Central Banking and the Economics of Information

  • Edward J. Green
Chapter

Abstract

Advances in the economic management of information have worked pervasive change throughout the world economy and its financial system. With respect to one kind of advance, embodied in electronic computing and communications, this change has been highly visible. Another kind of advance, in the design of institutions to function well in private-information environments, has been equally significant. In this paper, I examine how both types of advance affect a key sector of the financial system: central banking. This examination focuses on three areas:
  • Implications of innovation induced by information technology in payment arrangements for monetary policy objectives;

  • Operational and design requirements for electronic information systems to ensure the integrity and security of the financial system (including central bank settlement of large-value payments); and

  • Meaning of, and requirements for, transparency of central bank decision-making.

Keywords

Monetary Policy Central Bank Financial System Federal Reserve Central Bank Independence 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 2001

Authors and Affiliations

  • Edward J. Green
    • 1
  1. 1.Federal Reserve Bank of ChicagoUSA

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