Central Banking and Monetary Policy in the G20: Paradigms and Challenges

Behind productive and prosperous economies are independent central banks that implement effective monetary policies. This observation is especially valid for the G20, which comprises the world’s top twenty economies in terms of gross domestic product and the largest stakeholders of the global economic system. These economies include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States, and the European Union.
Three features of this book, which focuses on central banking and monetary policy in the G20, an intergovernmental platform, stand out:
Firstly, as contemporary theories and global practices confirm, the main purpose of central banks is to ensure monetary and price stability, not despite the government but in cooperation with it. This principle is strongly emphasized here. Governments, which must maintain fiscal discipline, are key to the success of central banks in combating inflation and deflation.
Secondly, since the authors of the book chapters come from various countries and academic institutions, the book offers a range of perspectives and intellectual richness. Without deviating from the book's main axis, the authors examine the changing paradigms in central banking and the increasing challenges of monetary policy. This examination is based on developed and emerging economies, integrations, financial organizations, and economic crises within the G20, informed by significant sources.
Thirdly, this book offers university researchers, professional business practitioners, and curious readers the opportunity to explore and reflect on new concepts such as green central banking, digital money, and interest-free monetary policies, which have gained prominence in the wake of the global COVID-19 pandemic, alongside mainstream topics.
It is hoped that this book, consisting of 14 chapters, will inspire those who wish to conduct new and renewed academic studies on global central banks and monetary policies and will fill a gap in the literature.

Lists of Tables and Figures
Abbreviations
Acknowledgements and Remembrance
About Contributors
Preface
Louis-Philippe Rochon
Laurentian University, Canada

INTRODUCTION
Chapter 1
Central Banking and Monetary Policy in the G20: An Introduction
İrfan Kalaycı
İnönü University, Malatya, Turkey
Chapter 2
The Global Power of the FED After the Collapse of the Bretton Woods System and the Paradigmatic Shifts Created by Modern Central Banking
İlhan Eroğlu
Gaziosmanpasa University, Turkey
Nalan Kangal
Gaziosmanpasa University, Turkey
Fatih Yeter
Gaziosmanpasa University, Turkey
Necati Çoban
Gaziosmanpasa University, Turkey

PART I: EUROPEAN CENTRAL BANKING AND FINANCIAL STABILITY
Chapter 3
The Role of the European Central Bank During the Greek Financial Crisis
John Marangos
University of Macedonia, Greece; University of Missouri Kansas City, USA
Nikos Astroulakis
Tax and Customs Academy IAPR and Hellenic Open University, Greece
Themis Anthrakidis
University of Macedonia, Thessaloniki, Greece
Angeliki Nestoroudi
University of Macedonia, Thessaloniki, Greece
Paraskevi Kyrilla
University of Macedonia, Thessaloniki, Greece
Chapter 4
Financial Market Turmoil and Financial Stability in the European Banking Union
Sevgi İneci
Galatasaray University, İstanbul, Turkey
Chapter 5
The Governments’ Positions of Germany and France in Banking Union: Defending Diversity?
Aukje van Loon
University of Applied Sciences Bochum, Germany

PART II: GREEN CENTRAL BANKING AND DIGITAL CURRENCY PARADIGMS
Chapter 6
Central Banks and Policy Development for Decarbonization in the G20
Hazik Mohamed
Independent Consultant on projects, Singapore
Chapter 7
Discussions on Green Central Banking and the ‘Green’ Performance of the Central Bank of Turkey: Comparison with G20 Countries
Esra Güler
Uludağ University, Bursa, Turkey
Halil Seyidoğlu
Yalova University, Turkey
Chapter 8
Central Bank Digital Currency: Redefining the Concept of Money in a Digital Context
Aatos Hallipelto
Helsinki School of Economics, CEO, Finland
Cumhur C. Küçüközmen
Izmir University of Economics, Turkey

PART III: CENTRAL BANKING AND MONETARY RISKS IN EMERGING MARKETS AND G20
Chapter 9
Financial Risks and Central Bank Reserves in G20 Countries
Mahir Fisunoğlu
Çukurova University, Adana, Turkey
Metin Akyüz
Consultant in international private companies in the Turkey and USA
Chapter 10
China’s Central Banking System, Monetary Policy and Currency Markets
Jeremy Kwok
University of Exeter, England
Chapter 11
Determinants of the Political Interest Rate as a Monetary Policy Tool: An Evaluation on BRICS
Gökhan Karhan
Batman University, Turkey
Mücahit Çayın
Batman University, Turkey
M. Ali Seyidoğlu
Financial consultant, Batman, Turkey

PART IV:
ISLAMIC MONETARY POLICY AND CHALLENGES FOR THE MIDDLE WAY
Chapter 12
Redefining Capital and Monetary Policy in G20 Countries: Lessons from Islamic Political Economy
M. Uzair Zulkifly
Durham University, UK
Chapter 13
The Neglected Cause of the Global Financial Crisis: Interest Rate Policies
İsmail Özsoy
Advisory Board Member, EFC Ethical Funding Co., CA, USA
Birol Görmez
Cyber security trainee, Germany
Chapter 14
Intersecting Solutions to the Two Major Crisis of Capitalism: State Capitalism
Mehmet Kaya
Dice University, Diyarbakır, Turkey
Hatice Özkurt Çokgüngör
İstanbul University-Cerrahpasa, Turkey
Index

İrfan Kalaycı began his career as a research assistant at İnönü University, one of Turkey's half-century-old universities, in 1992 and currently works as a professor of economic policy. He received his bachelor's degree in economics from Çukurova University in Adana and both his master's and doctorate degrees from İnönü University in Malatya. Since the beginning of his career, he has published more than 200 studies in domestic and international social science journals and edited books, and presented at scientific conferences in multidisciplinary fields such as economic policy, the European Union economy, the MENA economy, the Turkish economy, and, more recently, the agricultural bioeconomy. He has received various institutional awards in the fields of science and literature. Recent heterodox economic publications, developments, and news have also excited him academically.
Among his notable works, Kalaycı's article “Destroying Effects of Twin Earthquakes on the Economy and Agriculture in Turkey: Lessons of Japan” was published in the ‘AIMS International Journal of Management,’ where he explores the economic impact of natural disasters. In “Anatomy of Cryptocurrencies,” featured in the ‘International Journal of Social Sciences Academy (IJSSA-USBAD),’ he delves into the complexities of digital currencies. His contribution to the book ‘Agricultural Bioeconomy: Innovation and Foresight in the Post-COVID Era,’ titled “Sustainable Agro-bioeconomy after Covid-19: Nineteen Utopian and Dystopian Scenarios for the World and Turkey,” examines future agricultural trends. Additionally, his essay “An Essay on the Political Economy Effects of the COVID-19 Pandemic as Twin Crises” is included in the book ‘Economic Impact and Recovery Following a Global Health Crisis,’ where he analyzes the pandemic's economic effects. Finally, his work “Agricultural Bioeconomy and Sustainable Proposals for Turkey,” part of the book ‘Agri-Based Bioeconomy: Reintegrating Trans-disciplinary Research and Sustainable Development Goals,’ discusses sustainable development strategies for Turkey's agricultural sector.

Bretton Woods System, Fixed Exchange Rate regime, Modern Central Banking, Central Bank
Independence, Stress Testing, Climate Factors, Cyclical Green Capital Buffers, Differentiated Capital
Requirements, Loan-to-value Ratio, Loan-to-income Ratio Limits, Large Exposure Controls,
Micro-prudential Regulation, Financial Supervision, Disclosure Requirements, ESG Risk
Management, Reserve Requirements, Green Asset Ratio