Human Wrongs Watch
– US President Trump’s snide barbs against his appointee, US Federal Reserve Bank Chairman Jerome Powell, have revived support for central bank independence – long abused by powerful finance interests against growth and equity.
Jomo Kwame Sundaram
Independent central banks are supposed to improve the quality, equity, and growth impact of monetary policy.
Instead, they have primarily served powerful financial interests, with contractionary and regressive effects leading to slower, unequal growth.
Independent of whom?
Central banks were established to determine monetary policy to shape financial conditions to achieve national economic objectives.
In recent decades, the new conventional policy wisdom has been that independent central banks should set monetary policy. Thus, they have been influenced by powerful financial interests, typically foreign, in smaller, open developing countries.
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HUMAN WRONGS WATCH 