Hume on hold?

Michael Burda, 17 May 2012



The great Scottish philosopher and economist David Hume understood all too well how national boundaries and balance-of-payment statistics affect and even determine flows of international trade. Where national boundaries exist, customs offices and government bureaucracies assiduously monitor the flow of goods and assets between countries.

Topics: EU institutions, International finance
Tags: balance of payments, Central Banks, David Hume

Central Bank reserve creation in the era of negative money multipliers

Manmohan Singh, Peter Stella, 7 May 2012



The phenomenal increase in bank reserves that has resulted from central bank responses to the current financial crisis has led to considerable anxiety regarding a potentially explosive and uncontrollable future increase in inflation.

Topics: Macroeconomic policy
Tags: Central Banks, monetary policy, money multiplier, reserves

Central banks and gold puzzles

Joshua Aizenman, Kenta Inoue, 19 March 2012



On 7 August 2009, the European Central Bank released the following Joint Statement on Gold:

Topics: International finance
Tags: Central Banks, Gold, reserves

The role of central banks in financial stability: How has it changed?

Willem Buiter, 16 January 2012


Vox readers can download CEPR Discussion Paper 8780 for free here

Journalists are entitled to free DP downloads on request; please contact To learn more about subscribing to CEPR's Discussion Paper Series, please visit the CEPR website.

Topics: EU institutions, Financial markets, Global crisis, Global economy, Institutions and economics, Macroeconomic policy, Monetary policy, Politics and economics
Tags: accountability, Central Banks, financial stability, global crisis, unorthodox monetary policy

Central banks’ voting records and future policy

Kateřina Šmídková, Jan Zapal, Roman Horváth, 13 November 2011



Monetary-policy transparency has several dimensions, such as volume, quality, and timeliness of disclosed information. Transparency-cautious central banks typically release the voting records from monetary-policy meetings together with the minutes.

Topics: Macroeconomic policy, Monetary policy
Tags: Central Banks, monetary policy, transparency

When markets freeze: Tobin’s q and QE

Marcus Miller, John Driffill, 27 September 2011



The economies of the North Atlantic look in poor shape. But it could be worse. Central banks have been doing their best to save capitalism from its own self-fulfilling fears, using the policy of quantitative easing to take frozen assets onto their balance sheets until confidence returns. Why they are doing this – and why it matters – can best be seen in the light of history.

Topics: Global crisis, Monetary policy
Tags: Central Banks, global crisis, Great Depression, monetary policy, quantitative easing

Procyclical bank risk-taking and the lender of last resort

Mark Mink, 31 August 2011



Since the outbreak of the global financial crisis in 2007, and particularly since the bankruptcy of Lehman brothers in September 2008, central banks in their roles as lenders of last resort have provided large-scale liquidity support not only to individual banks, but also to the banking sector as a whole. As President Trichet of the European Central Bank explained in November 2009:

Topics: International finance, Macroeconomic policy
Tags: Central Banks, financial regulation, lender of last resort

A balance sheet view on TARGET – and why restrictions on TARGET would have hit Germany first

Clemens Jobst, 19 July 2011



By now most readers of European financial newspapers and blogs will have come across Hans-Werner Sinn’s repeated assertions (see Sinn 2011a and 2011b on this site and his latest

Topics: EU policies, Europe's nations and regions, International finance
Tags: Bundesbank, Central Banks, ECB, Eurozone crisis, Germany, TARGET

Shell game: Zero-interest policies as hidden subsidies to bank

Axel Leijonhufvud, 25 January 2011



The two pioneers of modern monetary economics – Irving Fisher and Knut Wicksell – were passionately concerned to find monetary arrangements that would insure against arbitrary redistributions of income and wealth. They saw such distributive effects as offenses against social justice and consequently as a threat to social and political stability. 

Topics: Financial markets, Monetary policy
Tags: Central Banks, monetary policy, zero interest rates

Money market freezes and central banks

Max Bruche, Javier Suarez, 7 January 2011



During the peak of the crisis in autumn 2008, spreads in money markets rose sharply and volumes contracted, forcing many banks into difficulties with their standard liquidity management and refinancing strategies.

Topics: Global crisis, Monetary policy
Tags: Central Banks, monetary policy

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