Central banking: behind the mystique
Central banks have somehow moved out of the shadows to become institutions that can make the lead story on the national news. Mark Carney, the governor of the Bank of England, makes high-profile pronouncements not only about interest rates, but on Brexit and climate change, too. However, few people understand exactly what central banks are or what they do.
This discussion will seek to demystify the workings of these powerful bodies. It will cover their basic functions as well as examining why these have grown enormously in scope over the years. It will also consider the implications for democracy of allowing such influential state institutions to be independent of political control. Finally, it will look at whether central banks have reached the zenith of their economic potency. After over a decade of ultra-low interest rates, are central banks losing their ability to shore up the West’s sluggish economies?
journalist; author, Ferraris for All: in defence of economic progress and Cowardly Capitalism
When the next crisis comes, don’t blame the central bankers, Phil Mullan, spiked, 8 July 2019