Central banking was given to technocrats whose job is to make the difficult decisions. But there are parameters. And within these, central bankers must act independently, without fear or favour.
CFA franc countries will no longer have to keep 50% of their foreign exchange reserves at the French Treasury.
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Volcker’s legacy involves more than fighting inflation – he showed why central banks need to remain free of meddling from politicians, including the president.
Central banks and other financial sector regulators have not always paid adequate attention to the sector’s impact on the environment.
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Central banks are expected to act without fear or favour. But to deal with climate change, they may have to encourage financial institutions to favour certain types of activities over others.
President Trump has discussed firing Fed Chair Jerome Powell over the central bank’s interest rate policies. Research shows this kind of political meddling is usually bad for the economy.
Nixon convinced Fed Chair Arthur Burns, seated left, to lower interest rates, helping him win re-election in 1972.
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President Trump has been attacking the Federal Reserve for months and appears intent on nominating political allies to its board. An economist explain what typically happens next.