Claudia Buch: Central bank independence and the mandate - evolving views

Remarks by Prof Claudia Buch, Vice-President of the Deutsche Bundesbank, at the International Symposium on Central Bank Independence, panel on "Central bank independence and the mandate - evolving views", organised by Sveriges Riksbank, Stockholm, 10 January 2023.

Central bank speech  | 
12 January 2023

Dear Ladies and Gentlemen,

It is a privilege and honour for me to speak here today on the occasion of the farewell of Stefan Ingves and to participate in this distinguished panel. Governor Ingves was one of my first points of contact when I joined the European Systemic Risk Board (ESRB) more than a decade ago. He has been a leading figure in the ESRB from the beginning and thus, one can argue, he is one of the founding fathers of macroprudential policy coordination in Europe. Over the years, I have learned a lot from him: the relevance of financial stability for the conduct of monetary policy, the need to act in a timely manner as necessary, and the importance of clear communication.

All this is more important than ever at the current juncture, and I would like to make the following points today:

  1. During the past decade, central banks have enjoyed a "capital of inattention" when it comes to their core mandates. With inflation being low and a stable financial system, the public could pay limited attention to price and financial stability – and entrust technocrats in central banks with the details of the actual conduct of these policies.