The case for central bank independence is coming under increasing assault as a result of crisis-spawned developments. Central banks must advocate for independence not with weighty arguments but through more vigorous and voluntary efforts to be transparent, responsive, and accountable. This list of issues addressed here is by no means exhaustive, nor have all the nuances been considered.
Many countries felt impelled to rescue some of these institutions with huge sums of taxpayers’ money in order to avoid a systemic collapse. The problem of banks that are “too big to fail” and the moral hazard that this entails are to be remedied by establishing a specific supervisory framework for SIFIs.