Raghuram Rajan has a piece in ‘Project Syndicate’ in which he echoes Paul Tucker on central bankers but stops of advising them to not to go to Davos, as Paul Tucker did. In any case, if this FT story is true, there won’t be much tears shed. How times have changed?!
An extract from Raghuram Rajan’s article on central bankers:
And, of all elites, central bankers seem to have the most strikes against them. Most have doctorates and speak in a language that nobody else understands. The quintessential “citizens of nowhere,” they meet periodically behind closed doors in faraway Basel, where they discuss global financial conditions and the systemic effects of monetary policies. What they do not talk about, many believe, is Main Street, except when it factors into discussions about inflation.
No wonder there has been such a decline in public trust. It is bad enough when average citizens can scarcely understand the complicated tradeoff between inflation and unemployment. It is worse when one adds in public grievances over Wall Street bailouts and the perception that central bankers are focused on global conditions instead of domestic concerns. Yes, it is every central banker’s job to think about such things; but that job is increasingly being met with suspicion by those who aren’t in the room. [Link]
Overall, the piece tries to cover too many grounds and offers too little by way of answers. His piece, however, triggered my interest in the inequality topic and I re-hashed some of the recent pieces I had read in the last twelve months or little longer. The links are here:
I had blogged on the topic here and I think that remains an answer!