A central bank,reserve bank,or monetary authority is an institution that manages the currency and monetary policy of a state or formal monetary union,and oversees their commercial banking system. In contrast to a commercial bank,a central bank possesses a monopoly on increasing the monetary base. Most central banks also have supervisory and regulatory powers to ensure the stability of member institutions,to prevent bank runs,and to discourage reckless or fraudulent behavior by member banks.
A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s,and from the late 1920s to 1932 as well as from 1944 until 1971 when the United States unilaterally terminated convertibility of the US dollar to gold foreign central banks,effectively ending the Bretton Woods system. Many states nonetheless hold substantial gold reserves.
In economics,inflation is a general increase in the prices of goods and services in an economy. When the general price level rises,each unit of currency buys fewer goods and services;consequently,inflation corresponds to a reduction in the purchasing power of money. The opposite of inflation is deflation,a sustained decrease in the general price level of goods and services. The common measure of inflation is the inflation rate,the annualized percentage change in a general price index. As prices do not all increase at the same rate,the consumer price index (CPI) is often used for this purpose. The employment cost index is also used for wages in the United States.
Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply have major influences on national output in the short run and on price levels over longer periods. Monetarists assert that the objectives of monetary policy are best met by targeting the growth rate of the money supply rather than by engaging in discretionary monetary policy. Monetarism is commonly associated with neoliberalism.
In economics,deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%. Inflation reduces the value of currency over time,but sudden deflation increases it. This allows more goods and services to be bought than before with the same amount of currency. Deflation is distinct from disinflation,a slow-down in the inflation rate,i.e. when inflation declines to a lower rate but is still positive.
Monetary economics is the branch of economics that studies the different competing theories of money:it provides a framework for analyzing money and considers its functions,and it considers how money can gain acceptance purely because of its convenience as a public good. The discipline has historically prefigured,and remains integrally linked to,macroeconomics. This branch also examines the effects of monetary systems,including regulation of money and associated financial institutions and international aspects.
Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing or the money supply,often as an attempt to reduce inflation or the interest rate,to ensure price stability and general trust of the value and stability of the nation's currency.
The causes of the Great Depression in the early 20th century in the United States have been extensively discussed by economists and remain a matter of active debate. They are part of the larger debate about economic crises and recessions. The specific economic events that took place during the Great Depression are well established.
The Bank of France,headquartered in Paris,is the central bank of France. Founded in 1800,it began as a private institution for managing state debts and issuing notes. It is responsible for the accounts of the French government,managing the accounts and the facilitation of payments for the Treasury and some public companies. It also oversees the auctions of public securities on behalf of the European Central Bank.
Ricardo A. M. R. Reis is a Portuguese economist and the A. W. Phillips professor of economics at the London School of Economics. In a 2013 ranking of young economists by Glenn Ellison,Reis was considered the top economist with a PhD between 1996 and 2004.,and in 2016 he won the Germán Bernácer Prize for top European-born economist researching macroeconomics and finance. He writes a weekly op-ed for the Portuguese newspaper Jornal de Notícias and Expresso,and participates frequently in economic debates in Portugal.
Inflation targeting is a monetary policy where a central bank follows an explicit target for the inflation rate for the medium-term and announces this inflation target to the public. The assumption is that the best that monetary policy can do to support long-term growth of the economy is to maintain price stability,and price stability is achieved by controlling inflation. The central bank uses interest rates as its main short-term monetary instrument.
George Selgin is an American economist. He is Senior Fellow and Director Emeritus of the Cato Institute's Center for Monetary and Financial Alternatives,where he is editor-in-chief of the center's blog,Alt-M,Professor Emeritus of economics at the Terry College of Business at the University of Georgia,and an associate editor of Econ Journal Watch. Selgin formerly taught at George Mason University,the University of Hong Kong,and West Virginia University.
Advanced Placement (AP) Macroeconomics is an Advanced Placement macroeconomics course for high school students that culminates in an exam offered by the College Board.
David Ernest William Laidler is an English/Canadian economist who has been one of the foremost scholars of monetarism. He published major economics journal articles on the topic in the late 1960s and early 1970s. His book,The Demand for Money,was published in four editions from 1969 through 1993,initially setting forth the stability of the relationship between income and the demand for money and later taking into consideration the effects of legal,technological,and institutional changes on the demand for money. The book has been translated into French,Spanish,Italian,Japanese,and Chinese.
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts,such as taxes,in a particular country or socio-economic context. The primary functions which distinguish money are as a medium of exchange,a unit of account,a store of value and sometimes,a standard of deferred payment.
The Shadow Open Market Committee (SOMC) is an independent group of economists,first organized in 1973 by Professors Karl Brunner,from the University of Rochester,and Allan Meltzer,from Carnegie Mellon University,to provide a monetarist alternative to the views on monetary policy and its inflation effects then prevailing at the Federal Reserve and within the economics profession.
Fiat money is a type of currency that is not backed by any commodity such as gold or silver. It is typically declared by a decree from the government to be legal tender. Throughout history,fiat money was sometimes issued by local banks and other institutions. In modern times,fiat money is generally established by government regulation.
Leonardo Auernheimer was an economist,professor,and international monetary consultant..
Kevin Dowd is a British economist,having research interests in private money and free banking,monetary systems and macroeconomics,financial risk measurement and management,risk disclosure,political economy and policy analysis,and pensions and mortality modelling. As of this date,he is a partner in Cobden Partners based in London,and Professor of Finance and Economics at Durham University Business School.
Michael David Bordo is a Canadian and American economist,currently Board of Governors Professor of Economics and Distinguished Professor of Economics at Rutgers University. He is a Research Associate at the National Bureau of Economic Research as well as a Distinguished Visiting Fellow at the Hoover Institution at Stanford University. He is the third most influential economic historian worldwide according to the RePEc/IDEAS rankings. He was a student of Milton Friedman and has co-authored numerous books and articles with Anna Schwartz.
