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The Associated Press quoted Mr. Shirakawa as saying that each country should manage monetary policy independently.
The finance industry has been cheered by a proposal currently being debated in parliament that the central bank be split off from the government and manage monetary policy on its own.But much more remains to be done.
What Waldman is now saying is that in the future the Fed will manage monetary policy by varying the interest rate it pays on reserves rather than the size of the conventionally measured monetary base.
In general, theorists of the political business cycle believe that democratic politicians will manage monetary and fiscal policy less responsibly than the nondemocratic leaders or politicians in the regimes with less political competition.
"We are unabashed technocrats, seeking to solve an unabashedly technical problem: how do we manage monetary policy so as to ensure lower unemployment and maintain inflation at an appropriate rate?" he said.
The Federal Reserve Accountability Act strikes the right balance between protecting taxpayer dollars and respecting the central bank's responsibility to manage monetary policy.
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"Economies perform better when they have managed monetary policies," the Bank of England's chief cashier, Chris Salmon, said at an event to discuss Bitcoin last week.
In May, the inflation rate was 3.6percentt, matching its record high for the period that the bank has managed monetary policy for the euro zone.
"While the economy is picking up, foreign exchange movements have been delicate, and I hope the B.O.J. manages monetary policy with this in mind," Heizo Takenaka, the economics minister, told reporters today.
Running up their balance sheet and then running it down is not an efficient or productive way of managing monetary policy.
Whether World Bank President Robert Zoellick's suggestion in his recent article in the Financial Times to use gold as "an international reference point" when managing monetary policy is actually adopted, it is an important first sign of movement toward currency stability.
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