F1IP 5005 - The role of central banks in economic and financial policy-making

The financial crisis of 2008 revealed that the developed world's central banks had

failed to react to the dangerously rapid growth in credit which led to the meltdown.

Since than the toolkit available to central banks has been overhauled. In North

America and Europe, in particular, they have been given new responsibilities. But

questions are still raised about the range of functions they should have, and the

degree of independence needed to carry them out. We will begin with a historical

review of the major Central Banks, before discussing questions of structure,

accountability. monetary and financial policies, banking regulation and international

co-operation. Their performance during and after Covid, when inflation surged, will be

examined. We will also review current issues like cryptocurrencies, artificial

intelligence, climate change the role of Islamic finance, and the particular challenges

facing developing country central banks.