On 27th March, the Mossavar Rahmani Center for Business and Government welcomed Ed Balls, visiting fellow at the Mossavar-Rahmani Center for Business and Government, and UK Shadow Chancellor from 2011 to 2015; Prof. Lawrence Summers President Emeritus and University Professor, Harvard University, and Former US Treasury Secretary; Alberto Alesina, Nathaniel Ropes Professor of Political Economy and Director of the NBER Political Economy Program; and Anna Stansbury, Economics PhD student at Harvard University to a discussion on central bank independence.
In the aftermath of the global financial crisis, countries around the world have dramatically expanded the objectives and powers of central banks beyond their traditional inflation targets and policy rates. The consensus around central bank independence has broken down, seen in challenges to its relevance in a world of macroprudential policies and monetary-fiscal coordination, as well as political movements like Audit the Fed. This panel discussion examined the role of central banks in a post-crisis world: does independence still matter? What should be the role of central banks in financial stabilization and crisis management? And how can central banks operate without endangering their credibility or accountability?
You can read Ed’s Harvard working paper here.