scholarly journals Central banking, protectionism and globalization

2019 ◽  
Vol 69 (s1) ◽  
pp. 121-140
Author(s):  
Jacob A. Frenkel
Keyword(s):  
Global Financial Crisis ◽  
The United States ◽  
Central Banking ◽  
Policy Response ◽  
Implicit Assumption ◽  
Economic Policies ◽  
New Paradigm ◽  
Macroeconomic Policies ◽  
Policy Makers ◽  
Macroeconomic Theory

The recent global financial crisis has resulted in a new creative set of economic policies. The justifi- cation for the unconventional policy response was based on the implicit assumption that the departure from the norms of macroeconomic policies would be temporary. This detour has lasted longer than expected. Now that the process of normalization has started in the United States and is likely to be followed (albeit in some delay) in Europe, it would be important for policy makers to emphasize that the unconventional set of economic policies were just a detour from the longstanding convention rather than representing a new paradigm. The experience of the crisis and the post-crises years should be recorded in history as refl ecting a period during which new and important policy chapters were drafted. These chapters should be added to the corpus of knowledge of macroeconomic theory and policy. The new chapters contain important lessons that should definitely not be forgotten once the crisis is over. They should be added to, but not replace, the old textbooks.

Crucial challenges to global and oil-rentier economies

2009 ◽  
Vol 2 (2) ◽  
pp. 292-303
Author(s):  
Sabri Zire Al-Saadi
Keyword(s):  
Market Efficiency ◽  
Global Financial Crisis ◽  
Free Market ◽  
Economic Recession ◽  
The United States ◽  
The European Union ◽  
Macroeconomic Policies ◽  
Monetary Policies ◽  
Policy Makers ◽  
Role Of The State

This article highlights the limitation of the traditional macroeconomic policies related to oil-rent crucial issues and suggests remedies for the current global financial and economic crises in view of free market efficiency principles as advocated by contemporary economic doctrines: Keynesian and Monetarism. It also reasserts the long-term alternative strategy for the liberalization of the oil-hostage rentier economies. The given analysis is based on the experience of the oil-rentier countries, as well as the fiscal and monetary policies applied in the advanced economies; especially the United States, Britain and the European Union for dealing with the current global financial crisis and economic recession. The general aim of the analysis is to establish the bases for the required confidence in market efficiency and the benefits of the globalization thrust that are not consistent with the applied remedies. It suggests that for both advanced and oil-rentier economies, heavy investment in modernizing and the expansion of the physical, social, and environmental infrastructure projects are, at this stage, essential. However, for the oil-rentier economies, more emphasis should be given to the role of the state until the objectives of the required economic diversification strategy are achieved. As the credibility and trust of the banks and financial institutions, the policy-makers, fiscal and monetary authorities and regulators are very low, it is essential to retain the confidence of business communities and consumers in the financial and economic systems by undertaking unbiased assessment of the causes, impact, and remedies of the crises for different economies.

scholarly journals A new paradigm of modern central banking

2013 ◽  
Vol 2 (2) ◽  
pp. 75-78
Author(s):  
Aleksandra Szunke
Keyword(s):  
Monetary Policy ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Central Banks ◽  
Central Banking ◽  
First Century ◽  
Financial Instability ◽  
New Paradigm ◽  
The Global Financial Crisis

The changes in the modern monetary policy, which took place at the beginning of the twenty-first century, in response to the global financial crisis led to the transformation of the place and the role of central banks. The strategic aim of the central monetary institutions has become preventing financial instability. So far, central banks have defined financial stability as a public good, which took care independently of other monetary purposes (Pyka, 2010). Unconventional monetary policy resulted in changes the global central banking. The aim of the study is to identify a new paradigm of the role and place of the central bank in the financial system and its new responsibilities, aimed at countering financial instability.

scholarly journals Innovative ways of thinking concerning economic governance after the global financial crisis

2019 ◽  
Vol 17 (3) ◽  
pp. 122-131 ◽  
Author(s):  
Csaba Lentner ◽  
Pál Péter Kolozsi
Keyword(s):  
Public Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Central Banking ◽  
Economic Governance ◽  
New Paradigm ◽  
Public Finances ◽  
The Global Financial Crisis ◽  
Innovative Approaches

The global financial crisis highlighted the limitations of the mainstream economic thinking. The post-crisis reflection has not resulted yet in any new paradigm, however, several new, still separate, innovative approaches appeared in the field of public finances and economic governance. The aim of the paper is to provide a structured presentation of these new innovative approaches, which can serve as a potential basis of a new way of thinking about economic and financial governance and the innovation of public finances. The paper reviews the relevant international literature published after the global financial crisis and, as a result, presents the innovations, especially in respect of the role of the state, the renewal of central banking, the reassessment of the stability and geopolitical aspects of economic policy, the relevance of confidence and cooperation in public policy, the increasing role of the public sector concerning the sustainability of economic development and the renaissance of institutional economics. Based on these new approaches, the paper concludes that the smart, inclusive and sustainable, innovation-led growth requires the rethinking of the role, the functions, the objectives and the instruments of public policy and economic governance.

The Impact of the Global Financial Crisis on Central Banking

2019 ◽  
pp. 170-192
Author(s):  
Alex Cukierman
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Financial Stability ◽  
Inflation Targeting ◽  
Global Financial Crisis ◽  
The United States ◽  
Central Banking ◽  
The Global Financial Crisis ◽  
The Impact ◽  
Regulatory Reforms

This chapter describes the impacts of the global financial crisis on monetary policy and institutions. It argues that during the crisis, financial stability took precedence over traditional inflation targeting and discusses the emergence of unconventional policy instruments such as quantitative easing (QE), forex market interventions, negative interest rates, and forward guidance. It describes the interaction between the zero lower bound (ZLB) and QE, and proposals, such as raising the inflation target, to alleviate the ZLB constraint. The chapter discusses the consequences of the relative passivity of fiscal policies, “helicopter money,” and 100 percent reserve requirement. The crisis triggered regulatory reforms in which central banks’ objectives were expanded to encompass macroprudential regulation. The chapter evaluates recent regulatory reforms in the United States, the euro area, and the United Kingdom. It presents data on new net credit formation during the crisis and discusses implications for exit policies.

scholarly journals The Renminbi Exchange Rate Reform and Its Implications for Asian Markets

2016 ◽  
Vol 02 (04) ◽  
pp. 485-506 ◽  
Author(s):  
Takamoto Suzuki
Keyword(s):  
United States ◽  
Exchange Rate ◽  
Emerging Economies ◽  
The United States ◽  
Economic Policies ◽  
Macroeconomic Policies ◽  
Monetary Policies ◽  
Special Drawing ◽  
The Stability ◽  
The U.S

Up until now, the Renminbi (RMB) reform has been progressing gradually. With the RMB becoming a Special Drawing Right (SDR) component currency, China’s monetary policies will exert significant influence on the international marketplace. The year 2014 witnessed the weakening of the RMB against the U.S. dollar, yet thanks to China’s prudent economic policies, the RMB stopped depreciating further and remained quite stable for the first half of 2015, which benefited not only China itself, but also the United States, Japan, and other Asian economies. Asian markets used to be strongly influenced by the U.S. monetary policy and the performance of the U.S. dollar. However, since the RMB devaluation against U.S. dollar in the summer of 2015, Asian markets have been inclined to move in accordance with the market information from China rather than that from the United States. Although the RMB is not a currency like the euro that has been adopted by a number of countries, it can still exert great impacts on emerging economies in the world. For the RMB to take hold globally, improved fundamentals in emerging economies, an easing in the influence of the RMB-USD exchange rate, and a healthy financial system in China are all necessary. Meanwhile, both China and the United States need to enhance their coordination on macroeconomic policies and guarantee the stability of RMB-USD exchange rate.

Principles in Power

2020 ◽  
Author(s):  
Vanessa Walker
Keyword(s):  
Human Rights ◽  
Latin America ◽  
Cold War ◽  
The United States ◽  
Direct Result ◽  
New Paradigm ◽  
Policy Makers ◽  
Human Rights Advocacy ◽  
International Power ◽  
The Cold War

This book explores the relationship between policy makers and nongovernment advocates in Latin America and the U.S. government in order to explain the rise of anti-interventionist human rights policies uniquely critical of U.S. power during the Cold War. The book shows that the new human rights policies of the 1970s were based on a complex dynamic of domestic and foreign considerations that was rife with tensions between the seats of power in the United States and Latin America, and the growing activist movement that sought to reform them. By addressing the development of U.S. diplomacy and politics alongside that of activist networks, especially in Chile and Argentina, the book shows that Latin America was central to the policy assumptions that shaped the Carter administration's foreign policy agenda. The coup that ousted the socialist president of Chile, Salvador Allende, sparked new human rights advocacy as a direct result of U.S. policies that supported authoritarian regimes in the name of Cold War security interests. From 1973 onward, the attention of Washington and capitals around the globe turned to Latin America as the testing ground for the viability of a new paradigm for U.S. power. This approach, oriented around human rights, required collaboration among activists and state officials in diverse places. The book tells the complicated story of the potentials and limits of partnership between government and nongovernment actors. Analyzing how different groups deployed human rights language to reform domestic and international power, it explores the multiple and often conflicting purposes of U.S. human rights policy.

50 Years of Central Banking in Kenya

2021 ◽  
Keyword(s):  
Central Bank ◽  
Financial Institutions ◽  
Global Financial Crisis ◽  
Central Banking ◽  
Eastern Africa ◽  
African Region ◽  
Policy Makers ◽  
Bank Executives ◽  
The Global Financial Crisis ◽  
High Level

This book documents important milestones in the epic journey traversed by the Central Bank of Kenya over the last 50 years, putting into perspective the evolution of central banking globally and within the East African region, and contemplating future prospects and challenges. The book is timely, mainly because the global financial landscape has shifted. Central bankers have expanded their mandates, beyond the singular focus on inflation and consider economic growth as their other important objective. Financial crises have continued to disrupt the functioning of financial institutions and markets, the most devastating episodes being the global financial crisis, which broke out in 2008 and from which the global financial system has not fully recovered, and the unprecedented challenges posed by the global coronavirus pandemic. Bank regulation has moved from Basel I, to Basel II, and somehow migrated to Basel III, although some countries are still at the crossroads. The book originated from the wide-ranging discussions on central banking, from a symposium to celebrate the 50 year anniversary on 13 September 2016 in Nairobi. The participants at the symposium included current and former central bank governors from Kenya and the Eastern Africa region, high-level officials from multilateral financial institutions, policy-makers, bank executives, civil society actors, researchers and students. The book is an invaluable resource for policy-makers, practitioners, and researchers, on how monetary policy and financial practices in vogue today in Kenya have evolved through time and worked very well, but also about some pitfalls.

The Inter-American Development Bank and the Washington Consensus

2021 ◽  
pp. 243-255
Author(s):  
Sarah Babb
Keyword(s):  
Shareholder Value ◽  
The United States ◽  
Formal Structure ◽  
Washington Consensus ◽  
Economic Policies ◽  
Policy Makers ◽  
National Economic ◽  
The Us ◽  
Major Shift ◽  
International Donors

This chapter traces how the United States (US) Treasury engineered the major shift in the Inter-American Development Bank’s (IADB) policy and formal structure through negotiations over donor contributions to its financial resources. The US behaved as an ‘activist shareholder’—using its control over resources to bargain with management for organizational change. Yet in contrast to ‘shareholder value’ in private firms, international donors can use foreign aid to pursue a range of incommensurable goals. The IADB’s initiation into the Washington Consensus resulted from a historic and durable shift in US policy-makers’ conception of shareholder value, from one in which the banks were worthy of support because of their ability to promote US security and diplomatic goals, to one that valued the Banks’ ability to change national economic policies. US shareholder activism not only brought the development banks into alignment with Washington’s agenda, but also into alignment with one another.

The Economic Rise of China

Asian Survey ◽  
2017 ◽  
Vol 57 (4) ◽  
pp. 595-617 ◽  
Author(s):  
Zhaohui Wang
Keyword(s):  
United States ◽  
Financial Crisis ◽  
International Institutions ◽  
Global Financial Crisis ◽  
The United States ◽  
Policy Response ◽  
The Core ◽  
Rise Of China ◽  
The Global Financial Crisis ◽  
Rising Power

This paper examines the symbiotic but asymmetric relationship between the United States as the core and China as the semi-periphery. It argues that China’s policy response in both domestic and international domains after the global financial crisis reveals that China as a rising power is no longer a rule-taker, but between a rule-maker and a rule-breaker that adds incremental reforms to current international institutions.

scholarly journals HOW IMPORTANT ARE GENERAL EQUILIBRIUM MODELS FOR SMALL OPEN ECONOMIES – A CASE OF CROATIA

2013 ◽  
Vol 19 (2) ◽  
pp. 331-349
Author(s):  
Marinko Škare ◽  
Saša Stjepanović
Keyword(s):  
General Equilibrium ◽  
Cge Model ◽  
Economic Policies ◽  
Macroeconomic Policies ◽  
Policy Makers ◽  
Cge Models ◽  
Growth Constraints ◽  
Open Country ◽  
The Republic ◽  
Macroeconomic Management

This paper develops a general equilibrium model for the Republic of Croatia to evaluate CGE model use in macroeconomic management and forecasting. Since Croatia is a small open country subject to large external shock and growth constraints efficient macroeconomic management framework is fundamental. The lack of data prevents to follow historic economic variables over a longer period of time, which is why CGE models look as possible solution. CGE models use calibration to solve the problem of missing most macroeconomic variables. After developing the model, we use it to run different scenarios for economic policies using a CGE model for Croatia. Results show that CGE model can be an important instrument for policy makers in running macroeconomic policies for small open countries.

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