A tale of two central bank governors
To be able to do a good job of making its monetary policies, the members of a country’s monetary policymaking authority, or central bank, must not be subservient to the political leadership of the nation and must be immune from dictation by any quarter. This prohibition applies particularly to the governor of a country’s central bank, who is the head of what I regard as the fourth branch of government and personifies the institution that is the sole banknote-issuing authority of every territory in the world except the Special Administrative Region of Hong Kong. From time to time, central bank governors are subjected to pressure, undue influence, intimidation or outright coercion by the governments of their countries. Stated differently, a country’s political leaders occasionally resort to pressure undue influence, intimidation or.... MORE Source: The Daily Tribune ALTERNATE URL: http://www.tribune.net.ph/commentary/20100319com3.html |
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