It is time to consider the role of central banks

Recent developments have revealed three serious problems concerning the role of central banks compared to what it should be in theory: Central bank independence is a fiction since they are forced to intervene to prevent government insolvency crises: what they are doing is pure monetisation of public debt, which in theory is prohibited; The inflation target has lost its meaning since money creation is no longer correlated with inflation in goods and services prices , but with inflation in asset prices; And, lastly, ensuring government solvency by monetising public debt is incompatible with the financial stability objective (stabilisation of asset prices). Transparency would lead to the acceptance of the idea that central banks are no longer independent, no longer have to deal with inflation (goods and services prices), and cannot make governments solvent and ensure financial stability at the same time.