Central banks, democratic states and financial power

Research output: Book/ReportBookpeer-review


When the US Federal Reserve, European Central Bank and Bank of England purchased bank and state debt during the 2007-2010 crisis, it became clear, yet again, that when technically divorced from fiscal policy, monetary policy cannot revive but only prevent economic activity from deteriorating further. Pixley explains how the money production of the democracies and the immense money creation by capitalist banking put burdens on central banks; often neither socially useful nor peaceful. Central banks cannot be politically neutral and, despite unfair demands, are unable to prevent collapses to debt deflation from bank credit/asset inflations. They can foster debilitating depressions and hardships but not the recoveries desired in democracies, nor touch secret war finance demands. Drawing on economic sociology and history, this book appeals to readers interested in democracies, banks and central banking's ambivalent, if hopeful, potentials, via comparative and distributive perspectives.
Original languageEnglish
Place of PublicationCambridge, UK ; New York
PublisherCambridge University Press
Number of pages465
ISBN (Print)9781107122031, 9781107552340
Publication statusPublished - 2018


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