Abstract

It is a pleasure to be invited by the Legal Department and the Institute of the International Monetary Fund to address such a distinguished group of central bank officials representing so many different countries. As Director of Research at the Federal Reserve Bank of New York, I am often asked to comment on issues pertaining to monetary policy. One of the issues that fascinates me the most is how a central bank can function as an independent institution while maintaining the accountability to the public necessary in a representative democracy.