Kähler J, Weber C (2023)
Publication Language: English
Publication Type: Book chapter / Article in edited volumes
Publication year: 2023
Publisher: Routledge
Edited Volumes: The EU in a Globalized World
Series: Routledge Series on Global Order Studies
City/Town: Oxon and New York, NY
Pages Range: 115-131
ISBN: 9781003326083
In normal, non-crisis times, monetary policy is a non-spectacular form of economic policy. Some central banks try to dampen the business cycle with anti-cyclical monetary policy that gradually lower interest rates or expand money supply in a recession and gradually increase interest rates or decrease the rate of money growth when the economy is “overheating” and inflation surges. The last two decades have shown that, in a globalized world, the tendencies for crises to be transmitted worldwide has increased substantially. This is due to globally connected financial markets and a very substantial increase in international trade. The Subprime Crisis led to a substantial tightening of financial regulation and supervision and central banks around the globe were called upon to rescue banks. Instead of varying the interest rate at which a central bank lends money, it can change the supply of money it provides to banks as an instrument of monetary policy.
APA:
Kähler, J., & Weber, C. (2024). European Monetary Policy in a Globalized World: From Low to High Politics. In Thomas Hoerber, Alexandre Bohas, Stefano Valdemarin (Eds.), The EU in a Globalized World. (pp. 115-131). Oxon and New York, NY: Routledge.
MLA:
Kähler, Jürgen, and Christoph Weber. "European Monetary Policy in a Globalized World: From Low to High Politics." The EU in a Globalized World. Ed. Thomas Hoerber, Alexandre Bohas, Stefano Valdemarin, Oxon and New York, NY: Routledge, 2024. 115-131.
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