Can a central bank exist under any economic school? I was under the impression that Keynesianism is the only school which allows for the existence of a central bank and that it was sort of “written in” to the economic theory.
Didn’t we have a 1st and 2nd National Bank of the U.S. before Keynes and weren’t these central banks too?
The monetarist school…
actually it is only the neo keynesians who have a special place for the bank. Old keynesianism wanted fiscal stimulus as opposed to monetary stimulus.
Central Banks have been around since the Bank of England, late 17th Century.
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@siebern
Actually, Milton Friedman wanted to abolish the Federal Reserve. His policy recommendations concerning the Fed were based on the fact that the Fed wasn’t going to be abolished so it was kind of a ‘second best’ recommendation. If you read anything by Friedman you’d know that he said if the Federal Reserve didn’t exist the Great Depression would never have happened.