Grossman Argues for Diversity at Central Banks

Professor of Economics Richard Grossman is the author of an op-ed titled, “The Monetary Cosmopolitans,” published March 27 on Project Syndicate, a website that publishes commentary “by global leaders and thinkers.” Grossman expresses support for a new trend toward countries appointing foreigners, and those with considerable foreign experience, to what is widely considered a country’s second most important post: that of the head of the central bank.

“This represents a major departure from the tradition of filling central banks’ top leadership positions with people who have spent most of their careers there—a tradition that, over time, allowed central banks to be taken over by ‘groupthink.’ With the entrenchment of a particular ideology or mode of thinking, monetary policymakers increasingly missed—by choice or inertia—opportunities to change, reinvigorate, and improve the running of these vital institutions.”

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