Monetary economics is in shambles. More than eight years after the outbreak of the Global Financial Crisis many things in our economies have changed indeed, particularly the range of operations in which central banks have embarked in the last few years; but the way mainstream academia and policy makers understand and approach monetary economics have not. The old policy rules which contributed so much to the building up of monetary instability and finally to a profound financial crisis have not really been questioned nor replaced yet by a consistent set of new policies (or better, a policy rule) committed to maintaining monetary stability over the medium and long term. Even worse, I have attended myself scientific meetings on this field in the last years and very rarely (if at all) ‘money’ or ‘monetary aggregates’ are even mentioned in (supposedly) specialised monetary talks and lectures. Instead we seem to be stuck in endless discussions on interest rates and how a 0.25 increase/decrease in the policy rate may affect consumption, investment and eventually output by the spending and credit channels; for the initiated in this subject this means we still use the late 1990s and early 2000s’ new Keynesian model (with no money) to analyse and prescribe monetary policies.
Well there are indeed notable exceptions to the mainstream, and I am very pleased to invite you all to the 2016 monetary Public Lecture of the Institute of International Monetary Research (IIMR), by professor Charles Goodhart. One of the main purposes of the Institute is to promote research into how developments in banking and finance affect the economy as a whole. The Institute’s wider aims are to enhance economic knowledge and understanding, and to seek price stability, steady economic growth and high employment. Particular attention is paid to the effect of changes in the quantity of money on inflation and deflation, and on boom and bust.
Banks and central banks play a central role in the sound functioning of modern monetary economies. The 2008-09 Global Financial Crisis has shown again how important it is to understand their functioning and operations, and the relationship between the quantity of money and the overall economy.
We have much pleasure in inviting you to join us at the Institute’s 2016 public lecture on Wednesday 2nd November (18:30 hrs.) by Professor Charles Goodhart (LSE): ‘What have we learned about money and banking during and since the Great Recession?’, at the Institute of Directors (116 Pall Mall, London).
You may want to visit our website to learn more about the Institute’s research agenda and our latest publications on our website (http://www.mv-pt.org/index). You may want to know the public lecture will be recorded and available on our site.
PS. Please confirm your attendance by e-mail to Gail Grimston at firstname.lastname@example.org