Adaptation and Central Banking

Salter, Alexander William; Luther, William J.

doi:10.2139/ssrn.3013389

Adaptation and Central Banking

AIER Sound Money Project Working Paper No. 2018-01

28 Pages Posted: 4 Aug 2017 Last revised: 22 May 2018

See all articles by Alexander William Salter

Alexander William Salter

Texas Tech University - Rawls College of Business; American Institute for Economic Research

William J. Luther

Florida Atlantic University; American Institute for Economic Research

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

Salter, Alexander William and Luther, William J., Adaptation and Central Banking (March 8, 2018). AIER Sound Money Project Working Paper No. 2018-01. Available at SSRN: https://ssrn.com/abstract=3013389 or http://dx.doi.org/10.2139/ssrn.3013389