New book : Innovating Central Banks | Sunday Observer

New book : Innovating Central Banks

Author: P. Samarasiri (former Deputy Governor of the Central Bank)

No. of Pages: 760

Price: Rs. 1,000

Distributor: Sarasavi Bookshop

This is the sixth book authored by P. Samarasiri covering economics and banking. He, having served in the Central Bank of Sri Lanka for nearly 35 years, presents this book to share some of his knowledge and views on central banking in the interest of macroeconomic management with public accountability.

Central Banks being the state arms for regulating the monetary systems, i.e., money and banking, influence activities of economies and public to an unusual degree. The major conduits of their influence are the money in circulation, credit, interest rates and exchange rates.

This book is a practical guide on how to innovate Central Banks to fix fundamental problems of money and banking to facilitate hygiene of macroeconomic performances of countries and the world. The book covers 16 chapters through three parts, macroeconomic management, Central Banks governance, monetary policy and bank regulation and supervision presented in reader-friendly language.

The book is useful for:

Central Bankers: To know how to drive money and banking prudently and innovatively for economies with accountability to the public

Students in Economics and Business: To know how economies are governed by money and banking

Bankers: To know how banking risks are managed, supervised and regulated

Policymakers: To know how macroeconomic management is innovated

In today’s world of economic globalisation through trade and capital, decisions of Central Banks also affect trade-partner countries. Decisions of Central Banks of leading economies such as the USA, Japan and the EU whose currencies have become global reserve currencies cause global spillovers through financial markets.

The best example is the US monetary policy tightening in 2018 as witnessed from the fast increase in the US interest rates by 1% and reduction in money printing by US$ 400 bn which caused competitive interest rate hikes by many Central Banks to stop outflow of capital to the US.

Today, private currencies are evolving in the world posing immense threats to official/central bank currencies and financial stability. The present versions of Central Banks may disappear this century unless Central Banks are globally innovated to address multi-currency systems and macroeconomic risks of digital money and banking.