financial imbalances

Claire Jones

Central banks’ intellectual frameworks are a little dowdy and need a bit of a freshening up, says Jaime Caruana, the secretary general of the Bank for International Settlements.

In a speech published on the BIS’s website on Thursday, which was delivered in South Africa last week, Caruana claims the crisis opened up a gap between “the theory and practice of central banking” which has left the profession requiring an “intellectual makeover”.

Nowhere was this more apparent, he says, than with monetary policy. Read more