 The Swiss National BankW. Blackman
Chapter 5 in Swiss Banking in an International Context, 1989, pp 104-124 from Palgrave Macmillan Abstract: Abstract A pamphlet distributed by the Swiss National Bank begins with the following paragraph: A stable monetary system is one of the prerequisites for the prosperity of the economy. Experience has shown that the creation of money must not be left to market forces but has to be regulated by a public body. This task is performed by the central banks.1 ‘Experience’, of course, has also shown that central banks have made colossal mistakes in the past.2 They have contributed to deflation and certainly, in league with governments during times of stress such as war and post-war periods, have been largely responsible for inflation. Central banks are administered by humans and are subject to human error. Market forces, on the other hand, are impersonal, and while we might not believe that money is a ‘commodity’ like other commodities to be priced in a free market, we do, none the less, surrender the impersonal efficiencies of market forces when we decide to place the control of the money supply in the hands of central bankers. There is one exception to this. Keywords: Monetary Policy; Central Bank; Foreign Exchange; Banking System; Money Supply (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-10656-1_5 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-10656-1_5 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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