Understanding the changing role of central banks and their recent novel policies is essential for analysing many economic and financial issues, ranging from financial regulation and crisis, to exchange rate dynamics and regime changes, and QE and prolonged low interest rates. This book features contributions by the world's leading experts on central banking, providing in accessible essays a fascinating review of today's key issues for central banks. Luminaries including Stephen Cecchetti, Takatoshi Ito, Anil Kashyap, Mervyn King, Donald Kohn, Otmar Issing and Hyun Shin are joined by Charles Goodhart of the London School of Economics and Political Science, whose many achievements in the field of central banking are honoured as the inspiration for this book. The Changing Fortunes of Central Banking discusses the developing role of central banks in seeking monetary and financial stabilisation, while also giving suggestions for model strategies. This comprehensive review will appeal to central bankers, financial supervisors and academics.

‘The contributors to this book constitute an absolute ‘who's who' of central banking and monetary economics. The various chapters present gems of wisdom and reflection from economists whose opinions and thinking have shaped the modern world of central banking. A must for all scholars of monetary policy making and a very useful source for reading lists.'

Richard Baldwin - President, Centre of Economic Policy Research

‘What are the major challenges facing central banks today? And what are the major concerns governments and the general public have about central banks? Just about any response to these questions is covered in this book. And one would expect no less from the prominent thinkers who gathered together for a conference honouring Charles Goodhart - a man who has spent his career leading our thinking on these issues and then putting it in practice setting monetary policy in the UK.'

Kristin J. Forbes - Sloan School of Management, Massachusetts Institute of Technology

‘This is an outstanding collection of papers covering the whole range of central bank activities. I recommend it to all who study monetary policy, exchange rates and financial stability.'

Franklin Allen - Imperial College London

‘This collection of top-notch academic and policy papers covers some key areas of central banking, an important subject of macroeconomic research and policy debate that has been enlightened by Professor Charles Goodhart's many years of pioneer work and ground-breaking contribution. This is a very important and timely publication.'

Xiaochuan Zhou - Governor, The People's Bank of China

‘To run a central bank and set the interest rate can seem to be a narrowly defined undertaking. This book shows the opposite. Central Banking is multifaceted with many different demands and objectives in a changing world. The various contributions give a good account of relevant central bank issues of today.'

Stefan Ingves - Governor of Sveriges Riksbank

‘The financial crisis rightly prompted a rethink of the role of central banks in the modern economy, showing that a healthy focus on price stability had become a dangerous distraction. In response, institutional structures have been reformed, with many governments delegating operational independence for financial policy to central banks, to go alongside their responsibilities for monetary policy. The authors of the essays in this collection have drawn on their deep and varied expertise to provide thoughtful and thought-provoking reflections on the new challenges that these increased responsibilities have brought, as well as those that are ever present.'

Mark Carney - Governor of the Bank of England

‘The essays in honour of Charles Goodhart offer a splendid demonstration of how seminal were and are the many contributions of this great professor and central banker. Issues related to central banking and its changing fortunes are analysed luminously, both from the academic and the policy maker standpoint. A remarkable and useful book inspired by a great mind.'

Jean-Claude Trichet - President of JCT Conseil, Paris, Honorary Governor of Banque de France, and previously President, European Central Bank