Central banks across the planet are engaging in a robust agenda that would have been unrecognizable just a few years ago. Quantitative easing, macro prudential monitoring, asset market support in Europe have all made it much more difficult to understand what a central bank does and does not do.
In the mystical realm of money, are central banks courting controversy that will threaten their credibility and stature within society?
Watch the keynote panel on “The Future of Central Banking” at the Institute for New Economic Thinking’s conference in Hong Kong.
- Charles Goodhart – Professor, London School of Economics
- Richard Koo – Chief Economist of Nomura Research Institute
- Liu Mingkang – Distinguished Fellow, Fung Global Institute
- Adam Posen – President of the Peterson Institute for international Economics
[youtube height=”390″ width=”640″]http://www.youtube.com/watch?v=wjUO6So8BzQ[/youtube]
“What has happened is that the money multiplier has totally and absolutely collapsed. Alongside the enormous expansion of central banks’ balance sheets, there has been relatively little expansion in broad money. In most cases the bank lending to private sector in most of our economies is actually going down rather than up.
And what’s more, we don’t have any good theory any longer what it is that actually determines the money stock.”
Prof Charles Goodhart