Shifting frames of the expert debate: quantitative easing, international macro-finance and the potential impact of post-Keynesian scholarship
Résumé
In Chapter twelve, Max Nagel and Matthias Thiemann argue that unconventional and highly accommodative monetary policies, deployed by central banks after the financial crisis of 2007, reduced pressures on the economy and on financial markets. However, integrated monetary and financial systems transmit loose monetary and financing conditions across the globe, evoking volatile international capital flows and the unsustainable build-up of foreign-denominated debt. The authors trace the discussions in the international expert debate regarding these negative spillover effects, analyzing speeches and texts by the Federal Reserve, the International Monetary Fund and the Bank for International Settlements. International debates among policymakers and experts could neither agree on the size of these negative spillovers nor how to counter them via adjustments of global monetary governance and monetary policy frameworks. However, they have found that insights from international macro-finance in particular have caused the IMF and the BIS to acknowledge the need to account for the effect of monetary policy on (international) financial stability. They conclude that post-Keynesians could make a substantial contribution to this debate as routes towards reform of global monetary governance and monetary policy frameworks open up.