Monetary Law Blog

BIS Report on Issues in the Governance of Central Banks

This report by the Central Bank Governance Group presents information intended to help decision-makers set up governance arrangements that are most suitable for their own circumstances. The report draws on a large body of information on the design and operation of central banks that the BIS has brought together since it initiated work on central bank governance in the early 1990s.

The need to deal with chronic inflation in the 1970s and 1980s prompted the identification of price stability as a formal central bank objective and led to a significant reworking of governance arrangements. The current global financial crisis could have equally important implications for central banks, particularly with respect to their role in fostering financial stability.

Although it is too early to know how central banking will change as a result, the report takes an important first step in identifying governance questions that the crisis poses.

Source: http://www.bis.org/publ/othp04.htm

The world after the crisis: Designing the future. A monetary order for the XXI century

Speech by Lorenzo Bini Smaghi, Member of the Executive Board of the ECB Aspen Institute Italia, World Economy Conference (Villa Madama, Rome, 23 June 2009)

US Financial Regulatory Reform

US House Financial Services Committee Chairman Barney Frank (D-MA) has announced the committee’s tentative schedule for the consideration of the Obama Administration’s plan for sweeping financial regulatory reform.

Chairman Frank is also working to reschedule the postponed hearing with Secretary Geithner, and he noted that additional hearings and committee meetings will be scheduled in July.

The tentative committee schedule includes 'Domestic Monetary Policy subcommittee hearing on the role of the Federal Reserve' (July 9), and 'Semi-Annual Report of the Federal Reserve on Monetary Policy' (July 21).

Beyond the financial crisis: Some issues on the future of central banking

Speech by José Manuel González-Páramo, Member of the Executive Board of the ECB at the Inaugural Conference of “Cátedra Fundación Ramón Areces de Distribución Comercial” at University of Oviedo (Oviedo, 19 June 2009)

US House Subcommittee to Hold Hearing on Federal Reserve’s Role and Independence in Monetary Policy

U.S. Representative Melvin L. Watt (D-NC), Chairman of the Subcommittee on Domestic Monetary Policy and Technology, yesterday announced a hearing to consider changes recently proposed by the Administration to the Federal Reserve’s mission, specifically expanding the Federal Reserve’s role to that of systemic risk regulator, and what effect these proposed changes could have on the Fed’s traditional independent role in setting and carrying out monetary policy.