Central bank law is an unloved part of public law. Maybe that’s because commercial litigators cannot sue central banks, advise the people that sell bonds to them, or argue cases in front of the U.S. Supreme Court to create new doctrines of central bank policy. Yet, new empirical studies may cast light on this unloved sector while pleasing economists eager to put in place something called nominal GDP targeting.
Over the years, a consensus on the best corporate governance practices has emerged. The OECD Guidelines of Corporate Governance epitomize a canon of such practices, including things like having non-executive shareholders on boards, having an audit committee, and following special rules when trading with other companies owned by your company’s bosses. Yet, every canon brings about its own counter-reformation. Over the years, there have been calls to treat emerging markets like Russia and China as special cases. State-owned capital, combined with Asian values, has obviously paid off – as evinced by China’s more than 5 percent growth. Is it true, … Read more