Panicos Demetriades

Panel 1: Central Bank Independence

The justification for operational independence is that its
unimpeded pursuit of inflation targeting will yield the
best longer-run economic outcomes. However, the
global financial crisis raised new questions, and the
coronavirus pandemic lends them new urgency: Since
central banks transfer funds to public treasuries in these
crises, in what sense are they – and should they be –
independent? And if central banks are to be accountable
– then to whom? Is the Treasury Select Committee an
adequate oversight body or is there a good case for
reform?