Adaptation and Central Banking

Abstract

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