Central Banking, Monetary Policy and Social Responsibility


Central Banking, Monetary Policy and Social Responsibility

9781800372221 Edward Elgar Publishing
Edited by Guillaume Vallet, Full Professor, Université Grenoble Alpes and Research Fellow, Centre de Recherche en Economie de Grenoble (CREG), France, Sylvio Kappes, Assistant Professor, Federal University of Alagoas, Brazil and Louis-Philippe Rochon, Full Professor, Laurentian University, Canada, Editor-in-Chief, Review of Political Economy and Founding Editor Emeritus, Review of Keynesian Economics
Publication Date: 2022 ISBN: 978 1 80037 222 1 Extent: 256 pp
Part of The Elgar Series on Central Banking and Monetary Policy, this book explores the relationship between central banking, monetary policy and the economy at large. It focuses on the specific relationship between central banking, monetary policy and social responsibility as central banks wake up to new realities

Copyright & permissions

Recommend to librarian

Your Details

Privacy Policy

Librarian Details

Download leaflet

Print page

More Information
Critical Acclaim
More Information
Part of The Elgar Series on Central Banking and Monetary Policy, this book explores the relationship between central banking, monetary policy and the economy at large. It focuses on the specific relationship between central banking, monetary policy and social responsibility as central banks wake up to new realities.

The book examines this relationship not only in connection to the economic, monetary and financial impact of the so-called ‘unconventional’ monetary policies, but also in connection to the functioning of today’s democracies. A new framework and model for central banking is proposed in this rethinking of monetary policy, and the role of central banks as institutions in democracies is considered.

Scholars and students interested in central banking and monetary policy, the issue of social responsibility and the relationship between central banks and democracy will benefit from the ideas presented by the editors and authors of Central Banking, Monetary Policy and Social Responsibility.
Critical Acclaim
‘For the first time in decades, the very purpose of central banking is being debated again, and this time round not only by economists. Reflecting the debate’s breadth, this book will be useful for anyone who wants to form their own views before events drive the answers.’
– Paul Tucker, Harvard Kennedy School, US, author Unelected Power and former central banker

‘This book,  a new look at central banks, could not be more timely. The Great Financial Crisis of 2007-2009 and the global Covid pandemic have been among the greatest economic and social challenges to hit the world''s economies since the Second World War. As if these were not enough, the global climate crisis (along with the threat of nuclear annihilation) is the worst existential threat society has faced, perhaps in millennia. Central Banks, as one of the most powerful macroeconomic institutions in most countries,  have been thrust into the position of needing to help ameliorate these unprecedented problems, and for most, these present dilemmas far beyond traditional trade-offs between inflation and unemployment. How are central banks dealing  with these new, highly consequential issues? How should they deal with them? In this book, a refreshing variety of authors – some seasoned, some relatively new, and as a group coming from a range of backgrounds and places – take a number of fresh, thoughtful and thought-provoking looks at contemporary central banks as they grapple with these problems. All students of central banking, and anyone concerned about these major problems, will find something important and valuable in these pages. They can bank on it.’
– Gerald Epstein, University of Massachusetts Amherst, US

‘Central banks are institutions that wield extraordinary power on the economy, whose independence from political pressures has been lauded by professional economists for decades. Yet, the forceful responses by central banks during the Covid-19 and the Global Financial Crisis, have also raised the discomfort with such unelected powerful economics institutions. Central Banking, Monetary Policy and Social Responsibility reveals how professional economists are revisiting their previously held belief, how central banks themselves are coping, and perhaps ought to be coping with this issue. In it, economists and former central bankers are forced to bare their soul and expose their true values. A must read.’
– Nadine Baudot-Trajtenberg, Former Deputy Governor of the Bank of Israel and Reichman University, Israel
Contributors: Massimo Amato, Maqsood Aslam, François Claveau, Marie Cuillerai, Peter Dietsch, Jérémie Dion, Etienne Farvaque, Clément Fontan, Lucio Gobbi, Charles Goodhart, Sylvio Kappes, Rob Macquarie, Manoj Pradhan, Louis-Philippe Rochon, Jong-Un Song, Piotr Stanek, Guillaume Vallet, Timo Walter, John H. Wood

Introduction to Central Banking, Monetary Policy and Social
Responsibility 1
Guillaume Vallet, Sylvio Kappes and Louis-Philippe Rochon
1 Will central bank independence withstand political pressure? 20
Charles Goodhart and Manoj Pradhan
2 Some of the effects of monetary structures, politics, and
memories on central banking 35
John H. Wood
3 The whys and how of central bank independence: from
legal principles to operational accountability 57
Maqsood Aslam, Etienne Farvaque and Piotr Stanek
4 Bankocracy, or a new age of the European Central Bank 74
Marie Cuillerai
5 Central banking and inequalities: old tropes and new practices 88
François Claveau, Clément Fontan, Peter Dietsch and
Jérémie Dion
6 Making environments safer: a safe asset for a green (and
financial) new deal and for more responsible central banks
– what could, and should, the ECB do? 112
Massimo Amato and Lucio Gobbi
7 Masters of the game: the power and social responsibility of
central banks and central bankers in a democracy 136
Louis-Philippe Rochon and Guillaume Vallet
8 The past is already gone, the future is not yet here: the case
of the Federal Reserve’s system of money management 159
Jong-Un Song
9 Precautionary monetary policy and democratic legitimacy:
tensions and openings 172
Rob Macquarie
10 The social sources of “unelected power”: how central
banks became entrapped by infrastructural power and what
this can tell us about how (not) to democratize them 195
Timo Walter

Index 219
eBook for individuals
978 1 80037 223 8
From £25.00
Click here for options
eBook for library purchase
978 1 80037 223 8
View sample chapter and check access on:
eBook options

Available for individuals to buy from these websites

Or recommend to your institution to acquire on Elgaronline
  • Buy as part of an eBook subject collection - flexible options available
  • Downloading and printing allowed
  • No limits on concurrent user access, ideal for course use
My Cart