I am pleased to announce the publication of my article in the Journal of Social, Economic and Political Studies by The Council for Social and Economic Studies. (http://www.jspes.org/)
The article addresses a burning question: whether central banks will be resilient and effective in a future financial crisis, focusing on the last decade when the largest central banks increased their influence. It outlines how fiscal and monetary policies became intertwined as a direct result of government over-indebtedness and lack of fiscal discipline.
The effects of central banks’ loss of independence from governments has been compounded by their closeness to the banking sector that they regulate and supervise. By being “too complex to manage”, central banks operate under an impaired ability to act promptly during a crisis. They should therefore consider a new governance model that defines their functional autonomy. Read Full Article