Who needs money?

Article Abstract:

Interest rate changes may have little impact on the economy as a whole, apart from the impact of the shock that rates have changed. Harvard University's Benjamin Friedman argues that central banks' interest rate changes may have no direct effect. Credit cards are used for many payments and non-bank money is developing in other directions. Private monies could develop which central banks could not influence. This may not be important since high inflation was less of a problem prior to the invention of central banks.

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E-money revisited

Article Abstract:

The impact of electronic money on central banks and their ability to control rates of interest is examined in detail.

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Monopoly power over money

Article Abstract:

Central banks have increasingly been given independence, and they have become influential in the financial system. They set interest rates and their actions affect exchange rates as well as economic growth and inflation. They also provide support to the banking system. Central banks hold a monopoly on the supply of reserves for banks. Their goal is to maintain low inflation, and they may seek to control growth of the money supply. There have been criticisms of the measure for inflation that the focus on, which tends to be consumer price inflation, since asset price inflation can also become a problem.

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