The European Central Bank is facing enormous pressure to tighten monetary policy

Huitong Network2month27Daily News - As populist forces spread in Europe, the United States, and even other parts of the world, technocrats in various countries are increasingly being heavily criticized by public opinion. The characteristic of such officials is that they are appointed directly by other officials without being elected, but their decisions are related to the economic fate of millions of people. Central bank governors of various countries are typical representatives of this.

Nowadays, Arrow(Whether it's bright or dark)It has already been shot out. The independence of the Federal Reserve's interest rate decisions has become a target of attack by the Republican government; Across the Atlantic, due to calls from Germany, the European Central Bank is facing enormous pressure to tighten monetary policy; Even in emerging market India, the "banknote ban" of the previous year has caused most of the public's anger to be directed towards the head of the central bank.
The abuse of independent decision-making power by central banks in multiple countries is gradually being criticized, and politicians are pushing for legislative restrictions
The policy of leading the attack on monetary policy officials is only to please anti establishment political groups. The autonomy of some central banks has been substantially eroded, and it is not difficult to imagine that their governments may soon intervene more in interest rate levels and balance of payments, such as addressing political issues of unequal income and wealth distribution, which may be included in the scope of central bank decision-making.

Policy direction or reversal
Professor at the London School of Economics and Political ScienceCharles GoodhartIt is entirely possible for the world to return to the era of government setting short-term interest rates

At first glance, this idea may seem very revolutionary, but it is not impossible for things to deviate from the current track of development. As early as the last century60In the 1990s, the UK implemented interest rate control policies, and for a time, the Bank of England did not have the power to independently set interest rates.

Although few observers expect that the government of any country can regain the central bank's monetary decision-making power overnight, from the current political tone, regardless of whether the central bank governor conspires with the government, the independent decision-making power of the central bank is indeed shrinking.

Chairman of the Financial Committee of the United States House of RepresentativesJeb HensarlingThe viewpoint is highly representative. He believes that the higher the independent decision-making ability of the central bank governor, the lower the transparency and interpretability of monetary policy.
Federal Reservehttp://news.fx678.com/news/keywords/fed.shtml