Inside the black box: credibility and the situational power of central banks

2020 ◽  
Author(s):  
Ayca Zayim
Keyword(s):  
South Africa ◽  
Emerging Economies ◽  
Central Banks ◽  
Market Forces ◽  
Policy Space ◽  
Policy Decisions ◽  
Finance Constraints ◽  
Micro Level ◽  
Central Bankers ◽  
Central Bank Credibility

Abstract Despite the consensus that the power of finance constraints central banks under financial globalization, the variation in their autonomy from market forces at the micro level of monetary policymaking remains underexplored. This article demonstrates that credibility endows central banks with situational power to make monetary policy decisions that involve less sacrifice of economic growth to price stability. Based on the comparative analysis of the policy decisions of central banks in two emerging economies, South Africa and Turkey, during 2013–2014, I show that this policy space stems from central banks’ capacity to successfully influence market expectations. The argument relies on public texts and over 130 interviews with central bankers in South Africa and Turkey and financiers in Johannesburg, Istanbul and London. The findings contribute to literature on central bank credibility and communication by exploring how credibility functions and creates room for central banks to maneuver through influencing contingent and performative expectations.

Introduction

2018 ◽  
Author(s):  
Justin Buchler
Keyword(s):  
Spatial Model ◽  
Spatial Models ◽  
Spatial Theory ◽  
Roll Call ◽  
Policy Space ◽  
Policy Decisions ◽  
Roll Call Voting ◽  
Legislative Session ◽  
History Of ◽  
Conventional Models

Spatial theory is divided between models of elections and models of roll call voting, neither of which alone can explain congressional polarization. This chapter discusses the history of spatial theory, why it is important to link the two strands of spatial models, and the value of reversing the order of conventional models. Conventional models place an election before policy decisions are made. This chapter proposes a unified spatial model of Congress in which the conventional order is reversed. First, there is a legislative session, then an election in which voters respond retrospectively, not to the locations candidates claim to hold, but to the bundles of roll call votes that incumbents cast to incrementally adopt their locations in the policy space. Such a model is best suited to explaining three puzzles: why do legislators adopt extreme positions, how do they win, and what role do parties play in the process?

Protected areas and environmental conservation in KwaZulu-Natal, South Africa: on HEIs, livelihoods and sustainable development

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Inocent Moyo ◽  
Hlengiwe Marvelous Sweetness Cele
Keyword(s):  
South Africa ◽  
Sustainable Development ◽  
Rural Communities ◽  
Indigenous Communities ◽  
Environmental Conservation ◽  
Developmental Needs ◽  
Content Type ◽  
Research And Innovation ◽  
Kwazulu Natal ◽  
Micro Level

Purpose The paper aims to advocate for innovative approaches in terms of the involvement of higher education institutions (HEIs) in the conservation of the environment, which fully considers and includes the developmental needs of indigenous communities while at the same time protecting the environment. Design/methodology/approach Using a qualitative study of indigenous communities and protected area (PA) authorities in Okhahlamba-Drakensberg, KwaZulu-Natal, South Africa, this paper explores the potential of the engagement of HEIs in capacitating indigenous communities to unleash their development potential towards reducing poverty and, thus accelerating the implementation of sustainable development goal one (SDG 1). Findings The paper shows that the enforcement of stringently protectionist policies in environmental conservation in PAs does very little to address issues of poverty because it leads to the marginalisation of indigenous communities and thereby their exclusion from using resources, which should benefit them. This undermines sustainable development, particularly the attainment of SDGs such as Goal 1, which targets ending poverty in all its forms everywhere. Originality/value Using the case of environmental management and governance of a PA in KwaZulu-Natal, South Africa, this paper highlights the fact that the attainment of SDG 1 can start at a micro-level and HEIs have a role to play in terms of collaborating with and understanding the needs of the rural communities so that research and innovation are geared towards meeting such needs. In this way, the paper advances the case of how the HEI-rural community-SDG 1 nexus can be established.

Putting the Program into Action, 1920–1928

2016 ◽  
Author(s):  
Simon James Bytheway ◽  
Mark Metzler
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Ad Hoc ◽  
Central Banks ◽  
Financial Globalization ◽  
International Network ◽  
Bank Of England ◽  
International Monetary Policy ◽  
Central Bankers

This chapter details how Montagu Norman of the Bank of England, in partnership with Benjamin Strong of the FRBNY, turned ad hoc wartime cooperation into a formal agenda. The paired ideas that national central banks should be autonomous, and that they should cooperate with each other, were first spelled out in a private “manifesto” that Norman circulated among fellow central bankers in 1921. Central bank cooperation was internationally recognized as a principle at the 1922 Genoa Conference, and it was also put into practice. Cooperation between central banks began primarily as informational cooperation, which includes not only the sharing of information but also the sharing and propagation of worldviews. An international network of central banks thus developed out of the war, as did the world's first truly coordinated system of international monetary policy. In these and other ways, financial globalization surged to a new level in the 1920s.

Does politics drive conflict in central banks’ committees? Lifting the veil on the European Central Bank consensus

2019 ◽  
Vol 21 (2) ◽  
pp. 183-203
Author(s):  
Manuela Moschella ◽  
Nicola M Diodati
Keyword(s):  
Central Bank ◽  
European Central Bank ◽  
Semantic Distance ◽  
Central Banks ◽  
Political Factors ◽  
Policy Positions ◽  
Projected Image ◽  
European Central ◽  
The Veil ◽  
Central Bankers

This study investigates whether and to what extent political factors drive disagreement within the allegedly consensual monetary committee of the European Central Bank. Absent voting data, the article assesses disagreement based on the semantic distance between the policy positions publicly articulated by the European Central Bank President and the central banks of Eurozone member states. The empirical analysis shows that the disagreement articulated by national central bankers is affected by the ideological inclinations of the governments of the countries they represent. Our findings thus suggest that central bankers’ position-taking is shaped not only by economic conditions but also by domestic political considerations. This result challenges the European Central Bank’s projected image of itself as an institution whose members are impermeable to domestic political pressures as a way to defend the independence of the institution to which they belong.

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