Conflicted central banker

Charles, as always, raises excellent points in this interview. What particularly resonated with me was his notion of the conflicted central banker, which must meet the seemingly orthogonal objectives of keeping inflation low and ensuring the market for government debt does not collapse. One could also add maintaining financial stability.

That is most likely an impossible task and one consequence of imbuing the central banks with so many objectives. Charles and others have warned that this makes them increasingly political, which, of course, undermines their credibility and hence makes future stress and even crisis more likely.