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Central Banking: Theory and Practice in Sustaining Monetary and Financial Stability

Central Banking: Theory and Practice in Sustaining Monetary and Financial Stability

Thammarak Moenjak

ISBN: 978-1-118-83246-2

Oct 2014

320 pages

In Stock

£80.00

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Description

Understand the theories and interpret the actions of modern central banks

Central Banking takes a comprehensive look at the topic of central banking, and provides readers with an understanding and insights into the roles and functions of modern central banks in advanced as well as emerging economies, theories behind their thinking, and actual operations practices. The book takes a systematic approach to the topic, while providing an accessible format and style that is appropriate for general audiences and students with only a minimal macroeconomic background. Theoretical reviews and examples of how the theories are applied in practice are presented in an easy-to-understand manner and serve as a guide for readers to further investigate specific ancillary central banking topics and as a means to make informed judgments about central bank actions. Important topics covered in the book include:

  • Evolution of central banking functions and the international monetary system
  • Theoretical backgrounds that are the foundation to the modern practice of monetary policy
  • Monetary policy regimes, including exchange rate targeting, money supply growth targeting, the risk management approach, inflation targeting, and unconventional monetary policy.
  • Actual practice in market operations and transmission mechanisms of monetary policy
  • The exchange rate and central banking
  • Theoretical backgrounds related to various dimensions of financial stability
  • Current developments with regards to sustaining financial stability
  • The future of central banking in the wake of the 2007-2010 global financial crisis
  • Case studies on relevant practical issues and key concepts in central banking

Designed as essential reading for students, market analysts, investors, and central banks' new recruits, Central Banking better positions readers to interpret the actions of central banks and to understand the complexities of their position in the global financial arena.

Related Resources

Preface ix

Acknowledgments xi

About the Author xiii

PART ONE
An Introduction to Central Banking

CHAPTER 1
A Brief Look at Central Banking History 3

CHAPTER 2
A Brief Overview of the International Monetary System 17

CHAPTER 3
Modern Central Banking Roles and Functions: What Exactly Is a Central Bank? 37

CHAPTER 4
A Brief Review of Modern Central Banking Mandates: What Are the Goals That Modern Central Banks Try to Achieve? 59

PART TWO
Monetary Stability

CHAPTER 5
Theoretical Foundations of the Practice of Modern Monetary Policy 77

CHAPTER 6
Monetary Policy Regimes: What Monetary Policy Rules a Central Bank Can Use to Achieve Monetary Stability 93

CHAPTER 7
Monetary Policy Implementation: Financial Market Operations 117

CHAPTER 8
The Monetary Policy Transmission Mechanism: How Changes in Interest Rates Affect Households, Firms, Financial Institutions, Economic Activity, and Inflation 143

CHAPTER 9
The Exchange Rate and Central Banking 161

PART THREE
Financial Stability

CHAPTER 10
Financial Stability: Definition, Analytical Framework, and Theoretical Foundation 189

CHAPTER 11
Financial Stability: Monitoring and Identifying Risks 209

CHAPTER 12
Financial Stability: Intervention Tools 229

PART FOUR
Sustaining Monetary and Financial Stability for the Next Era

CHAPTER 13
Future Challenges for Central Banking 255

CHAPTER 14
Future Central Banking Strategy and Its Execution 275

Notes 287

Index 307