Keywords

Central Bank, Monetary Policy, Currency, Credibility

Abstract

Evolving from simple entities designed to issue national currencies and manage government debt to sophisticated institutions responsible for conducting monetary policy, central banks have had a fascinating journey that has shaped the functioning of modern economies. Today, they are involved in issues outside their original roles and beyond the scope of monetary policy, which may affect credibility in the long run. This study submits that central bankers should learn to professionally resist attempts to get them to take on tasks that are outside their statutory functions. Admittedly, saying no may not be as easy as it sounds, but there is a strong need for it. Regardless of the sincerity of central banks' commitment to issues outside the reach of monetary policy, the failure that may follow will affectbtheir crdibility.

Author Bio

Dr. Yaaba is Assistant Director and Head of the Monetary Analysis Office in the Research Department, CBN. He holds a Ph.D. in Economics and has a robust academic and policy background in monetary economics, fiscal policy, international economics, and regional integration. A seasoned data scientist, he has presented at global platforms such as the World Statistical Congress and the World Economic Forum. He serves on editorial boards and is affiliated with several professional bodies, including the Nigerian Economic Society and the World Economics Association.

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Recommended Citation

Yaaba, Baba N. PhD (2025) "Crisis, Pressure, and Policy: Can Central Banks Set Boundaries?," Bullion: Vol. 49: No. 1, Article 1.
Available at: https://dc.cbn.gov.ng/bullion/vol49/iss1/1

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Crisis, Pressure, and Policy: Can Central Banks Set Boundaries?

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