Ulrich Bindseil
- Published in print:
- 2019
- Published Online:
- July 2020
- ISBN:
- 9780198849995
- eISBN:
- 9780191884429
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198849995.003.0009
- Subject:
- Economics and Finance, Economic History
The annex presents, with a common template, a catalogue of 25 pre-1800 central banks. While it benefits considerably from previous surveys, it has a narrower focus on central bank operations and ...
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The annex presents, with a common template, a catalogue of 25 pre-1800 central banks. While it benefits considerably from previous surveys, it has a narrower focus on central bank operations and balance sheets, and on the genealogy of central banking. It also includes some banks which are not contained in the previous surveys of Roberds and Velde (the Bank of Scotland, the Banco di Santo Spirito di Roma, the American settlers’ land bank projects, the central bank projects of Leipzig and Cologne, the Copenhagen bank, the Russian Assignation Banks, the Banco Nacional de San Carlo, the Bank of North America, and the Bank of the United States). Not all institutions completely fulfil the definition of a central bank, and particularly not for the entire lifetime of its existence. However, all banks included had, at least in the way they were conceived, important elements of central banking, and thereby at least illustrate the challenges that central bank design faced pre-1800.Less
The annex presents, with a common template, a catalogue of 25 pre-1800 central banks. While it benefits considerably from previous surveys, it has a narrower focus on central bank operations and balance sheets, and on the genealogy of central banking. It also includes some banks which are not contained in the previous surveys of Roberds and Velde (the Bank of Scotland, the Banco di Santo Spirito di Roma, the American settlers’ land bank projects, the central bank projects of Leipzig and Cologne, the Copenhagen bank, the Russian Assignation Banks, the Banco Nacional de San Carlo, the Bank of North America, and the Bank of the United States). Not all institutions completely fulfil the definition of a central bank, and particularly not for the entire lifetime of its existence. However, all banks included had, at least in the way they were conceived, important elements of central banking, and thereby at least illustrate the challenges that central bank design faced pre-1800.
Francesco Papadia and Tuomas Vӓlimӓki
- Published in print:
- 2018
- Published Online:
- April 2018
- ISBN:
- 9780198806196
- eISBN:
- 9780191844058
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198806196.003.0002
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The chapter describes the historical process as well as the analytical and empirical factors that, at the end of the twentieth century, led to the dominance, in advanced economies, of a central bank ...
More
The chapter describes the historical process as well as the analytical and empirical factors that, at the end of the twentieth century, led to the dominance, in advanced economies, of a central bank model based on an independent institution devoted to price stability as its overriding objective. The central bank pre-crisis model was elegant, performing, and efficient. However, it could not easily accommodate the pursuit of a traditionally important central bank objective: financial stability. Indeed, since central banks have, in essence, just one tool, that is, the interest rate, the pursuit of a financial stability objective in addition to a price stability objective could create dilemma situations. In the two decades between the mid-1980s and the mid-2000s, the economies of advanced economies were very stable, and this period was thus identified as Great Moderation. However, subsequent experience showed that, in this period, the crisis was incubating.Less
The chapter describes the historical process as well as the analytical and empirical factors that, at the end of the twentieth century, led to the dominance, in advanced economies, of a central bank model based on an independent institution devoted to price stability as its overriding objective. The central bank pre-crisis model was elegant, performing, and efficient. However, it could not easily accommodate the pursuit of a traditionally important central bank objective: financial stability. Indeed, since central banks have, in essence, just one tool, that is, the interest rate, the pursuit of a financial stability objective in addition to a price stability objective could create dilemma situations. In the two decades between the mid-1980s and the mid-2000s, the economies of advanced economies were very stable, and this period was thus identified as Great Moderation. However, subsequent experience showed that, in this period, the crisis was incubating.
