The Art of Monetary Policy

By David C. Colander; Dewey Daane | Go to book overview

2 DENNIS WEATHERSTONE Change and the Art of Monetary Policy

A key element in the art of monetary policy is coping with change. Change is going on all around us; the role of the Fed is to cope with that change as it fulfills its three primary missions: managing domestic monetary policy, regulating bank holding companies and banks, and serving as a lender of last resort for the banking system. In the 1990s the most important change that central banks will be facing is the globalization of monetary policy, so here I mainly discuss the problems central banks will have in coping with that change with reference to globalization of monetary policy.


Alternative Approaches to Change

There are many ways a central bank can carry out its mission. For example, the Fed has a formal structure while the Bank of England works more informally. Since most of this volume will focus on the Fed, let me add some perspective and briefly discuss the Bank of England before I specifically discuss the changes central banks must cope with as they deal with the ongoing globalization of monetary policy.

The Bank of England, which was founded in 1694, has 300 years of experience in being a central bank. It conducts regulatory policy in a flexible style; its powers are broad. The Bank of England is the banks' superviser for regulatory purposes. It takes care of monetary policy and the discount window; it mandates the foreign exchange policy; and it is also very much involved (in an indirect way) in the selection of key people at the various banks.

Because its officials mix freely with the banking community, the Bank of England traditionally has had superb knowledge of what is going on. In fact, the Bank of England used to run a few corporate

-33-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Art of Monetary Policy
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 218

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.