Towards the Next Revolution in Central Banking

This book critically explores past and present principles of central banking, and outlines a new framework for future stabilization policy. Through compact and concise chapters, it demonstrates why a constant long-term interest rate would be the most beneficial target for monetary policy to follow. A novel set of policy tools and institutional arrangements suitable to reliably meet this target are developed.

It is argued that the proposed framework would be clearly superior to conventional policies in preventing financial market crises, maintaining high employment, and keeping the economy at or near potential. The merits and shortcomings of alternative theories such as Modern Monetary Theory are also discussed.

This book will be relevant to researchers and policymakers as well as professional investors, analysts, and commentators of financial markets and the economy at large.

Combines discussions on inflation targeting, negative real interest rates, demographic dynamics, and monetary theory Provides policy recommendations for a new target variable and monetary policy more generally Envisages monetary policy in relation to the wider economy, financial markets, politicians, and citizens

Autorentext

Burkhard Wehner is an independent scholar and theorist in economics and political science. He has developed alternative theories and concepts of democracy, social and monetary policy, and the labor market.

Inhalt

1:-On the History of Monetary Policy.- 2.:-An Alternative Model: Stabilizing the Long-Term Interest Rate.- 3:-New Instruments for Monetary Policy.- 4:-Paths to the Fixed-Rate Model How, Where, and When?.- 5:-Some Supplements.- 6:-On the Governance Structure of Fully Independent Central Banks. <p