IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Challenges for Central Banks: Wider Powers, Greater Restraints — The Financial Crisis and Its Aftermath

Listed author(s):
Registered author(s):

    This paper argues that whatever the macro- and micro-outcomes of the current economic, financial and regulatory crises, the roles of central banks worldwide are changing fundamentally. These changes will not be uniform, and different models of central banking, especially with regard to strategic remit and operational activities, will be seen in different jurisdictions. However, as a general rule, the role of the central bank will become bigger, riskier and more complex. In many instances, a re-evaluation of a central bank’s fundamental relationships, both formal and informal, will be required. These will include the institutional and governance relationships with both state governments and pan-national institutions, links with banks and financial firms over which the central bank may have monetary, fiscal and regulatory power, relationships with the media and communication with the electorate as a whole. Many central bankers will find this new transparency and accountability as irksome as it is novel, but attention will be required if the extended powers of the central bank are to be seen as legitimate. The paradox is that as central banks become inexorably more powerful and influential, the reins on their long-cherished independence will become tighter.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by EY Global FS Institute in its journal Journal of Financial Perspectives.

    Volume (Year): 1 (2013)
    Issue (Month): 2 ()
    Pages: 47-65

    in new window

    Handle: RePEc:ris:jofipe:0021
    Contact details of provider: Postal:
    1 More London Place, London SE1 2AF, UK

    Phone: +44 20 7951 2000
    Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ris:jofipe:0021. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ms Alina Stefan)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.