Central banking may not be the most glamorous profession, but according to departing Swiss National Bank Chairman Thomas Jordan, being prepared to be labeled as boring could be the key to success. In a recent interview, Jordan defended his record at the central bank, emphasizing the importance of focusing on the job at hand and fulfilling the mandate, rather than seeking attention through other activities. While critics have accused Jordan of being inflexible and overly committed to price stability, he remains steadfast in his approach.
One of the central tenets of Jordan’s tenure has been maintaining price stability, with a target inflation rate of 0-2%. Despite facing numerous crises over the past 12 years, including the recent implosion of Credit Suisse, Jordan believes that sticking to this mantra has been crucial. By preventing deflation and effectively combating inflation in the aftermath of the Covid pandemic, the central bank has been able to achieve its goals and keep Swiss inflation on target.
According to Jordan, central bankers must prioritize their responsibilities and avoid getting distracted by other pursuits. While being perceived as boring or stubborn may not be thrilling, it is far preferable to pursuing the wrong monetary policy. As Jordan prepares to step down from his position, he remains focused on the task at hand and the importance of fulfilling the central bank’s mandate.
As Jordan contemplates his next career move, he remains undecided about his future path. While he rules out a potential political role, the departing chairman recognizes that the world of central banking is ever-evolving and filled with challenges. Despite the criticisms and challenges he has faced, Jordan’s commitment to maintaining price stability and fulfilling the central bank’s mandate has been unwavering.
Central banking is far from boring when approached with dedication and a clear focus on the mandate at hand. While the label of “boring” may be attached to the profession, it is clear that central bankers like Thomas Jordan play a critical role in maintaining stability and steering economies through crises. As Jordan’s tenure comes to an end, his unwavering commitment to price stability serves as a testament to the importance of staying true to the core principles of central banking.