Tag Archives: central banks

The Art of Central Banking (2)

“The role of a central bank governor has a lot in common with that of a musical conductor, who leads people from different disciplines to create beautiful harmonies that add up to masterful symphonies. Of course, there were times we … Continue reading

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The Art of Central Banking

– “How does the central bank decide on interest rate? Taking all data together and using a formula?” – “This is art, not science.” (The Governor of the Central Bank of Israel Karnit Flug reveals the secret of monetarism and  economics … Continue reading

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Princes of the Yen and the Japanese Shock Doctrine

“It is better for the Bank of Japan not to attract attention and remain as quit as the forest in a rural shrine.” – Hisato Ichimada, the 18th Governor of the Bank of Japan, 1946-1954 (Werner 2003: 70) “Thanks to this … Continue reading

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Why and when do governments appoint economics professionals and economics-trained politicians?

Should policymakers – politicians and high-level state officials – be experts in their fields? Does professional competence effect public policies at all? And does it prove itself? These, undoubtedly, important issues to be discussed and researched. But in order to … Continue reading

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Why the Federal Reserve Failed to See the 2008 Financial Crisis: The Role of “Macroeconomics” as a Sensemaking and Cultural Frame

In this very interesting and enlightening paper by Neil Fligstein, Jonah Stuart Brundage & Michael Schultz (University of California, Berkeley), they tackle one of the puzzles about the crisis of 2008: why the regulators were so slow to recognize the … Continue reading

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The Bank of England’s “‪‎Money‬ Creation in the Modern ‪‎Economy‬” erodes the mainstream ‪economics‬ and ‪‎finance‬ theory

Money creation in practice differs from some popular misconceptions — banks do not act simply as intermediaries, lending out deposits that savers place with them, and nor do they ‘multiply up’ central bank money to create new loans and deposits. … Continue reading

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How much did internationally promoted ideas about supervisory ‘best practice’ influence institutional design choices?

Who is watching the finance industry? There have been multiple waves of thought about whether the ministry of finance, the central bank, a specialized regulator or some combination of these should have supervisory authority. These waves have been associated with the convergence … Continue reading

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A ‪joke‬ from Mario Draghi, the President of the European Central Bank ;-)

A man needs a heart transplant. Says the doctor: “I can give you the heart of a five-year old boy.” “Too young.”“How about that of a forty-year old investment banker?”“They don’t have a heart.”“A seventy-five year old central banker?” “I’ll take it!”“But … Continue reading

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The End of Protest: How Free-Market Capitalism Learned to Control Dissent

The End of Protest: How Free-Market Capitalism Learned to Control Dissent explains how governments learned to unleash market forces while also avoiding protest about the market’s failures.  The US has just gone through the worst economic crisis in a generation. Why wasn’t there … Continue reading

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Lords of Finance: The Bankers Who Broke the World

Today I recalled this fascinating book “Lords of Finance: The Bankers Who Broke the World” by Liaquat Ahamed. It’s commonly believed that the Great Depression that began in 1929 resulted from a confluence of events beyond any one person’s or … Continue reading

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