus on refinancing property at market interest rates remains an attractive alternative to the current regime and provides an essential benchmark to assess the progress of monetary normalisation.