Central banks should sacrifice some independence – Harvard economists
Handing over some "political independence" could improve legitimacy
US-based academics have called for a "more nuanced" approach to central bank independence, amid growing pressure on the institutions from politicians and a spate of political attacks on top central bankers.
Harvard economists Ed Balls (formerly the UK's shadow chancellor), James Howat and Anna Stansbury recognise the value of central banks' operational independence in a new working paper, but say questions of legitimacy point to the need for curbs on their political independence – defined as
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Most read
- Supervisors grapple with the smaller bank dilemma
- Fed policy-makers disagree over risks
- Central bank of the year: Central Bank of Brazil