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Democratic Central Banks

  • Christian Felber
Chapter

Abstract

This chapter deals with central banks and the crucial questions such as whom they should belong to, how their governing bodies should be composed and, most importantly, who they receive their mandates from and with which objectives. The proposal is that central banks should be 100% public, that their governing bodies should be composed of stakeholders from all sectors of society and that their mandate should come directly from the sovereign—in analogy that parliaments are elected directly by the citizens. As for the goals, three models are discussed: the European Central Bank model (highest priority is price stability), the Federal Reserve model (price stability and full employment are targeted simultaneously) and an alternative model (price stability, full employment and limited finance of sovereign debt). Finally, the idea of a “Monetative,” the development of the central bank to a fourth independent state power is proposed—which would be mandated directly by the sovereign citizens.

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  • Christian Felber
    • 1
  1. 1.Economics and BusinessVienna UniversityViennaAustria

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