That end is defined in article 5 of the National Bank Act as pursuing a monetary policy serving the interests of the country as a whole and ensuring price stability, while taking due account of the development of the economy. Article 6 is the basis of our independence. Under this clause, we are explicitly prohibited from seeking or accepting instructions from Federal authorities. In other words, we are obliged to make our own decisions. 1  For instance, a very well-known US congressman – possibly a future presidential candidate – has gone as far as calling for the Fed to be abolished. Cf. Paul, Ron (2009), End the Fed, New York: Hachette Book Group. BIS central bankers’ speeches  1  There are good reasons why Swiss legislators have established our independence so strongly. Theory and practical experience throughout the world are clear on this point. The more independent a central bank, the better it fulfils its mandate. It has much better chances of ensuring price stability and thereby making a contribution to sustained economic developments than a central bank that is not independent.2 I am not planning to overwhelm you now by citing all the relevant literature.3 However, the most important reasons put forward by academic writers on the subject include differences in the legitimation, time horizon and incentives of politicians and central bankers. While politicians are legitimated through popular election, central bankers legitimate themselves by carrying out their legal mandate to the best of their ability.
Before rejoining the IMF, where he had previously worked for 15 years in the European Department and the Monetary and Financial Systems Department, he was the Director for Financial Stability, as well as for Supervision Policy within the DNB, position that enabled the creation of the respective departments within the National Bank of Romania. Last, but not least, he shares his financial supervision knowledge as a Professor at Nyenrode Business University. It is my pleasure to offer the floor to Mr. Hilbers and thank him once again for being here with us today. 2/3  BIS - Central bankers' speeches  His remarks will be followed by a recorded message from his World Bank counterpart, Executive Director Koen Davidse. Mr Davidse is a more recent, but also very good, friend of our country. With extensive knowledge in development policies, having worked with the United Nations and the Ministry of Foreign Affairs of the Netherlands, Mr. Davidse has constantly supported the efforts for structural reforms and strengthening Romania's institutions in. Unfortunately, he couldn't join us physically today, but he is with us virtually. Thank you! 3/3  BIS - Central bankers' speeches