Do Central Banks Serve the People?
Do Central Banks Serve the People? by Peter Dietsch, published by Polity Press on September 4, 2018, is a critical examination of the evolving role of central banks in modern economies. This 140-page book delves into the significant actions taken by central banks, particularly in response to the 2007 financial crisis, where they injected trillions of dollars into the economy through quantitative easing. Dietsch argues that the narrative presented by central banks—that these measures were necessary—overlooks the considerable costs associated with such actions.
Readers will find a thorough analysis of three key concerns regarding the operations of central banks in developed economies. The book discusses the unintended consequences of unconventional monetary policies, particularly their impact on income and wealth inequalities. Additionally, it explores the increasing independence of central banks from government oversight and their growing reliance on financial markets. Dietsch also highlights the potential biases and errors that can affect central bankers, despite their expertise in monetary policy. This edition provides a sobering perspective for policymakers and those interested in understanding the complexities of the monetary and financial system.
Official synopsis Publisher
Central banks have become the go-to institution of modern economies. In the wake of the 2007 financial crisis, they injected trillions of dollars of liquidity – through a process known as quantitative easing – first to prevent financial meltdown and later to stimulate the economy. The untold story behind these measures, and behind the changing roles of central banks generally, is that they have come at a considerable cost.
Central banks argue we had no choice. This book offers a powerfully original examination of why this claim is false. Using examples from Europe and the US, the authors present and analyse three specific concerns about the way central banks in developed economies operate today. Firstly, they show how unconventional monetary policies have created significant unintended negative consequences in terms of inequalities in income and wealth. They go on to argue that central banks may have become independent of governments, but have instead become worryingly dependent on financial markets. They then proceed to analyse how central bankers, despite being the undisputed experts on monetary policy, can still err and suffer from multiple forms of bias.
This book is a sobering and urgent wake-up call for policy-makers and anyone interested in how our monetary and financial system really works.
FAQ
What is “Do Central Banks Serve the People?” about?
Who is the author of “Do Central Banks Serve the People?”?
When was “Do Central Banks Serve the People?” published?
What is the ISBN for “Do Central Banks Serve the People?”?
What are the book details (language, pages, edition)?
