The recent Great Recession has renewed interest in the role of financial markets and credit in the economy, as well as in the boundaries of monetary, macroprudential and fiscal policies that impact macroeconomic developments and may influence business cycles. In the first two chapters of this...

Chapter 1. Introduction -- Chapter 2. From War Financier to Bankers’ Bank -- Chapter 3. Central Banks under the Gold Standard -- Chapter 4. The Federal Reserve: A Unique Institution -- Chapter 5. From War to War: 1914-1939 -- Chapter 6. Post-war Progress: 1946-1960 -- Chapter 7. The 1960s:...

Central banks are major players in today's economic and financial policy making. While respected for their technical acumen and their pivotal role in defusing the global financial crisis, they are at the same time mistrusted by others and considered to be too powerful. In order to contribute to...