Banking on the Future

Thecrash of 2008 revealed that the world's central banks had failed tooffset the financial imbalances that led to the crisis, and lackedthe tools to respond effectively. What lessons should central bankslearn from the experience, and how, in a global financial system,should cooperation between them be enhanced? "Banking on theFuture" provides a fascinating insider's look into how centralbanks have evolved and why they are critical to the functioning ofmarket economies. The book asks whether, in light of the recenteconomic fallout, the central banking model needs radical reform.Supported by interviews with leading central bankers from around theworld, and informed by the latest academic research, "Banking onthe Future" considers such current issues as the place of assetprices and credit growth in anti-inflation policy, the appropriaterole for central banks in banking supervision, the ways in whichcentral banks provide liquidity to markets, the efficiency andcost-effectiveness of central banks, the culture and individualsworking in these institutions, as well as the particular issuesfacing emerging markets and Islamic finance.
Howard Davies andDavid Green set out detailed policy recommendations, including areformulation of monetary policy, better metrics for financialstability, closer links with regulators, and a stronger emphasis oninternational cooperation. Exploring a crucial sector of the globaleconomic system, "Banking on the Future" offers new ideasfor restoring financial strength to the foundations of centralbanking.