This timely book answers the question of whether central banks should specifically target the stability of financial systems and if so, what kind of policies should be adopted to prevent or mitigate financial instability.Providing a critical perspective on both central banking and monetary policy, this book examines policies that are used and should be used to prevent instability in the future. Using examples from global financial markets, chapters investigate real-world events that have triggered instability including pandemics and how they have led to a crisis for inflation. Adapting both Minsky’s analysis and the viewpoints of post-Keynesians, the book concludes that central banks should assess their existing approach to targeting inflation as a way of stabilising financial markets.With a particular focus on financial regulations and supervision, this book will be an essential read for academics in the fields of political economy and post-Keynesian economics as well as central bank policy makers.
