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The Central Banking Narrative Has Collapsed!

Professor Werner demolishes (with empirical evidence and logic) the failed myths that support Central Banks’ exalted role and policies –

The Central Banking Narrative Has Collapsed

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Shifting from Central Planning to a Decentralised Economy: Do we Need Central Banks?

by Professor Richard Werner.

Paper presented at the 14th Rhodes Forum: Dialogue of Civilisations Research Institute, Panel 2: Economic Alternatives when Conventional Models Fail, Rhodos, Greece, on 1 October 2016 and at the 4th European Conference on Banking and the Economy (ECOBATE 2016), in Winchester Guildhall, Winchester UK, on 12 October 2016

Contents Index:

I. The Central Bank Narrative

II. The Central Banking Narrative Has Collapsed

III. Successful Development Policy: Harnessing Money and Institutional Design

IV. How Have Central Banks Reacted to these Revelations?

V. The Central Bankers’ Goal

VI. What Should be our Response? How can we Defend Ourselves?

 

Read the full article on Prof Werner’s Blog

Sample from the paper:

I. The Central Bank Narrative

For more than the past four decades, public policy discourse, especially when touching on macroeconomic and monetary policy, has been dominated by the views held and actively sponsored by the central banks, particularly in Europe and North-America, as well as Japan.

Their policy narrative has been consistent over time and virtually identical between central banks, which is why I shall refer to it collectively as the ‘central bank narrative’. It has been mirrored in the type of economics that central bankers have supported and that has indeed subsequently become dominant in academia and among the economists selected as the experts of choice in the major newspapers and television channels: the theoreticians advancing neo-classical economics.

This central bank narrative (and hence also the dominant neo-classical economics, also known as ‘mainstream economics’) has at least five major pillars, which I shall list briefly:

Continue reading on Prof Werner’s Blog

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