Central Bankers Are Too Strong. And Too Weak.
Yellen, Rajan, King, and Summers explore the paradox in a Bloomberg forum
Are central bankers too strong or too weak? Unfortunately for the global economy, the answer is both: Their control of money is a blunt instrument that’s good for achieving some objectives, but worthless for others. Never has the disparity been clearer than now, with financial markets soaring on the back of easy monetary policy even as many lives are wrecked by the Covid-19 pandemic.
How central bankers should grapple with the paradox of their power and powerlessness was the theme of a 36-minute videoconference on Nov. 16 that was part of the Bloomberg New Economy Forum. The forum, which runs through Nov. 19, is organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News.