Daniel K. Tarullo, a former member of the Board of Governors of the United States Federal Reserve, draws two sharp and sound, yet unsurprising, conclusions from his eight-year (2009-2017) service:
“The substantive point is that we do not, at present, have a theory of inflation dynamics that works sufficiently well to be of use for the business of real-time monetary policy-making. The sociological point is that many (though certainly not all) good monetary policymakers who were formally trained as such have an almost instinctual attachment to some of those problematic concepts and hard-to-estimate variables… The macroeconomists [on the FOMC] seemed to display an almost paradoxical coincidence of intellectual doubt and continued affirmation of the utility of some unobservables.”
An open-access source: Tarullo, Daniel K. 2017. “Monetary policy without a working theory of inflation.”
> For critical accounts on the Central Banks’ politics and policies see:
— Adolph, Christopher. 2013. Bankers, Bureaucrats, and Central Bank Politics: The Myth of Neutrality. Cambridge University Press.
— Epstein, Gerald. 2019. The Political Economy of Central Banking: Contested Control and the Power of Finance. Edward Elgar.
— Hancké, Bob. 2013. Unions, Central Banks, and EMU: Labour Market Institutions and Monetary Integration in Europe. Oxford University Press.
— Maman, Daniel and Zeev Rosenhek. 2011. The Israeli Central Bank: Political Economy, Global Logics and Local Actors. Routledge.
— Tognato, Carlo. 2012. Central Bank Independence: Cultural Codes and Symbolic Performance. Palgrave.