Thomas J. Jordan, chairman of the governing board of the Swiss National Bank (SNB), presented the seventh annual O. John Olcay Lecture on Ethics and Economics.
The independence of central banks is a key prerequisite for fulfilling their primary mandate of ensuring price stability. This independence, however, cannot be taken for granted as time and again it comes under threat. This is particularly true at present, following several crises which have contributed to a sharp rise in public debt worldwide. Furthermore, given the unusually high levels of inflation in numerous countries, the stakes are especially high. What are the threats to central bank independence and how can it best be guaranteed?
A Q&A with PIIE president Adam S. Posen followed.
About This Series
The annual O. John Olcay Lecture on Ethics and Economics is held annually in memory of John Olcay, a longtime friend and intellectual supporter of the Peteson Institute for International Economics, particularly of the Institute's work on monetary and financial policy.