Analytics
    Print Close
Why Central Bank Independence Could Become a Thing of the Past
Declining credibility and the rise of populism pose significant challenges.

 

Key Insights

 

  • Central banks across the world are facing challenges to their independence amid
    declining credibility and attacks from politicians.

 

  • Economically, the likely impact of reduced central bank independence is higher
    inflation and a more volatile business cycle.

 

  • The similarities with the economic conditions of the 1970s suggest that
    stagflation trades, such as gold and inflation-linked securities, could be effective.

 


Read the full report

Why Central Bank Independence Could Become a Thing of the Past

 

 

T. Rowe Price, Insights on Macroeconomics, September 2019-Nikolaj Schmidt, Chief International Economist

02.10.2019