What is it that central bankers do when they do “central banking”? In this essay, I argue that central banking is as central banking does, that the episteme of central banking is thus a contested and evolutionary set of functions within a nimble and flexible institutional framework. This insight is important as it destabilizes the notion that central banking is the technocratic work of experts who agree on the appropriate course of policy and must navigate that policy through the headwinds of small-minded politicians. There is a great deal of expert consensus that attaches to the work of central banking, but also a great deal of value judgment. Recognizing that central bankers perform both roles, technical and political, helps us understand the enormous power wielded by these institutions and the most promising paths of reform to enhance their efficacy, legitimacy, and accountability.
