Central banking is often perceived as a dull and uneventful field. However, departing Swiss National Bank Chairman Thomas Jordan challenges this notion by stating that being prepared to be labeled as boring may actually be key to success. Despite criticisms of inflexibility and a strict focus on price stability, Jordan defends his record of guiding the central bank through various crises over the past 12 years.
In an interview with the Bieler Tagblatt, Jordan emphasizes the necessity for central bankers to concentrate on their core responsibilities and mandates. Rather than seeking attention through other activities, he believes that fulfilling the mandate of ensuring price stability should be the primary focus. Jordan’s perspective highlights the idea that staying true to the core mission of a central bank, even if it comes across as boring, can ultimately lead to success.
Jordan underscores the central bank’s commitment to maintaining price stability, defining it as inflation within a range of 0-2%. By adhering to this principle, the Swiss National Bank has been able to achieve its goal, with inflation levels remaining on target for the past 12 months. Jordan points out that the central bank has successfully navigated through periods of deflation and inflation, particularly in the wake of the Covid pandemic.
As Jordan prepares to step down from his role, he remains uncertain about his future career path, ruling out the possibility of pursuing a political role. Despite the challenges and criticisms faced during his tenure, Jordan’s dedication to upholding the principles of central banking and maintaining price stability shines through. His reflections shed light on the often overlooked aspect of central banking as a critical and impactful field that requires a focus on the core mission, even if it means being perceived as boring.