The ECB s policy was not inflationary, because the aggregate stock of central bank money in the eurozone was unaffected.

Central Bank Confidential

Central Banks on the Offensive?

The government has established a new agency, Central Hujin Investment Company, to manage and re capitalize big state owned banks before they are sold.

The Wrong War for Central Banking

The Temptation of the Central Bankers

Big Banks Shadow Dance

Central Banking s New Club Class

Central Bankers under Siege

Central Banks Outdated Independence

The Secret Language of Central Bankers

As guardians of the nation s money supply and setters of short term interest rates, central bankers have always played a critical role.

Do Central Banks Have an Exit Strategy?

The Uncertain Future of Central Bank Supremacy

Central Bankers on the Ground

The timekeepers are central banks.

In particular, the Target2 credit drawn by the crisis afflicted countries central banks, which already totals almost 1 trillion, should also be taken into consideration.

Certainly central banks have played a critical role. But central banks have stated that they do not have the policy instruments to accelerate the pace of economic recovery.

Independent central banks are the archetypal example.

In the end, both have to be bailed out by central banks.

If rich country central banks can buy long term bonds, then emerging country central banks can buy dollar denominated bonds.

This has triggered a search for a radical redefinition of central banks objectives and has cast doubt on the appropriateness of maintaining their independence.

When banks stopped providing short term liquidity to other banks and industrial companies, central banks filled the gap.

(And don t think central banks have ruled out the inflation tax.

Of course, not all central bankers are to blame.

Central bank inflation targets are now normally set at 2 .

Central bank independence is a peculiar institutional innovation.

In normal times, central banks want to reduce inflation.

So, what should Western central banks do?

Banks often oppose higher equity asset ratios, because equity capital is more expensive than debt capital. But this is precisely because of the lemon effect.

As a result, central banks failed to see the oncoming financial tsunami, and even after it arrived they continued to fight the last war against inflation.

That, in turn, avoids triggering requirements of more bank capital.

Can Central Banks Still Influence Exchange Rates?

Apart from China, central banks don t intervene to protect their currencies anymore.

But central banks cannot do it alone.

This episode serves as a reminder that central banks are political institutions, with a political agenda, and that independent central banks tend to be captured (at least cognitively ) by the banks that they are supposed to regulate.

Finally, central banks still stand ready to intervene to prevent bank runs.

Foreign bank mergers have proved poisonous for euro zone central bankers.

But how much public capital should be used, and on what terms? Private capital, of course, is preferable, but, given the risk that it will be wiped out by future public intervention, investors will be wary.

They still seem enamored of the standard monetary policy models, in which all central banks have to do to get the economy going is reduce interest rates.

With most shocks to the world economy, we expect central banks to take steps to offset their effects.

Across the board, the world s major central banks have been slow to respond to the deepening crisis.

Central banks in Asia and the Middle East have traditionally held their reserves in dollars.

Thatcher was certainly no friend of central bankers.

They take pride in the expert management of expectations by central banks.