Myron Scholes Forum, May 22, 2014
Paul Tucker, senior fellow at the Mossavar-Rahmani Center for Business and Government at Harvard Kennedy School and former Deputy Governor of the Bank of England for Financial Stability
Central banks have accumulated more powers and extended the scope of their operations during and since the crisis. This poses serious questions about their independence and mandate. In his talk, Tucker sets out a framework for allocating powers to an independent but accountable central bank. He addresses whether, in the so-called ‘new normal’, central banks should seek to operate directly on shorter and longer term interest rates and on the cost of private-sector credit, and discusses how macro-prudential powers affect that debate. Finally, addresses how monetary policy regimes need to adjust to what has been learned from the crisis.