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Monetary Policy and Central Banking after the Crisis: The Implications of Rethinking Macroeconomic Theory

In: Financialization

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  • Thomas I. Palley

    (AFL-CIO)

Abstract

The financial crisis of 2008 and the Great Recession have prompted a retrospective on the conduct of monetary policy and central banking (Bernanke, 2010). Before the crisis, economists and central bankers were in a celebratory mode, with talk about the “Great Moderation” and praise for advances in monetary economics that had helped stabilize the economy (Bernanke, 2004; Goodfriend, 2007; Blanchard, 2008): now, however, there is talk among policy insiders of need to rethink monetary policy.

Suggested Citation

  • Thomas I. Palley, 2013. "Monetary Policy and Central Banking after the Crisis: The Implications of Rethinking Macroeconomic Theory," Palgrave Macmillan Books, in: Financialization, chapter 11, pages 182-200, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-26582-1_11
    DOI: 10.1057/9781137265821_11
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    References listed on IDEAS

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    1. Olivier Blanchard, 2009. "The State of Macro," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 209-228, May.
    2. Mishkin, F S., 2008. "How should we respond to asset price bubbles?," Financial Stability Review, Banque de France, issue 12, pages 65-74, October.
    3. Barro, Robert J & Gordon, David B, 1983. "A Positive Theory of Monetary Policy in a Natural Rate Model," Journal of Political Economy, University of Chicago Press, vol. 91(4), pages 589-610, August.
    4. Marvin Goodfriend, 2007. "How the World Achieved Consensus on Monetary Policy," Journal of Economic Perspectives, American Economic Association, vol. 21(4), pages 47-68, Fall.
    5. Hyman P. Minsky, 1992. "The Financial Instability Hypothesis," Economics Working Paper Archive wp_74, Levy Economics Institute.
    6. Olivier Blanchard & Giovanni Dell'Ariccia & Paolo Mauro, 2010. "Rethinking Macroeconomic Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(s1), pages 199-215, September.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. [A&C] Monetary Policy and Central Banking after the Crisis: The Implications of Rethinking Macroeconomic Theory
      by Lorenzo Battisti in Pensieri Economici on 2013-05-29 16:03:00

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    Cited by:

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    2. Gerald Epstein, 2013. "Developmental central banking: winning the future by updating a page from the past," Review of Keynesian Economics, Edward Elgar Publishing, vol. 1(3), pages 273-287, January.
    3. Amelia Correa & Romar Correa, 2016. "Asset-based reserve requirements," International Journal of Pluralism and Economics Education, Inderscience Enterprises Ltd, vol. 7(1), pages 39-44.

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