Central Banks and Financial Markets
Subtitle: The Declining Power of US Monetary Policy
By: Hasan Cömert, Middle East Technical University, Turkey
Publisher: Edward Elgar
Published: 2013
Place of publication: Cheltenham, UK
Language: eng
Number of pages: 207
ISBN-13: 9781781004043; 9781781004050
Subjects: Monetary policy
Description: In the wake of the financial crisis of 2008, there has been increasing debate over the appropriate role of central banks in mitigating economic disaster. This timely volume combines detailed historical and econometric analyses to explore the profound changes that occurred within the US financial system from the 1980s to the present, and shows how these changes have affected the US economy. Hasan Cömert demonstrates how dramatic shifts in the financial system undermined the ability of the US Federal Reserve to control the price and quantity of credit. He identifies several key factors that facilitated this loss of control, including deregulation, rapid financial innovations, increased financial integration and a number of policy decisions implemented within the Federal Reserve itself. Through a combination of several methods, including historical and institutional analyses, descriptive statistics, simulation and econometric techniques, the author provides a well-rounded and vitally important picture of the US financial system and offers insightful policy recommendations for the future.
Notes: Includes bibliographical references (pages 186-199) and index.