Is central banking truly as boring as some may think? Departing Swiss National Bank Chairman Thomas Jordan doesn’t seem to think so. In a recent interview, Jordan defended his tenure at the central bank, emphasizing the importance of staying focused on the task at hand and fulfilling the mandate of the institution. He believes that being perceived as boring or stubborn is a small price to pay for ensuring that the right monetary policies are being pursued.
During his 12 years as chairman, Jordan has guided the Swiss National Bank through numerous crises, maintaining a steadfast commitment to price stability. While some have criticized him for being inflexible, Jordan stands by his approach, pointing to the success of keeping inflation within the target range of 0-2%. He highlights the central bank’s efforts to prevent deflation and combat inflation in the wake of the Covid pandemic as examples of effective policy implementation.
Focusing on the Job
According to Jordan, the key to success in central banking lies in concentrating on the job at hand and not allowing oneself to be distracted by other activities. He emphasizes the importance of fulfilling the bank’s mandate and avoiding unnecessary risks that could jeopardize the stability of the financial system. By staying true to the principles of price stability, Jordan believes that central bankers can navigate even the most challenging economic conditions successfully.
As he prepares to step down from his role as chairman, Jordan is considering his next career move. While he has not yet made a decision, he has ruled out pursuing a political role in the future. Instead, he remains committed to the idea of serving in a capacity that allows him to continue contributing to the field of central banking. Jordan’s dedication to his work and his willingness to embrace the label of being boring or stubborn demonstrate his unwavering commitment to fulfilling the responsibilities of his position.
Central banking is far from boring when approached with the right mindset. Thomas Jordan’s tenure at the Swiss National Bank serves as a testament to the importance of staying focused on the task at hand and pursuing policies that prioritize stability and economic growth. By challenging the notion of boredom and embracing the label of being stubborn, central bankers can make a meaningful impact on the financial landscape and help shape a more prosperous future for all.