Friday, July 20, 2018

On Central Bank independence

Just read that the US President has criticized the Fed, the US central bank, for tightening monetary policy: "I don't like all of this work that we're putting into the economy and then I see rates going up," Trump said, 'a rare rebuke by a sitting president that upends longstanding executive branch protocol to avoid commenting on monetary policy'.


A few weeks ago I had read several articles reporting that Turkey's President Erdogan has described high interest rates as “the mother and father of all evil”.

So much for central bank independence.

Check out:
Trump Takes a Rare Presidential Swipe at the Fed
but, also: Trump says he’s “not thrilled” by Federal Reserve interest rate hikes
(as, many may argue convincingly that there is no real need yet for tightening; the issue though now is CB independence)

Turkish bankers try to drag Erdogan toward monetary sanity to no avail
and: Turkey to prioritize lowering inflation, interest rates

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