Monetary economics Books

Book Synopsis​Our money system is a toxic left-over from a time when theft on a grand scale – war and empire-building – was glorified. Today, we need to move on from a system that allows and encourages the worst in us (and the worst among us) to prosper. We take the money system for granted. » We accept that banks have the right to create, rent out and then destroy money. » We accept that banks have a right to charge us (and our government) interest on this money. » We accept that the system enhances inequality, drives climate change, degrades our planet, promotes war and conflict, and has always led to eventual disaster. But why do we accept this manifestly undemocratic money system, which serves only to concentrate power and wealth in the hands of organisations and individuals that have profit – not our collective interests – at heart? Curious to find the answer, researcher and writer Ivo Mosley set out to uncover – and tell – the story of how money-creation works and how it came to be this way. Many years in the writing, this book is not an attack on individuals or a rant against bankers. Rather it’s a remarkably clear and comprehensive examination of a system that supports unaccountable and destructive power. It also points the way to the simple reforms that are necessary if we wish to create a more just and equitable world. Easily accessible to readers with no previous knowledge of economics and finance, this is a book for anyone interested in creating a fairer and more sustainable society in the face of economic, financial and environmental crisis.Table of ContentsIntroduction CHAPTER ONE: The Money Supply CHAPTER TWO: Laws That Make Robbery Legal CHAPTER THREE: How Money Works Today: A Quick Summary CHAPTER FOUR: Early Days CHAPTER FIVE: Bubbles and Adam Smith CHAPTER SIX: America, Won and Lost CHAPTER SEVEN: Secrets, Ignorance and Lies CHAPTER EIGHT: Negotiable Debt: A Bit of History CHAPTER NINE: Reform Bibliography Appendix 1: Sir John Holt’s remarks on promissory notes Appendix 2: Extract from The Promissory Notes Act, 1704 Glossary Index

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Book SynopsisWe live in an extraordinary time. Technological advances are happening at a rate faster than our ability to understand them, and in a world that moves faster than we can imagine, we cannot afford to stand still. These advances bring efficiency and abundance—and they are profoundly deflationary. Our economic systems were built for a pre-technology era when labour and capital were inextricably linked, an era that counted on growth and inflation, an era where we made money from inefficiency. That era is over, but we keep on pretending that those economic systems still work. The only thing driving growth in the world today is easy credit, which is being created at a pace that is hard to comprehend—and with it, debt that we will never be able to pay back. As we try to artificially drive an economic system built for the past, we are creating more than just economic trouble. On our current path, our world will become profoundly more polarized and unsafe. We need to build a new framework for our local and global economies, and soon; we need to accept deflation and embrace the abundance it can bring. Otherwise, the same technology that has the power to bring abundance to us and our world will instead destroy it. In this extraordinary contrarian book, Jeff Booth, a leading mind and CEO in e-commerce and technology for 20 years, details the technological and economic realities shaping our present and our future, and the choices we face as we go forward—a potentially alarming, but deeply hopeful situation.

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Book SynopsisSince the financial crisis of 2008/09, the world’s major central banks have been struggling to return their economies to higher growth and to reach their inflation targets. This concise book analyzes the importance of central bank policies for the economy, and specifically investigates the reasons why they have failed to steer inflation as desired. The author, the Chief Economist at Allianz SE, argues that, in an environment of great uncertainty concerning the pass-through of monetary stimulus to the economy, central banks should not focus too narrowly on inflation targets, but should increasingly take the side effects of their actions into account. In particular, he contends that they must seek to minimize the risk of financial booms and busts in order to maximize long-term growth and prosperity.Building on existing research and contributing to the current debate, the book offers a valuable reference guide and food for thought for policymakers, professionals and students alike.Trade Review“This well written, accessible book focuses on the eurozone, the disappearance of inflation is a phenomenon that has gone global. … Heise’s arguments, well expressed and easy to follow, are not merely theoretical musings.” (Claire Jones, Financial Times, ft.com, June 03, 2019)Table of Contents1 Introduction.- 2 Some Reflections on the Secular Decline of Interest Rates.- 3 Uncertainties About the Monetary Transmission Mechanism.- 4 Side Effects of Monetary Accomodation.- 5 Towards a Monetary Policy Fit for the Future.- 6 Conclusion

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Book SynopsisIn response to the Global Financial Crisis and the COVID-19 pandemic, central banks have used all available instruments in their monetary policy tool-kit to avoid financial market disruptions and a collapse in real economic activities. These actions have expanded the size of their balance sheets and altered the composition of the asset-side. This edited book highlights how these assets are managed, providing an intellectual and practical contribution to an under-researched field of central bank responsibilities. It first reviews the sources and uses of domestic and international assets and how they complement—or possibly conflict with—the implementation of monetary policy goals. Next, the book examines the asset management mandate in a balance sheet context before turning to the investment decision-making process from strategic and tactical asset allocation to investment strategies, risk management, governance, reporting and control. Finally, it presents new developments in the field of managing assets at central banks. The individual chapters are written by central bankers, academics, and representatives from International Financial Institutions, each representing a particular aspect of the asset management practice.Practical and powerful insights from a hall of fame of investors, central bankers and scholars, are packed into this one volume. If you could have only one book on central bank asset management, this would be it. —Peter R. Fisher, Clinical Professor, Tuck School of Business at DartmouthJacob Bjorheim draws on his long experience in sovereign asset management to pull together a rich collection of insights from a broad range of expertise. Asset management at central banks has evolved and expanded considerably over the past decade. This book is a timely source of information and guidance. —Guy Debelle, Deputy Governor, Reserve Bank of AustraliaCentral bank balance sheets have grown at a tremendous pace over the last decade and a half. Drawing on contributions from scholars and experienced central bankers from around the world, this timely and insightful book sheds light on how central banks are, and should be, managing their growing balance sheets. —Kjell G. Nyborg, Chaired Professor of Finance, University of Zurich, Author of Collateral Frameworks: The Open Secret of Central BanksCentral banks and monetary authorities are charged with, and being held accountable for, managing portfolios of foreign currency assets of unprecedented size. The essays in this admirable book, written by some of the worlds most highly experienced officials, cover the full range of why and how this is currently being done and how new developments are affecting old practices. Interesting conceptually and immensely useful practically. —William White, Senior Fellow at the C.D. Howe Institute, former Head of the Monetary and Economic Department with the Bank for International Settlements (BIS) and chairman of the Economic and Development Review Committee at the OECDAn excellent and timely review of modern international reserve management, which ought to be read by everyone working with, or simply interested in, international asset management and finance as well as monetary and economic policy. The spectrum of authors is broad and their combined insight is very valuable. —Tom A. Fearnley, Investment Director, Norwegian Ministry of FinanceWith “Asset Management at Central Banks and Monetary Authorities”, Jacob Bjorheim has achieved an editorial tour de force. The book assembles the insightful views of the leading experts in the field, both from an academic and practitioners’ perspective. It bridges the gap between the macroeconomics of central banks and the financial management of their reserves. A must read to understand how central banks are special in the group of institutional investors. —Eric Bouyé, Head of Asset Allocation and Quantitative Strategies, Treasury Department, The World BankThe balance sheet is a large and important toolbox for any central bank and specifically the foreign exchange reserves constitute one the more powerful of these tools. This book provides excellent insight in the various perspectives of managing reserves at a central bank. —Heidi Elmér, Director of Markets Department, Severiges RiksbankThe world of international reserves has changed since the global financial crisis. In this volume, Jacob Bjorheim has assembled a stellar cast of experts to explain how and what that means for reserves management. With chapter authors like Andrew Ang, Jennifer Johnson-Calari, Robert McCauley, Ravi Menon, Simon Potter and Philip Turner, it is a book that every reserve manager must read. —Eli Remolona, Professor of Finance and Director of Central Banking, Asia School of Business in collaboration with MIT SloanJacob Bjorheim has succeeded in bringing together a first-class team of experts, and organising their contributions in an articulated journey from the central banks’ policy mandate to their asset management practices. An indispensable post-crisis update of the subject and a a required reading for anyone professionally involved with central bank’s asset management, or simply curious about a topic benefitting otherwise from limited research. —Louis de Montpellier, Former Global Head, Official Institutions Group, SSGA, and former Deputy Head, Banking Department, Bank for International Settlements (BIS), BaselAt last, a book that shares with a wider audience, deep insight in a unique, challenging and ethical approach of asset management developed and implemented in the secretive world of central banks. If you wonder how to manage funds that stand ready for use at short notice in times of stress then this book is for you. Two features make it such a valuable read and a must-have reference: First, the very comprehensive list of themes covered from a rich diversity of angles. Second, the very impressive list of prominent institutions and authors that have contributed and shared their analysis and practical approaches of the issues presented. What is better than to get the information directly from first-hand practitioners, experts and managers themselves in their own words? —Jean-Pierre Matt, Former Head of Financial Analysis at the Bank for International Settlements (BIS) and founder of QuanteisThis book holds the promise to become the go-to guide for anyone wishing to learn more about the management of official foreign exchange reserves. Central bankers in particular, but also those providing services to central banks, will find benefit from the broad scope in subject matter and varied perspectives being presented. I am yet to see a compendium on official reserve management with similar reach in subject matter. —Leon Myburgh, Former Head Financial Markets Department, South African Reserve Bank (SARB), PretoriaThis is an immensely timely book at a time when central bank operations, and their balance sheets, remain “larger for longer”. Following the Financial Crisis 10 years ago, and with the Covid-19 Recession about to break, central bank balance sheets are at the forefront of the authorities’ response to economic issues as never before. Yet the management of their now large-scale assets remains a little known and little studied area. The authors of this book combine extensive technical and practical experience, and their observations will fill an important gap in the literature at a critical time. —Freyr Hermannsson, Former Head of Treasury, Central Bank of Iceland, ReykjavíkTrade Review“This excellent book fills a critical gap that has existed since the IMF guidelines were revised. It offers important insights and learning for those interested in the practicalities of asset management, how that is evolving and may continue to change, and the interface between the operation of monetary policy and the financial management of official asset portfolios.” (Graeme Wheeler, Central Banking, centralbanking.com, February 18, 2021)Table of ContentsChapter 1. Asset Management at Central Banks and Monetary Authorities.- Chapter 2. Central Banks: Gatekeepers of Monetary Stability and Guardians of Public Interest.- Chapter 3. Larger Central Bank Balance Sheets: A New Normal for Monetary Policy?- Chapter 4. How Countries Manage Large Central Bank Balance Sheets.- Chapter 5. Reserve Accumulation, Sovereign Debt and Exchange Rate Policy.- Chapter 6. The cost of holding foreign exchange reserves.- Chapter 7. Saudi Arabian Monetary Authority: Why do central banks hold domestic and foreign currency assets?- Chapter 8. Safe assets: Made, not just born.- Chapter 9. Expansion and contraction of central bank balance sheets: Implications for commercial banks.- Chapter 10. Management of Canada’s Foreign Exchange Reserves.- Chapter 11. How the Monetary Authority of Singapore (MAS) manages its assets.- Chapter 12. The South African Reserve Bank’s Strategic Asset Allocation Value Chain.- Chapter 13. European Central Bank: The investment decision-making process and its governance.- Chapter 14. Reserves management at Danmarks National Bank: Combining liquidity tiers with an adaptive risk budget.- Chapter 15. The Swiss National Bank’s investment decision-making process from a safe-haven currency perspective.- Chapter 16. The Strategic Asset Allocation Framework of Banco de México.- Chapter 17. Macro risk management in a commodity-dependent economy: The case of the Central Bank of Chile.- Chapter 18. Dynamic Strategic Asset Allocation at the National Bank of Belgium: Why and how to implement it in a central bank.- Chapter 19. Central Bank of Lithuania: Asset allocation in a risk parity framework.- Chapter 20. Good Governance: Principles, Pitfalls and Best Practice.- Chapter 21. Central Bank of Brazil: Investment decision-making in an integrated risk management framework.- Chapter 22. Governance, Risk Management, Reporting, and Control at the Central Bank of Columbia.- Chapter 23. Foreign exchange reserves at the National Bank of Poland: Adequacy, risk-budgets, tranching and financial implications.- Chapter 24. Central Banks as Bankers to Each Other: Overview, Trends, and Future Directions in Global Official Sector Service Provision.- Chapter 25. Modern central bank reserves management: Introduction and overview.- Chapter 26. Bank of Israel: Integrating equities into the foreign exchange reserves.- Chapter 27. Renminbi securities in portfolios of official institutions: A perspective from the Hong Kong Monetary Authority.- Chapter 28. Responsible Investment and central bank asset management.- Chapter 29. BlackRock: Reserves Management with Factors and Reference Portfolios.

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Book SynopsisThis book examines the challenges for the life insurance sector in Europe arising from new technologies, socio-cultural and demographic trends, and the financial crisis. It presents theoretical and applied research in all areas related to life insurance products and markets, and explores future determinants of the insurance industry’s development by highlighting novel solutions in insurance supervision and trends in consumer protection. Drawing on their academic and practical expertise, the contributors identify problems relating to risk analysis and evaluation, demographic challenges, consumer protection, product distribution, mortality risk modeling, applications of life insurance in contemporary pension systems, financial stability and solvency of life insurers. They also examine the impact of population aging on life insurance markets and the role of digitalization. Lastly, based on an analysis of early experiences with the implementation of the Solvency II system, the book provides policy recommendations for the development of life insurance in Europe.Table of ContentsPart I - Market Picture and Development Challenges.- European Life Insurance Market – Analysis of Current Situation and Development Prospects.- Social Determinants of Life Insurance in the European Union.- The Challenges Faced by Life Insurance Companies in the Baltic States.- The Turkish Life Insurance Market – An Evaluation of the Current Situation and Future Challenges.- The Role Played by EIOPA in the Developments in the Insurance Sector European Consumer Protection Model.- A New Model of Investment Life Insurance Distribution in the Context of Consumer Protection EU Policy.- Analysis of Capital Requirements in Life Insurance Sector under Solvency II Regime – Evidence from Poland.- Part II - Innovations and Risk Analysis.- Longevity-Linked Annuities: How to Preserve Value Creation Against Longevity Risk.- Modelling the Life Expectancy of Elderly People for Life Insurance and Pension Systems.- The Challenges for Life Insurance Underwriting Caused by Changes in Demography and Digitalisation.- Innovation in Life Insurance: the Economic Landscape and the Insurance Distribution Directive.- Internet of Things (IoT): Considerations for Life Insurers.- Discussion of Reducing the Risk of Cancer in Life and Health Insurance.

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Book SynopsisThis book explains why inflation remains subdued after recessions, based on three revolutionary concepts: defensive expectations, compensatory savings, and cumulative wage gap. When income falls, consumption falls, and savings rise, as people rebuild their past wealth. Households will not spend more until they fully recover what they lost. The revised Phillips Curve explains that current inflation depends on the cumulative difference between current income and past income.This new theory is tested and validated by data for US since 1960 to date and for 35 OECD countries from 1990 to date. A number of policy implications are derived from these results. The book calls for an optimal policy mix between monetary policy and fiscal policy; it also discusses the coronavirus crisis as an extreme case of defensive expectations.Table of Contents1. The Phillips Curve: what went wrong.- 2. An alternative theory of consumption.- 3. The post-crisis Phillips Curve: cumulative wage gap vs. inflation gap.- 4. Empirical evidence.- 5. Policy implications.

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Book SynopsisThe book examines in depth, the centrality of the Saudi fixed currency regime to the US dollar, SAMA’s monetary tools, macro prudential policies and its supervision of the Saudi commercial banking sector and new sectors such as insurance, the emerging Fin Tech industry as well as a closer examination of SAMA’s investment policies as custodian of the local currency.Saudi Arabia has long been associated with its central role in the global energy market, with its decisions on production volumes affecting the global financial markets. However, the Kingdom has also emerged as a significant global financial player due to its large holdings of international currency, its dominance of the regional Gulf and Arab world capital markets, and the aspirations of its Sovereign Wealth Fund, the Public Investment Fund. The G20 Presidency in 2020 has also placed Saudi Arabia on the global stage for the country to showcase progress in many and opening up its financial market to foreign investors. But the path to financial regulation and liberation to unleash Saudi Arabia’s potential has not come overnight, but through incremental steps and learning by doing. The results speak for themselves as this book examines:• The Saudi Capital Market and the evolution of its main Tadawul and parallel NOMU stock markets following the inclusion of Tadawul in the FTSE Russell, MSCI and S&P EM Indexes• The centrality of the Saudi fixed peg exchange regime as well as a closer examination of SAMA’s investment policies as custodian of the local currency• SAMA’s rebranding in 2020 as a Central Bank, its monetary and macro prudential policies and the re entry of foreign banks to the Saudi market, reversing previous Saudization of foreign bank branches in Saudi Arabia. The Author offers an analysis of the key challenges facing Saudi Arabia in an age of financial globalization, FinTech and digitization. The challenges faced by the Saudi regulators in the COVID 19 era are examined, along with the country’s financial sector objectives as part of the Vision 2030 program, SME financing now a central plank in the country’s Vision 2030 program, the role of FDI in economic growth, the reasons behind Saudi Arabia languishing behind other countries in attracting FDI given the size of its economy and rising domestic and foreign debt levels. It has been an incredible journey for a young country, and by all indications, the journey for expanded global partnership continues as Saudi Arabia also puts into practice its version of the circular carbon economy, its commitment to climate change, and being at the forefront of a new global digital economy.Table of ContentsChapter 1. Evolution of SAMA’s role and monetary and macro prudential policies.- Chapter 2. The Saudi banking sector: from Saudization to Liberalization and its role in economic development.- Chapter 3. The Saudi Capital Market: coming of age.- Chapter 4. Unfinished business challenges ahead and conclusion.

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