Jaime Caruana

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.