, Columnist
Central Banks Require Accountability
A power struggle at the Bank of Italy shows the importance of transparency.
Listen up, Ignazio.
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The appointment of Italy’s new central bank governor has turned into a depressing power struggle. But for all the elements that make this a uniquely Italian affair, it also raises broader questions about how a country should balance independence and accountability in the event of a possible central bank failure.
Matteo Renzi, the former prime minister and leader of the Democratic Party, has launched an attack on Ignazio Visco, the current holder of the job, who appeared on course to serve a second term. Last week, his party passed a parliamentary motion asking for an appointment that could provide “new trust” in the institution after a string of banking troubles.