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Central banks: From overburdening to decline?

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  • Issing, Otmar

Abstract

"Institutional Overburdening" to a large extent was a consequence of the "Great Moderation". This term indicates that it was a period in which inflation had come down from rather high levels. Growth and employment were at least satisfying and variability of output had substantially declined. It was almost unavoidable that as a consequence expectations on future actions of central banks and their ability to control the economy reached an unprecedented peak which was hardly sustainable. Institutional overburdening has two dimensions. One is coming from exaggerated expectations on what central banks can achieve ("expectational overburdening"). The other dimension is "operational overburdening" i.e. overloading the central bank with more and more responsibilities and competences.

Suggested Citation

  • Issing, Otmar, 2016. "Central banks: From overburdening to decline?," SAFE White Paper Series 42, Leibniz Institute for Financial Research SAFE.
    • Handle: RePEc:zbw:safewh:42
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    References listed on IDEAS

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    1. Otmar Issing, 2011. "Lessons for Monetary Policy; What Should the Consensus Be?," IMF Working Papers 2011/097, International Monetary Fund.
    2. Issing,Otmar, 2008. "The Birth of the Euro," Cambridge Books, Cambridge University Press, number 9780521731867.
    3. Frank Smets, 2014. "Financial Stability and Monetary Policy: How Closely Interlinked?," International Journal of Central Banking, International Journal of Central Banking, vol. 10(2), pages 263-300, June.
    4. Otmar Issing, 2011. "Lessons for monetary policy: what should the consensus be?," Globalization Institute Working Papers 81, Federal Reserve Bank of Dallas.
    5. Willem H. Buiter, 1999. "Alice in Euroland," Journal of Common Market Studies, Wiley Blackwell, vol. 37(2), pages 181-209, June.
    6. Issing,Otmar, 2008. "The Birth of the Euro," Cambridge Books, Cambridge University Press, number 9780521516730.
    7. Issing, Otmar, 2011. "Lessons for monetary policy: What should the consensus be?," CFS Working Paper Series 2011/13, Center for Financial Studies (CFS).
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    Cited by:

    1. Gerald Braunberger, 2016. "Joseph A. Schumpeter: Ein Pionier der Makrofinanz," Schumpeter Discussion Papers SDP16007, Universitätsbibliothek Wuppertal, University Library.

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    Keywords

    Central Banking; ECB; Monetary Policy;
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