Bailey: Rethinking Central Bank Independence in an Era of Financial Instability

TRUMP TELLS NY POST IRAN TALKS 'COULD BE HAPPENING OVER NEXT TWO DAYS' IN PAKISTAN

Thank you for inviting me to speak today. I am going to use my time to reflect on central bank independence and to point to where I believe the concept is incomplete and hence more challenged. I will use the term CBI hereon. Modern CBI emerged out of the high inflation era of the 1970s. This does not mean that the concept originated then, it has a much longer history. But in its modern form the 1970s was the experience that prompted change. I will use the Bank of England as a brief case study to illustrate the antecedents to the change. The first stop is 1802, when Henry Thornton wrote “An Enquiry into the Nature and Effects of the Paper Credit of Great Britain” BoE Gov. Bailey: financial stability policy risks becoming pro-cyclical. BOE GOV. BAILEY: FINANCIAL STABILITY IS MORE EXPOSED TO POLITICAL AND PRIVATE PRESSURE. ... BAILEY SAYS CENTRAL BANK INDEPENDENCE FOR FINANCIAL STABILITY IS 'NOT ROBUST ENOUGH BANK OF ENGLAND GOVERNOR ANDREW BAILEY DOES NOT ADDRESS CURRENT MONETARY POLICY IN PREPARED REMARKS TO COLOMBIA UNIVERSITY EVENT #bankofengland #boe #monetarypolicy #interestrates #andrewbailey #inflation #energypriceshock #ukeconomy