In a recent interview with the Bieler Tagblatt, departing Swiss National Bank Chairman Thomas Jordan shed light on the oft-misunderstood world of central banking. Contrary to popular belief, Jordan argues that central banking is far from boring. Instead, he suggests that being prepared to carry the label of “boring” may be the key to success in this field. Jordan defended his record of steering the central bank through numerous crises over the past 12 years, emphasizing the importance of focusing on the job at hand and fulfilling the central bank’s mandate.
One of the criticisms leveled against Jordan is his unwavering commitment to price stability and his reluctance to deviate from this goal. Despite facing backlash for not doing more to help Credit Suisse before its implosion last year, Jordan remains steadfast in his belief that maintaining price stability is paramount. He defines price stability as achieving inflation of 0-2%, a target that the Swiss National Bank has successfully met over the past year.
The Balance of Deflation and Inflation
Jordan highlights the central bank’s efforts in preventing deflation on several occasions, as well as successfully combating inflation following the onset of the COVID-19 pandemic. He emphasizes the importance of striking a balance between these two economic challenges, showcasing the central bank’s resilience and adaptability in the face of uncertainty. Despite the criticism and challenges faced, Jordan remains firm in his commitment to fulfilling the central bank’s mandate and steering the Swiss economy towards stability.
As Thomas Jordan prepares to step down from his role as Chairman of the Swiss National Bank, he reflects on his tenure with a sense of pride and accomplishment. While he has not yet decided on his next career move, Jordan rules out the possibility of pursuing a political role in the future. Instead, he remains focused on the task at hand and ensuring that the central bank continues to uphold its mandate of maintaining price stability. Jordan’s parting words serve as a reminder of the dedication and resilience required to navigate the complex world of central banking.