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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

    as
    1. Mishkin, F S., 2008. "How should we respond to asset price bubbles?," Financial Stability Review, Banque de France, issue 12, pages 65-74, October.
    2. 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.
    3. 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.
    4. Olivier Blanchard, 2009. "The State of Macro," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 209-228, May.
    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:

    1. Dongkoo Chang & Vincent Choon-Seng Lim & Eufrocinio M. Bernabe, Jr., 2014. "Alternative Monetary Policy Frameworks for Price and Financial Stability," Working Papers wp06, South East Asian Central Banks (SEACEN) Research and Training Centre.
    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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