The Future of Central Banking

The Future of Central Banking is another title responding to the world’s worst financial crisis in generations. Gathering contributions from academics, central bankers, regulators and financiers from around the world, the book echoes IMF chief economist Olivier Blanchard’s claim elsewhere that the neat segmentation of monetary, fiscal and supervisory policy strands between central banks, treasuries and regulators needs to be re-considered.

The first section of the book outlines the policy implications of the lessons learned, calling for a thorough revision of present ideas and policies. The second looks at difficulties in re-drafting a beefed-up financial stability mandate that integrates macro-prudential measures, risk pricing and management,  contingent capital buffering, payment systems and monetary policies. The third section discusses what contributor and Fung Global Institute President Andrew Sheng notes is the oldest conundrum in central banking: namely, whether central bankers should be constrained by rules. The two chapters in this  section present opposing  views on this dilemma, producing a lively debate.

In the final section, contributors offer bold visions of what the future should look like for finance and  central banking. While the book is not a definitive guideline for future policymakers, it does present meaningful discussions from which insights emerge into how central banks  can best handle future challenges.

Edited by Robert Pringle and Claire Jones

Publisher: Central Banking Publications, London, 2011. For more information, click here