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What Is the Point of Central Banks’ Interventions?

  • Dimitris N. Chorafas
Chapter
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

There is a saying in the financial industry that, while central bankers have not been perfect, politicians have been worse. When governments took responsibility for decisions that should have been made by the central banks, or dominated central banking policies, they created a devastating inflation that:
  • Destroyed savings,

  • Distorted incentives, and

  • Imposed the worst sort of taxation on the whole population.

Keywords

Monetary Policy Central Bank Federal Reserve Deposit Insurance Federal Fund Rate 
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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Notes

  1. 1.
    D. N. Chorafas, Sovereign Debt Crisis, the New Normal and the New Poor, Palgrave Macrnillan. Basingstoke. 2011.CrossRefGoogle Scholar
  2. 4.
    R. Christopher Whalen, Inflated, Wiley, New York, 2011.Google Scholar
  3. 12.
    Milton Friedman, Dollars and Deficits, Prentice-Hall, Englewood Cliffs, NJ, 1968.Google Scholar
  4. 33.
    D. N. Chorafas, Financial Boom and Gloom: The Credit and Banking Crisis of 2007–2009 and Beyond, Palgrave Macmillan, Basingstoke, 2009.CrossRefGoogle Scholar
  5. 36.
    Simon Johnson and Tames Kwak. 13 Bankers. Vintage Books, New York, 2011.Google Scholar

Copyright information

© Dimitris N. Chorafas 2012

Authors and Affiliations

  • Dimitris N. Chorafas

There are no affiliations available

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