SAFE Policy Lecture - Rosa Maria Lastra (Queen Mary University)
Title: Populism and Central Bank Independence
Speaker: Rosa María Lastra (Queen Mary University)
Moderator: Matthias Goldmann (SAFE and Goethe University)
The consensus that surrounded the granting of central bank independence in the pursuit of a price stability oriented monetary policy has been challenged in the aftermath of the global financial crisis, in the light of the rise of populism on the one hand and the expanded mandates of central banks on the other hand. After considering the economic case for independence and the three "D"s (distributional, directional and duration effects), the presentation will examine three different dimensions in the debate of how the rise in populism - or simply general discontent with the status quo - affects central bank independence. The presenter will aim to respond to the question of how to interpret the legality of central bank mandates, and whether or not, central banks have exceeded their powers. The presenter will also consider accountability and, in particular, the judicial review of central bank actions and decisions. It is important to have in place adequate mechanisms to "guard the guardians" of monetary and financial stability. “Populism and Central Bank Independence”, a research paper by Rosa Maria Lastra and Charles Goodhart, provides the background for this lecture.
Rosa María Lastra is Professor in International Financial and Monetary Law at the Centre for Commercial Law Studies, Queen Mary University of London. She has served as a consultant to the IMF, the ECB, the World Bank and the UK House of Lords, among others. Prior to coming to London, she taught at Columbia University School of International and Public Affairs in New York and worked at the International Monetary Fund in Washington DC. She is a member of the Monetary Committee of the International Law Association, the European Shadow Financial Regulatory Committee and the Financial Markets Group of the London School of Economics and Political Science, and the Monetary Panel and the Banking Union (Resolution) Panel of the European Parliament. She studied at Valladolid University, Harvard Law School and London School of Economics. She has written extensively in her fields of expertise with several authored and edited books including Sovereign Debt Management, International Financial and Monetary Law, Cross-Border Bank Insolvency, Central Banking and Banking Regulation, and numerous articles.