Andrew Sheng: The new politics of central banking

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It seems anomalous to discuss the politics of central banking when in their modern incarnation such institutions are supposed to be independent and apolitical. Unfortunately, since the 2007–09 global financial crisis (GFC), central banks have become so large and so central to prosperity and stability that they cannot ignore the political debate of social decisions.

Central banks did not enter into the political arena by choice. They entered into unconventional policies because the political econ

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