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jerryking : monetary_policy   6

Opinion | The Secret Lives of Central Bankers - The New York Times
By Annelise Riles
Ms. Riles, a professor of law and anthropology, is the author of “Financial Citizenship: Experts, Publics, and the Politics of Central Banking.”

Oct. 20, 2018

The acculturation process for central bankers begins early. Most of them attend a handful of elite universities — the University of Chicago, Harvard, Yale, Oxford, Cambridge — to study neoclassical economics, and their early training often involves a secondment to the central banking institutions of another country. In Tokyo or Frankfurt or New York, they operate within a closed set......Central banks should think more boldly about diversity, by welcoming not just more women and people of color, but also more people with real-world economic and business expertise, rather than only Ph.D.s. Central bankers already meet regularly with academics and financial institutions such as Goldman Sachs. Why not also meet with civil society groups that critique their work?..arrogance, toward the public and even toward one another, undermines central banks’ effectiveness. One of the goals of monetary policy is to shape people’s behavior. When a central bank says it anticipates that prices are going to rise, it expects the public to take that advice seriously. If people do, and they buy things now before prices rise, then perhaps prices won’t rise as much. But central banks need credibility for this stabilizing mechanism to work.

Some countries do have this level of public trust, built carefully over decades. In Denmark, for example, central bank officials make a concerted effort, in speeches and other public comments, to tell the story of how their work contributes to the egalitarian society that Danes value. Danes love their central bank..
books  central_banking  diversity  economics  monetary_policy  secondments 
october 2018 by jerryking
The Bank of England future-proofs itself – MainStreetEcon
June 26, 2018 | Financial Times | by mainstreetecon 14 hours ago14 hours ago

[Future-proofing is the process of anticipating the future and developing methods of minimizing the effects of shocks and stresses of future events. ]
anticipating  Bank_of_England  central_banks  frameworks  future-proofing  monetary_policy  policymakers 
june 2018 by jerryking
On the money: a history of the Bank of England
SEPTEMBER 1, 2017 by: John Plender, the FT columnist and author of ‘Capitalism: Money, Morals and Markets’ (Biteback)

Till Time’s Last Sand: A History of the Bank of England 1694-2013, by David Kynaston, Bloomsbury £35, 896 pages
An enduring theme is the friction that existed from the outset between the Bank and its main client, the government. The Bank’s original charter was granted so that it could provide finance for the Nine Years’ War against France. On each renewal, the terms were the subject of much haggling and in the interim the Bank was constantly pressed to advance more money than it felt prudent. ....Another constant theme is forgery and fraud, with some of the Bank’s most senior employees being caught with their fingers in the till. In marked contrast to today’s post-crisis financial world, punishment was harsh. Many miscreants were hanged at Tyburn while the lucky ones were condemned to transportation.

As the 19th century progresses, Kynaston’s story turns increasingly on the issue that preoccupied great Victorian writers on monetary policy such as Henry Thornton and Walter Bagehot: how to reconcile adherence to the gold standard with financial stability. Numerous financial crises, including those surrounding the rescue of Barings and the collapse of Overend Gurney and the City of Glasgow Bank, are retold here with panache.
Bank_of_England  history  central_banks  book_reviews  books  monetary_policy  slavery  Walter_Bagehot  financial_history  19th_century  Victorian  financial_crises 
september 2017 by jerryking
Bank of Canada warns automation will lead to job losses - The Globe and Mail
ANDY BLATCHFORD
The Canadian Press
Published Tuesday, Apr. 18, 2017

In a speech in Toronto, senior deputy governor Carolyn Wilkins said Tuesday innovations like artificial intelligence and robotics are expected to help re-energize underwhelming productivity in advanced economies like Canada. Over the longer haul, she added that new technologies should eventually create more jobs than they replace.

However, the fast-approaching changes come with concerns for Wilkins – from the challenging adjustment for the labour force, to the distribution of the new wealth......“Innovation is always a process of creative destruction, with some jobs being destroyed and, over time, even more jobs being created,” said Wilkins, who added that what will change is the type of workers in demand.

“We’ve seen this process in action throughout history.”.......Wilkins said the Bank of Canada has also taken steps to help it deal with the fast-approaching changes. It has created a new digital economy team with a focus on how automation affects the economy as well as its impacts on inflation and monetary policy
Bank_of_Canada  automation  productivity  artificial_intelligence  technological_change  robotics  layoffs  inflation  monetary_policy  digital_economy  creative_destruction  innovation  job_creation  job_destruction  job_displacement  rapid_change 
april 2017 by jerryking
Is Poloz making the loonie fly low? - The Globe and Mail
KONRAD YAKABUSKI
The Globe and Mail
Published Thursday, Sep. 25 2014

the governor of the Bank of Canada does not take his marching orders from the government. But the government does influence monetary policy by choosing the governor.

Ask Jean Chrétien. In John Crow’s case, “I didn’t agree with what he had done under [Brian] Mulroney by opting to wrestle inflation to the ground with high interest rates in the middle of a recession and with a high Canadian dollar,” the former prime minister wrote in his memoirs.

Mr. Chrétien turfed Mr. Crow within two months of his 1993 election and replaced him with Gordon Thiessen. The dollar began what seemed like a fortuitous descent from 76 cents to 62 cents in 2002, triggering a manufacturing-led export boom in Central Canada.

The flip side of that boom, however, was complacency. With a low loonie, Canadian manufacturers ignored the need to become more productive and innovative. Thoroughly unmodern, few had any other competitive advantage to fall back on when surging oil prices drove the dollar to parity in 2007.

A lower dollar can put the wind in your sails for a while. Long-term, not so much.
Konrad_Yakabuski  Stephen_Poloz  Bank_of_Canada  loonie  interest_rates  monetary_policy  central_banking  Jean_Chrétien  productivity  complacency  weak_dollar  manufacturers 
september 2014 by jerryking

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