26 Pages Posted: 4 Aug 2017 Last revised: 22 Aug 2017
Date Written: August 21, 2017
What governs central bank decisions? Most considerations to date have focused 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 (August 21, 2017). Available at SSRN: https://ssrn.com/abstract=3013389