Adaptation and Central Banking
28 Pages Posted: 4 Aug 2017 Last revised: 22 May 2018
Date Written: March 8, 2018
Abstract
What governs central bank decisions? Most considerations focus on motivations. Instead, we consider the extent to which specific behaviors have adaptive value in the context of central banking. From this perspective, poor decisions are not the product of poor motivations. They are, instead, a product of the poor institutions within which central bank decision makers operate.
Keywords: Adaptation, Bailout, Central Bank, Motivation, Seigniorage, Selection, Research
JEL Classification: E31, E42, E52, E58
Suggested Citation: Suggested Citation
American Institute for Economic Research
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Great Barrington, MA 01230
United States
American Institute for Economic Research ( email )
PO Box 1000
Great Barrington, MA 01230
United States
HOME PAGE: http://www.aier.org/staff/william-j-luther
