Central Banking in Theory and Practice

Sep 13, 2013


This seminar will explore the relationship between the theoretical and legal design of central banks and their real-world actions. Questions to be addressed include:

What roles do central banks play according standard macroeconomic models? How accurate are these views?

What role do legal mandates play in the formation of central bank policy?

What does central bank independence mean in practice? How important is independence for effective macroeconomic policymaking?


James K. Galbraith
Professor of Government, Lloyd M. Bentsen Jr. Chair in Government/Business Relations
the Lyndon B. Johnson School of Public Affairs, The University of Texas at Austin
Matias Vernengo
Associate Professor of Economics
University of Utah
Lord Adair Turner
Senior Fellow
Institute for New Economic Thinking
Richard Clarida
C. Lowell Hariss Professor of Economics and International Affairs
Columbia University

Core Reading

Statement To The Subcommittee On Domestic Monetary Policy, Committee On Financial Services, U.S. House Of Representatives

Galbraith, James K. Statement to the Subcommittee on Domestic Monetary Policy, Committee on Financial Services, U.S. House of Representatives. Hearings on the Conduct of Monetary Policy under the Humphrey-Hawkins Full Employment and Balanced Growth Act ed. Subcommittee on Domestic Monetary Policy, Committee on Financial Services., 2007.


Debt, Money, And Mephistopheles: How Do We Get Out Of This Mess?

Turner, Adair Debt, Money, and Mephistopheles: How Do We Get out of This Mess?. Cass Business School, 2013.

 Debt, Money, and Mephistopheles.pdf

Helicopter Money As A Policy Option

Reichlin, Lucrezia, Adair Turner, and Michael Woodford Helicopter Money as a Policy Option. Vox, 2013.


The Failure Of Free-Market Finance

Turner, Adair The Failure of Free-Market Finance. Project Syndicate, 2013.


Heterodox Central Bankers: Eccles, Prebisch And Financial Reform In 1930s

Caldentey, Esteban Pérez, and Matías Vernengo Heterodox Central Bankers: Eccles, Prebisch and Financial Reform in 1930s. Department of Economics Working Paper Series. University of Utah, 2012.

 Heterdox Central Bankers.pdf