If you feel sorry for Ben Bernanke (chairman of the US Federal Reserve), who is fast running out of options to save his country’s economy, spare a thought for Jihad al-Wazir. Despite being governor of the Palestinian Monetary Authority, al-Wazir has no control over interest rates or money supply.
In an interview with beyond brics in New York this week, we wondered what a central banker does without those fundamental powers?
Al-Wazir had an well-worn answer: “When people think of a central bank, they think that the only tool you have is interests rates, but really you have three.”
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