Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State

Unelected Power is a book that discusses how central banks and independent regulators can support constitutional democracy by acting as stewards of the common good. It blends economics, political theory, and public law to explore the necessary conditions for delegated but politically insulated power to be legitimate.

Format: Paperback / softback
Length: 664 pages
Publication date: 10 September 2019
Publisher: Princeton University Press

Unelected Power: How Central Banks and Independent Regulators Can Support Rather Than Challenge Constitutional Democracy

Unelected Power is a groundbreaking book that delves into the principles essential for ensuring that central bankers and other independent regulators serve as stewards of the common good. Combining economics, political theory, and public law, this critically important work explores the necessary conditions for delegated but politically insulated power to be legitimate in the eyes of constitutional democracy and the rule of law. It sheds light on why the solution must align with the structure of real-world government and why technocrats and their political overseers require incentives to make the system work as intended.

In a new preface by Paul Tucker, Unelected Power elucidates how the regulatory state can function as a separate branch of government, free to steer its course without being bound by constitutional constraints. It also provides insights into how central bankers can emulate the best practices of judicial self-restraint, promoting accountability and transparency in their actions.

The book's central argument is that unelected power, when properly managed and overseen, can be a powerful tool for promoting economic stability and social welfare. It emphasizes the importance of establishing clear rules and regulations, as well as mechanisms for monitoring and enforcing them, to prevent abuse of power. By leveraging their expertise and independence, central bankers and independent regulators can play a crucial role in shaping the economic and political landscape, ensuring that the interests of society are safeguarded.

Furthermore, Unelected Power raises important questions about the role of democracy in regulating the financial sector. It challenges the notion that democracy is solely a matter of elections and popular participation, arguing that it extends beyond the ballot box. It suggests that democratic legitimacy can be achieved through transparent decision-making processes, effective communication, and the ability of citizens to hold their government accountable.

In conclusion, Unelected Power is a must-read for anyone interested in understanding the dynamics of power and governance in the modern world. It offers a comprehensive and insightful analysis of the challenges and opportunities facing central bankers and independent regulators, and provides valuable insights into the principles needed to ensure that they act as stewards of the common good. By promoting transparency, accountability, and democratic legitimacy, these institutions can play a vital role in shaping a more equitable and prosperous society.

Weight: 1014g
Dimension: 155 x 234 x 45 (mm)
ISBN-13: 9780691196305