Descriptions
Title: The New Crisis of Central Banking
Synopsis: For the past few decades, central banks have been at the vanguard of a successful campaign to ward off recessions, even in the aftermath of major crises. But their huge role in propping up markets has had dangerous unintended consequences that can no longer be ignored. Central banking is now in crisis. The Federal reserve has bruised its credibility with a miscall on inflation, and it is still sitting on a massive balance sheet in a risky, bubble-ridden market largely of its own making. It will have to overdo its tapering to regain confidence. And even then, it will remain to be seen if fiscal policymakers will support it in the process. Under these circumstances, moral hazard may seem like an abstract, inconsequential issue. In fact, it has become the central problem. The effects of perverse incentives on long-term growth and development patterns could be immense. Like the spectre of inflation, they must never be ignored or underestimated. Related reading.
Date: 22 March
Time: 9am
Speakers: Mario I. Blejer and Piroska Nagy-Mohacsi
Mario I. Blejer is a former president of the Central Bank of Argentina and a former director of the Centre for Central Banking Studies at the Bank of England.
Piroska Nagy-Mohacsi is a visiting professor in practice at the London School of Economics and Political Science.
