This book analyses the current debate around Central Bank Digital Currencies (CBDC) and the future of New Global Financial System. It offers deep insight into the global monetary policy in the context of digital and cryptocurrencies and examines both the opportunities and challenges to come. The book draws a clear distinction between digital and cryptocurrencies and answers several research questions, such as what the consequences of forming Central Bank Digital Currencies and their impact on the financial markets, in both advanced and developing economies, might be. Another question refers to whether the role of monetary policy easing has led to the rise of the virtual currency market, while still others relate to the impact of the pandemic on international settlements. The book also discusses the issue of investment in cryptocurrencies, and the related risks, whether or not this is a profitable investment vehicle, and how the digital banking system evaluates such investments. Further, the book also highlights the post-pandemic challenges for central banks, such as future monetary policy. It includes a complex review of the literature and presents elaborate econometric models of digital currencies and cryptocurrencies. The book has a wide geographic focus, examining these aspects from the perspective of several countries including China, India and the US. The primary audience for the book is researchers, scholars and students of international finance and economics but it will also appeal to practitioners concerned with the digitalisation of financial systems, policymakers and regulatory agencies. Note: Prof. Shalini Talwar's affiliation is published incorrectly. Her correct affiliation, which may be considered for referencing and records is: Shalini Talwar, Associate Professor, S. P. Jain Institute of Management and Research, Mumbai, India.

In this narrative history, David E. Lindsey gives the reader a ringside seat to a century of policies at the US Federal Reserve. Alternating between broad historical strokes and deep dives into the significance of monetary issues and developments, Lindsey offers a fascinating look into monetary policymaking from the Fed's inception in 1913 to today. Lindsey's three decades of service on the Federal Reserve Board staff allow him to combine the heft of scholarship with an insider's perspective on how the recent chairmen's and current chairwoman's personalities and singular visions have shaped policy choices with far-reaching consequences. He critiques the performances of Chairman Ben Bernanke and Vice Chair Janet Yellen during the prelude, outbreak, and aftermath of the financial crisis of 2008, situating them in the context of the Fed's century-long history. He also quantitatively explores an alternative to the conventional New-Keynesian theory of inflation, replacing so-called "rational expectations" with the Fed's inflation objective. This unique volume is a piece of living history that has much to offer economists and monetary policy and finance professionals.

Thoroughly updated and expanded with a new chapter on blockchain and increased coverage of cryptocurrency, as well as new data, this established advanced undergraduate textbook approaches the subject via first principles. It builds on a simple, clear monetary model and applies this framework consistently to a variety of monetary questions. Starting with trade being mutually beneficial, the authors demonstrate that money makes people better off, and that government money competes against other means of payments, including other types of government payments. After developing each of these topics, the book tackles the issue of money competing against other stores of value, examining issues associated with trade, finance, and modern banking. From simple economies to modern economies, the authors address the role banks play in making more trade possible, concluding with the information problems plaguing modern banking.

A myth-busting explanation of inflation, the desperate gullibility of central bankers and finance ministers-and our abject failure to learn from history From investors and monetary authorities to governments and policy makers, almost everyone had assumed inflation was dead and buried. But now people the world over are confronting a poisonous new economic reality and, with it, the prospect of vast and increasing wealth inequality. How have we arrived in this situation? And what, if anything, can we do about it? Celebrated economist Stephen D. King-one of the few to warn ahead of time about the latest inflationary upheaval-identifies key lessons from the history of inflation that policy makers chose not to heed. From ancient Rome through the American Civil War and up to the asset bubbles of today, inflation stems from policy error, sovereign greed, and a collective loss of faith in currencies. We Need to Talk About Inflation cuts through centuries of bad judgment and misunderstanding, offering a means to intervene now-so we can begin to tackle the political and social upheaval unleashed by inflation.

This book theoretically and empirically investigates the emergence of strong money demand in wartime Japan (1937-1945), its disappearance after the end of the war (1945-1949), and the reemergence of strong money demand in contemporary Japan (from 1995 to the present) in terms of the effects on fiscal activities and the price level. An augmented fiscal/monetary theory of the price level is constructed from a close examination of the strong money demand present in these periods. Then, profoundly puzzling phenomena such as mild deflation despite monetary expansion, low long-term interest rates despite fiscal unsustainability, and weak aggregate demand despite near-zero rates of interest, all of which are actually being observed in contemporary Japan, can now be interpreted in line with the above augmented theory. In the present, strong money demand at near-zero rates endows the Japanese government with maximum fiscal flexibility. However, if it disappeared for some reason, prices would surge to the quantity theory of money level, and fiscal sustainability would have to be restored. In the future, alternative currency units issued by private banks might carry out a purge of such strong demand for the yen.

As a fundamental review and critique of activist economic policies, this book is a unique contribution to classical political economy. "Monetary Policy and Macroeconomic Stabilization" is about macroeconomic stabilization policy, with emphasis on the value of a distinct national monetary policy to growth. Ole Bji1/2rn Ri1/2ste's argument is for public officials to restrain themselves in the pursuit of policy. As the author notes: when you know less, you should do less.

The history of modern macroeconomics started in 1936 with the publication of Keynes' "General Theory of Employment, Interest, and Money." The problems of the Great Depression of the 1930s paved the way for a change of focus, from the long run to economic fluctuations in the short run, and from nominal to real variables, such as unemployment and aggregate output. Keynes offered clear policy implications in tune with the times. Because economic adjustment was slow, waiting for the economy to recover by itself was irresponsible. Particluarly fiscal policy was essential to return to high employment. Monetary policy could affect aggregate demand through interest rates, but was less important. Ri1/2ste discusses the role of monetary policy, starting out with the implications of the theory of optimum currency areas (OCAs). This is followed by estimates of the output loss associated with disinflation policy (the sacrifice ratio) for six OECD economies. Further, Ri1/2ste models the dynamic adjustment to negative, local market shocks, with particular relevance to Scandinavia, in a final section.

The idea that governments should pursue stabilizing fiscal or monetary policies with regard to real variables is often taken for granted by the public, if not by economists. Among the reasons for skepticism, is the presence of differing views on how economies really work, that the state of a given economy becomes known only after a time lag, and that economic agents react to policy and expectations of policy. For these reasons, the effects of policy are generally uncertain. This book explains why the role of history is critical to the study of macroeconomics.

In March 1976 the value of the British pound began to slide. The slide turned into a rout and triggered an economic and political trauma. By September confidence in the pound had collapsed. In April 1975 the Wall Street Journal had run the headline 'Goodbye, Great Britain, ' advising investors to get out of sterling. Now the British Labour government under its new Prime Minister James Callaghan was forced to seek help from the International Monetary Fund, a familiar option for Third World countries but highly unusual for a developed western economy. This expert new study uncovers the roots of the most searing economic crisis of postwar Britain. The weakness and instability of the British economy in the mid-1970s, the consequence in part of the 1973 rise in oil prices, raised international alarm. The US government in particular feared economic crisis would drive Britain into a left-wing siege economy, endangering NATO and the EEC. Anticipating the danger, the US Treasury set out to force Britain to make major domestic policy changes. The sterling crisis provided the opportunity. The IMF provided the weapon. Arriving in London in November 1976, the IMF mission announced that the price for the loan included deep cuts in public expenditure. The consequent political crisis was fought out in private and in public, amongst members of the British Cabinet, the Labour Party, the Treasury and the Bank of England. It involved the US President, Treasury and State Department, the Federal Reserve, the German Chancellor and the Bundesbank. Burk and Cairncross uncover the efforts of the Labour government to escape IMF conditions. They also examine the political agenda, the loss of economic control, therise of monetarist ideas and the change in the climate of opinion. Juxtaposing gripping narrative with expert analysis, the book provides surprising answers to critical questions and reveals how the breakdown of the postwar consensus on macro-economic management paved the way for the triumph of Thatcherism.

Using simple but rigorously defined mathematical models, Thomas Quint and Martin Shubik explore monetary control in a simple exchange economy. Examining how money enters, circulates, and exits an economy, they consider the nature of trading systems and the role of government authority in the exchange of consumer goods for storable money; exchanges made with durable currency, such as gold; fiat currency, which is flexible but has no consumption value; conditions under which borrowers can declare bankruptcy; and the distinctions between individuals who lend their own money, and financiers, who lend others'.

Benjamin J. Cohen has been one of the most original and influential writers on international political economy. This book provides an overview of his contribution to the field, grouped around the central theme of global monetary governance. The book is divided into three sections: challenges to systemic governance - examines the challenge of governance of the international monetary system looking at such crucial issues as monetary reform, the growth of capital markets and financial globalization dealing with financial crisis - looks at efforts to deal effectively with financial crises, analyzing the relationships between governments and banks in the management of international debt problems and the case for capital controls. There are case studies of the Asian financial crisis and several other key instances of instability in world markets the new geography of money - analyzes the crisis of legitimacy created by a global system where governing authority is exercised now more by market forces than by sovereign states. It explores the geopolitical implications of the competition between the two most widely used currencies in the world today, the US dollar and the Euro and spells out the main implications for policy makers. The concluding chapters evaluate the merits and prospects for the two most widely discussed policy alternatives available to governments responsible for the world's many less competitive currencies - dollarization or monetary union.

The Eurozone is not a mere currency area. It is also a unique polity whose actors span multiple levels (supranational, national, regional, sectoral) and pursue overlapping economic and political objectives. Current thinking on the Eurozone relies on received categories that struggle to capture these constitutive features. This book addresses this analytical deficit by proposing a new approach to the political economy of the Eurozone, which captures economic and political interdependencies across different levels of decision making and sheds light on largely unexplored problems. The book explores the opportunities afforded by the structure of the Eurozone, and lays the foundations of a political economy that poses new questions and requires new answers. It provides categories that are firmly grounded in the existing configuration of the Eurozone, but are a precondition for overcoming the status quo in analysis and policy.

In the crises of the past fifteen years, central bankers have become big public players in a drama that affects all our lives, involving financial market crashes, public health threats and devastating economic downturns. Having played a lead role in the global financial crisis and the coronavirus crisis, they are now being asked to broaden their appeal. But the key aim has always been one of simply ensuring monetary and financial stability. In this book, NIESR director Jagjit Chadha unpacks the world of central banking, explaining in accessible language the analytical techniques, policy toolkits or simple story-telling that they use to understand the economy, to implement monetary policy and to communicate their decisions to key decision-makers and the wider public.

This study is among the first to examine the theory and practice of monetary policy in South Korea. Woosik Moon provides a detailed analysis of the central bank of South Korea, one of the most successful and important economies in Asia. He covers everything from monetary policy to inflation targeting and macroprudential regulation, explaining how these policy tools were used to deal with the aftermath of the 2007-2011 financial crisis. He then brings his study into our current moment, speculating as to how the use of these policies will change in order to deal with the fallout of the Covid-19 pandemic. This book offers in-depth investigations and the provision of the most up-to-date information about the Bank of Korea's monetary and financial actions, serving as essential reading for central bankers and professionals of financial markets around the world, as well as anyone interested in monetary policy-making.

There was a world BC (Before Crisis) and there will be a world AD (After Deleveraging) - the challenge is to create an effective, efficient yet stable and sustainable financial system for this 'new world'. This book provides the most comprehensive and thought-provoking basis for action I have seen so far.' - Paul Achleitner, Chair of Supervisory Board Deutsche Bank AG'The financial crisis demonstrated conclusively that for central bankers and other policymakers financial stability must always be of paramount concern, for without it the macroeconomy will perform badly and monetary policy will lose its effectiveness. This book underscores the importance of financial stability, laying out the key issues and what must be done to avoid such disasters in the future.' - William C. Dudley, President of the Federal Reserve Bank of New York, US 'Since 2008, financial stability has moved to the center of the policy stage. This volume, combining contributions from leading policy makers and academics, is the essential introduction to the issues. Must reading.' - Barry Eichengreen, George C. Pardee and Helen N. Pardee Professor of Economics and Political Science, University of California, Berkeley, US 'Financial stability is an overarching goal. In open and democratic societies, ensuring financial stability is a matter of interest not only to central bankers, academics and financial market players, but also to all well-informed citizens. This book provides an excellent basis for a wide-ranging and rewarding debate.' - Thomas J. Jordan, Chairman of the Governing Board of the Swiss National Bank 'Financial stability is necessary. To achieve this common target an on-going dialogue is required between industry, policymakers, academia and other relevant stakeholders. This book provides a welcome and refreshing perspective from different standpoints on the issues at stake, and reminds us of the remaining work ahead.' - Axel Weber, Chair of Supervisory Board, UBS In the aftermath of the financial crisis, new financial market regulation is being implemented, and increasing numbers of countries are establishing new legislation for macroprudential oversight. Against this backdrop, this thought provoking book provides a platform for the leading international experts to discuss and encourage future debate on financial stability. The breadth and scope of the issues addressed reflect the challenge of developing and consistently implementing a coherent set of financial reforms to promote financial stability. The book advocates the development of financial reforms that are effective in striking the optimal balance between realizing the enormous benefits of efficient financial intermediation, capital allocation and risk management on the one hand, and controlling systemic risks and maintaining financial stability on the other. Making an important contribution to deepening our understanding of the many facets of financial stability, this book will prove a challenging read for policy makers, regulators and central bankers as well as for researchers and scholars in the fields of economics, money, finance and banking. Contributors include: P. Angelini, S.N. Altimari, L. Bini Smaghi, M. Blessing, C.M. Buch, M.C. Burda, J.M. Campa Fernandez, M. Carney, J. Caruana, A. Dombret, W.P. Gaglianone, P. Hildebrand, V. Hofstatter, A. Ittner, K.H.W. Knot, U. Koerner, C. Lagarde, J.-P. Landau, S. Lautenschlager, D.T. Llewellyn, O. Lucius, Y. Mersch, H. Nakaso, E. Nowotny, L.A. Pereira da Silva, W. Rothensteiner, A. Soares Sales, N. Sheets, P. Tucker, G. Tumpel-Gugerell, H. van Voorden, I. Visco

Why are small and culturally homogeneous nation-states in the advanced capitalist world so prosperous? Examining how Denmark, Ireland, and Switzerland managed the 2008 financial crisis, The Paradox of Vulnerability shows that this is not an accident. John Campbell and John Hall argue that a prolonged sense of vulnerability within both the state and the nation encourages the development of institutions that enable decision makers to act together quickly in order to survive, especially during a crisis. Blending insights from studies of comparative political economy and nationalism and drawing on both extensive interviews and secondary data, Campbell and Hall support their claim by focusing on the three states historically and, more important, in their different responses to the 2008 crisis. The authors also devote attention to the difficulties faced by Greece and Iceland. The implications of their argument are profound. First, they show that there is a positive side to nationalism: social solidarity can enhance national prosperity. Second, because globalization now requires all states to become more adaptable, there are lessons here for other states, large and small. Lastly, the formula for prosperity presented here is under threat: highly homogeneous societies face challenges in dealing with immigration, with some responding in ways that threaten their success. The Paradox of Vulnerability demonstrates how the size and culture of a nation contribute in significant ways to its ability to handle political and economic pressures and challenges.

Have you ever wondered why we can afford to buy far more clothes than our grandparents ever could . . . but may be less likely to own a home in which to keep them all? Why your petrol bill can double in a matter of months, but it never falls as fast?; Behind all of this lies economics.; It's not always easy to grasp the complex forces that are shaping our lives. But by following a dollar on its journey around the globe, we can start to piece it all together.; The dollar is the lifeblood of globalisation. Greenbacks, singles, bucks or dead presidents: call them what you will, they are keeping the global economy going. Half of the notes in circulation are actually outside of the USA - and many of the world's dollars are owned by China.; But what is really happening as our cash moves around the world every day, and how does it affect our lives? By following $1 from a shopping trip in suburban Texas, via China's central bank, Nigerian railroads, the oilfields of Iraq and beyond, The Almighty Dollar reveals the economic truths behind what we see on the news every day. Why is China the world's biggest manufacturer - and the USA its biggest customer? Is free trade really a good thing? Why would a nation build a bridge on the other side of the planet?; In this illuminating read, economist Dharshini David lays bare these complex relationships to get to the heart of how our new globalised world works, showing who really holds the power, and what that means for us all.

Selected from the books Sapiens and Homo Deus by Yuval Noah Harari

How did money come to be invented? Why does it now have such significance in our lives? Does it make us happier or unhappier? And what does the future hold for it? With brilliant clarity and insight, Yuval Noah Harari takes the reader on a journey from the very first coins through to 21st century economics and shows us how we are all on the brink of a revolution, whether we like it or not.

VINTAGE MINIS: GREAT MINDS. BIG IDEAS. LITTLE BOOKS.

A series of short books by the world’s greatest writers on the experiences that make us human

Also in the Vintage Minis series:

- Home by Salman Rushdie

- Babies by Anne Enright

- Eating by Nigella Lawson

- Drinking by John Cheever

Although economic growth has historically been an engine of prosperity in the United States, recent trends have generated uncertainty regarding the prospects for sustaining such growth. Economists disagree about the relative importance of many factors affecting future growth, including rapid technological advances, immigration, the growth of the financial sector, problems with the educational system, increasing income inequality, an aging population, and large fiscal imbalances that have not been addressed by the political system. This collection of chapters, authored by many of today's leading economists, addresses the prospects for economic growth in the United States over the next few decades. During a time of great economic uncertainty, this book engages with both sides in the debate over economic growth, focusing on policy options that increase the prospects for vigorous economic growth in the future.

This timely book offers bold new fiscal policy options that can complement current automatic stabilizers and counter-cyclical monetary policy to combat recessions. Dr. Seidman acknowledges that most economists are justifiably skeptical of Congress's ability to implement discretionary counter-cyclical fiscal policy in a timely and effective manner, as indicated by the government's heavy reliance on monetary policy to stabilize the economy in recent decades. He argues for an independent fiscal policy board or the Federal Reserve to decide changes in the magnitude of Congress's fiscal policy package of stimulus or restraint. Any recommendations would go into effect immediately without a congressional vote, subject only to congressional override. With thought provoking proposals like this, Dr. Seidman provides a fresh look at practical fiscal policy tools based on the most prominent research in the field.

This timely book offers bold new fiscal policy options that can complement current automatic stabilizers and counter-cyclical monetary policy to combat recessions. Dr. Seidman acknowledges that most economists are justifiably skeptical of Congress's ability to implement discretionary counter-cyclical fiscal policy in a timely and effective manner, as indicated by the government's heavy reliance on monetary policy to stabilize the economy in recent decades. He argues for an independent fiscal policy board or the Federal Reserve to decide changes in the magnitude of Congress's fiscal policy package of stimulus or restraint. Any recommendations would go into effect immediately without a congressional vote, subject only to congressional override. With thought provoking proposals like this, Dr. Seidman provides a fresh look at practical fiscal policy tools based on the most prominent research in the field.

Since money was invented, there has been a debate about better ways of creating it and better rules to govern how it works - until the last generation, when it began to seem that the money system had been handed down by God and remained unchanged ever since. But the last few years have seen an increasingly powerful resurgence of interest in changing the system fundamentally, and bringing the monetary trends that affect all our lives under our control. Few realize that the debate has roots and a tradition, covering mainstream economists like Keynes and Hayek, statesmen like Lincoln, entrepreneurs like Ford and Soros, as well as the imaginative mavericks behind local currencies and e-money. This volume collects together some of their most influential writings to provide a handbook on a vital train of ideas, and a guide to a debate on changing money that is becoming increasingly important.

The role of gold in the world's exchange system has been hotly contested by leading economists. This work collects the most important arguments in favour of gold, including such works as David Ricardo's "High price of Bullion" and W. Stanley Jevons's "Money and the Mechanism of Exchange".

This study examines the demand for and supply of financial services for small entrepreneurs in Northern Thailand. Particular emphasis is placed on credit technologies deployed by formal and informal institutions and on determinants of credit access and borrower transaction costs. The study complements and expands on existing research into micro-finance by adding a specific regional dimension. A remarkable situation of <<urban bias in reverse>> has been detected as far as access to formal finance is concerned. Conventional access variables (such as education and the level of household income and assets) do not explain rural households' access to institutional credit sources, while these factors turned out to be powerful determinants in explaning urban households' access to formal finance. This can be explained by the efforts on the part of the Thai government to improve access to credit for small rural enterprises. The author concludes that the neglect of rural finance and the lack of innovative financial approaches is, to a significant extent, also the result of political priority-setting and decision-making; it cannot be attributed to unattractive investment possibilities alone.

Dramatic changes in the foreign exchange and money markets have considerably altered the way international business will be conducted in the new millennium. The advent of the Euro, the enormous growth of the swaps market, and the daily increase in the development of derivative instruments are at the forefront of this evolution. If you're an investor, corporate finance officer, or anyone seeking to gain the essential edge in the world's major financial markets, resources for sound, accessible, and timely information are more important than ever. This updated, totally revised, and expanded edition of finance expert Julian Walmsley's popular classic is the one book you'll need. Practical and easy-to-understand, this unique reference provides guidance on every important market around the world, including closely related money markets such as the commercial paper and Eurocommercial paper markets, national money markets, interest rate options markets, and numerous related instruments. You will also find state-of-the-art sections on:
* The Euro
* Swaps-the instrument with the fastest growing market of all time
* Money market calculations
* Foreign exchange calculations
* Derivatives
* Risk issues

From currency option markets to the "third generation" hedging products that combine forwards and options, The Foreign Exchange and Money Markets Guide, Second Edition, unites volumes of information in one single source-and demystifies the seemingly complex concepts facing investors today. Julian Walmsley is Managing Director of Askeaton Associates Ltd. and a Visiting Research Fellow at the International Securities Market Association Centre for Securities Research at the University of Reading, England. Previously, he was Chief Investment Officer for Mitsubishi Finance International and also Senior Investment Officer for Oil Insurance in Bermuda. He spent many years working with Barclays Bank's foreign exchange operations and their interest rate and currency swaps group in London and New York, and was a director in charge of swaps at the London subsidiary of National Bank of North Carolina (NCNB). His other books include New Financial Instruments and The Foreign Exchange Handbook (both published by Wiley), and Global Investing: Eurobonds and Alternatives. Mr. Walmsley earned his MA in economics at Cambridge University.

THE CLASSIC GUIDEBOOK COMPLETELY REVISED AND UPDATED FOR THE NEW MILLENNIUM

Written by a well-known financial author and respected authority on international investing, trading, and risk management, this updated, totally revised, and expanded second edition of The Foreign Exchange and Money Markets Guide provides essential, easy-to-understand coverage of the considerable developments that have drastically reshaped the way international business will be conducted in the new millennium. From state-of-the-art sections on the dawn of the Euro, the rapidly growing swaps market, and the daily increase in derivative instruments, to money market and foreign exchange calculations and risk issues, this invaluable classic includes the most timely, accessible, and dependable information on every important market around the world. Here is the quintessential resource for institutional investors, bankers, pension fund managers, or anyone seeking to gain that crucial edge in the world's major financial markets.