Central banks are powerful but poorly understood organisations. In 1900 the Bank of Japan was the only central bank to exist outside Europe but over the past century central banking has proliferated. John Singleton here explains how central banks and the profession of central banking have evolved and spread across the globe during this period. He shows that the central banking world has experienced two revolutions in thinking and practice, the first after the depression of the early 1930s, and the second in response to the high inflation of the 1970s and 1980s. In addition, the central banking profession has changed radically. In 1900 the professional central banker was a specialised type of banker, whereas today he or she must also be a sophisticated economist and a public official. Understanding these changes is essential to explaining the role of central banks during the recent global financial crisis.
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Acknowledgements
List of abbreviations
1 A beginner's guide to central banking 1
2 Very boring guys? 17
3 Wind in the willows: the small world of central banking c. 1900 34
4 Something for everyone: new central banks, 1900-1939 50
5 A series of disasters: central banking, 1914-1939 69
6 The mysteries of central bank cooperation 91
7 The first central banking revolution 110
8 No time for cosmic thinkers: central banking in the áKeynesian' era 128
9 Rekindling central bank cooperation in the Bretton Woods era 147
10 The goose that lays the golden egg: central banking in developing countries 165
11 The horse of inflation 184
12 The second central banking revolution: independence and accountability 204
13 Reputations at stake: financial deregulation and instability 222
14 Inflation targeting: the holy grail? 241
15 The long march to European monetary integration 259
16 A world with half a million central bankers 277
References 289