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Since the 2007/8 financial crisis, central banks have been waking up to new realities concerning both the limitations of conventional policies, and the impact conventional and unconventional policies may have. Strict adherence to inflation targeting, which has been around since the early 1990s, started to wane, as some central banks started to adopt either dual mandates, or a looser version of inflation targeting. In this book, we identify the fundamental arguments that support this 'old model' of central banking, and argue that a 'new model' is emerging. More broadly, this book challenges the underpinnings of monetary policy as well as the traditional framework of central banking in the age of the increasing number of local currencies as well as of the emergence and the spread of digital currencies. All in all, this book deals with crucial issues encompassing the analysis of monetary policy transmission mechanisms, central banks' regulation and the confidence users place in money. The book is a major breakthrough in the understanding of what money is, and what money could become in the future.

Monograph Book