Table Of ContentCONTI-BROWN 9781784719210 PRINT.indd 10 19/04/2018 13:04
Research Handbook on Central
Banking
Edited by
Peter Conti-Brown
Assistant Profess01; The Wharton School, University of Pennsylvania,
USA
Rosa Maria Lastra
Professor of International Financial and Monetary Law, Queen Mary
University of London, UK
RESEARCH HANDBOOKS IN FINANCIAL LAW
� Edward Elgar
� PUBLISHING
Cheltenham, UK• Northampton, MA, USA
© The Editors and contributing authors severally 2018
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or
otherwise without the prior permission of the publisher.
Published by
Edward Elgar Publishing Limited
The Lypiatts
15 Lansdown Road
Cheltenham
Glos GL50 2JA
UK
Edward Elgar Publishing, Inc.
William Pratt House
9 Dewey Court
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
Library of Congress Control Number: 2017960003
This book is available electronically in the
Law subject collection
DOI 10.4337/9781784719227
ISBN 978 1 78471 921 0 (cased)
ISBN 978 1 78471 922 7 (eBook)
Typeset by Servis Filmsetting Ltd, Stockport, Cheshire
CONTI-BROWN 9781784719210 PRINT.indd 4 19/04/2018 13:04
Contents
List of figures vii
List of tables viii
List of contributors ix
1 The central banking century: an introduction to institutional central banking 1
Peter Conti-Brown
2 Central banking and institutional change in the United States: punctuated
equilibrium in the development of money, finance and banking 6
Peter Conti-Brown
3 The development of the Bank of England’s objectives: evolution, instruction
or reaction? 34
Forrest Capie and Geoffrey Wood
4 Central banking in Japan 53
Hideki Kanda and Toshiaki Yamanaka
5 Reserve Bank of India 68
Raj Bhala
6 The Bank of Russia: from central planning to inflation targeting 94
Juliet Johnson
7 Specific challenges to the People’s Bank of China in a new wave of financial
reforms 117
Zhongfei Zhou
8 An evolutionary theory of central banking and central banking in China 128
Xiangmin Liu
9 New tasks and central bank independence: the Eurosystem experience 155
Chiara Zilioli and Antonio Luca Riso
10 A central bank in times of crisis: the ECB’s developing role in the EU’s
currency union 184
René Smits
11 Monetary policy and central banking in sub-Saharan Africa 208
Christopher Adam, Andrew Berg, Rafael Portillo and Filiz Unsal
12 The Reichsbank and the Bundesbank: the legacy of the German tradition of
central banking 229
Harold James
v
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vi Research handbook on central banking
13 Central banking in Australia and New Zealand: historical foundations and
modern legislative frameworks 245
Frank Decker and Sheelagh McCracken
14 Central banking in Latin America: past, present and challenges ahead 274
Luis I Jácome H
15 The institutional path of central bank independence 296
Rosa María Lastra
16 Central bank accounting 314
David Bholat and Robin Darbyshire
17 International aspects of central banking: diplomacy and coordination 333
Robert B Kahn and Ellen E Meade
18 Central bank psychology 365
Andrew G Haldane
19 Banking regulation and supervision: a UK perspective 380
Kern Alexander and Rosa María Lastra
20 Unconventional monetary policies: a re-appraisal 398
Claudio Borio and Anna Zabai
21 Central banks and payment system risks: comparative study 445
Benjamin Geva
22 Digital currencies, decentralized ledgers and the future of central banking 474
Max Raskin and David Yermack
23 Central banks, systemic risk and financial sector structural reform 487
Saule T Omarova
24 The role of macro-prudential policy 508
Charles Goodhart
25 Transparency of central banks’ policies 518
Christine Kaufmann and Rolf H Weber
26 The lender of last resort: regimes for stability and legitimacy 535
Paul Tucker
27 Concluding observations 553
Rosa María Lastra
Index 555
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Figures
4.1 Call Rate, Current Deposits and the ‘Monetary Base’ 59
16.1 Accounting frameworks adopted by select central banks 317
16.2 A hypothetical central bank balance sheet 318
16.3 Hypothetical central bank income statement split by function 325
17.1 Trade-weighted US Dollar Index 343
17.2 The twin deficits 344
17.3 Asian financial crisis, selected exchange rates (index5100 on 1 July 1997) 350
20.1 Central bank assets 402
20.2 Central bank liabilities 403
20.3 Central bank deposit rates sink into negative territory 422
20.4 Government bonds trade at negative yields 424
20.5 An illustration of equilibrium in the market for bank reserves 436
vii
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Tables
14.1 Inflation in Latin America in the 1960s and 1970s (average annual
percentage rate for the period) 283
14.2 Key parameters of inflation targeting regimes in the LA5 288
20.1 A taxonomy of monetary policy implementation measures 401
20.2 Balance sheet policies by selected central banks since the Great Financial
Crisis 405
20.3 Large-scale asset purchases and forward guidance since the Great Financial
Crisis: a timeline 406
20.4 Impact of balance sheet policies on domestic yields and the exchange rate 411
20.5 Impact of liquidity support measures by the Fed and the ECB on financial
markets 414
20.6 Impact of recent forward guidance on market beliefs and the yield curve 419
20.7 Impact of large-scale asset purchases on output and inflation 426
20.8 Some evidence about the external impact of US monetary policy 432
25.1 Central bank accountability: stakeholders and audiences 522
viii
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Contributors
Christopher Adam, Oxford University
Kern Alexander, Zurich University
Andrew Berg, International Monetary Fund
Raj Bhala, The University of Kansas School of Law
David Bholat, Bank of England
Claudio Borio, Bank for International Settlements
Forrest Capie, Cass Business School, City, University of London
Peter Conti-Brown, The Wharton School of the University of Pennsylvania
Robin Darbyshire, RV Darbyshire
Frank Decker, University of Sydney Law School
Benjamin Geva, Osgoode Hall Law School, York University
Charles Goodhart, London School of Economics
Andrew G Haldane, Bank of England
Luis I Jácome H, International Monetary Fund
Harold James, Princeton University
Juliet Johnson, McGill University
Robert B Kahn, Council on Foreign Relations
Hideki Kanda, Gakushuin University Law School and University of Tokyo
Christine Kaufmann, University of Zurich
Rosa María Lastra, Queen Mary University of London
Xiangmin Liu, People’s Bank of China
Sheelagh McCracken, University of Sydney Law School
Ellen E Meade, Federal Reserve Board
Saule T Omarova, Cornell University
Rafael Portillo, International Monetary Fund
Max Raskin, New York University School of Law
Antonio Luca Riso, European Central Bank
ix
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x Research handbook on central banking
René Smits, University of Amsterdam; Queen Mary University of London
Paul Tucker, Harvard Kennedy School
Filiz Unsal, International Monetary Fund
Rolf H Weber, University of Zurich
Geoffrey Wood, Cass Business School, City, University of London
Toshiaki Yamanaka, University of Tokyo and Yale Law School
David Yermack, New York University Stern School of Business; National Bureau of
Economic Research
Anna Zabai, Bank for International Settlements
Zhongfei Zhou, China Executive Leadership Academy, Pudong
Chiara Zilioli, European Central Bank
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