A case for a Keynesian–Schumpeterian problem-solving central banking: Bridging the law-practice gap.

In recent years, central banks have significantly altered their practices, widening the law–practice gap between their formal legal mandates and their actual policy conduct. Monetary conservatives call for a return to the old consensus on economic and constitutional grounds, whereas monetary populis...

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Publicado en:Cambridge Journal of Economics Vol. 50; no. 3; pp. 495 - 515
Autor principal: Krampf, Arie
Formato: Artículo
Publicado: Oxford University Press / USA May2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: May2026
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        atl: A case for a Keynesian–Schumpeterian problem-solving central banking: Bridging the law-practice gap.
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        au: Krampf, Arie
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        Technocracy
        Liberalism
        Economic policy
        Keynesian economics
        Central banking industry
        Monetary policy
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          Technocracy
          Liberalism
          Economic policy
          Keynesian economics
          Monetary Authorities-Central Bank
          Central banking industry
          Monetary policy
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        Central Bank Independence (CBI)
        copyrightHolder:Cambridge Political Economy Society
        copyrightYear:2026
        independence-as-conservatism
        independence-as-rules
        independence-as-separateness
        inLanguage:en
        post-Keynesian economics
        problem-solving central banking
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/cje/beag012
        Schumpeterian technocracy
        supply-side theories of democracy
        Central Bank Independence (CBI)
        copyrightHolder:Cambridge Political Economy Society
        copyrightYear:2026
        independence-as-conservatism
        independence-as-rules
        independence-as-separateness
        inLanguage:en
        post-Keynesian economics
        problem-solving central banking
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/cje/beag012
        Schumpeterian technocracy
        supply-side theories of democracy
      ab: In recent years, central banks have significantly altered their practices, widening the law–practice gap between their formal legal mandates and their actual policy conduct. Monetary conservatives call for a return to the old consensus on economic and constitutional grounds, whereas monetary populists call for the re-politicisation of money by returning monetary powers to elected officials. Although these positions oppose each other, both regard the current configuration as illegitimate because it departs from the governing principles of liberal democracy, regardless of its economic effectiveness. While economists have recognised the economic merits of this configuration, the political and legal criticism levelled against it by conservatives and populists has remained unanswered. This article offers such an answer. It contends that the present configuration of central banking is best understood as reflecting a Keynesian–Schumpeterian problem-solving model: independent yet activist, separate from government but not bound by rigid rules. The article argues that this model represents the most reasonable compromise between the legal and constitutional constraints of liberal democracies, the non-ergodicity of capitalist economies, and the shortcomings of representative democracy. This model draws on post-Keynesian economic assumptions, supply-side theories of democracy, and a Schumpeterian notion of technocracy.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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