Importance of understanding legal aspects of central banks: Case of appointment at Reserve Bank of New Zealand…

Mostly Economics

The role of economics and law especially in central banking is becoming an increasingly an important topic. But as economic students, we hardly study law and whatever little is mostly for contracts etc.

Given how central banks are basically a legal entity and what is broadly does is defined under law, there should be much more attention on central bank act, its governance and highly crucial appointment rules.  Things like appointment rules immediately raise the question of how and why central bank statutes differ across countries? The answers lie in political economy and other aspects which we just miss.

Croaking Cassandra blog has been writing on how the appointments of chief of New Zealand are not as per law. The crux of the matter is the currenct Gpvernor term is getting over and NZ is facing elections. The Government has decided to appoint an interim Governor and appoint a full-term one…

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About Jim Rose

Utopia - you are standing in it promotes a classical liberal view of the world and champion the mass flourishing of humanity through capitalism and the rule of law. The origin of the blog is explained in the first blog post at

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