Towards the Next Revolution in Central Banking: A Radical Framework for Monetary Policy

This book critically explores past and present principles of central banking, and outlines a new framework for future stabilization policy. Through compact and concise chapters, it demonstrates why a constant long-term interest rate would be the most beneficial target for monetary policy to follow. A novel set of policy tools and institutional arrangements suitable to reliably meet this target are developed.

It is argued that the proposed framework would be clearly superior to conventional p...