Central banks have played their most prominent role ever in global economy since they participated in containing the devastating consequences of the financial crisis that started in 2008. If each word said by a central banker has always been important, it is today minutely ‘shelled’, from the gaze to the tone of who pronounces it, in order to determine what the institution’s intents are.
Previously a guide, the central banker is now a decision-maker. On the likely rate hike decided by Fed Chair Janet Yellen depends the future of global economy, particularly emerging markets’. On the possible extended QE decided by ECB President Mario Draghi depends the economic future of the euro area, both the most advanced currency union and the symbol of maladjustment to political and people realities.
Torn between endless low inflation, unrecognized currency war and the need to remind that monetary policy can’t, alone, generate economic growth and jobs, central bankers are simultaneously unelected most powerful, most misunderstood and also sometimes most baffling people in the world.