Central Bank Autonomy Is Under Attack

Monetary policy can provide a bedrock of economic certainty -- but only if central bankers can discharge their duties without fear of government interference.

Time for a declaration of independence.

PHOTOGRAPHER: MARIA CHRISTODOULOU/AFP VIA GETTY IMAGES

Current events in Cyprus and Turkey hammer home a point that former Federal Reserve Chairman Alan Greenspan made in the memoirs he published in September 2007. Central bank independence, Greenspan said, is "not set in stone." Left unsaid was the fact that it should be. Against an ever-shifting political backdrop, monetary policy can provide a bedrock of economic certainty -- but only if central bankers can discharge their duties without fear of government interference.

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