In this regard, each LCBO will be expected to develop and present to the Federal Reserve a plan that identifies where improvements to the organization’s compensation arrangements and related practices are needed to bring them in line with the principles embodied in the guidance.
Instead, Ricardo reasoned, central banks must be governed by individuals who should be “entirely independent” of the government, and who “should never, on any pretence, lend money to the Government, nor be in the slightest degree under its control or influence”. Clearly, Ricardo’s original ideas are still valid today, for most of the world’s major central banks enjoy a substantial degree of independence.