Central bankers talk the talk, but fail to walk the walk
- Martin Enlund
- 4/8/24
Trust is a topic increasingly being discussed. Whether it is trust in each other, in the media, or in our authorities, trust is generally seen as a cornerstone of a strong and well-functioning society. The topic was also the theme of the World Economic Forum at its annual meeting in Davos earlier this year. Even among central bank economists, the subject is becoming more prevalent. Last year, Agustín Carstens, head of the BIS (“the central bank of central banks”), said that “[w]ith trust, the public will be more willing to accept actions that involve short-term costs in exchange for long-term benefits” and that “trust is vital for policy effectiveness”.