Never in history has central banking been more important or the activities of central bankers more creative and daring. The Bank of Japan's efforts to raise the inflation rate to stimulate a long deflated economy, the European Central Bank's response to the sovereign debt crises of Eurozone members, and U.S. Fed chairman Ben Bernanke's targeting of a 6.5 percent unemployment rate--these topics and more are covered in this essential book. This timely coverage of an era of innovation makes the book an attractive supplement for use in Macroeconomics or Money and Banking courses.
The book starts with the history of central banking in England and the United States and explains in detail how the Fed works. It goes on to cover the Fed's recent unprecedented activities to keep the Great Recession from spiraling into Greatest Depression. The author makes the case that central banks have played a positive role by acting to stabilize economies in crisis and allow time for necessary fundamental adjustments. A last chapter presents a detailed scorecard of the Fed chairmen over the last 40 years.
The author's writing style is light and lively as he takes readers behind the curtain of secrecy that has made central banks seem so mysterious and mystifying. His goal is to improve our understanding of the vital role that central banks can play in keeping modern economies on a stable and sustainable growth path that creates jobs and prosperity.