Monetary Policy and Macroprudential Regulation with Financial Frictions
By: Pierre-Richard Agénor – University of Manchester
Drawing on the extensive literature of the past decade as well as his own contributions, in this book Pierre-Richard Agénor provides a unified set of theoretical and quantitative macroeconomic models with financial frictions to explore issues that have emerged in the wake of the crisis. These include the need to understand better how the financial system amplifies and propagates shocks originating elsewhere in the economy; how it can itself be a source of aggregate fluctuations; the extent to which central banks should account for financial stability considerations in the conduct of monetary policy; whether national central banks and regulators should coordinate their policies to promote macroeconomic and financial stability; and how much countercyclical macroprudential policies should be coordinated at the international level to mitigate financial spillovers across countries.
This is a treatise/textbook that the profession badly needs. It focuses on financial frictions and burning issues of the day. It will be especially valuable for graduate students who are keen on making their marks on this challenging field.
Guillermo A. Calvo, Columbia University
Bitcoin, Blockchain, and Cryptoassets – A Comprehensive Introduction
By: Fabian Schär, Aleksander Berentsen – University of Basel
The book first presents a nontechnical discussion of monetary theory, enabling readers to understand how cryptocurrencies are a radical departure from existing monetary instruments, and provides an overview of blockchain technology and the Bitcoin system. It then takes up technical aspects of Bitcoin in more detail, covering such topics as the Bitcoin network, its communications protocol, the mathematics underpinning decentralized validation, transaction types, the data structure of blocks, the proof-of-work consensus mechanism, and game theory. Finally, the book discusses specific issues and applications, including price volatility, regulatory uncertainty, and central bank cryptocurrencies, as well as such alternative applications as decentralized verification and attestation, tokens, and smart contracts.
Bitcoin made a big splash in the financial world. This accessible book is an excellent introduction to both monetary theory and crypto technology.
Markus K. Brunnermeier, Princeton University
Distributed Ledgers – Design and Regulation of Financial Infrastructure and Payment Systems
By: Robert M. Townsend – MIT
Townsend emphasizes the general equilibrium impact of Distributed Ledger Technology (DLT) innovations, the welfare gains from these innovations, and related regulatory innovations. He analyzes four crucial components of distributed ledgers—ledgers as accounts, e-messages and e-value transfers, cryptography, and contracts—assessing each in terms of both economics and computer science, and forges some middle ground. Relatedly, Townsend highlights hybrid systems in which some of these components allow useful innovation while legacy or alternative pieces deal with the problem of scale. The specific applications he analyzes include an intelligent financial automated system that provides financial services to unbanked and under-banked populations, and cross-border payments systems, including financial systems that can integrate credit and insurance with clearing and settlement. Finally, Townsend considers cryptocurrencies, discussing the role and value of tokens in economies with distributed ledger systems.
Sustaining money through decentralized consensus entails not just technological and cryptographic advances but also the overall coherence of incentives. Townsend shows this with mastery as a top-notch theorist and with concrete examples. This impressive book is a must-read for all serious observers of digital currencies and the payment system.
Hyun Song Shin, BIS
Values – Building a Better World for All
By: Mark Carney – U.N. Special Envoy for Climate Action and Finance
Drawing on the turmoil of the past decade, Mark Carney shows how “market economies” have evolved into “market societies” where price determines the value of everything. When we think about what we, as individuals, value most highly, we might list fairness, health, the protection of our rights, economic security from poverty, the preservation of natural diversity, resources, and beauty. The tragedy is, these things that we hold dearest are too often the casualties of our twenty-first century world, where they ought to be our bedrock. In this profoundly important new book, Mark Carney offers a vision of a more humane society and a practical manifesto for getting there. How we reform our infrastructure to make things better and fairer is at the heart of every chapter, with outlines of wholly new ideas that can restructure society and enshrine our human values at the core of all that we build for our children and grandchildren.
