Bri, Caruana: “Central banks stand ready to ensure the functioning of markets” – The Republic

Rome – The central banks will intervene in a timely manner to prevent the consequences of the referendum on Brexit overwhelm the markets and the economy, but it is necessary that each must do its part, beginning even by government authorities of various countries, to avoid attributing to financial institutions responsibilities and tasks that are not theirs, uploading their actions excessive expectations. It ‘was the thrust of the Director General of the Bank for International Settlements (BIS) Jaime Caruana, General Meeting of the Bank in Basel.

“The central banks have already made it clear they are monitoring the situation closely and are ready to take the necessary measures to ensure the orderly functioning of markets. in the past they have shown they can act quickly and have access to all the tools to do it now, “assures Caruana, the premise that” it is likely that there will be a period of uncertainty and adjustment “due to Brexit.

the meeting, attended by the governors of almost all countries of the world, falls not surprisingly Brexit aftermath of the referendum. However, he explains, “the burden that has been placed against the central banks from the crisis onwards is generating growing tensions. The markets and the public in general have become more and more dependent on the central bank and have always placed greater expectations on what they can do. I want have become more and more numerous: restoring full employment, to ensure sustained growth, maintain price stability and ensure an unassailable “financial system. In short, it is a “mandate too broad, that central banks themselves are not able to fulfill. The extraordinary measures taken to stimulate the world economy in some cases have challenged the limits within which it is legitimate to operate the institution. the dividing line between monetary and budgetary measures become increasingly indistinct. “

Hence the appeal of Caruana and Bri:” central banks work best if they can focus on your area of ​​expertise and excellence: the achievement of monetary and financial stability, and this requires “a broader institutional framework, clearly distinguishing between the responsibilities of the central banks and those of other authorities.”

Topics:

States

bank of International Settlements

Starring:

Jaime Caruana