Unexpected Revolutionaries: How Central Banks Made and Unmade Economic Orthodoxy

Manuela Moschella's book "Unexpected Revolutionaries" explores how central banks have transformed from conservative, politically neutral institutions to implementing largely unknown and unconventional monetary policies in response to the 2008 global financial crisis and the 2020 COVID-19 crisis. She argues that the political nature of central banks is at the heart of these transformations, and that they need political support to justify their policies and powers. Central banks have strategically deviated from orthodox monetary policies to preempt or manage political backlash and regain public trust.

Format: Hardback
Length: 204 pages
Publication date: 15 May 2024
Publisher: Cornell University Press

In her book "Unexpected Revolutionaries," Manuela Moschella delves into the profound institutional transformation of central banks from the 1970s to the present. Central banks, traditionally perceived as conservative, politically neutral entities, have defied expectations by adopting largely uncharted and unconventional monetary policies in response to the 2008 global financial crisis and the 2020 COVID-19 pandemic. These institutions have departed from well-established policy frameworks, engaging in practices such as providing liquidity support to a wide array of financial institutions and implementing quantitative easing measures. Moreover, they have expanded their purview to address issues like inequality and climate change, challenging the traditional boundaries of monetary policy.

At the core of these transformations lies the political nature of central banks. While formally independent, central banks require political support to justify their policies and powers. To secure this support, they meticulously manage their reputation among key stakeholders, including elected officials, market actors, and citizens. In the face of reputational threats posed by the twenty-first-century recessionary and deflationary forces, central banks, such as the Federal Reserve System and the European Central Bank, strategically deviated from orthodox monetary policies to preempt or manage political backlash and regain public trust. As a result, central banks have evolved into a new role, working in coordination with fiscal authorities and relying on public contestation to shape their actions.

"Unexpected Revolutionaries" is a thought-provoking and insightful work that sheds light on the future of the neoliberal macroeconomic regime, the democratic oversight of monetary policymaking, and the crucial role that central banks play in shaping the economic landscape. It is a must-read for anyone interested in understanding the evolving dynamics of central banking and its implications for global economic stability and prosperity.

Weight: 907g
Dimension: 229 x 152 (mm)
ISBN-13: 9781501774850