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.
The decision by eight Francophone states to delink their common currency from France won’t be without challenges.
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 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.
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.