This book has benefited enormously from Alicia's rich experience in both central banking and the private sector. With so much at stake for central banks in terms of financial stability and development, this timely work is required reading for anyone looking to understand these challenges - Jaime Caruana, General Manager, BIS. The book carefully examines some of the core issues surrounding central banks, namely their impacts on financial development and banking crises. This timely publication should be of great interest to policymakers and academics during the thinking that is following the financial crisis of 2008-09. - Andrew Rose, Rocca Professor, U. of California. The book provides a wealth of empirical analysis to understand the role played by central banks in contributing to financial development and stability. It is a most useful contribution as we rethink the role that central banks should play in the macro- financial institutional design after the crisis. - José Viñals, Financial Counsellor and Director, IMF