Central banking often carries the reputation of being a dull and uninteresting field. However, departing Swiss National Bank Chairman Thomas Jordan argues that the key to success in this role may actually lie in being perceived as boring. Despite criticism for his handling of crises and focus on price stability, Jordan believes that staying true to the central bank’s mandate is crucial.
Jordan emphasizes that central bankers should prioritize fulfilling their mandates over seeking attention or engaging in other activities. By maintaining a focus on their responsibilities, these individuals can successfully navigate challenging economic situations. Jordan’s commitment to price stability, defined as inflation between 0-2%, has been instrumental in guiding the Swiss National Bank through periods of turmoil.
While criticism has been directed at Jordan for his perceived inflexibility and failure to intervene in certain situations, he maintains that his decisions were geared towards safeguarding the bank’s primary objectives. Despite facing challenges such as Credit Suisse’s collapse, Jordan believes that prioritizing stability and consistency ultimately benefits the economy in the long term.
The Swiss National Bank’s efforts to prevent deflation and combat inflation during the COVID-19 pandemic reflect a commitment to maintaining economic stability. Jordan’s tenure has been marked by navigating multiple crises while upholding the central bank’s mandate. By focusing on price stability, the bank has achieved its inflation targets over the past year.
The perception of central banking as a boring and uneventful field may actually be a strength rather than a weakness. Central bankers like Thomas Jordan demonstrate that prioritizing stability, consistency, and adherence to their mandates are crucial elements of successful leadership in this vital sector. While the role may not always be glamorous, its impact on the economy is far-reaching and essential for maintaining financial stability.