Skip navigation

Bookboon.com Download free eBooks and textbooks

Choose a category

Central Banking & Monetary Policy: An Introduction

Central Banking & Monetary Policy: An Introduction
Not enough reviews yet
ISBN: 978-87-403-0605-7
1 edition
Pages : 143
Price: Free

Download for FREE in 4 easy steps...

We are terribly sorry, but in order to download our books or watch our videos, you will need a browser that allows JavaScript.
After entering your email address, a confirmation email will be sent to your inbox. Please approve this email to receive our weekly eBook update. We will not share your personal information with any third party.

This is a Premium eBook - get it free for 30 days

You can also read this in Bookboon.com Premium

Summary

This book presents an introduction to central banking and monetary policy.

300+ Business books exclusively in our Premium eReader

  • No adverts
  • Advanced features
  • Personal library
More about Premium

Buy this eBook

Buy now

Subscribe to all 800+ eBooks

Start free trial 30 day FREE trial

About the book

  1. Description
  2. Content
  3. About the Author
  4. Embed

Description

This book presents an introduction to central banking and monetary policy. We, the public, accept the following as money (M) (that is, the means of payments / medium of exchange): notes and coins (N&C) and bank deposits (BD). Because we do, we place banks in a unique situation: the major part of their liabilities is BD; therefore they are able to create BD simply by making loans. Because banks are aggressive competitors and their creditworthiness checks on customers are therefore not always sober, they are inherently unstable. This means the public needs an entity to monitor the banks and to curb excessive money creation: a central bank. Excessive money creation causes inflation and inflation management by the public (ie hedging) diverts attention away from productive behaviour; this is not conducive for economic output and welfare. Central banking is not just about monetary policy. It is also about being banker and advisor to government and managing the money and banking system.

Content

  1. Essence of central banking
    1. Learning outcomes
    2. Introduction
    3. Milieu of the central bank: the financial system
    4. Context of central banking: financial stability
    5. Balance sheet of a central bank
    6. Money creation
    7. Functions of central banks
    8. Bibliography
  2. Banker & advisor to government
    1. Learning outcomes
    2. Introduction
    3. The interbank markets
    4. Bank liquidity management
    5. Banker to government
    6. Tax and loan accounts
    7. Public debt management
    8. Administration of exchange controls
    9. Bibliography
  3. Management of money & banking system
    1. Learning outcomes
    2. Introduction
    3. Banker to private sector banks
    4. Settlement of interbank claims
    5. Supervision of payments system
    6. Lender of last resort
    7. Currency (notes and coins) management
    8. Bank supervision
    9. Management of foreign assets
    10. Development of the debt market
    11. Bibliography
  4. Money creation & framework of monetary policy
    1. Learning outcomes
    2. Introduction
    3. Measuring money
    4. Money identity: sources of money creation
    5. Example: government issues bonds
    6. Statutory environment
    7. Objectives of monetary policy
    8. Price stability
    9. Inflation targeting monetary policy framework
    10. Monetary policy accountability and transparency
    11. Limitations of monetary policy
    12. Instruments of monetary policy
    13. Independence of central banks
    14. Bibliography
  5. Monetary policy: models & transmission
    1. Learning outcomes
    2. Introduction
    3. Models of monetary policy
    4. Path of monetary policy: from interest to inflation
    5. Bibliography
  6. Endnotes

About the Author

Alexander Pierre Faure graduated from Elsenburg Agricultural College after school and went on to Stellenbosch University where he graduated with BA (Commerce), Hons BA (Economics), MA (Economics), and PhD (Economics).

He also successfully completed the Stockbroker Examination Requirements at Witwatersrand University (and is a registered Stockbroker - presently non-broking status).

He first worked for the central bank, where he was involved in compiling the monetary statistics (money stock and sources of change, and money market liquidity analysis) and later in the execution of monetary policy.

His career after central banking included private sector banking (the recipient of monetary policy), stockbroking (influenced by monetary policy) and interest rate analysis (reading monetary policy).

After his private sector experience, he became an academic and held the positions Investec Chair in Money and Banking (at Rhodes University and the University of Fort Hare) and Foord Chair in Investments (at Rhodes University).

He is currently at Rhodes University where he teaches financial markets and monetary economics.

He has published widely, including books and papers (his recent papers can be found at: http://ssrn.com/author=1786379).

He also served on a number of boards of directors, holding the positions of Non-executive Director and Managing Director.

Embed

Size
Choose color
Implementation code. Copy into your own page
Embed Frame - Terms of Use

The embed frame is free to use for private persons, universities and schools. It is not allowed to be used by any company for commercial purposes unless it is for media coverage. You may not modify, build upon, or block any portion or functionality of the embed frame, including but not limited to links back to the bookboon.com website.

The Embed frame may not be used as part of a commercial business offering. The embed frame is intended for private people who want to share eBooks on their website or blog, professors or teaching professionals who want to make an eBook available directly on their page, and media, journalists or bloggers who wants to discuss a given eBook

If you are in doubt about whether you can implement the embed frame, you are welcome to contact Thomas Buus Madsen on tbm@bookboon.com and seek permission.