Debt management and the consequences for central bank independence
Tuesday 11 May 2021 – Vol.12 Ed.19.2
Commentary: Reserves system puts independence at risk
By Chris Papadopoullos in London
Many advanced-economy central banks have resigned themselves to a probable elevated level of reserves for the foreseeable future. This brings central banks into the fiscal equation in a more direct way and exposes them to political repercussions that could endanger their independence. To avoid this, central...