You are here

Central banks fear they might not rule the world forever

Section: Daily Dispatches

All Around the World, Central Bank Independence Is Under Threat

Anirban Nag, Rene Vollgraaff, and Walter Brandimarte
Bloomberg News
Thursday, December 6, 2018

South Africa's top monetary policy maker spoke for his peers around the world last week when he declared that threats to central-bank independence from politicians are no longer just an "emerging-market phenomenon."

The U.S. Federal Reserve, Bank of England, and European Central Bank are feeling the heat from elected lawmakers, while India and Turkey are among others under pressure.

"There's concern among the central-banking community that the independence of central banks could be under threat," South African Reserve Bank Governor Lesetja Kganyago said.

... Dispatch continues below ...


We Are Amid the Biggest Financial Bubble in History;
When It Bursts, Bullion Owned in the Safest Way Will Protect Wealth

With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong.

Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed.

Crucial guides to storage in Singapore and Switzerland can be read here:

GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals.

Email the GoldCore team at or call our trading desk:

UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010.

Visit us at:

The threat could have real economic consequences: A study in the 1990s by economists Alberto Alesina and Lawrence Summers concluded that independent central banks were better at controlling inflation without damaging output or employment.

Financial markets risk being unnerved if investors suspect central banks will bow to lobbying and take their eye off inflation. That could push up long-term interest rates. Conversely, officials might feel the need to stamp their authority by raising short-term borrowing costs higher than they would otherwise.

Here's a rundown of the monetary institutions getting unwanted attention from politicians. ...

... For the remainder of the report:

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: