In the aftermath of the global financial crisis, central banks around the world have become the largest, most powerful, and exceedingly profitable financial institutions. And they can’t wait to get out of this predicament. Central banks are not profit centers. Their main task is to keep inflation on target, while making sure that economic growth is close to its potential.
In this essay I argue that in 2011, the National Bank of Ukraine (NBU), the country’s central bank, made money so scarce that inflation ended up well below the target and the country’s fragile economic recovery turned into a massive …read more
Source: The Huffington Post
