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9 - Searching for the Absurd in Central Banking

Published online by Cambridge University Press:  27 September 2018

Jocelyn Pixley
Affiliation:
Macquarie University, Sydney
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Summary

Central banks formally serve the public. Practically, they are compromised by banks and ersatz democracies that can sack decent central bankers; money is non-debatable as capitalist banks remain triumphant. The book concludes to say no technological fix can force banks to act in a socially useful manner, and neoclassical economics is banal but its anti-democratic tendencies appeal to rearming governments needing war finance. The fused state-bank money creation could be put to nefarious ends (e.g. the US Administration’s Iraq War II and its privately-owned arms companies) only partially like old patrimonialism due to global finance. Alternatively, fragile global institutions and social democratic procedures, long intimidated about money, might revive, we have no clue. Central banks are creatures of the state but beholden to both masters and, if their internal dissonances change from the widespread disaffection, divide et emperor and electoral despair, they have few defensive procedures other than cravenness, best done with a dose of black humour and sense of the absurd. How might non-FIRE, industrial and service sector corporations respond, or unions? It is futile to guess the next moves in the coming years. As Joseph Schumpeter said in the 1930s, the bourgeoisie (or robber barons) have long looked to democratic states and CBs for support, which usually oblige.
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Publisher: Cambridge University Press
Print publication year: 2018

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