Taking a cue from the top: governor turnover and independence

When a leader holds office for a long time, there is a temptation to associate their endurance with certain positive qualities: strength, stability, decision-making autonomy and effectiveness. Attribution of these traits is often not just limited to the leader, but also to the country or institution they lead.

The opposite can also be true. And for central banks, a quick succession of governors typically raises two major concerns. The first is related to central bank independence: if governors