The Centre for International Governance Innovation (CIGI) and the Institute for New Economic Thinking (INET) are pleased to announce support for a major new study on the reform of central banks in light of the financial crisis of 2008.

The two-year project, “Transforming Central Banking,” at the Washington-based Peterson Institute for International Economics, is receiving CDN $325,000.

Adam S. Posen, president of PIIE and a worldwide-renowned scholar in the field, will lead the project with research support from economists Tomas Hellebrandt and Kenneth Kuttner. Posen is a former member of the Bank of England’s Monetary Policy Committee. He has worked as an adviser to the US Congressional Budget Office and consulted for the Federal Reserve, European Central Bank, IMF, and other central banks. He is the author or co-author of six books, and writes regularly for the Financial Times.

“The world’s major central banks did not foresee the 2008 crisis, have not responded with sufficient aggressiveness to the mounting costs of unemployment and financial dysfunction resulting from the crisis, and have barely changed their internal practices as a result of their poor performance during and since the crisis,” says Posen. “The governance of central banks is demonstrably deficient and structural reform is required.”

“The research that Adam and his colleagues at the Peterson Institute will undertake over the next two years is expected to bridge the widening gap between scholarly research and practice in the field of central banking,” says Domenico Lombardi, Director of CIGI’s Global Economy Program. “Their findings will surely have valuable spillovers in terms of the research we carry out in our Program.”

The aim of the project, within CIGI’s Global Economy Program research theme on central banking and international financial regulation, is to develop new institutional arrangements that will enhance central banks’ accountability. Research outputs will include advocacy articles, policy briefs and scholarly papers that will form the basis of a book on priorities for monetary reform.

Kevin Dias, Communications Specialist, CIGI
Tel: 519.885.2444, ext. 7238, Email: [email protected] 

The Centre for International Governance Innovation (CIGI) is an independent, non-partisan think tank on international governance. Led by experienced practitioners and distinguished academics, CIGI supports research, forms networks, advances policy debate and generates ideas for multilateral governance improvements. Conducting an active agenda of research, events and publications, CIGI’s interdisciplinary work includes collaboration with policy, business and academic communities around the world. CIGI was founded in 2001 by Jim Balsillie, then co-CEO of Research In Motion (BlackBerry), and collaborates with and gratefully acknowledges support from a number of strategic partners, in particular the Government of Canada and the Government of Ontario. For more information, please visit

The Institute for New Economic Thinking (INET) was created to broaden and accelerate the development of new economic thinking that can lead to solutions for the great challenges of the 21st century. The havoc wrought by our recent global financial crisis has demonstrated the deficiencies in our current economic theories and shown the need for new economic thinking. INET is supporting this fundamental shift in economic thinking through research funding, community building, and spreading the word about the need for change. We already are a global community of thousands of new economic thinkers, ranging from Nobel Prize winning economists to teachers and students who have emerged out from the shadows of prevailing economic thought, attracted by the promise of a robust economic discourse. Our mission is to nurture a global community of next-generation economic leaders, to provoke new economic thinking, and to inspire the economics profession to engage the challenges of the 21st century.   


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