An activist revival in central banking? Lessons from the history of economic thought and central bank practice

Abstract

We introduce the “minimalist–activist” spectrum as an analytical prism through which to view key aspects of central banking theory and practice. We focus on the activist end of this spectrum, concentrating on economic growth. We explore the theoretical roots of these ideas in the writings of Dennis Robertson. We illustrate central banking practice by detailing some approaches followed by central banks pursuing economic growth and development in the decades following the Second World War. History of monetary thought, monetary theory, and analysis of central bank practices blend together to illuminate key principles and practices of central banking.