Institutional innovation and Central Bank Independence 2.0

Organised by

• Department of Economics

Since the financial crisis, there has been considerable debate, both in academics and in the policy world, over how the role of the central bank should modified in a world of low interest rates and low inflation, including not only alternative monetary instruments , but the extent to which fiscal policy should take the lead in short-term macroeconomic stabilisation policy, the role of central bank independence, and the widening of targets to incorporate environment and social policy objectives. The rise of the left in some countries has also increased political pressures on central banks to take more risk with inflation in order to reduce inequality. Finally, the rise of crypto-currencies and the exploration of central bank digital currencies also has fundamental implications for central bank independence.