The evolving role of the central bank

“The overall duty of the [Lebanese Central] Bank shall be the safeguard[ing] of currency as fundamental guarantee for permanent economic and social development, and more specifically: – safeguarding a sound Lebanese currency – safeguarding economic stability – safeguarding the basic structure of the banking system – developing the monetary and financial market” Article 70, The Code of Money and Credit Humans want more. In a recent speech about the impact of European monetary policy on interest rates, Germany’s top central banker Jens Weidmann cited research at the crossing point of behavioral economics and neurology, showing that nominal growth in personal income creates a jolt of pleasure even when the real income is stagnant. Although the price of goods available to them doubled during an experiment measuring emotional responses to wage changes, he said, participants’ MRI scans showed increased blood flow in a brain area responsible for moods when they received twice the wage. “In short,