Let me also extend greetings from Governor Brash, and his apologies and great regrets that he is unable to be here with you. Unfortunately, he had commitments in the US this week. However, I suspect that at this moment he may be rushing back to Wellington to the defence of our rather beleaguered kiwi dollar. It is a pleasure and a privilege to have this opportunity to offer comments in response to Sir Edward's address. His subject, central bank independence, has received a good deal of airplay over the past decade or so.
Central banks are rather prone to waves of fashion that sweep around the globe periodically.
It is probably fair to say that the dominant fashions of the 1990's were central bank independence and inflation targeting. The two, of course, tend to go hand in hand. Time will tell. Sir Edward traces the path taken by the Bank of England to independence - at least instrument independence. In doing so, he raises the key issues and options we face as central bankers in thinking about the institutional structures that we can employ to best perform our roles.