The Law of Monetary Finance under Unconventional Monetary Policy

Will Bateman

Oxford Journal of Legal Studies, 2021, vol. 41, issue 4, 929-964

Abstract: Monetary finance (money creation by central banks to fund public expenditure) is a high-profile part of economic, political and policy debates concerning the legitimacy of central banks in liberal economies and democracies. This article makes a distinctively legal contribution to those debates by analysing the legal frameworks governing monetary finance in three prominent central banking systems between 2008 and 2020: the Federal Reserve System, the Eurosystem and the Bank of England. It begins by explaining the law governing central bank and national treasury relations in the United States, the EU and the UK. It then examines how that law operated under the unconventional monetary policies adopted by central banks in response to the financial crisis and the COVID-19 pandemic. The article concludes by reflecting on the challenges monetary finance presents to the sui generis position of central banks in the liberal constitutional order.

Keywords: central banking; monetary policy; Bank of England; European Central Bank; Federal Reserve System; quantitative easing (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1093/ojls/gqab008 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxjlsj:v:41:y:2021:i:4:p:929-964.

Access Statistics for this article

Oxford Journal of Legal Studies is currently edited by Liz Fisher, Stefan Enchelmaier, Andreas Televantos, Liora Lazarus and Jennifer Payne

More articles in Oxford Journal of Legal Studies from Oxford University Press
Bibliographic data for series maintained by Oxford University Press ().