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The recent 2008 global financial crisis forced a fundamental movement in the direction of financial regulation. Financial Stability in Practice: Towards an Uncertain Future by Goodhart and Tsomocos is a collection of articles on financial (in)stability and financial regulation that provide an avenue for a better understanding and maintenance of financial stability. Goodhart and Tsomocos point out that there is no proper definition for financial stability except that it is a lack of financial instability in the system.

Divided into two parts, this book presents a detailed, multi-faceted analysis of banking and monetary policy. The first part examines the role of central banks within an endogenous money framework. These chapters address post-Keynesian interest rate policy, monetary mercantilism, financial market organization and developing economies. In the second part of the book, the focus switches to the analysis of the financial crisis that began in 2007. The chapters in this section discuss the role of central banks in times of crisis.

Divided into two parts, this book presents a detailed, multi-faceted analysis of banking and monetary policy. The first part examines the role of central banks within an endogenous money framework. These chapters address post-Keynesian interest rate policy, monetary mercantilism, financial market organization and developing economies. In the second part of the book, the focus switches to the analysis of the financial crisis that began in 2007. The chapters in this section discuss the role of central banks in times of crisis.

International audience; In response to the worst crisis since the Great Depression the Federal Reserve undertook a series of different policy measures. These could be divided into two response categories. The first consisted of extensions of traditional monetary-policy tools, which have had to be adjusted and/or ramped up to scale in the face of an unprecedented financial crisis. The second involved entirely new channels of liquidity provision designed to revive or replace financial markets that no longer work properly following their breakdown in the crisis. It is only by looking at those different response strategies that we can full appreciate how the US central bank managed to prevent the world economy from sliding into a dangerous debt-deflation spiral. At the same time monetary policy alone is insufficient to assure an adequate recovery.