Central banking, often stereotyped as a dull and monotonous field, has recently sparked a debate on its excitement factor. Departing Swiss National Bank Chairman Thomas Jordan challenges this perception, emphasizing that the role of a central banker is far from boring. In an interview with the Bieler Tagblatt, Jordan defended his tenure at the central bank, shedding light on his approach towards steering the institution through various crises over the past 12 years.
Despite criticisms of being inflexible and overly focused on price stability, Jordan embraces the notion of being labeled as boring. He argues that prioritizing the fulfillment of the central bank’s mandate over seeking attention or engaging in other activities is vital for success. Referring to the importance of maintaining the right monetary policy, Jordan asserts that being perceived as dull or stubborn is preferable to making policy errors that could have detrimental effects on the economy.
Central to Jordan’s leadership style is a commitment to maintaining price stability, as defined by the central bank’s target inflation rate of 0-2%. He highlights the central bank’s successes in averting deflation and combating inflation following the onset of the Covid-19 pandemic. By adhering to a price stability mandate, the Swiss National Bank has been able to keep inflation in check and ensure economic stability, despite facing numerous challenges.
As Thomas Jordan prepares to step down from his position, the question of his next career move remains unanswered. While he has ruled out entering politics, Jordan’s legacy at the Swiss National Bank raises important questions about the role of central bankers in today’s complex economic landscape. By redefining the perception of central banking as an engaging and impactful field, Jordan leaves behind a legacy that challenges traditional stereotypes and emphasizes the importance of steady leadership in times of crisis.
The misconception of central banking as a dull and uneventful profession is debunked by Thomas Jordan’s reflections on his tenure at the Swiss National Bank. By prioritizing the institution’s mandate of ensuring price stability and navigating economic challenges with resilience, Jordan demonstrates the critical role of central bankers in shaping monetary policy and safeguarding financial stability. As the central banking landscape continues to evolve, embracing the label of being “boring” may indeed be the key to success in an ever-changing global economy.
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