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The pattern of central bank development: past, present and future

Goodhart, C. A. E. (2018) The pattern of central bank development: past, present and future. In: Costabile, Lilia and Neal, Larry, (eds.) Financial Innovation and Resilience: A Comparative Perspective on the Public Banks of Naples (1462-1808). Palgrave Studies in the History of Finance. Palgrave Macmillan, London, UK, pp. 1-14. ISBN 9783319902470

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Identification Number: 10.1007/978-3-319-90248-7_1


Commercial banking developed in Italy by the fifteenth century. The public banks of Naples were in the forefront of that development. Subsequently, they, and the practice of banking worldwide, have been undergoing a continuous process of development, partly in response to the changing structure and needs of the macro-economy and partly in response to crises. The “real bills” doctrine seemed appropriate in practice for much of the nineteenth and early twentieth centuries despite its theoretical flaws. Inflation targetry, combined with light-touch micro-prudential regulation, appeared to be an effective replacement in the late twentieth century until the Great Financial Crisis of 2008. Central banks are still groping for a new paradigm. When the future appears so uncertain, insights from history may become more relevant.

Item Type: Book Section
Official URL:
Additional Information: © 2018 Palgrave
Divisions: Financial Markets Group
Subjects: H Social Sciences > HG Finance
Sets: Research centres and groups > Financial Markets Group (FMG)
Date Deposited: 19 Nov 2018 17:12
Last Modified: 13 Aug 2021 23:27

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