32 Central banks can therefore accumulate reserves to hedge the public sector balance sheet against adverse outcomes, driven by factors that include unsustainable fiscal policies. Furthermore, central bank independence provides a technology for protecting these assets from spending demands.
Sir John Shaw Rennie 9 , Governor of Mauritius, at the inauguration of the Bank, and addressing its Governor, remarked that his wife had drawn his attention to a dictionary definition of governor: “an automatic attachment to an engine for controlling the speed, usually by regulating the supply of working fluid.” Happily not a phrase appearing on my job description!