Nicolo Fraccaroli, Alessandro Giovannini, Jean-Francois Jamet, 04 October 2018

Central bank independence is a cornerstone of monetary policy, but since the Global Crisis many have questioned the legitimacy of giving policymaking power to unelected officials. The column analyses the way that the ECB's accountability framework functions, and finds the ECB and the European Parliament have increased the intensity and focus of their exchanges since the crisis. Despite populism, the tone of exchanges has remained positive.

Paul Tucker, 18 June 2018

The last few decades have seen a shift of power from elected to unelected officials - inlcuding central bankers, regulators, and the judiciary. Sir Paul Tucker introduces his research on how the broad mandate given to independent policymakers is at odds with their ability to retain power when their policies fail. This video was recorded at the Imperial College Business School.

Edoardo Campanella, 12 August 2014

Separatism is on the rise in Europe. This column argues that, while the Eurozone Crisis is certainly reinforcing regional tensions, the underlying causes are globalisation and the deepening of the European project. Independence campaigners want access to the larger European market, while unfettering their regions from the centralised control of national governments. Renegotiating the terms of the relationship between national and regional governments is preferable to resorting to political threats or the use of force.

Angus Armstrong, Monique Ebell, 26 October 2013

In the debate over Scottish independence, the question of how the UK’s assets and sovereign debt would be divided has received insufficient attention. This column argues that the size of Scotland’s debt obligations would be crucial to its optimal choice of currency. Under plausible assumptions, fiscal tightening would be required to return Scottish debt to sustainable levels, and a self-fulfilling rise in borrowing costs might tempt Scotland to leave the sterling currency union. A debt-for-oil swap might be mutually beneficial for a newly independent Scotland and the continuing UK.

Marco Annunziata, 12 February 2013

Economists and policymakers are increasingly concerned that central-bank independence is being threatened. This column argues that central banks are not losing their independence, but that their room for manoeuvre is being eroded by a lack of structural reforms and fiscal adjustment. The financial crisis has caused mission creep, pushing central banks well beyond their comfort zones and as the time comes to pull back, independent monetary policy could still be powerless against fiscal dominance.

Christopher Crowe, Ellen Meade, 31 July 2008

Theories arguing that independent, transparent central banks fight inflation better are widely accepted, but the evidence backing them is surprisingly scarce. This column presents new empirical estimates suggesting a payoff to central bank independence and transparency.

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