, Columnist
Let's Not Return to the Bad Old Days of Central Bank Secrecy
Certainly there are downsides to communicating lots. But we know too well the harm of strategic leaks.
If these walls could talk...
Photographer: Stefan Wermuth/BloombergCentral banks should be less transparent.
It's an idea worth considering, even if flawed. One important byproduct of the 2007-2009 disaster was greater scrutiny of monetary policy and increased pressure on practitioners to explain what they were doing. If a government agency is going to engage in unorthodox activities like buying government bonds, officials better be prepared to present their reasons.