Report
Patrick Artus

Are central banks still independent?

A central bank president appointed for political reasons can still be independent from political power once appointed. But the central bank can lose its independence if it find s itself forced to participate in the country’s economic policy strategy, not through political pressure but to prevent an economic or financial crisis. In the United States, can the Federal Reserve avoid taking action to try to weaken the dollar if the country’s overall strategy is a mercantilist one, with the aim of boosting growth by increasing sales of goods and services to the rest of the world? In the euro zone, can the ECB avoid maintaining the euro-zone countries’ fiscal solvency if a number of them conduct fiscal policies that could lead to a loss of solvency and to a public debt crisis if it does not drive down interest rates?
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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