NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Central Banks: Evolution and Innovation in Historical Perspective

Michael D. Bordo, Pierre L. Siklos

NBER Working Paper No. 23847
Issued in September 2017
NBER Program(s):The Monetary Economics Program

Central banks have evolved for close to four centuries. This paper argues that for two centuries central banks caught up to the strategies followed by the leading central banks of the era; the Bank of England in the eighteenth and nineteenth centuries and the Federal Reserve in the twentieth century. It also argues that, by the late 20th century, small open economies were more prone to adopt a new policy regime when the old one no longer served its purpose whereas large, less open, and systemically important economies were more reluctant to embrace new approaches to monetary policy. Our study blends the quantitative with narrative explanations of the evolution of central banks. We begin by providing an overview of the evolution of monetary policy regimes taking note of the changing role of financial stability over time. We then provide some background to an analysis that aims, via econometric means, to quantify the similarities and idiosyncrasies of the ten central banks and the extent to which they represent a network of sorts where, in effect, some central banks learn from others.

download in pdf format
   (807 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23847

Users who downloaded this paper also downloaded* these:
Farhi and Tirole w23930 Shadow Banking and the Four Pillars of Traditional Financial Intermediation
Stiglitz w23795 Where Modern Macroeconomics Went Wrong
Pavcnik w23878 The Impact of Trade on Inequality in Developing Countries
Krishnamurthy and Muir w23850 How Credit Cycles across a Financial Crisis
Bordo and Levin w23711 Central Bank Digital Currency and the Future of Monetary Policy
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us