No. 57 - Why do we need a Central Bank?

by Charles Goodhart
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During the last few years the main focus of monetary economics has been changing. Previously the main concern was basically macroeconomic, largely concerned with the selection of an optimal monetary target, with the main techniques used for this purpose involving regression analysis of aggregate time series, relating the money stock, prices and output, and interest rates. Now all that is changing. This is partly under the pressure of events, as financial innovations, deregulation, etc., have lead to instability in these time series relationships; and partly owing to theoretical advances by economists in what may be called the Minneapolis school, notably Lucas, Sargent and Wallace.

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  1. 31 January 1986
    No. 57 - Why do we need a Central Bank?
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