Developments in central banking after the GFC: Central banks, the state, globalisation and the GFC

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

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Abstract

There is general consensus that central banks are entering a new chapter in their history after the global financial crisis (GFC), and that they are in fact on the brink of a new era in central banking (see for example Goodhart, 2010, p. 15). The GFC highlighted the need for a broader responsibility for and oversight of financial stability, not only in domestic economies, but in the world as a whole (G-20, 2010). This responsibility may become the primary responsibility of central banks, as they may be the best institutions to oversee financial stability generally, or at least play an important or lead role in financial stability. The predominant focus of central banks currently is monetary policy. A change in the mandate of central banks to include or prioritise a responsibility for financial stability will result in a number of changes in central banking. In fact, central banking may never be the same again (Mishkin, 2010, p. 50). A changed responsibility may also affect the relationship between the central bank and the state (Goodhart, 2010, p. 15). This chapter focuses on how, after the GFC, the relationship between the central bank and the state may change, and how a greater responsibility for financial stability on the part of central banks may impact on central bank independence and the relationship between the central bank and the state.
Original languageEnglish
Title of host publicationGlobalisation, the Global Financial Crisis and the State
EditorsJ Farrar, D G Mayes
Place of PublicationCheltenham, UK
PublisherEdward Elgar Publishing
Pages218-242
Number of pages25
ISBN (Print)9781781009420
DOIs
Publication statusPublished - 2013

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Central bank
Central banking
Global financial crisis
Globalization
Responsibility
Financial stability
Monetary policy
Oversight
Central bank independence
Mandate

Cite this

Parsons, L. (2013). Developments in central banking after the GFC: Central banks, the state, globalisation and the GFC. In J. Farrar, & D. G. Mayes (Eds.), Globalisation, the Global Financial Crisis and the State (pp. 218-242). Cheltenham, UK: Edward Elgar Publishing. https://doi.org/10.4337/9781781009437.00019
Parsons, Louise. / Developments in central banking after the GFC: Central banks, the state, globalisation and the GFC. Globalisation, the Global Financial Crisis and the State. editor / J Farrar ; D G Mayes. Cheltenham, UK : Edward Elgar Publishing, 2013. pp. 218-242
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Parsons, L 2013, Developments in central banking after the GFC: Central banks, the state, globalisation and the GFC. in J Farrar & DG Mayes (eds), Globalisation, the Global Financial Crisis and the State. Edward Elgar Publishing, Cheltenham, UK, pp. 218-242. https://doi.org/10.4337/9781781009437.00019

Developments in central banking after the GFC: Central banks, the state, globalisation and the GFC. / Parsons, Louise.

Globalisation, the Global Financial Crisis and the State. ed. / J Farrar; D G Mayes. Cheltenham, UK : Edward Elgar Publishing, 2013. p. 218-242.

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

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Parsons L. Developments in central banking after the GFC: Central banks, the state, globalisation and the GFC. In Farrar J, Mayes DG, editors, Globalisation, the Global Financial Crisis and the State. Cheltenham, UK: Edward Elgar Publishing. 2013. p. 218-242 https://doi.org/10.4337/9781781009437.00019