ABSTRACT
The aim of this chapter is to tease out some of the most interesting nuances that surround the work of central banks from a Public Value (PV) perspective. The chapter begins with a discussion of the modes of value creation employed by central bankers as non-traditional managers (NTMs), with regard to their two main PV roles in monetary policy and financial supervision. This sets the tone for a treatment of central bank independence (CBI) in terms of the politics-administration dichotomy and public value in politics. From this, there emerges a PV-oriented discussion of the final arbiters of value, and of the unique positioning of central banks in monetary policy decisions as opposed to elected government. The PV framework of the strategic triangle is applied to these considerations, before the chapter delves into two important and nuanced aspects of central bank value creation: the ascription of value to what citizens value (adjusting the price of money); and the use of rhetoric by central bankers to shape the expectations of the public (Fed commentary). The conclusions of the chapter are that central banks offer exceptional insights into public value creation due to their unique positioning within the architecture of public administration.
