Central Banking and its Discontents: The Role of Monetary Policy in Contemporary Capitalism (1/5)
Channel: Heinrich-Böll-Stiftung
Date: 2022-07-12

International conference

The international conference “Central Banking and its Discontents: The Role of Monetary Policy in Contemporary Capitalism” is organized by the University Witten/Herdecke and will take place on July 11-13 at the Heinrich-Böll-Foundation in Berlin.

Keynote I

Katharina Pistor: “Central Banks as Liquidity Conduits”
Monday, 11 July, 15-16:30
 
Capitalism is built on two deeply imbricated social resources: money and law. Three functions are commonly attributed to money: it serves as a means of exchange, a store of value, and a unit of account. Missing is liquidity, which should be added as (state) money’s fourth, and in contemporary money system most central, function. Only money that is backed by a monetary sovereign is truly liquid. Managing liquidity has taken center stage not only in times of crisis but in day-to-day monetary policy. This mirrors a transformation of central banks from guardians of broad public mandates, such as price stability or full employment, into liquidity conduits for the private sector.