Bailey: Rethinking Central Bank Independence in an Era of Financial Instability

From youtube.com/sipaatcolumbia

Central bank independence, forged in the fight against 1970s inflation, remains a cornerstone of modern monetary policy. But today’s central banks face a more complex mandate: maintaining price stability while also safeguarding financial stability — two goals that often rely on different tools and time horizons. In this conversation, Andrew Bailey, governor of the Bank of England, revisits the foundations of central banking and argues for a renewed framework centered on a single overarching objective: the stability of the value of money. What would it take to better align these missions, and is central bank independence fit for today’s economic challenges? Join us for a discussion moderated by Alan Taylor on the future of central banking in an era of persistent shocks and evolving risks.