The Future of Central Banking
A central bank will usually be primarily concerned about three aspects of stability. These are the maintenance of: (1) domestic price stability, (2) external stability of the value of the currency, and (3) overall systemic stability in the financial system.
An Essay on the interactions between the Bank of England's forecasts, the MPC's policy adjustments, and the eventual outcome
There are long, (and often variable), lags between a change in interest rates and its effect on real output and inflation. Hence policy should be...
Per Jacobsson Lecture: Some New Directions for Financial Stability?
Per Jacobsson Lecture delivered by Charles Goodhart at the LSE in September 2004.
A risk assessment model for banks
The objective of this paper is to propose a model to assess risk for banks. Its main innovation is to incorporate endogenous interaction between banks...
A model to Analyse financial fragility: applications
The purpose of our work is to explore contagious financial crises. To this end, we use simplified, thus numerically solvable, versions of our general...
Basel and procyclicality: a comparison of the standardised and IRB approaches to an improved credit risk method
Our procedure here is to try to reconstruct a typical bank portfolio for a country and then, holding the presumed loan book unchanged over time, (i.e...
FCIs and Economic Activity: Some International Evidence
A Monetary Conditions Index (MCI), a weighted average of the short-term real interest rate and the real exchange rate, is a commonly used indicator of...
The IS Curve and the Transmission of Monetary Policy: Is there a Puzzle?
In this paper we assess the performance of the New Keynesian IS Curve for the G7 countries. We find that there is an IS puzzle for both the purely...
Analysis of spreads in the dollar/euro and Deutsche Mark/dollar foreign exchange markets
This paper tries to provide a simple explanation for the empirical finding, documented here and also by Hau, Killeen and Moore (2002), that spreads in...
An Academic Response to Basel II
It is our view that the Basel Committee for Banking Supervision, in its Basel II proposals, has failed to address many of the key deficiencies of the...
The impact of technology on cash usage
“Cash is dirty ... Cash is heavy ... Cash is inequitable ... Cash is quaint, technologically speaking ... Cash is expensive ... Cash is obsolete.”...
The Organisational Structure of Banking Supervision
In this paper I try to address the question of whether, and why, it matters whether banking supervision is undertaken in-house in the Central Bank or...
