3,178 research outputs found
Employment-Oriented Central Bank Policy in an Integrated World Economy: A Reform Proposal for South Africa
No full textThe South African Reserve Bank and Ministry of Finance have adopted inflation targeting and the gradual relaxation of exchange controls (along with control of public spending and financial liberalization) as the foundation of their economic policy in an attempt to win the confidence of foreign investors and to attract more foreign investment. However, this policy has not succeded in generating employment growth or investment. Instead, it has contributed to high real interest rates and relative stagnation.In order to improve central bank and capital management policies and have them contribute more to solving the fundamental problems of unemployment and poverty facing the South African economy, three reforms should be undertaken:1) The Reserve Bank should scrap its inflation targeting approach and adopt a more even handed approach which would target employment growth subject to an inflation constraint.2) Rather than loosening the exchange controls system, the Reserve Bank and Ministry of Finance should enforcethe existing controls more strictly, and explore other ways, such as transaction taxes and speed-bumps, to further insulate South African macroeconomic policy from global pressures.3) The South African government should implement other policies and institutions, such as special lending windows, underwriting facilities, asset based reserve requirements and subsidized credit, to further insulate the South African financial markets from the international capital markets and channel credit to employment generating and socially productive activities. This will correct a serious market failure in which international financial markets fail to take into account the social rates of return available on productive investments in South Africa.
An activist revival in central banking? Lessons from the history of economic thought and central bank practice
No full textWe introduce the “minimalist–activist” spectrum as an analytical prism through which to view key aspects of central banking theory and practice. We focus on the activist end of this spectrum, concentrating on economic growth. We explore the theoretical roots of these ideas in the writings of Dennis Robertson. We illustrate central banking practice by detailing some approaches followed by central banks pursuing economic growth and development in the decades following the Second World War. History of monetary thought, monetary theory, and analysis of central bank practices blend together to illuminate key principles and practices of central banking
Rethinking Monetary and Financial Policy: Practical suggestions for monitoring financial stability while generating employment and poverty reduction
No full textAs the world financial crisis deepens, the task of generating decent employment has taken on more urgency, yet now faces even more obstacles then before. Of course, a key component of the solution to the current crisis will be massive expansionary fiscal actions on the part of the rich countries, preferably in a coordinated fashion, but individually if necessary. More aid and support from the rich countries and international institutions to the developing world will also be necessary to avoid a very serious, negative shock for the world's poorest and most vulnerable. In the short and medium run, as before the recent crisis, the key will be to generate large scale increases in decent work if developing countries and the world are to avoid a downward spiral into depression. But what macroeconomic policy frameworks should be used to design policies to address this crises both in the short and in the medium terms? � What is clear is that to design and carry out these employment-oriented macroeconomic policies, the old neo-libereal orthodoxy must be abandoned, and policy makers must look for other policy frameworks to inform their macroeconomic and financial policies. � In this paper, Epstein summarize employment oriented macroeconomic and financial policies that governments in developing countries can adopt to help promote more and better employment as a key to reducing poverty over the medium to long run.
Interview with Samuel Epstein
No full textAn interview in three sessions, December 1985 and January 1986, with Samuel Epstein, William E. Leonhard Professor of Geochemistry in the Division of Geological and Planetary Sciences. Dr. Epstein received his BS (1941) and MS (1942) degrees from the University of Manitoba and his PhD (1944, with Carl Winkler) from McGill University. He became a research fellow at Caltech in 1952 and two years later joined the faculty as an associate professor. He received the Leonhard chair in 1984, retired in 1990, and died on September 17, 2001.
In this interview, he discusses growing up in Poland between the two World Wars and immigration to Winnipeg in 1927. Recalls his first interest in science and influence of Alan Newton Campbell at University of Manitoba; graduate work at McGill; meeting European scientists during war work on Canadian Atomic Energy Project. Moves to McMaster University to work with Henry G. Thode on isotopes, using mass spectrometry; thence to the University of Chicago, 1947, to work with Harold Urey on paleotemperatures and Heinz Lowenstam on marine shells.
He discusses the advent of geochemistry at Caltech in the early 1950s, with the hiring of Harrison Brown, Clair Patterson, Charles McKinney, Gerald Wasserburg, and himself from the University of Chicago. He describes his isotopic work and the evolution of the geology division, especially under Robert Sharp (1952-1968). Comments on Linus Pauling case and Pauling’s departure from Caltech. The interview concludes with comments on current state of Caltech and reminiscences of his career and colleagues
Economics 231: Money and Banking II
No full textCollection includes materials related to Economics 231: Money and Banking II.
Syllabus for Economics 231 taught by Gerald Epstein, Spring 1983.
Handwritten lecture transcript from a money and banking class dated October 8, 1983.
Handwritten lecture notes and transcripts from Economics 231, Spring 1983
Gerald Gorman
No full textPhorograph - Gerald Gorman in traditional Scottish clothing, (Edinburgh, Scotland). A note with the picture reads: "Hoot Mon", The Canadian Kid. Sincerely Yours, Gerald Gorma
Should Financial Flows Be Regulated? Yes
No full textAs the international financial crisis spreads, some governments are using “unconventional tools” of monetary and financial policy to protect themselves. Should policies to control international capital flows be part of the government “toolkit” in these difficult times? This essay answers: YES. It describes the economic arguments for and against using capital controls, prudential regulations and other “capital management techniques” to manage international financial flows, presents empirical evidence on their impacts, and describes the variety of policies that many countries have successfully applied to enhance macroeconomic and financial stability, create policy space, and achieve other national development goals.Sub-sovereign bonds, infrastructure finance, issuers, investors, financial sector, municipal finance
Central Banks as Agents of Economic Development
No full textIn the last two decades, there has been a global sea change in the theory and practice of central banking. The currently dominant “best practice” approach to central banking consists of the following: (1) central bank independence (2) a focus on inflation fighting (including adopting formal “inflation targeting”) and (3) the use of indirect methods of monetary policy (i.e., short-term interest rates as opposed to direct methods such as credit ceilings). This paper argues that this neo-liberal approach to central banking is highly idiosyncratic in that, as a package, it is dramatically different from the historically dominant theory and practice of central banking, not only in the developing world, but, notably, in the now developed countries themselves. Throughout the early and recent history of central banking in the U.S., England, Europe, and elsewhere, financing governments, managing exchange rates, and supporting economic sectors by using “direct methods” of intervention have been among the most important tasks of central banking and, indeed, in many cases, were among the reasons for their existence. The neoliberal central bank policy package, then, is drastically out of step with the history and dominant practice of central banking throughout most of its history.
Central banks as agents of employment creation
No full textEmployment creation has dropped off the direct agenda of most central banks. The so-called “global best practice” approach to central banking has not focused on economic growth or employment generation but rather on keeping inflation in the low single digits. However, the policy record shows that employment generation and economic growth are often not by-products of inflation focused central bank policy. This chapter argues that there should be a return to the historical norm of central bank policy in which employment creation and more rapid economic growth join inflation and stabilization more generally as key goals of central bank policy. Supporting this argument, the chapter summarizes major lessons of a multi-country research project undertaken by an international team of economists which show that, within the constraints of contemporary economic conditions, there are viable alternatives to inflation targeting that can focus more on important social, real sector outcomes such as employment generation and poverty reduction.inflation targeting; employment; central bank; poverty reduction.
- …
