The Central Banks: 8

A knowledgeable assessment of a secretive, sometimes arrogant fraternity, this report lifts the veil of obfuscation surrounding central banks (e.g., the U.S. Federal Reserve, Germany's Bundesbank, Bank of England), which regulate a nation's money supply, issue currency and monitor banks and other financial institutions. Deane, the Economist's former deputy business editor, and Pringle, former editor-in-chief of Banker, contend that central banks' power and influence have risen during the past decade. This increasing freedom from governmental interference, they add, has brought risks such as currency competition and a greater potential for fraud and corruption, but also a growing involvement in policy issues such as the reconstruction of emerging democracies in Central and Eastern Europe and the formation of the European Union. Covering central banking from China and Japan to South Africa to the Third World, this survey draws lessons for citizens who want to make central banks more accountable to the public in achieving price stability. (Feb.)