Central Bank Independence
2920058
Central Bank Independence
items
1
0
default
asc
1412
https://mmtproject.org/wp-content/plugins/zotpress/
%7B%22status%22%3A%22success%22%2C%22updateneeded%22%3Afalse%2C%22instance%22%3A%22zotpress-121ef0098afbffa628634f9fc5eb8516%22%2C%22meta%22%3A%7B%22request_last%22%3A0%2C%22request_next%22%3A0%2C%22used_cache%22%3Atrue%7D%2C%22data%22%3A%5B%7B%22key%22%3A%22ZRNFC3SH%22%2C%22library%22%3A%7B%22id%22%3A2920058%7D%2C%22meta%22%3A%7B%22creatorSummary%22%3A%22Wray%22%2C%22parsedDate%22%3A%222014%22%2C%22numChildren%22%3A2%7D%2C%22bib%22%3A%22%3Cdiv%20class%3D%5C%22csl-bib-body%5C%22%20style%3D%5C%22line-height%3A%202%3B%20padding-left%3A%201em%3B%20text-indent%3A-1em%3B%5C%22%3E%5Cn%20%20%3Cdiv%20class%3D%5C%22csl-entry%5C%22%3EWray%2C%20L.%20R.%20%282014%29.%20Central%20Bank%20Independence%3A%20Myth%20and%20Misunderstanding.%20%3Ci%3ESSRN%20Electronic%20Journal%3C%5C%2Fi%3E%2C%20%3Ci%3E791%3C%5C%2Fi%3E.%20%3Ca%20href%3D%27https%3A%5C%2F%5C%2Fdoi.org%5C%2F10.2139%5C%2Fssrn.2407707%27%3Ehttps%3A%5C%2F%5C%2Fdoi.org%5C%2F10.2139%5C%2Fssrn.2407707%3C%5C%2Fa%3E%3C%5C%2Fdiv%3E%5Cn%3C%5C%2Fdiv%3E%22%2C%22data%22%3A%7B%22itemType%22%3A%22journalArticle%22%2C%22title%22%3A%22Central%20Bank%20Independence%3A%20Myth%20and%20Misunderstanding%22%2C%22creators%22%3A%5B%7B%22creatorType%22%3A%22author%22%2C%22firstName%22%3A%22L.%20Randall%22%2C%22lastName%22%3A%22Wray%22%7D%5D%2C%22abstractNote%22%3A%22It%20is%20commonplace%20to%20speak%20of%20central%20bank%20%5Cu201cindependence%5Cu201d%20%5Cu2014%20as%20if%20it%20were%20both%20a%20reality%20and%20a%20necessity.%20While%20the%20Federal%20Reserve%20is%20subject%20to%20the%20%5Cu201cdual%20mandate%2C%5Cu201d%20it%20has%20substantial%20%5Cndiscretion%20in%20its%20interpretation%20of%20the%20vague%20call%20for%20high%20employment%20and%20low%20inflation.%20Most%20important%2C%20the%20Fed%5Cu2019s%20independence%20is%20supposed%20to%20insulate%20it%20from%20political%20pressures%20coming%20from%20Congress%20and%20the%20US%20Treasury%20to%20%5Cu201cprint%20money%5Cu201d%20to%20finance%20budget%20deficits.%20As%20in%20many%20developed%20nations%2C%20this%20prohibition%20was%20written%20into%20US%20law%20from%20the%20founding%20of%20the%20Fed%20in%201913.%20In%20practice%2C%20the%20prohibition%20is%20easy%20to%20evade%2C%20as%20we%20found%20during%20World%20War%20II%2C%20when%20%5Cnbudget%20deficits%20ran%20up%20to%20a%20quarter%20of%20US%20GDP.%20If%20a%20central%20bank%20stands%20ready%20to%20buy%20government%20bonds%20in%20the%20secondary%20market%20to%20peg%20an%20interest%20rate%2C%20then%20private%20banks%20will%20buy%20bonds%20in%20the%20new-issue%20market%20and%20sell%20them%20to%20the%20central%20bank%20at%20a%20virtually%20guaranteed%20price.%20Since%20central%20bank%20purchases%20of%20securities%20supply%20the%20reserves%20needed%20by%20banks%20to%20buy%20government%20debt%2C%20a%20virtuous%20circle%20is%20created%2C%20so%20that%20the%20treasury%20faces%20no%20financing%20constraint.%20That%20is%20what%20the%20%5Cn1951%20Accord%20was%20supposedly%20all%20about%3A%20ending%20the%20cheap%20source%20of%20US%20Treasury%20finance.%20Since%20the%20global%20financial%20crisis%20hit%20in%202007%2C%20these%20matters%20have%20come%20to%20the%20fore%20in%20both%20the%20United%20States%20and%20the%20European%20Monetary%20Union%2C%20with%20those%20worried%20about%20inflation%20warning%20that%20the%20%5Cncentral%20banks%20are%20essentially%20%5Cu201cprinting%20money%5Cu201d%20to%20keep%20sovereign-government%20borrowing%20costs%20low.%20%5CnThis%20paper%20argues%20that%20the%20Fed%20is%20not%2C%20and%20should%20not%20be%2C%20independent%2C%20at%20least%20in%20the%20sense%20in%20which%20that%20term%20is%20normally%20used.%20The%20Fed%20is%20a%20%5Cu201ccreature%20of%20Congress%2C%5Cu201d%20created%20by%20public%20law%20that%20has%20evolved%20since%201913%20in%20a%20way%20that%20not%20only%20increased%20the%20Fed%5Cu2019s%20assigned%20responsibilities%20but%20a%5Cnlso%20strengthened%20congressional%20oversight.%20The%20paper%20addresses%20governance%20issues%2C%20which%2C%20a%20century%20after%20the%20founding%20of%20the%20Fed%2C%20remain%20somewhat%20unsettled.%20While%20the%20Fed%20should%20be%2C%20and%20appears%20to%20be%2C%20insulated%20from%20day-to-day%20political%20pressures%2C%20it%20is%20subject%20to%20the%20will%20of%20Congress.%20Further%2C%20the%20Fed%20cannot%20really%20be%20independent%20from%20the%20Treasury%2C%20because%20the%20Fed%20is%20the%20federal%20government%5Cu2019s%20bank%2C%20with%20almost%20all%20payments%20made%20by%20and%20to%20the%20government%20running%20through%20the%20Fed.%20As%20such%2C%20there%20is%20no%20%5Cu201coperational%20independence%5Cu201d%20that%20would%20allow%20the%20Fed%20to%20refuse%20to%20allow%20the%20Treasury%20to%20spend%20appropriated%20funds.%20Finally%2C%20the%20%5Cnpaper%20addresses%20troubling%20issues%20raised%20by%20the%20Fed%5Cu2019s%20response%20to%20the%20global%20financial%20crisis%3B%20namely%2C%20questions%20about%20transparency%2C%20accountability%2C%20and%20democratic%20governance.%22%2C%22date%22%3A%222014%22%2C%22language%22%3A%22en%22%2C%22DOI%22%3A%2210.2139%5C%2Fssrn.2407707%22%2C%22ISSN%22%3A%221556-5068%22%2C%22url%22%3A%22http%3A%5C%2F%5C%2Fwww.levyinstitute.org%5C%2Fpubs%5C%2Fwp_791.pdf%22%2C%22collections%22%3A%5B%222D58W7HX%22%2C%225VAMIJWQ%22%5D%2C%22dateModified%22%3A%222021-04-22T17%3A24%3A04Z%22%7D%7D%2C%7B%22key%22%3A%22ETVIH3K7%22%2C%22library%22%3A%7B%22id%22%3A2920058%7D%2C%22meta%22%3A%7B%22lastModifiedByUser%22%3A%7B%22id%22%3A7923241%2C%22username%22%3A%22MMN-Librarian%22%2C%22name%22%3A%22%22%2C%22links%22%3A%7B%22alternate%22%3A%7B%22href%22%3A%22https%3A%5C%2F%5C%2Fwww.zotero.org%5C%2Fmmn-librarian%22%2C%22type%22%3A%22text%5C%2Fhtml%22%7D%7D%7D%2C%22creatorSummary%22%3A%22Berkeley%20et%20al.%22%2C%22parsedDate%22%3A%222020-12-26%22%2C%22numChildren%22%3A2%7D%2C%22bib%22%3A%22%3Cdiv%20class%3D%5C%22csl-bib-body%5C%22%20style%3D%5C%22line-height%3A%202%3B%20padding-left%3A%201em%3B%20text-indent%3A-1em%3B%5C%22%3E%5Cn%20%20%3Cdiv%20class%3D%5C%22csl-entry%5C%22%3EBerkeley%2C%20A.%2C%20Tye%2C%20R.%2C%20%26amp%3B%20Wilson%2C%20N.%20%282020%29.%20%3Ci%3EAn%20Accounting%20Model%20of%20the%20UK%20Exchequer%3C%5C%2Fi%3E%20%28The%20Gower%20Initiative%20for%20Modern%20Money%20Studies%20Working%20Papers%2C%20p.%20161%29.%20The%20Gower%20Initiative%20for%20Modern%20Money%20Studies.%20%3Ca%20href%3D%27https%3A%5C%2F%5C%2Fgimms.org.uk%5C%2F2020%5C%2F12%5C%2F26%5C%2Faccounting-model-uk-exchequer%5C%2F%27%3Ehttps%3A%5C%2F%5C%2Fgimms.org.uk%5C%2F2020%5C%2F12%5C%2F26%5C%2Faccounting-model-uk-exchequer%5C%2F%3C%5C%2Fa%3E%3C%5C%2Fdiv%3E%5Cn%3C%5C%2Fdiv%3E%22%2C%22data%22%3A%7B%22itemType%22%3A%22report%22%2C%22title%22%3A%22An%20Accounting%20Model%20of%20the%20UK%20Exchequer%22%2C%22creators%22%3A%5B%7B%22creatorType%22%3A%22author%22%2C%22firstName%22%3A%22Andrew%22%2C%22lastName%22%3A%22Berkeley%22%7D%2C%7B%22creatorType%22%3A%22author%22%2C%22firstName%22%3A%22Richard%22%2C%22lastName%22%3A%22Tye%22%7D%2C%7B%22creatorType%22%3A%22author%22%2C%22firstName%22%3A%22Neil%22%2C%22lastName%22%3A%22Wilson%22%7D%5D%2C%22abstractNote%22%3A%22In%20this%20timely%20study%2C%20the%20authors%20investigate%20the%20structure%20and%20function%20of%20the%20UK%5Cu2019s%20public%20financial%20institutions%2C%20in%20groundbreaking%20depth%20and%20scope.%20Drawing%20on%20historical%20sources%20from%20the%20birth%20of%20the%20modern%20sterling%20economy%2C%20testimonies%20from%20government%20departments%2C%20official%20documentation%2C%20and%20parliamentary%20abstracts%2C%20the%20study%20forensically%20disassembles%20the%20components%20of%20the%20UK%5Cu2019s%20government%20finances%2C%20debunking%20ideology%20and%20half-truths%20along%20the%20way.%5Cn%5CnThe%20authors%20expose%20the%20myth%20of%20Bank%20of%20England%20%5Cu201cindependence%5Cu201d%2C%20and%20illustrate%20the%20central%2C%20driving%20role%20of%20HM%20Treasury%20in%20the%20UK%20financial%20system%20and%20the%20primacy%20of%20Parliament%20in%20determining%20spending%20and%20resourcing%20in%20the%20UK.%5Cn%5CnThe%20study%20describes%20in%20detail%20how%20the%20financial%20operations%20of%20the%20UK%20Government%20work%2C%20and%20the%20accounts%20and%20structure%20of%20the%20UK%20Exchequer%2C%20including%20its%20relationship%20with%20the%20devolved%20UK%20administrations.%5Cn%5CnSupported%20with%20references%20from%20forgotten%20or%20little-known%20sources%20and%20extensive%20appendices%20detailing%20the%20history%20of%20the%20UK%20financial%20system%2C%20this%20important%20work%20destroys%20the%20myths%20and%20obfuscation%20of%20governments%2C%20economists%20and%20the%20financial%20services%20sector%20that%20has%20allowed%20decades%20of%20needless%20austerity%20to%20wreak%20social%20and%20political%20devastation%20in%20the%20UK%20and%20beyond.%5Cn%5CnAs%20such%2C%20this%20is%20an%20overdue%20expos%5Cu00e9%20that%20has%20implications%20beyond%20the%20field%20of%20economic%20literature%20and%20challenges%20the%20basis%20of%20UK%20economic%20policy%20since%20the%201980s.%22%2C%22reportNumber%22%3A%22%22%2C%22reportType%22%3A%22%22%2C%22institution%22%3A%22The%20Gower%20Initiative%20for%20Modern%20Money%20Studies%22%2C%22date%22%3A%222020-12-26T09%3A00%3A03%2B00%3A00%22%2C%22language%22%3A%22en-GB%22%2C%22url%22%3A%22https%3A%5C%2F%5C%2Fgimms.org.uk%5C%2F2020%5C%2F12%5C%2F26%5C%2Faccounting-model-uk-exchequer%5C%2F%22%2C%22collections%22%3A%5B%222D58W7HX%22%2C%225VAMIJWQ%22%5D%2C%22dateModified%22%3A%222021-04-22T17%3A23%3A58Z%22%7D%7D%2C%7B%22key%22%3A%22XA8TB7C6%22%2C%22library%22%3A%7B%22id%22%3A2920058%7D%2C%22meta%22%3A%7B%22creatorSummary%22%3A%22Wray%22%2C%22parsedDate%22%3A%222014%22%2C%22numChildren%22%3A1%7D%2C%22bib%22%3A%22%3Cdiv%20class%3D%5C%22csl-bib-body%5C%22%20style%3D%5C%22line-height%3A%202%3B%20padding-left%3A%201em%3B%20text-indent%3A-1em%3B%5C%22%3E%5Cn%20%20%3Cdiv%20class%3D%5C%22csl-entry%5C%22%3EWray%2C%20L.%20R.%20%282014%29.%20Outside%20Money%3A%20The%20Advantages%20of%20Owning%20the%20Magic%20Porridge%20Pot.%20%3Ci%3ESSRN%20Electronic%20Journal%3C%5C%2Fi%3E%2C%20%3Ci%3E821%3C%5C%2Fi%3E.%20%3Ca%20href%3D%27https%3A%5C%2F%5C%2Fdoi.org%5C%2F10.2139%5C%2Fssrn.2537531%27%3Ehttps%3A%5C%2F%5C%2Fdoi.org%5C%2F10.2139%5C%2Fssrn.2537531%3C%5C%2Fa%3E%3C%5C%2Fdiv%3E%5Cn%3C%5C%2Fdiv%3E%22%2C%22data%22%3A%7B%22itemType%22%3A%22journalArticle%22%2C%22title%22%3A%22Outside%20Money%3A%20The%20Advantages%20of%20Owning%20the%20Magic%20Porridge%20Pot%22%2C%22creators%22%3A%5B%7B%22creatorType%22%3A%22author%22%2C%22firstName%22%3A%22L.%20Randall%22%2C%22lastName%22%3A%22Wray%22%7D%5D%2C%22abstractNote%22%3A%22Over%20the%20past%20two%20decades%20there%20has%20been%20a%20revival%20of%20Georg%20Friedrich%20Knapp%5Cu2019s%20%5Cu201cstate%20money%5Cu201d%20approach%2C%20a%5Cnlso%20known%20as%20chartalism.%20The%20modern%20version%20has%20come%20to%20be%20called%20Modern%20Money%20Theory.%20Much%20of%20the%20recent%20research%20has%20delved%20into%20three%20main%20areas%3A%20mining%20previous%20work%2C%20applying%20the%20theory%20to%20analysis%20of%20current%20sovereign%20monetary%20operations%2C%20and%20exploring%20the%20policy%20space%20open%20to%20sovereign%20currency%20issuers.%20This%20paper%20focuses%20on%20%5Cu201coutside%5Cu201d%20money%20%5Cu2014%20the%20%5Cncurrency%20issued%20by%20the%20sovereign%20%5Cu2014%5Cnand%20the%20advantages%20that%20accrue%20to%20nations%20that%20make%20full%20use%20of%20the%20policy%20space%20provided%20by%20outside%20money.%22%2C%22date%22%3A%222014%22%2C%22language%22%3A%22en%22%2C%22DOI%22%3A%2210.2139%5C%2Fssrn.2537531%22%2C%22ISSN%22%3A%221556-5068%22%2C%22url%22%3A%22http%3A%5C%2F%5C%2Fwww.levyinstitute.org%5C%2Fpubs%5C%2Fwp_821.pdf%22%2C%22collections%22%3A%5B%222D58W7HX%22%2C%225VAMIJWQ%22%5D%2C%22dateModified%22%3A%222021-04-22T17%3A17%3A07Z%22%7D%7D%5D%7D
Wray, L. R. (2014). Central Bank Independence: Myth and Misunderstanding. SSRN Electronic Journal, 791. https://doi.org/10.2139/ssrn.2407707
Berkeley, A., Tye, R., & Wilson, N. (2020). An Accounting Model of the UK Exchequer (The Gower Initiative for Modern Money Studies Working Papers, p. 161). The Gower Initiative for Modern Money Studies. https://gimms.org.uk/2020/12/26/accounting-model-uk-exchequer/
Wray, L. R. (2014). Outside Money: The Advantages of Owning the Magic Porridge Pot. SSRN Electronic Journal, 821. https://doi.org/10.2139/ssrn.2537531