Central Bank Independence


After inflation ran amok in the 1960s and 1970s, many central bankers fought for, and won, more freedom to set interest rates and make other monetary policy decisions without political interference. Their shields began to crack after the 2008 financial crisis. In the years since the bankers deployed trillions of dollars to save the global financial system, the public’s faith in their work has been falling. Critics say independent central banks are too secretive and put the banks’ interests before taxpayers’, so it’s time for more public control. Central bank officials counter that they need to be free from political pressures to do their job of curbing inflation, promoting full employment and maintaining financial stability. But the “trust us” mantra is increasingly a tough sell…

Read more : Bloomberg, 14.02.2017